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An Introduction to Forex Trading

September 12, 2013 by Reporter Leave a Comment

The Forex market has some of the highest potential for profit in the world. It’s also easily accessible – anyone can trade Forex from their laptop or smartphone.

^{Photo courtesy of Epsos.de}

But there is a steep learning curve: on average, private traders lose money for the first two years at least.

What is Forex?

Forex is short for Foreign Exchange. Forex trading is the speculative buying and selling of national currency for profit.

Since 1971 currencies have floating values, i.e. their value is relative to other currencies rather than pegged to a tangible asset – how much gold is in the central bank’s vault. This means their values go up and down, and these movements can be exploited for profit.

At its simplest, this means trading £65 for $100 and waiting until either the dollar strengthens or the pound weakens, and trading your $100 for £70 at the new rate. The trick is watching economies and predicting whether currencies will strengthen or weaken.

Currency pairs

Since currencies are all relative, every trade involves buying one currency and selling another. As such, all currencies are quoted in pairs. For example USD/GBP (US Dollars and British Sterling) and EUR/JPY (Euros and Japanese Yen). These express the value of any given currency.

The first currency in the pair is the ‘base currency’ or ‘long’, and is the currency you’re buying, and the second is the ‘quote currency’ or ‘short’, against which the base is valued, and is what you’re selling. So in the USD/GBP example, you’re buying US Dollars and selling British Sterling at a rate of £0.65 to the dollar (at the time of writing).

Forward trades

A forward trade is buying currency at a pre-agreed rate on a future date, regardless of what the rate on that day is. By speculating on the future rate, profit can be made. If the currency is worth more on the day of the trade, the buyer wins. If it’s worth less, the seller wins.

For example, I agree to buy $100 from you for £65 next Tuesday. On Tuesday the rate is £0.70 to the dollar. I can now sell my $100 that I just bought for £65 elsewhere on the market for the current rate of £70. I made a profit of £5, you made a loss of £5.

Carry trades

Carry trades are one of the most popular Forex trading strategies. In a carry trade, the trader seeks to exploit the interest difference between the two currencies in a pair (the ‘yield spread’) as well as capital accumulation.

Every currency is pegged to an interest rate set by the national central bank. At the time of writing, the Bank of England base rate is 0.5%. When buying currency, you receive interest payments, when selling, you pay interest. The first goal in a carry trade is to invest in a currency pair with a positive yield spread i.e. buy currency with a higher interest rate, and sell with a lower.

Currently the USD rate is 0.25%. So, if buying GBP/USD, you would have a positive yield of 0.25% – the difference between the two rates. If you were buying USD/GBP you would have a negative yield of 0.25% – you’re paying out more interest than you’re making.

The second goal is to buy a pair where the yield spread is set to increase. Pick a currency pair where you buy currency with an interest rise, sell an interest rate fall, or ideally both.

The third goal in a carry trade is to successfully predict a rally, so you also experience a capital gain.

For example, between 2003 and 2004, the AUD/USD currency pair offered a positive yield of 2.5%. In the same period, the value of the Australian Dollar rose 56 cents, closing at 80 cents. This represented a 42% appreciation in the currency pair, and meant that traders and hedge funds who were in this currency pair made huge capital gains, as well as profiting from the interest rate differential.

Leverage

One of the chief reasons Forex trading can be so profitable is that it’s a highly leveraged market: ratios of 100:1 are not uncommon i.e. you buy $100 for $1 of capital.

Broadly speaking, leverage is betting against future profits. In its simplest form, you borrow money to make a trade based on your prediction of how that trade will go. If it goes in your favour, you make a much higher return than if you only invest your own capital. If it goes against you, you make a much higher loss. Every transaction is amplified when leveraging.

The returns in Forex trading can be very small without leveraging. Caution should be exercised, but leveraging should be used. Set a rule for how much capital you’re willing to risk with each trade. A good rule of thumb is never to risk more than 3% on a single trade.

Forex trading is fast moving and complex. There is a steep learning curve, but the rewards can be enormous.

Penny Atkinson writes about various financial topics including saving money, debt issues and forex education. For more information about forex trading visit http://gomarketsaus.com/.

Is Your Small Business On Google+?

August 31, 2013 by Reporter Leave a Comment

The last few years have seen a trend where more and more companies like Zippy are setting up business pages on social network sites. With millions of people now signed up to these sites it makes sense to advertise your business to such a large potential customer base. If you’ve already set up a business page on Facebook and Twitter you might see little reason to join relative new boy Google+ but this would be a big mistake, for both you and your business.

Small business, Internet and Social Media

Although Google+ was only set up fully in September 2011, it is already comfortably the second biggest social network site in the world, second only to Facebook. Research by Janrain shows that, of the people using social network sites to log into other websites, 46% of people use Facebook while a surprising 34% use Google+. These figures are made even more impressive when you consider that Yahoo is the third most popular site with just 7% of social logins while Twitter manages just 6%.

At the start of 2013 Google+ had over 500 million registered users and 343 million active users. Searchmetrics also estimates that sharing on Google+ is actually increasing more rapidly then even Facebook. Figures show that people using Facebook are sharing on average 10% more each month, while people using Google+ are sharing 19% more each month.

When Google+ first launched many people believed it was designed to work like (and compete against) Facebook but it has now evolved into a far different social network platform. Google+ is designed to link all the Google sites together, such as Google Maps, images, books, Youtube…etc, with Google+ at the top controlling the whole package.

So, apart from a large potential customer base, why else should a small business owner use “Google+?” If you write your own blog then Google+ allows you to link your account to the content you create, so every person reading the blog knows you were the person who created the original material.

Google+ also allows you to set up a local business page. This then appears on Google Maps and Google Local and immediately tells people searching for your services: the location of your business, the opening times, what you sell, customer reviews, photos, videos…etc and all in one place.

Google+ also plays an important role in the Search Engine Optimisation (SEO) of your business website. Pages with a social profile on their network are rewarded with better search results. If you also add your ‘Google Place’ to your Google+ account you will see just how much easier it becomes to find your website using Google.

Don’t forget that Google is also the worlds most popular search engine (just think how many people now say ‘Google’ it) and, according to the companies research, 97% of consumers now search online for local businesses. If your small business has a Google+ account and your competitors don’t, potential clients and customers are going to find your business before theirs.

So, with such impressive membership figures and growth, an easy way to link your business to all of Google’s sites and improved SEO, the question is – can your small business really afford not to be on Google+?

10 Steps To Turn Your Employees Into Brand Ambassadors

August 29, 2013 by Reporter Leave a Comment

According to a recent research conducted by Gallup, apparently 70% of employees within all organizations are disengaged from their brands. If this is the situation at your organization, you might want to reverse it by turning your employees into brand ambassadors. Here’s how.

1. Acknowledge

First of all, acknowledge your employees and the very key role they play in cascading brand information. It’s only through fully engaged employees that companies can deliver consistent brand messaging across the market. Pay your employees their due; they deserve to be acknowledged and accepted for their role.

2. Audit

Evaluate all internal communications such as newsletters, your intranet, management emails and so on. Is your brand identity and promise consistent everywhere? Are your employees getting the same message each time, or are they confused as to what your brand represents? A proper audit will put your doubts to rest and help you get the right picture.

3. Train

Train your employees on what your brand represents; let them get thoroughly familiar with your processes, logo, colors, byline, vision, motto, value proposition, brand positioning and so on. Test each employee’s knowledge by asking him or her to train a newbie. Make the training fun and creative.

4. Reinforce

Training them just once will not do; you will have to reinforce your brand messaging by issuing key brand elements printed on wallet cards, stickers and t-shirts. Keep putting your brand in front of your staff; emphasize how you do things, vis-à-vis how your competition does it.

5. Assess

Periodically, assess how well your employees have imbibed your brand promise. Retrain them and reinforce elements that have not been fully assimilated. No need to turn it into a military exercise; make it fun through contests and quizzes.

6. Role-play

Help your staff put themselves into your customer’s shoes. Help them understand the overall customer experience and how each employee can use their brand knowledge to enhance it. Let each employee understand how their job role impacts customer experience.

7. Recognize

Conduct brand contests and quizzes periodically and award winning employees. Publish the profiles of employees who consistently deliver your brand promise to customers on your intranet. Make sure your customers aware of your pride in your loyal brand ambassadors as well.

8. Feedback

Ask your employees for their input and feedback on how best to deliver your brand promise. Let them brainstorm and come up with innovative ideas. Be sure to incorporate these ideas. Let the employees feel a sense of ownership towards your brand; this will make them more inclined to promote it.

9. Empower

Empower your employees to let people know what your company is going to do next. Knowing your business plans and being free to talk about them will be a source of great pride for them. They will feel encouraged to be your brand’s ready ambassadors when you empower them this way.

10. Engage

Let your employees engage with your audience via social media and disseminate brand information. Trust them to deliver the right information. Your employees can become your most ardent brand ambassadors and brand promoters if you train, encourage and empower them properly.

How Small Businesses Can Bring Their Online Marketing Offline

August 14, 2013 by Reporter Leave a Comment

Before there was Facebook, Twitter, and LinkedIn, there was direct mail. It’s not cool, it’s not sexy, but it works and it works very well. If your printer has been sitting in the corner collecting dust for a while, it might be time to pull it out and put it to good use. With pay-per-click platforms becoming increasingly expensive, it might actually be cheaper for you to physically mail something out to your prospects.

Use QR Codes

QR codes aren’t all that difficult to implement. Most printers can print them – even Lexmark products have this nailed down. How you use it is up to you. Many businesses use a QR code to link to their homepage, a "squeeze" page, or to another promotional page on their site. But you’re not limited to hot-linking.

You can also embed your contact information, order info, a special offer, or anything else you want right into the code. When people scan it with their smartphones, the phone will automatically process the code and do what you want it to do.

Advertise Your Company’s Social Media Pages

You’ve got social media pages – why not use them? Advertising is expensive? Use direct mail. That way, you’re not competing with someone else with a bigger bank account. When you use printed materials to advertise your social media presence, it doesn’t have to be low-tech either. Again, you can embed codes into the link you print out so that you can track everything.

In a sense, you’re merging online technology (tracking) with offline reliability and cost-effectiveness. Facebook, LinkedIn, and even a Twitter presence can be boosted with nothing more than fliers and postcards.

Use Augmented Reality

There are a lot of companies out there that use the same technology but Blippar has pretty much perfected the technology. Basically, you aim your smartphone at a piece of specially printed material, and the camera snaps a photo of that image and adds interactivity through the Blippar app.

It’s an interesting and unique way to add a hidden sales message, special offer or gift, or get people to pick up your flier or postcard and interact with it. The more you get people to interact with your message, the higher your odds are of converting them.

Advertise Your Website

Of course, you can use plain old postcards with a link to your website. A simple "www.yoursite.com" in the body of the postcard, direct mail letter, or flier is enough to get the name of your company out there. Of course, your message should actually say something and entice people to get on the Internet and pay you a visit.

This is probably the most low-tech way there is to transition your online efforts back to offline marketing. Once people are on your website, you can track their movement. Most businesses don’t like just throwing their web address out there because they think they can’t track the user once they’re left. Nothing could be further from the truth. Remarketing allows you to continually advertise to everyone who lands on your site – regardless of how they got there.

Michael Holmes is a business marketing consultant. He enjoys passing on his insights to small businesses through blogging.

When Courier Parcel is appropriate for business

August 4, 2013 by Reporter Leave a Comment

Use a Courier Service to Show You Care About Their Business

Customer loyalty is tough to achieve and in a world of commerce where finding a competitive edge is so vital to successfully growing your business, a reliable courier could be what you are looking for.

Meeting deadlines

To deliver on your promises you need to deliver your goods on time and meet any pre-arranged deadlines. We all know that when we have ordered an item that we need as quickly as possible; there is nothing worse than it not turning up on time.

This has the effect of not only providing immediate disappointment in the company that you have chosen to deliver on time but also presents a potential logistical nightmare caused by the delay.

On the other hand, if the company you placed an urgent order with promises to get the item delivered by noon the following day and it turns up in plenty of time, you are going to be impressed with their service and commitment to customer satisfaction.

Delivering on your promises

Using a courier to deliver items on your behalf presents an opportunity to gain a competitive edge over rival companies who may offer a similar product but cannot provide the same efficient level of delivery service.

Being able to deliver on your promises will mean that your company can grow organically with existing customers happy to rely on you to deliver on time and also allow you to seek new customers with the confidence that you can meet their expectations.

Less mailroom headaches

Another aspect of running a business that many consider as a menial task is managing the flow of mail and far too often, other seemingly more important aspects of the daily business routine such as driving sales and communicating with customers, take priority over the efficiency of the mailroom.

Not many people in the company will willingly volunteer to queue up at the local post centre and arrange to send all the parcels and post that have accumulated throughout the day.

Save time and money

Quite often you could save your business time and money by using a courier service to deliver your parcels and time critical mail. The average amount of staff hours spent managing mail for a small business is about 1.5 hours a day, so when you compare the cost of those wages against the cost of a simple pick-up service from a courier that could be as little as $5.50 per day, you can see that savings can be made on cost and also staff efficiency.

Broadening your horizons

Another positive aspect of developing a relationship with a good reliable courier company is not only can you grow your business with a greater degree of confidence that you can deliver on your promises but you can also look to widen your geographical sales area by using the delivery network that a good courier will be able to offer, meaning you can attract new customers and still offer the same speed of delivery service.

The purpose of a good courier is to provide you with a good service which in turn enables you to do the same. It also has the potential to become an integral part of your business, keeping delivery costs under control and perhaps most importantly, allowing you to show your customers that you care about them by delivering on time.

Richard Mills is a business logistics consultant. He enjoys sharing his ideas through blogging. Find out more about couriers and services near you.

Wondering if private health insurance is a good investment ?

July 15, 2013 by Reporter Leave a Comment

Here’s 5 reasons why Private insurance is necessary!

Spending money on private health insurance can often seem like an unwelcome and unnecessary expense, and many are tempted to rely entirely on Medicare for their healthcare needs. What you might not know is that if you choose your policy wisely, private health insurance can be an excellent investment, offering you value above and beyond the insurance premiums you pay. Here are five reasons why private health insurance is a good investment.

Better access to quality medical care

While Medicare can cover some of your medical expenses, a private health insurance policy can ensure that you are able to get high quality medical care without having to pay in full the high prices you would be subject to if you did not have private health insurance. “Private health insurance” can enable you to seek treatment at private hospitals, consult the doctors of your choice and enjoy the shorter waiting times associated with private medical care. What you pay in insurance premiums can be regained manifold when you make a claim that enables you to afford great medical care.

Prompt medical attention

Relying on the public health system often means being forced to wait in long queues before you can get the medical attention you need. When it comes to sudden or serious medical conditions, having prompt access to medical care can make all the difference. Private health insurance ensures you can obtain medical care when you need it most urgently without having to wait in long queues at public hospitals. This alone makes private health insurance a valuable investment and one that can prove to be a lifesaver.

Broader coverage

While Medicare attempts to provide very general coverage for basic medical care, many people still get private health insurance because it enables you to obtain coverage for a broader range of treatments and conditions that Medicare cannot provide for. Private health insurance can help to ensure that in addition to what Medicare offers, you have sufficient coverage for a range of treatment options and medical services.

Tax advantages

To make it even more evident that your purchase of a private health insurance policy is a sound financial choice, the government offers tax advantages you might be able to benefit from. Check with your insurer to see if you are eligible for private health insurance offset or rebates that can make private health insurance even more affordable and an even more cost-effective investment.

Psychological benefits

A cost-benefit analysis of “getting private health insurance” often neglects to consider the psychological benefits that are present despite not being easily quantifiable. The peace of mind you and your family get from knowing that you will be provided for if you fall ill or get injured is priceless.

Despite the existence of Medicare, private health insurance is viewed by many as a necessity, and for good reason. Private health insurance not only ensures you have easy access to prompt medical attention for a broad range of conditions and treatment options but can also be a very cost-effective investment in the long run.

Who pays a mortgage broker?

July 14, 2013 by Reporter Leave a Comment

Consumers as well as people who aspire to become a mortgage broker are not sure about who really pays these professionals. While consumers might suspect a mortgage broker to be recommending solutions that earn him more profits, aspiring “mortgage brokers” have little or no idea of how well or how much they can earn in this profession. This article sheds light on this subject!

Much like there are no free lunches, there are no free advices either, much less a financial one. Mortgage brokers are experienced professionals who’re paid for their knowledge and expertise.

There is no way one would spend their time and energy if it were not for the compensation they earn for it. To become a mortgage broker, you have to understand the intricacies of the business. It is downright smart to understand how you would get paid before you venture into becoming one.

Mortgage Brokers earn a commission

It is needless to say brokers are compensated in monetary terms. Mostly, they earn a single-shot commission from the lender. The percentage can be anywhere between 0.5% to about 1.2% depending upon a number of factors like the duration of the mortgage or the lender‘s offering. Say, for instance, a broker is selling a mortgage for 10 years. In this case they would bring home a higher remuneration as compared to a 5 year mortgage for the simple reason that the lender is benefitted from it. In addition, the broker would also be selling one mortgage in a period of 10 years instead of two 5-year mortgages.

The commission earned is the trailer fee in financial terms. It is the lure for the broker to sell the mortgage. The lenders have been paying trailer fees to financial advisors for ages but it has just come into the scene for mortgage brokers. This is actually very important to understand if you want to learn how to become a successful mortgage broker. At the time the mortgage is signed, brokers earn a low percentage but they continue to get an additional percentage every year till the tenure of the deal. This translates into a twin benefit: one it gives them financial sustenance and two it gives them a constant revenue stream over a defined period.

What you, as the broker, have to take note of is this trailer fee. It is what hitches you to sell you the mortgage. Whilst working with a prospective client, you may be able to present a wider variety of offerings as compared to a financial institution as they can only sell certain products their organization has affiliated itself with. This is where the trailer fee kicks in. Combined with a host of other benefits like bonuses dependant on volume of business brokers procure for the lender, trailers can largely influence you in terms of the products being offered as some are more lucrative as compared to others. Bonuses for certain products can mean travel, perks or gifts for you.

Therefore, before you take the road to become a mortgage broker, study the market well as to which products are going to give you the maximum benefits as these will be the ultimate deciding factors in you becoming a successful mortgage broker. Explore the market options and choose the ones that offer you the most perks and bonuses as these are the monetary, or otherwise, gains you are going to derive out of selling a mortgage to a client.

Article by Red Rock Brokers who is an independent mortgage finance company specializing in property finance solutions for investors & borrowers with specialized lending needs.

Making your retirement money work harder

July 7, 2013 by Reporter Leave a Comment

Falling interest rates have hit retirees hard, and according to forecasters even more cuts may be in the pipeline. Particularly for self-funded retirees, it is now more important than ever to make retirement funds work harder.

Making smart choices about personal savings and savings products is vital, according to Greg McAweeney, Executive General Manager of RaboDirect Australia and New Zealand.

“Take the first step by moving excess money from your transaction account into a high interest savings account,” McAweeney says. “Aussies are losing out on billions of lost interest by leaving their money in low interest accounts. Take control of your money by doing the simple things.”

Generating higher returns

Chasing higher returns can be a dangerous game, particularly when you don’t have another 20 to 30 years of working life to cover any losses.

Instead, set an investment strategy with diversified investments while ensuring optimum tax and social security outcomes. A typical portfolio might comprise 50 per cent Australian shares, with the remainder made up of overseas managed funds, property and fixed interest.

Shares

“Blue chips” such as bank stocks have been popular with investors recently due to their high yields and fully franked dividends. According to a recent study by the Australian Securities Exchange, shares outperformed other investments including residential property, fixed interest and cash over the 20 years to December 2011.

Bonds

Gavin Madson, Director of Infrastructure and Fixed Income Research at FIIG Securities, says the latest cut to official interest rates made most short-term rates unattractive.

“Investors should be out of short-term fixed investments, be they bonds or term deposits, which will reflect the drop in rates fully, and instead invest in bonds around the five-year maturity mark, which are offering stronger returns on the higher base rate,” Madson says.

As well as inflation-linked bonds, he suggested indexed annuity bonds that offer an annuity-style payment stream from infrastructure projects at attractive rates.

Property

It is possible to extract wealth from your home using a reverse mortgage. Generally, the older you are the more you can borrow, with a 70-year-old likely able to borrow around 25 to 30 per cent of the property’s value.

The 2013 Federal Budget also introduced an incentive for retirees to downsize. Under the scheme, retirees can invest up to 80 per cent of the profit to a maximum $200,000 in a special account for 10 years and still receive the pension.

Government incentives

Even if ineligible for the pension, the government offers a range of benefits for retirees covering travel and medicine costs. There are also incentives for working past the pension age, including the mature age tax offset and transition to retirement.

Make sure you don’t run out of money in retirement by maintaining a mixture of income and growth assets. By maximising returns, it can be possible to enjoy the lifestyle you deserve.

This article is presented to you by Australian Business Times in conjunction with RaboDirect. For more information about investing in term deposits or utilising self managed super funds, visit RaboDirect.

Types of Low Doc Products and Options

June 23, 2013 by Reporter Leave a Comment

Everyone doesn’t have a specified regular income, and when a person doesn’t have a fixed income or cannot provide documents in support, he become ineligible for a home loan. For the benefit of such people low doc home loans have been introduced, which have now transformed into smaller mortgage finance solution for such people.

Getting a home loan isn’t as easy as it looks first up, there are many formalities associated, which makes it really lengthy and cumbersome process. However, when you want to purchase a property, you will need a home loan. And to get a home loan, you will need proof of income, assets and liabilities etc to prove your credit worthiness.

Low doc residential loans are designed specifically for self-employed people or casual workers, who have income and assets, but are unable to provide the financial documents required at the time of application for loan. To apply for a low doc loan or low document loan, a person needs to file in a written application, this application works as a self-declaration of income derived from business for casual workers and self-employed. People with bad credit history are also eligible to apply for low documentation loans.

Benefits of low doc home loans

· These loans are suitable for people who do not have financial documents to prove their regular income

· Low doc loans require no or very minimum paperwork at the time of application.

· People with bad credit history can apply for a low document loan

· Low doc loan is passed on self-verification, applicant himself states his income. No financial verification needed

Types of Low Doc Products

· Low doc 60: Under low doc 60 an applicant can get a Loan to Value Ratio of 60 percent. The applicant needs to provide an application for self-verification along with accountant’s declaration. The loan can be taken for purchase of refinance.

· Low Doc Construction: The loan covers up to 80 percent of the value, and can be used for purchase of refinance.

· Low Doc Platinum: The loan covers up to 80 percent of the value; it requires self-verification and accountant’s declaration.

· Lite Doc Express: The loan covers up to 80 percent of value. Self-verification and accountant’s declaration is required for application.

· Low Doc Easy: The loan covers up to 85 percent of Loan to Value Ratio. Application for Self verification along with accountant’s declaration is required. The loan can be used for purchase of refinance.

Low Doc Loan Options

Various types of low doc loans are available, some of them include:

· To purchase property

· For refinance

· Low doc loans for business expansion

· Loan to pay tax debt

· Loans with no mortgage insurance

· Low doc home loans to purchase or refinance residential land

· Low doc construction loan to build more residential property

· Specialist low doc loans for applicants with bad or not so perfect credit history

Author Bio: I’m Andrew a specialist mortgage finance consultant of Red Rock Mortgage Group an independent mortgage finance company with 7+ years’ experience in writing finance topics.

The importance of building and maintaining a customer-friendly brand

May 30, 2013 by Reporter Leave a Comment

With competition fiercer than ever in our ever-volatile market, it is imperative to not only run a successful business, but to offer a service head and shoulders above the rest. After all, customers are going to want the absolute best.

That is where the importance of building a customer-friendly brand comes in – if a customer can connect and relate with a company, their emotional engagement is sure to return itself in their loyalty. Therefore, how do you keep your customers on side when dealing with your service?

Photo courtesy of SalFalko on Flickr

The new rules of putting the customer first

In 2012, Metro Bank began to expand and said that its fantastic success during a period of recession was due to their dedication to provide good customer service.

Anthony Thomson, the co-founder and chair of Metro Bank said that their unique business model allows them to build their company around their customers’ needs, which differentiates from the more traditional method of banking. For example, the bank sets their staff with customer satisfaction goals rather than sales targets, and opens for 12 hours each day to suit each and every customer.

Profit should not be the reason to go into business, says Thomson. Although it is a pleasant by-product of success, the reason that you want to succeed should be to fulfil the purpose of your business and provide exceptional service to your customers.

This service based mantra has clearly served the company well, as they continue to grow.

However whilst a company can aim for perfection every time, things can go wrong. Often the way that the situation is handled is a testament to the company and how they value their customers, so if things don’t quite go to plan, how do you maintain great customer service?

Facebook throws fuel on the fire

What happens when you’ve been annoyed beyond the realms of acceptable? Often we broadcast it, using social media as a method to vent our frustrations. Imagine this applied to business; the instantaneous nature of networking online means that a molehill can explode into a mountain in just moments.

For example, take the recent case of Virgin Media applying a late payment fee of £10 due to the direct debt being refused on the grounds of the payer having just died. Jim Boyden, the son-in-law of the deceased, posted a picture of the bill on Facebook on the evening of 22nd April, and by 24th April it had been shared by more than 53,000 users.

Virgin Media have since apologised to the family of the customer, but social media experts have said that this example shows how important a role social media plays now in customer service. Dr Lisa Harris, head of the digital marketing master’s programme at the University of Southampton spoke to the BBC on the matter and was said:

“Corporations are very good at promoting themselves; they recognise that everyone needs a Twitter and a Facebook account and they are aware the networks exist but they don’t have the strategies in place to deal with the issues that can arise from those networks”

The head of BT customer services Warren Buckley says that 40% of their complaints now come from social network Twitter, further stressing the importance placed on social media in the service industry.

Therefore to avoid becoming embroiled in similar situations, it is important to maintain an active presence via social media, and reply to those who take the time to get in touch with you. Take for example O2, who regularly respond to individual queries via their Twitter feed to resolve issues quickly.

By learning from the faux pas of some companies and implementing the customer-friendly strategy of others, you too can build a brand that attracts business and begs forgiveness when necessary.

Rosie Percy writes for the business sector and specialises in customer facing areas such as social media, lead generation and customer satisfaction. For more information on lead generation visit http://www.marketmakers.co.uk/lead-generation/. Rosie has previously written for the Guardian as well as lifestyle blogs, and now lives and works in Brighton.

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An Introduction to Forex Trading