Twitter is great for businesses that run lots of specials or have constantly changing prices. One company that I love, Newegg.com, which is one of the largest online retailers, uses twitter for price updates and sales. I have also seen a few promotions where they get people to tweet about newegg and then they are entered into a drawing for one of their products like a flat screen tv. It is a great cheep way for a company to advertise. Since the company does not have to pay for the twitter service their only cost is employees time and whatever they are giving away. They don't even have to use their own bandwidth.
Some companies, including newegg, also use twitter as a customer service tool. If a customer mentions @newegg in one of their tweets the newegg staff can see that and respond accordingly. They can send a message back with links to their customer service department, phone numbers, or they can give them appropiate directions on how to resolve the issue.
http://twitter.com/newegg
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