Are you using Facebook for business? Millions of people have flocked to the popular social networking Web site for personal reasons, but businesses - especially small ones - are increasingly using the service to connect with customers. What’s great is that Facebook allows companies to interact with customers, not just push sales promotions and special deals. Check out how one small business has been using Facebook:

Sprinkles Cupcakes, a Beverly Hills (Calif)-based baker of cupcakes, has found great success in using Facebook for its growing business. As documented in the Sun-Sentinel, the owner, Charles Nelson, has had no problems in using it for business purposes instead of personal.

Each day the cupcake maker provides a secret word on its Facebook page, and customers can go to Facebook to retrieve the word to mention it at any of its locations for a free cupcake. The company also uses Facebook as a way to pre-test flavors of new cupcakes and upcoming promotions. The two-way interaction makes customers feel like they’re more involved with the company, leading to increased market penetration and brand loyalty. Sprinkles says more than 70,000 people have become “fans” of its Facebook page.

Millions of small businesses are still trying to size up the world of opportunities that come with social networking and social marketing. Its extreme cost-effectiveness combined with growing ability to reach targeted audiences makes it a compelling tool in the DIY marketer’s toolbox.

Facebook says it has 1.4 million business pages with more than 100 fans per page. It’s a pretty sure bet this number will only continue to grow.

Here are some great resources to check out to learn more about using Facebook for business:

Facebook Marketing

The 22 Immutable Laws of Branding

Customer Satisfaction is Worthless, Customer Loyalty is Priceless: How to Make Them Love You, Keep You Coming Back, and Tell Everyone They Know

How are you using Facebook for business? Please leave a comment here and share your story.