My Answer:
I would tell her Web 2.0 would increase her sales! Facebook alone will increase the word of mouth buzz about your business. With this buzz you can do special promotions for percentages off of products bringing foot traffic into your store. I would definitively tell her to use all the the social networking tools such as Facebook, Twitter and linked in.
Also with Web 2.0 you can use goggle applications for communication for in house use. At no extra charge, Google Apps supports over-the-air mobile access on BlackBerry devices, the iPhone, Windows Mobile, Android and many less powerful phones. This will help with on the go transactions and keeping you up to date with info.
If she were to say no to this she would be selling herself short!
I agree that taking advantage of involving customers is a great way to get exposure and possible sales. I do not agree that you should be everywhere all the time. Something like jewelry has a very specific and special audience. If you make your jewelry feel like it is for everyone, you will turn off a LOT of customers.
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