How can social media transform the functioning of an SMB ?

Social Media is "Word of Mouth" online - nothing helps to promote a business better than word of mouth - online or off-line. Following that logic:-

a.) get everyone you know talking to you on social media about your products and services;

b.) interaction is the rule of Social Media, don't just blast product and company information;

c.) if you have expertise then teach using social media, help people out and they will be interested in what you and your company does, that in turn will generate sales.

Just a few pointers to get you started. Have a look on my blog for more info, or have a look at shama.tv - she is a real social media guru.

VB, Stefan

What's the benefit to SMO?
The benefits of social media vary depending on what you're looking to do. For some sites, the greatest benefit to SMO is the instant exposure and influx of inbound links it creates. With any luck, a significant portion of your new links will be coming from quality sites in your field. However, if not, these effects are often short-lived and traffic alone doesn't equal conversions and increased revenue for most sites. You need to be able to capture those first-time visitors and convert them into loyal site community members.
The real benefit to optimizing your site for social media is it inspires you to create excellent, keyword-rich content, which in turn can help build your online and offline brand, increase quality inbound links over time, make you a subject matter expert, and expose your content to thousands of new visitors. It reinforces what you should be working towards through your search engine optimization campaign