Recently Nielsen reported that about 60% of Twitter users do not return to the site after the first month. They said that with only a 40% retention rate, the site could not sustain itself. The funny this is despite the alleged low retention rate, you can’t go anywhere without hearing about Twitter.

While people were surprised and freaking out about Twitter’s low numbers, it seemed totally normal to me. I’d take 40% any day. I was sure that other social networks had similar retention rates. Turned out I was wrong. At this point, Facebook‘s and Myspace‘s retention rates were about double that of Twitter’s.

Then Brendan O’Connell brought up a good point:

@andybeal I don’t think Nielsen considered Twitter apps access http://bit.ly/TdT7r

I was sure this was going to clear up the whole mess. It made sense to me; my Twitter time is spent on Twhirl. I rarely log into Twitter anymore. It turns out that Nielsen hadn’t considered Twitter applications. Yes! Victory was mine!

However, my victory was short lived when Nielsen reported that with the outside Twitter applications, the retention rate was still about 40%.

So it turns out that all of my well-wishing for Twitter’s retention was in vain. However, I really don’t think they’re in trouble. Those who continue to use Twitter after the first month are those who are hopelessly addicted. They don’t know why they are there or why they feel the need to update people on everything they’re doing, but it must be done. I have a feeling those fans aren’t going to peace-out any time soon.

I mentioned that Twitter had about half the retention rate of Facebook and Myspace. Here’s the thing, Facebook and Myspace are the most successful social networks ever. It’s actually amazing that Twitter is able to have the amount of repeat users as it does. So I don’t think we should be sending our condolences to Twitter for their small numbers; we should be congratulating them for their success.

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• Proof That Nielsen is Wrong; Twitter’s Retention Rate is Not 40% (marketingpilgrim.com)

Bad news for Domino’s. Look at what happens when you hire teenage boys who know about Youtube! Yep, they make stupid videos. It’s a risk that every fast-food company takes when they hire adolescents. Too bad that this video really screwed with Domino’s brand.

If you haven’t heard, two employees of Domino’s – now former employees – made a Youtube where they did inappropriate and disgusting things to the food before boxing it up. The video ended up getting crazy popular and had more than a million views within 24 hours. The video has since been taken off Youtube by Domino’s.

Had the video been positive, that amount of buzz in such a short amount of time would have been amazing for Domino’s. But alas, it was really bad.

The Youtube video and the buzz it created on other social networks had the capacity to kill the brand. But Domino’s acted quickl enough to prevent any further damage to the company.

Patrick Doyle, CEO of Domino’s Pizza USA, created his own Youtube video to respond to the concerns created by the previous video. His video showed sincerity and concern for Domino’s customers and assured everyone that everything is being done to prevent that kind of behavior from being repeated. The store where the video was shot has actually been shut down and undergoing intense cleaning. There is also an investigation to see if this kind of behavior is taking place in other stores.

Domino’s reacted well to a bad situation and have taken the first step to regaining customer trust. However, in true Buzz.io fashion, we must point out that this situation didn’t need to be nearly as damaging to their brand. If they had already set up social network accounts, especially Twitter, they would have known about the video almost instantly and would have been able to take the video down before more than a million people saw it.

Pizza Hut, knowing that they hire people of the same caliber as Domino’s, have already created a new position in their company – the “twintern”. The twintern’s purpose is to be the voice of Pizza Hut on social networks. Luckily they are learning from Domino’s mistakes.

To Domino’s credit, they have set up a Twitter account since the incident. Too bad they didn’t think of that last week.