Definition: Tags allow social media users to engage an individual, business or any entity with a social profile when they mention them in a post or comment. In Facebook and Instagram, tagging notifies the recipient and hyperlinks to the tagged profile.
The Twitter equivalents of tagging other users is by inserting a relevant hashtag or tweeting at them, depending on the objective. Using tags is important for effective engagement with Facebook users.
One common use of tagging is to engage influencers in a space. This can include celebrity endorsers, brand advocates and industry veterans. Tag an influencer in a post or comment to get them involved - this acts as a form of brand validation. Tagging individual customers is one way to engage and demonstrate the personal nature of your brand. It can also be a useful tactic for remediation, publicly demonstrating your commitment to customer service.
The other side of tagging is when your business or brand is mentioned by someone on social media. Carefully monitoring social media to engage users who tag you is an important part of a business' social media strategy. Tags may contain customer praise or positive mentions, but are also a way for dissatisfied customers to air their grievances in a public forum. Responding to negative feedback can remediate the situation and show other users that you listen to customers. If it gets profane or counterproductive, though, it's best to disengage and delete from your wall (if on Facebook).