Night Owl Hookah Lounge seeks to engage customers through social media by starting conversations, generating interest and excitement, and valuing customer opinions. The document provides examples of social media strategies like hosting photo contests on Flickr, using location-based deals on Foursquare, and creating "How-To" instructional videos for YouTube to engage customers in a two-way dialogue and build brand loyalty. It emphasizes the importance of listening to customers, experimenting with different strategies, and focusing on the customer experience.