Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×

The State of Corporate Social Media Report 2013

Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
The State of 
Corporate 
Social Media 
2O13 
#STATEOFCSM 
Written by 
Nick Johnson 
Founder, Useful Social Media 
@gnjohns...
Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 
2 
Contents 
Introduction 
Forewords 
Methodology 
Organ...
Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 
Welcome to our third annual State of Corporate Social Me...
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Wird geladen in …3
×

Hier ansehen

1 von 37 Anzeige

The State of Corporate Social Media Report 2013

Herunterladen, um offline zu lesen

UPDATE: The State of Corporate Social Media Briefing 2014 is now available. You can download a free copy here - http://ow.ly/zrDAX

The State of Corporate Social Media is a free briefing from Useful Social Media on how large companies are using social media.

It is based on responses to our annual survey – and this year we had over 1,000 respondents – so the data is more reliable and complete than ever before.
business intelligence, marketing best practice, social media best practice, social media for business, social media intelligence, social media report, social media strategy

UPDATE: The State of Corporate Social Media Briefing 2014 is now available. You can download a free copy here - http://ow.ly/zrDAX

The State of Corporate Social Media is a free briefing from Useful Social Media on how large companies are using social media.

It is based on responses to our annual survey – and this year we had over 1,000 respondents – so the data is more reliable and complete than ever before.
business intelligence, marketing best practice, social media best practice, social media for business, social media intelligence, social media report, social media strategy

Anzeige
Anzeige

Weitere Verwandte Inhalte

Diashows für Sie (20)

Ähnlich wie The State of Corporate Social Media Report 2013 (20)

Anzeige

Aktuellste (20)

The State of Corporate Social Media Report 2013

  1. 1. The State of Corporate Social Media 2O13 #STATEOFCSM Written by Nick Johnson Founder, Useful Social Media @gnjohnson Join the community on: @usefulsocial Sign up for our corporate social media newsletter at www.usefulsocialmedia.com Sponsored by facebook.com/usefulsocialmedia linkd.in/USMgroup
  2. 2. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 2 Contents Introduction Forewords Methodology Organisational Models Corporate uses of social media A look at the networks Social Media Financials Impact and integration Drawing Conclusions 3 5 9 11 17 21 28 31 35
  3. 3. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Welcome to our third annual State of Corporate Social Media briefing. An awful lot has changed in the world of corporate social media since I put pen to paper on our first edition in 2010. Social media has gone from an exciting new marketing opportunity to an unavoidable requirement of any forward-looking business. Social now informs marketing strategy, crisis communications, customer service, customer insight, employee engagement, and much more. But in the journey from social media to social business, the going is not always smooth. We know from our conversations with your peers about the many challenges facing practitioners within large corporations. Whether it’s guidelines and internal policy, ‘desiloisation’ and evolving organisation models, or simply tracking the impact of your work, this is a field riddled with challenges. This is where we hope to help. The briefing is designed to set out benchmarks on social media adoption and utilisation by large corporations, as well as highlighting key trends which touch on the role of the corporate social media practitioner. Last year, the briefing came in at a somewhat unwieldy 65 pages - so we’ve streamlined this year, and focused on only the core issues that will impact on you in 2013. That’s not at the expense of depth, however. Indeed, this year we’re happy to announce that we’ve brought in some of those very practitioners to help us analyse our data, and highlight how the trends we uncover will affect their (and by extension your) role. Bill Tolany is Head of Integrated Marketing at Whole Foods, and Esteban Contreras has moved from a social strategist role at Samsung to now authoring a book on corporate social media - “Social State”. Both bring their ‘skin in the game’ expertise to bear in this briefing, and we hope you will find their own take on our findings unique and informative. We’re also thrilled to feature a foreword from Lux Narayan, the CEO of social media benchmarking company Unmetric. I hope you find the briefing of use - and I’ll look forward to hearing what you think 3 Hello Nick Johnson Founder Useful Social Media
  4. 4. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 4 New for 2013: Expert Contributors This year, we’ve asked two leading thinkers (and doers!) on corporate social media to give us their take on our findings. Our contributors are: Bill Tolany Bill Tolany is the Senior Director of Marketing and Integrated Media at Whole Foods Market. Follow him on Twitter @BTolany Esteban Contreras Esteban Contreras is the author of the book SOCIAL STATE: Thoughts, Stats and Stories about the State of Social Media in 2013. Follow him on Twitter @SocialNerdia Lux Narayan Lakshmanan (Lux) Narayan is the CEO and Co-Founder of Unmetric Inc, the Social Media Benchmarking company. Find out more about Unmetric at www.unmetric.com
  5. 5. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 5 A Foreword from Esteban Contreras Social media is no longer a corporate experiment. Of course, experimentation should always be fostered within companies, but we’re now officially past the phase in which social media practitioners were allowed to experiment without real goals or objectives. The bad news for practitioners is that results are no longer an option. The good news is that brands can no longer ignore social media, or the practitioners that have been making the case for social technologies. 2013 is off to a good start and it is already a year of social media optimization. Companies are getting serious about social. Social ads are becoming an integral part of media plans, “command centers” are becoming real-time “news rooms,” and companies with global footprints are organizing advanced multiple hub-and-spoke models. Social support efforts are closing in on resolution times and driving costs down, while corporate communications teams are thinking about social impact beyond impressions. Buzzwords like “social business,” “earned media,” and “real-time marketing” are seamlessly becoming a reality. Now that most brands are participating in all things social, they are also looking to take their efforts to the next level. Some will be stuck in an optimization loop, focused entirely on data-driven and trends-oriented efforts to drive objectives-based performance. Others will leapfrog competitors in multiple areas, ranging from customer support to risk management, paving the way for others to follow and imitate. Perhaps the best part about the end of the experimentation phase is that social media is becoming a CEO-level agenda. As social media discussions go up the ladder into senior management, CIOs, CMOs, COOs, and other corporate leaders are taking control over their organizations future social media efforts. Social media teams are getting smarter. Social media strategists, analytics experts, and planners are starting to get a prevalent seat at the decision-making table. Community managers and content producers are moving on to more strategic roles, re-defining brand experiences from the bottom-up. Social media agencies are taking on more diverse work while established agencies and consultancies are developing strong social media expertise. In the end, it’s all about the customer. Consumers are smart, and their growing expectations are evidence that the overall customer experience should be the core of how companies approach social media. Bigger budgets, smarter teams, better tools, faster turnarounds, and complex global organizations will not have an impact unless the overall customer experience is excellent. Anyone can throw money at a business problem, but building a loved brand takes time and effort. In order to win, companies will still have to cultivate long-term relationships with their target markets (and audiences) in a world where reach and frequency are no longer good enough to create awareness, preference and advocacy. Customer-oriented companies will be able to leverage social technologies to drive their company’s business models, and they will be able to demonstrate their ability to unlock
  6. 6. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com great potential across teams, geographies and business units. Useful Social Media, the company behind fantastic events such as the Corporate Social Media Summit, has once again created a an annual report about the state of corporate social media. This 2013 edition delivers great insights about organization models, trends, financials, and impact of social media initiatives, as well as much more. The report is based on a survey that is filled out exclusively by corporate social media practitioners, providing an up-to-date view on what’s happening at some of the world’s most influential corporations. Social media is part of how companies do business and that won’t be changing any time soon. Whether you are a business person, a current social media practitioner, an aspiring one, or simply someone looking to better grasp how companies are leveraging social technologies, take note of the pages ahead. You’ll be glad you did. 6
  7. 7. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 7 A Foreword from Lakshmanan Narayan Can we finally say that social media has come of age? Not yet. The ‘Texas Sharpshooter Fallacy’ describes a methodological error in which pieces of information that have no relationship to one another are called out for their similarities. It’s often used for claiming the existence of a pattern. The name comes from a joke about a Texan who fires some shots at the side of a barn, then paints a target centered on the biggest cluster of hits and claims to be a sharpshooter. The fallacy often arises when a person has a large amount of data at their disposal, but in a classic case of confirmation bias, only focuses on a small subset of that data. Most social media reports I read are saturated with charts and findings exhibiting confirmation bias. The conclusions are often assumed, and data is curated to support what has already been decided. This #StateOfCSM briefing is a refreshing outlier to the above trend. In fact, when a report makes no bones about saying that less than half CEOs are convinced about the value of social media, it’s clear that the industry still has some growing up to do. However, the writing on the wall is certainly encouraging. A continuing trend from 2012 is that of the social media director increasingly playing a role outside of marketing. Last year we saw a marked uptick in the number of businesses providing useful customer support, mostly on Twitter and by the results of this report, the trend is continuing. This is indicative of a positive trend in the recognition of the ubiquitous possibilities with social media – beyond marketing. Equally interesting is the huge variance between B2C and B2B companies in adoption, focus, and inclination towards different social networks. The dominance of Facebook and LinkedIn respectively was always expected, but the orders of magnitude outlined in this report are an eye opener. The briefing also points to some interesting (some may say, worrying) data on expectation on social media budget growth in 2013. I do think that an organization focused on “managing conversations” will see a fundamentally different architecture from one focused on “managing creatives”. Leading indicators of growth used to, in a pre-web1.0 world, be media budgets. Social media, by definition, is more people & systems intensive and in times to come, I believe we will look at budgets beyond spend on platforms and media, and in the holistic context of investments in people, systems, and yes, marketing. The airline industry is a great windsock for this. Indeed, one just needs to look at American Airlines who reply to over 8,000 tweets per month, each within approximately 15 minutes to understand how much they have transformed their business to make social a key part of their strategy. It’s very easy to miss seeing the ‘invisible costs towards social media’ – in this case, the ‘cost’ of transformation in systems and processes that allows for the delivery of such amazing customer service metrics. Speaking of metrics, as this report indicates, you cannot improve what you cannot measure. It is good to see (almost) everyone move beyond vanity metrics and brute force numbers to more meaningful ones rooted in the efficacy of micro-content and its engagement. More importantly, the larger purpose it must solve. Adoption of more sophisticated measures of calibration is an indicator of an industry maturing. And while on the subject of maturity, do remember though, as you draw inspiration and knowledge from these pages, that social media is still a child in its infancy. With boundless enthusiasm and a sense of unbridled optimism, she thinks she can change the world. Don’t be the grown up that tells her what she can’t do. You haven’t seen anything yet.
  8. 8. The Fourth Annual Corporate Social Media Summit New York USM Superior marketing response, sharper corporate decision-making, enhanced innovation and a happier, more loyal customer: Become a social business usefulsocialmedia.com/newyork #CSMNY Two day business conference, June 12-13, 2013 The New Yorker Hotel, New York A practical and interactive business conference built for social media, marketing and communications executives: MasterCard Worldwide Alfredo Gangotena Chief Marketing Officer The Hertz Corporation Bob Stuart Chief Marketing Officer Outback Steakhouse Mike Kappitt Chief Marketing Officer Sears & K Mart Seasonal and Outdoor Living Jennifer Dominiquini Chief Marketing Officer QUOTE ‘STATECSM’ to receive 15% off your pass! For more information visit www.usefulsocialmedia.com/newyork Footlocker/Eastbay Dave Lokes Chief Marketing Officer Get best practice from the global leaders: Exclusive strategic insight on the future of social from 8 Chief Marketing Officers from some of the biggest brands in the world. Get closer to your customers through your social strategy: Build valuable relationships, humanize your brand and become customer centric to enhance long-term customer loyalty. Stand out in a highly competitive market: Become a social business, achieve consistency of message and differentiate your company. Amy Sherwood Vice President - Public Relations & Consumer Affairs, YUM! Brands Dewayne Hankins Director of Social Media, Los Angeles Kings The summit is highly worthwhile and an excellent way to gain actionable insights You literally couldn’t walk away without taking something you could use in your business
  9. 9. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com The findings in this briefing are drawn from responses to Useful Social Media’s annual ‘State of Corporate Social Media’ survey. Over 850 respondents contributed to this version of the survey, the majority doing so in December 2012 and January 2013. Areas of responsibility Approximately 30% of respondents were responsible for US operations. Another 30% were responsible for European operations. Beyond these more typical markets, we have 17% of respondents for a responsibility for social media in Asia; 15% responsible for the Middle East and Africa, and 15% responsible for South and Central America. It’s worth pointing out that these numbers add up to over 100% because several respondents were responsible for multiple geographic areas A change from 2012 This year, we tweaked our ‘location’ question. Previously, we asked where each respondent was based. This year, we asked what areas of the world they were responsible for. It’s a more illuminating question - showing global responsibility, not simply where their office is. In turn, that hopefully engenders confidence that the briefing findings will be globally applicable - to at least some extent. Corporate focus Nearly 60% of respondents came from corporates/brands/end users. The rest of our audience is made of up agencies, service providers, academics, institute members and the like. For the majority of the briefing, we will, unless otherwise stated, focus only on corporate responses. B2B/B2C Differences We often break our data sets out to show differences between b2b and b2c corporate social media. As anyone working in and around corporate social media will know, the problems, opportunities and methodologies for b2b and b2c businesses are often radically different. We try to use this report to highlight the areas of difference. Comparison with previous years This is our third annual State of Corporate Social Media briefing. The data we collected in 2012/13 can be lent context through comparison with submissions from previous years. At certain points in the briefing, we will take advantage of this additional context to spot trends and make predictions for the future. 9 Methodology
  10. 10. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Full Dataset While this document contains edited ‘highlights’ from the full State of Corporate Social Media survey, it isn’t everything. For those who would find it valuable, we have the full raw dataset available. If you would like access to the (anonymised) data, please email nick.johnson@usefulsocialmedia.com We felt that our briefing - stretching to 65 pages - was somewhat unwieldy in 2012. This year, we have stripped back and refocused on the core issues you want to discuss. However, the survey itself was more extensive than ever before, and we have a rich data set available to all readers. 10
  11. 11. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Organisational Models In 2012, we concluded that corporations were moving toward a ‘hub and spoke’ model of social media management - where there is a small core co-ordination unit (‘hub’), but responsibility for execution is devolved towards a number of ‘spokes’ - individuals or small teams embedded within multiple departments. This model lends itself well to the thorough embedding of social media across a business - a noted trend in 2012, and something we expect to only accelerate across 2013. A closer look at social media organisation From this year’s figures, one sees much evidence that this move towards small centralised hubs, and an expansion of ‘spokes’ - people for whom social is part of a broader role, sat in a variety of departments or geographical regions - is indeed the case. The number of people who work specifically in social media, or for whom social is a named part of their job role, has not changed. In 2013, 92.5% of companies have at least one member of staff for whom ‘social media’ is a specific requirement of their job role. That’s only 0.5% up on 2012 (though one could argue that there is little capacity for growth with such a high proportion). 11 92.5% Companies who have at least one member of staff for whom ‘social media’ is a specific requirement of their job role Equally, the majority of companies still have 2 to 3 executives with specific responsibilities for social media. The size of the core ‘hub’ has not changed markedly. When one shifts attention to ‘spokes’, however, progress is more clearly identifiable. When we asked how many people use social in a professional capacity (but not as a specifically-named aspect of their role), the responses showed a far more noticeable trend. In 2012, most companies had 2-3 additional executives acting as a ‘spoke’ and using social in a professional capacity. The number of spokes has rocketed in the last year, with 58% of our respondents declaring that 4+ individuals within their company use social media professionally.
  12. 12. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 12 58% respondents declaring that 4+ individuals within their company use social media professionally These spokes are based across the business, and have chosen to leverage social media to help them do their job better. An organic journey towards the social business This increase in executives using social media professionally, but without it being a named focus of their role, suggests a somewhat organic journey towards ‘social business’. Had this been a top-down strategy, one would expect far higher numbers of people working on social as a specific focus of their role - instructed, in effect, by their superiors. But our figures show that in reality, the majority of growth in social media adoption by business comes when individuals decide to use it professionally, but without it as a specific part of their role. b2b and b2c relations - a surprising finding One can also spot a difference between b2b and b2c adoption rates when one breaks down the data - and the finding is a surprising one. While only 51% of b2c-only businesses had 4+ executives working on social in a professional capacity, the figure was a higher 57% for b2b-only companies1. This seems to suggest a surprising lead on the journey towards ‘becoming a social business’ for the b2b side of the corporate world. Businesses with 4+ executives working on social in a professional capacity 51% 57% B2C B2B There has also been a noticeable jump in companies with 6+ employees using social in a professional capacity 36% 2012 42% 2013 1 It’s important to note that a significant proportion of our cor-porate respondents categorised themselves as having both b2b and b2c elements, so where our ‘corporate’ response statistics are at odds with the average of our ‘b2b-only’ and ‘b2c-only’ figures, the large group of b2b and b2c respondents is responsible
  13. 13. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Who owns social? Unsurprisingly, social media expertise is still located primarily in the marketing department. However, the dictatorship is weakening. While the size of the ‘hub’ has not changed markedly, its location has. While 57% of social media experts working specifically on the technology were based in the marketing department in 2012, that figure has dropped considerably in 2013 - only 51% of corporate social media practitioners are now based in the marketing department. 13 Corporate social media practitioners now based in the marketing department 57% 2012 51% 2013 This increasingly ‘spread out’ social media expertise is more evidence of social’s increasing corporate maturity - a recognition that social’s ownership by marketing will curtail opportunities for many other departments. To back this hypothesis up, it’s also worth highlighting that 18% of social media experts now report directly to the CEO (up from 14% in 2012) - implying an increasing awareness of the wide reach - and business critical nature - of corporate social media. Social media experts that report directly to the CEO 14% 2012 18% 2013 While less than a fifth is hardly evidence of a journey complete, it does represent undeniable progress.
  14. 14. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com b2c/b2b focus - an interesting tidbit Break out figures on social ownership by b2b and b2c company, and an interesting discrepancy becomes obvious. We argue that social’s decreasing ownership by marketing departments implies a broader adoption across business - and thus a more advanced corporate social media model. The increasing direct-reporting to CEOs back up this data. The evidence in this case suggests b2c companies have made more progress in corporate recognition of social’s value than their b2b counterparts. 60% of b2b company respondents reported directly to the Head of Marketing - versus a far lower 43% for b2c companies. Also, while only 15% of b2b social media executives report directly to either the board or the CEO, the figure is a far higher 28% for b2c companies. 14 Respondents who report directly to the Head of Marketing 6O% 43% B2C B2B Respondents who report directly to the board or CEO 15% 28% B2C B2B It seems that the rapid progress made by b2b companies to ‘catch up’ to their b2c counterparts still has a way to go
  15. 15. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 15 Impact on organisational structures 61% of businesses stated that social has impacted on internal structures, departmental organisation, workflow and responsibilities The fundamental impact is one of teamwork, collaboration and the reduction of silos. Taking some direct quotes from our respondents, it becomes apparent that the advent of corporate social media adoption has had a deep and lasting impact on organisational structures. bill says The maturation of the social discipline is an exciting development. Some of the growth can simply be attributed to time. Comparing prevailing attitudes to those of the past lends perspective on the present and aids practitioners in planning for the future. New innovations and market options can also lend a depth and rigor to the discipline. The key indicator of success, however, remains a tight integration of social operations into the general operations of a company. If your company develops products and serves customer in a highly centralized fashion, then your social approach should follow suit. That also holds true for product or geographic divisions. Take how you are organized (and more importantly, how your customers see you), and reflect it in your social structure. When we asked about this impact in more detail, it becomes clear that social has led to ‘silos dissolving’; that “it has forced departments that have traditionally operated in a vaccuum to work more closely”; and has led to “more frequent communication between the different functional areas of the organisation”. Perhaps the best summing up of the impact social has had on internal infrastructure is that it “‘requir[es] several of our divisions to take a more collaborative approach”. esteban says We are seeing 3 important trends across companies with global footprints: 1 Social media’s global relevance is a catalyst for change within large organizations. What was once seen as experimental is now an important part of how companies view, interact and learn about customers on a daily basis. Social media has encouraged (or force) companies to re-think how, when, where and why they communicate with their customers. 2 Social technologies are enabling collaboration across previously siloed organizations. The development of multiple hub-and-spoke models requires new ways of thinking and forces teams to realize that social cannot be “owned” by a single team or business unit. 3 Social media is becoming a CEO-level agenda. As social media practitioners become sought out in the boardroom, social goals, strategies, and tactics gain greater importance at the top, and this will further enable social media programs to scale as needed.
  16. 16. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 16 KEY FINDINGS To sum up this section, it appears that not only has social media’s organisational structure within a business evolved and matured (hub and spoke becoming the core model, spokes increasing implying embedding across departments, and increasing direct reporting to the upper echelons of a corporation implying an increasing recognition of the value of social from senior management), but social has actually impacted on the organisation and structure of the entire business, and has wrought meaningful change on broader organisational models. Fundamentally, social has forced different departments to work more closely together to become more responsive and better able to serve a consumer that expects social proficiency and one-to-one communication.
  17. 17. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Corporate uses of social media Current focuses for social media deployment Unsurprisingly, marketing and communications are still core focus areas for social media use within business. Social was welcomed into corporations through marketing’s door, after all. The ability to communicate in a new, more personable and interactive way led to formidable marketing gains in terms of response rate, loyalty and satisfaction. It is therefore profoundly unsurprising that a clear 90% of companies now use social media as part of a broader marcomms strategy. 17 9O% of companies now use social media as part of a broader marcomms strategy But social is increasingly expanding into other business units. The leader of the pack is the customer service department. In 2013, the majority of large corporates (53%) have added social media elements to their customer service function. It’s unsurprising - the speedy and direct communication that social media offers means it is not only attractive to a consumer looking to resolve issues, but to the savvy customer service department looking to highlight their responsiveness, share positive stories - and spot issues in the first place. b2c/b2b comparison Again, b2c companies take the lead here. While 50% of b2c companies now use social media for customer service, the b2b community lags behind with only a 36% adoption. Companies who use social media for customer service 36% 5O% B2C B2B Perhaps this is unsurprising - social lends itself to customer service at high volume, not in-depth and often complex issues that arise with a smaller, more demanding customer base as tends to be the case in b2b businesses.
  18. 18. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com The utility of social media as a bellwether - something giving the corporate enhanced ability to spot trouble brewing - links closely into another huge area of social’s expanding influence within business. Again, a majority of corporations (53%) are now using social to augment their ‘reputation preservation and crisis communications’ function. This area has experienced formidable growth - less than a third of companies were leveraging social for this function in 2012. This is perhaps spurred by two things: 1 The realisation that corporations no longer have the power to dictate their own brand messaging: The company is now only one voice in the conversation, and the role of the communications department is only ever to influence, not dominate, discussion. 2 A spate of high-profile social media ‘screw ups’ in 2012 - from Kenneth Cole and the Egyptian riots; to Nestle, Sinar Mas and Greenpeace; to Ragu Pasta Sauce alienating ‘daddy bloggers’ - problems snarling up on social media have led to real embarrassment, brand damage, and in some cases, share prices dropping. Using social media for reputation preservation is now a sensible part of corporate risk management. The third key area of social expansion within business is ‘customer insight’. 56% of our corporate respondents are now using social to get more clarity and detail on who their customer is, where they are, and what they like. This links in with our initial hypothesis - that the rise of ‘customer centricity’ as a corporate focus in 2013 is fuelled in large part by the increasing clarity and detail that social monitoring offers. It’s akin to the shift from normal resolution to HD in televisions - the detail is now there to spot. 18 56% corporate respondents are now using social to get more clarity and detail on who their customer is, where they are, and what they like To summarise, over half of all corporations are now using social media for: • Marketing • Communications • Customer Service • Increased Customer Insight (and yet only 16% of companies have a social CRM system) • Reputation Preservation and Crisis Communications
  19. 19. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 19 Future plans Planned increase in adoption of social for new business functions 2012 2013 58% 53% 34% 75% 67% 49% Customer insight Customer service Employee engagement In 2013, we see a continued focus in the areas above - with the use of social media for customer service and insight becoming the norm. By the end of the year, social’s adoption by customer service departments will grow by 24% to 67% of all corporations. Customer insight’s adoption will grow even quicker, to an even higher point - up 29% to 75% of all corporations. bill says Social media’s move beyond marketing will likely continue, but notions of ownership, budget, and scale can sometimes cloud the larger point. Social media offers the potential (as yet unrealized) to fundamentally change the way companies do business. Social must be more than a cheaper content distribution platform or faster customer service mechanism. We need to start harnessing its power to change the very way we create products and services. We need to use it to remove all friction from our interaction with customers. And we need its ubiquity and immediacy to aid in measuring the impact of our efforts. This potential may not be something to be “achieved”, but rather it is a continuous journey toward remaking how our companies can ultimately improve the lives of all involved stakeholders. The third area is perhaps most interesting. By the end of 2013, 49% of all corporate respondents expect to be using social media for enhanced employee engagement. This is a development driven by b2b companies, where 53% expect to use social media for employee engagement in 2013, compared to 34% of b2c companies.
  20. 20. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 20 esteban says Most companies are leveraging social media for marketing and there is no going back. Social media is also becoming a key element for customer care, market research and corporate communications practitioners at most companies, showing that the ROI of social media is multi-faceted. In my opinion, the social media barrier of entry is much greater for customer care and corporate communications leaders; few would deny that it is easier to start publishing (ie. marketing) on Twitter than it is to properly respond to customer complaints and diligently monitor conversations and spot trends. Companies must adapt by investing time, resources and money to develop the right strategies, measure the right metrics, and use the right tools. Social media programs need to become more sophisticated and this requires great coordination and planning. SoLoMo is a nice buzz term but it is also the reality of how Internet users behave online: We share content and opinion on social networks; we seek for information in context with what’s around us; and we are becoming increasingly mobile thanks to advancements in smartphone and tablet technologies. KEY FINDINGS Social is increasingly being leveraged by far more than simply the marketing department. Ability with social media is now an expected skillset for the savvy communications executive, customer service executive, customer insight and experience executive - and even risk managers. Over 2013, this adoption of social by the entirety of a company will continue - spearheaded by b2b companies’ leveraging of social tools for better employee engagement.
  21. 21. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 21 A look at the networks An analysis of corporate adoption rates of existing social networks Overall 51% 78% 71% 89% 88% Facebook Twitter LinkedIn YouTube Corporate blog B2C 48% 46% 71% 83% 97% Facebook Twitter YouTube Corporate blog LinkedIn B2B 55% 7O% 88% 87% 81% LinkedIn Twitter Facebook YouTube Corporate blog It’s unsurprising that Facebook is used by the vast majority of b2c companies - and is the most popular social network overall for all corporate respondents. It’s the largest social network, with the most mature marketing capabilities and plenty of case studies and examples as to how companies can take advantage. Twitter, likewise. Perhaps the most interesting observation for the b2c business is how few companies now use a corporate blog - and also the comparative weakness of LinkedIn. To round out the study, Less than 50% of b2c companies use Google+, Foursquare, Pinterest, or Instagram (indeed, less than 40% use Pinterest and only 23% use Instagram - despite the huge buzz around them in 2012).
  22. 22. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com For b2b companies, there is an equally unsurprising network at the forefront - LinkedIn’s capabilities for identification, and engagement with, a corporate audience is unrivalled (one can perhaps track the popularity for b2b marketing by checking the number of marketing messages filling your LinkedIn inbox). Perhaps more surprising is the widespread adoption of YouTube, and the comparative weakness of corporate blogging - only 55% of respondents now use this method. Unsurprisingly, Instagram and Foursquare barely register (5% adoption for each), though Pinterest has a surprisingly high 20% adoption. Another small point - more b2b companies are using Twitter than b2c companies, which certainly surprised me. 22
  23. 23. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 23 Which network is the most useful for you? Overall 21% 2O% 4O% Facebook LinkedIn Twitter YouTube B2C 65% 8% 17% 6% 3% Facebook Twitter YouTube LinkedIn Corporate blog 3% Other B2B 21% 17% 37% LinkedIn Twitter Facebook Corporate blog YouTube Other 8% 5% 12% 4% 11% 2% Corporate blog Other Most notable is Facebook’s total dominance in terms of utility. Considering 65% of b2c companies said it was the most useful network for them, it is unsurprising that 97% of companies use the network. Twitter, from which one would perhaps expect a stronger showing, was the network of choice for only 20% of all corporations. Considering the relative immaturity of the platform in terms of specific functionality for large brands, this is perhaps explained to a certain extent. Twitter’s corporate packages are still being rolled out. For b2b companies, Facebook is way down in third place - only 17% of companies say it is
  24. 24. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com the most useful network for them. Number one in a far more evenly spread field is LinkedIn, the choice of 37% of respondents. Twitter overtakes Facebook to take 21% of the vote. 24 bill says Choosing to engage on specific social networks is not an either/or proposition. Yes, we all have limited time and must focus. But that does not mean effort on one platform should always be viewed as coming at the expense of another. We should instead view each network in the same way a craftsperson views a toolbox. Some jobs call for a hammer, while others require a screwdriver. Use the right tool for the job, and when something goes wrong don’t blame your tools Similarly, consumers do not view these social options as perfect substitutes for each other. They will use Facebook, Twitter, and Pinterest for very different purposes. Rather than rating the networks against each other, consider why your customers and prospects use a particular network, and then help them meet their needs on that specific platform.
  25. 25. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 25 4.5% Never 58% More than once a day 5.5% Less than once a month 1O% Less than once a week 22% Less than once a day Facebook Frequency of engagement 9% Never 54% More than once a day 8% Less than once a month 1O% Less than once a week 19% Less than once a day Twitter The declared ‘use’ of social media channels by corporates means little without looking into the frequency of that use. While different channels have different expectations re frequency of engagement (one would always expect more tweets than YouTube videos, for instance), companies not engaging on a network at least once a month are letting a community die - and evidently don’t value the return received for said network. When one focuses on b2c frequency of use, one finds that Facebook is indeed number one - 66% of respondents engaging on the network over once a day - and only 11% using the network less than once a week. Twitter, perhaps surprisingly considering the immediacy of the network and emphasis on trends and fast-moving information, is in second place - 54% of companies engaging on Twitter more than once a day - though with a significantly higher 17% using the service less than once a week.
  26. 26. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com From here, engagement levels drop significantly. Next is corporate blogging and Google+, which is used by 10% of brands more than once a day. Only 9% use LinkedIn more than once a day. Pinterest - considering the specific nature of the audience, the engagement opportunity, and the relative immaturity of the network itself, has an impressive 7% of b2c companies engaging on it more than once a day. Foursquare, YouTube and Instagram fare significantly worse - with less than 6% of companies using them once a day. Instagram is more likely to be used less than once a month, YouTube a few times a month, and Foursquare (perhaps because of the emphasis of temporary ‘deals’) only a few times a year. The picture for b2b companies is different, as one would expect. Frequency is down across the board, as b2b companies struggle to engage on a daily basis, whatever network they use. Twitter takes the lead - with 46% of companies using it more than once a day - and only 9% of respondents using it less than once a month. Facebook, perhaps surprisingly, is in second place with 45% using the network more than once a day, and only 9% using it less than once a month. LinkedIn is third, which is interesting, considering most companies declared it their most useful network. Only 34% of respondents use the network more than once a day. From here, frequency of use drops off considerably. Corporate blogging and Google+ are both used more than once a day by 11% and 12% of respondents respectively. In another boon to those who suggest that b2b social media is slower moving than that of b2c counterparts, the adoption of the big 2012 networks Pinterest and Instagram is minor. Only 3% use Instagram once per day, and 5% use Pinterest with this frequency. Emerging Platforms Across the board, the adoption rates of emerging networks is slow. Not only are the big new networks of 2012 (Pinterest and Instagram) still used infrequently and by a low percentage of all respondents, but newer - or simply more global - networks like App.net, VKontakte (Russia’s Facebook) and Sina Weibo (China’s Twitter) have very poor adoption rates. Considering Sina Weibo has over 400m registered users2 (the same as the far more popular Google+3), it represents a missed opportunity that only 29% of those respondents who declared themselves responsible for social media in Asia actually use the service (and only 11% of all respondents). App.net - a new, paid-for social network which keeps data private and does not sell it to advertisers, has a 6.67% adoption rate. Vkontakte has only 6% of corporate respondents using the service overall, and a poor 7% of those specifically responsible for social in the European mainland. 26 2 Engadget, November 2012 http://www.engadget. com/2012/11/16/sina-weibo- 400-million-users/ 3 September 2012, http:// news.cnet.com/8301- 1023_3-57514241-93/ google-signs-up-400-million-users- with-100-million-active/
  27. 27. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 27 esteban says Few would be surprised that Facebook is the leading social network for corporate purposes, and few would be surprised by LinkedIn taking the lead when it comes to B2B. I’m also not surprised by the importance of YouTube and Twitter, and how the four big social networks tend to be seen as more valuable than corporate blogs. I do find the figures of Google+ (50%), Pinterest (40%), and Instagram (23%) very interesting. While these findings seem low compared to the other social networks, it is important to remember that just a few years ago Facebook, Twitter and YouTube were in the same situation. These days, brands jump into new social networks like Vine in a matter of days. This shows how the social universe is expanding, and brands are realizing that their presence needs to be as diverse as its customers and the social websites and services they are using. While the figures for Sina Weibo and VK seem small, I believe this will change in 2013, and most brands will start paying more attention to international non-English social media.
  28. 28. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 28 Social Media Financials How does your budget compare? 6O% $0 - $10,000 12% $10,001 - $25,000 1% More than $2,500,000 2% $1,000,001 - $2,500,000 3% $500,001 - $1,000,000 7% $25,001 - $50,000 8% $50,001 - $100,000 7% $50,001 - $100,000 While 6% of corporates have over $500,000 to spend on social media activity, the vast majority of our respondents have considerably less. A full 60% of those corporates who completed our survey have less than $10,000 to spend per year, with another 27% working on a budget of less than $100,000. Budget increases are slowing... Over time, money pumped into social media adoption by big business is reducing. In 2011, 77% of our respondents were confident of a budget increase, and in 2012 this had reduced to 62%. In 2013, for the first time since our study began, the majority of corporate respondents (a full 58% of them) don’t think their budgets will increase in 2013.
  29. 29. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Those that do see an increase are doubtful of a significant rise. 20% of respondents think any increase will be between 1% - 5% of last year’s total, with another 21% expecting 10% or less. When one looks at those expecting a major increase, only 5% expect an increase of 75%+ compared to their 2012 resources. Again, this tallies with a trend identified last year. In our first 2011 study, 29% expected the increase to be 75% or higher. In 2012, only 7% expected a jump of 75% or more, and this year that figure has reduced again. 29 Number of people expecting 75% or more growth in social 7% 2011 2012 5% 2013 29% ...But don’t worry - social is still important It would be a mistake to read these figures evidence of social’s decreasing importance. After all, 93% of our 2013 respondents say that social is becoming a more important part of marketing strategy. As we felt last year, this caution over budgets can almost certainly be explained by the ‘groundwork’ now being complete - hiring is slowing, and new technologies have now been purchased. As corporate maturity with this new channel increases, the need for external help also diminishes - only 36% of respondents now pay for external advice/assistance with their social media presence. Costs are, perhaps thankfully, reducing significantly - and budget growth will slow accordingly. B2B/B2C Comparison Again, B2B companies appear to be slightly behind their B2C counterparts when it comes to committing resource to social media adoption. Only 46% have more than $10,000 pa, compared to 59% of B2C companies. Only 3% of B2Bs have more than $500,000 to spend on social media within their company - compared to 4% of B2Cs. 42% of B2C companies are confident their budget for social media activity will increase over 2013, and 7% are confident of that being a significant increase of 50% or more. For B2Bs, there is more caution. Only 37% are confident of a budget increase, though the same proportion, 7%, see this being an increase of 50% or more..
  30. 30. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 30 esteban says Companies overall are spending more wisely in social media. While a few years ago they would’ve spent large amounts of money into emerging tools and over-promising agencies, they are now ensuring that there is a return on investment. In recent years, social media practitioners have been focused on getting budgets for their efforts. This year, they will have to optimize, innovate and demonstrate their success before their budgets grow exponentially. I believe those who leverage social technologies to help leapfrog competitors will be the ones getting the budget increases they need to keep growing and enhancing their efforts.
  31. 31. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 31 Misplaced confidence? 93% of respondents say that social is becoming an increasingly important part of their marketing strategy While a huge 93% of respondents say that social is becoming an increasingly important part of their marketing strategy - and a significant 40% are confident that social media drives sales for their business - the metrics and KPIs used to support these claims are somewhat suspect. 4O% of respondents are confident that social media drives sales for their business And this caution is not only in the eyes of outsiders. Only 31% of our respondents are confident that they’re accurately measuring the impact of social media activity, while only 44% even attempt to measure ROI. Equally, while the social media practitioner is evidently confident that social media is having a positive impact on their business, there is evidently a way to go before the C-suite buys in to the concept - only 45% of those surveyed feel that their CEO is convinced of social media’s value. Those who feel that their CEO 55% is convinced of 45% social media’s value Not confident Confident Impact and integration
  32. 32. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com Metrics not fit for purpose There is still a surprising reliance on simplistic metrics when tracking social impact. The top metrics used by corporate social media practitioners in 2013 are Web traffic (44% of respondents say this is one of their top three most important metrics); increasing follower numbers (another 44% - somewhat depressingly, as outlined in the text box below) and increasing activity/engagement. This is positive as while undeniably harder to track, this metric better reflects social media’s impact. While only 14% chose this as one of their most useful metrics in 2012, that number has shot up to 43% in 2013. It’s notable that other more advanced metrics - share of conversation vs competition; revenue per follower; customer sentiment; # of evangelists - are all rarely used. All have only 14% or less of our respondents identifying them as key (though we’re going in the right direction - that’s up from only 10% in 2010). There is evidently still a considerable way to go before the metrics match the enthusiasm around social media adoption. Why are ‘increasing follower numbers’ such a flawed metric? One of the most alarming findings in this year’s State of Corporate Social Media briefing is that 44% of corporate practitioners still see ‘increasing follower numbers’ as one of their top three most critical metrics. Why are we so against this metric? It’s akin to being a performer at a music festival. An artist can be on stage at Glastonbury or Coachella, performing live. They can use all sorts of incentives to get people to turn up and watch the gig - free drinks, dancers, an incredible stage show. But if the audience numbers increase because people are motivated by the dancers or the drinks, they’re unlikely to buy the merchandise, or even sing along. The gig will be flat, and ultimately pointless for the artist. It’s the same with social media. If your increase in follower numbers is because you’ve been offering the equivalent of free drinks or backing dancers (offers unrelated to your core product offering, hijacking memes with little relation to your company, etc), you face the same problem. While follower numbers increase, the impact on your bottom line will be minimal. But if the audience is arriving motivated by actually listening to the music, every audience member is far more valuable. The number of people at the gig may be smaller - significantly smaller - but ultimately it adds up to higher merchandise sales, and a better response to the gig. The artist can also expect those in the audience to go home and spread the word about the concert - leading to more sales, and bigger audiences in the future. The same applies with your social media strategy. It’s about quality, not volume. It’s about genuine engagement, not initial contact. Follower numbers, therefore, track the wrong thing. 32
  33. 33. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 34 KEY FINDINGS Measurement is an interesting part of corporate social media. On the one hand, measurement is what allows companies to have a more data-driven approach to social (ie. leveraging metrics to derive insights and take action on such insights). On the other hand, measurement is what often shows less than desired results in social media (ie. owned and paid media not driving as much earned media as needed). In addition, the lack of widely acceptable standards and the vast amount of possible metrics (ranging from operational and reach metrics, to growth and engagement metrics) can make the task of measurement a difficult one, especially for professionals with a background in web analytics and search marketing. I believe all social media efforts should be measured against objectives, and all costs should be diligently tracked against perceived benefit. For example, PR professionals often make assumptions that become internal standards (ie. the value of an impression equals $X). Companies must standardize their approach to measurement and weigh each meaningful metric according to the value of the objective it represents. For example, growth and reach metrics should be important for companies that have growth and reach related targets and goals. Every company will do measurement differently, even if there are similarities across all of them. What is key is to understand everything that can be measured and to ensure that what is most meaningful is measured correctly and consistently.
  34. 34. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com 35 Drawing Conclusions In some areas, social media has stayed remarkably (some would say worryingly) static. In others, real progress has been made. 2012 and we have made progress There are three distinct areas of meaningful progress in 2012: 1 Social media has become far more critical to - and integrated within - broader marketing strategy 2 Social has taken meaningful steps into other areas of business, and beyond marketing - and this is set to continue (and accelerate) in 2013. The expectation is that by the end of 2013, the use of social tools for better customer service, employee engagement, crisis resolution and customer insight will become the norm. One need only consider the fact that nearly 20% of social media teams now report directly to the CEO to see this development writ large. 3 Organisational models are changing and maturing. Internally, the hub and spoke model now dominates, and implies social is becoming embedded across many business units. Equally, the rise of social media has led to meaningful changes in the way the whole company works together - precipitating an increased transparency, and a drive to better inter-departmental collaboration. Issues to be resolved in 2013 Two areas show potential problems - though one can be dealt with quite simply. Our figures show a slowdown in budgets being allocated to social activity. A simplistic reading would suggest a decreasing focus on social within business. We are more convinced by the argument that initial expenditure is over, and that maturation of social engagement in-house has reduced the need for spend on external assistance from vendors and other service providers. The second problem is deeper, and harder to deal with. The measurement of social media’s impact and value is still deeply flawed, and fundamentally based on the wrong metrics. The key KPIs chosen by our corporate respondents indicate a weak and simplistic focus on basic numbers - with a depressingly small number of people pushing ahead towards more complex, qualitative metrics - which are far better equipped to give companies detailed insight on their progress and activity. Conclusions In short, social has undeniably become a fundamental impact on how business does business. Increasingly, social networks and tools are changing companies, and helping them to achieve better results in all areas of business. There is still a way to go. 2013 will be characterised by the journey away from ‘social media marketing’ and towards becoming a ‘social business’ and all that entails.
  35. 35. Get more from USM JOIN THE COMMUNITY FOR CORPORATE SOCIAL MEDIA EXECUTIVES! 11 12 13 IN-DEPTH INSIGHT FROM WORK WITH YOUR PEERS GET INVOLVED IN CORPORATE LEADERS AND TO SOLVE PROBLEMS AND THE DISCUSSION ANALYSIS ON ALL THE KEY LEVERAGE OPPORTUNITIES 94% of the world’s most powerful brands DEVELOPMENTS IN SOCIAL We know the best person to give you are part of our community. And you can Our website features exclusive interviews advice is someone that has direct tap into that well of expertise wherever with some of the best minds in corporate experience. That’s why our conferences you are. We’re on Twitter, Facebook, social media. Over the last few months we’ve feature ONLY corporate speakers with LinkedIn, and Google+. gone into detail with companies like Nokia, real ‘skin-in-the-game’ experience, talking Come and join the conversation... KLM, Orange, ESPN and Domino’s Pizza. to other corporates about how to make social work for their business. We’ve also conducted in-depth studies on content management, big data, brand advocacy We’ve had over 2,000 executives join us and crisis management in the last few months. so far. To find out more about your next opportunity to meet them, check out If you want cutting edge thinking and www.usefulsocialmedia.com/conferences practical advice on corporate social media, join us at www.usefulsocialmedia.com WHO’S ALREADY PART OF THE COMMUNITY? WHAT YOUR PEERS THINK OF US USM has consistently delivered relevant events. My spend is well worth it based on the speakers (and their content) whom are “real world” practitioners Eric Clemens Manager - Enterprise Marketing, Verizon Wireless Loved it: awesome! Stephanie Scott Social Media Specialist, American Airlines A wonderful opportunity to connect with fellow corporate social media practitioners, share best practices and insights to help advance the profession of social media in the corporate setting Perrine Crampton Social Media Strategist, eBay JOIN US AT WWW.USEFULSOCIALMEDIA.COM
  36. 36. The Fourth Annual Corporate Social Media Summit New York USM Superior marketing response, sharper corporate decision-making, enhanced innovation and a happier, more loyal customer: Become a social business usefulsocialmedia.com/newyork #CSMNY Two day business conference, June 12-13, 2013 The New Yorker Hotel, New York A practical and interactive business conference built for social media, marketing and communications executives: MasterCard Worldwide Alfredo Gangotena Chief Marketing Officer The Hertz Corporation Bob Stuart Chief Marketing Officer Outback Steakhouse Mike Kappitt Chief Marketing Officer Sears & K Mart Seasonal and Outdoor Living Jennifer Dominiquini Chief Marketing Officer QUOTE ‘STATECSM’ to receive 15% off your pass! For more information visit www.usefulsocialmedia.com/newyork Footlocker/Eastbay Dave Lokes Chief Marketing Officer Get best practice from the global leaders: Exclusive strategic insight on the future of social from 8 Chief Marketing Officers from some of the biggest brands in the world. Get closer to your customers through your social strategy: Build valuable relationships, humanize your brand and become customer centric to enhance long-term customer loyalty. Stand out in a highly competitive market: Become a social business, achieve consistency of message and differentiate your company. Amy Sherwood Vice President - Public Relations & Consumer Affairs, YUM! Brands Dewayne Hankins Director of Social Media, Los Angeles Kings The summit is highly worthwhile and an excellent way to gain actionable insights You literally couldn’t walk away without taking something you could use in your business

×