Case Studies: Scalable Social BusinessHow Brands Manage Complex, Distributed ProgramsFebruary 7, 2013                     ...
Social Media Proliferation Tests Organizations                                                      iMost large companies ...
Whole Foods Market Lives Up to Its Local Brand Promise: Putting LocalEngagement in the Hands of Store ManagersWhole Foods ...
The Benefit: Coordination, Content Suggestion and Distribution, and MeasurementWhole Foods Market deployed Spredfast to al...
General Motors Establishes Strategy and Organization, Then EmpowersRegional Stakeholders to Engage With Customers Globally...
Source: General Motors International Operations, 2013Implementation: GMIO Organizes in Multiple Hub-And-Spoke Models, Then...
Results: GMIO Has an Expansive, Yet Localized, Social FootprintWhile there were 10 to 15 people responsible for social par...
Amway Invests in Social Media to Improve Brand Awareness and HelpDistributors Grow Its BusinessAligning with its relations...
The SMMS rollout began with corporate training, and then expanded to distributors. “Early on, we took a ‘crawl,walk, run’ ...
PUMA Scales Limited Headcount for Global EngagementPUMA seeks worldwide social engagement with locally targeted messaging....
Implementation: Grow Engagement With the Right Tools and DataFrom the outset, PUMA’s social media priority has been to inc...
Social Media Management: Trends and Future EvolutionAs social media proliferates, companies must manage increasing numbers...
Trend #4: Brands are finding they need internal collaboration features to be baked into SMMS for contentmanagement and inc...
Ecosystem InputThis report includes input from market influencers, vendors, and end users who were interviewed or briefed ...
About Us                               Jeremiah Owyang, Altimeter Partner, Digital Strategy Analyst                       ...
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[Report] Scalable Social Business: How Brands Manage Complex, Distributed Programs, by Jeremiah Owyang and Andrew Jones

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For brands today, the complexity of social business is steadily compounding. For every additional variable — each account, customer conversation, business unit, location, language, distributor, etc. — social media becomes a greater challenge. Meanwhile, brands struggle to prepare appropriately and adopt the right technology. This report includes four case studies that demonstrate how brands are addressing social media proliferation.

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[Report] Scalable Social Business: How Brands Manage Complex, Distributed Programs, by Jeremiah Owyang and Andrew Jones

  1. 1. Case Studies: Scalable Social BusinessHow Brands Manage Complex, Distributed ProgramsFebruary 7, 2013 By Jeremiah Owyang and Andrew Jones With Christine Tran Includes input from 19 ecosystem contributorsExecutive SummaryFor brands today, the complexity of social business is steadily compounding. For every additional variable — eachaccount, customer conversation, business unit, location, language, distributor, etc. — social media becomes agreater challenge. Meanwhile, brands struggle to prepare appropriately and adopt the right technology. This reportincludes four case studies that demonstrate how brands are addressing social media proliferation: • Whole Foods puts local social engagement into the hands of store managers. • General Motors organizes for social business internally, then supports regions. • Amway empowers distributors yet maintains brand consistency. • PUMA scales limited headcount for worldwide engagement. Methodology Table of Contents For this report, Altimeter Group conducted qualitative Social Media Proliferation Tests Organizations ................... 1 interviews with both brands and vendors. Our initial Whole Foods Market Lives Up to Its Local Brand Promise: goal was to investigate how brands use technology to Putting Local Engagement in the Hands of Store Managers 2 address social media proliferation. However, we found General Motors Establishes Strategy and Organization, many questions remained unaddressed; as a result, Then Empowers Regional Stakeholders to Engage With we expanded the scope of the case studies. Specifics Customers Globally .......................................................... 4 include: qualitative interviews with 15 technology Amway Invests in Social Media to Improve Brand vendors and qualitative interviews with four brands. Awareness and Help Distributors Grow Its Business ......... 7 PUMA Scales Limited Headcount for Global Engagement 9 Social Media Management: Trends and Future Evolution .. 11 Conclusion ....................................................................... 12
  2. 2. Social Media Proliferation Tests Organizations iMost large companies engage in social media today, yet many find themselves overwhelmed by the number ofconversations taking place without proper resources, training, or tools. In survey data previously published, Altimeter iiGroup found that brands manage an average of 178 corporate social accounts.Troublingly, many brands are not even aware of all their social accounts, as stakeholders in different business units,locations, retail outlets, etc., may create them before guidelines are in place or enforced. Altimeter previously foundthat only 16% of brands had a formalized and regularly updated social inventory.iii This exposes companies to risks,including damage to brand reputation, the release of confidential information, legal or compliance violations, andidentity theft or brand-jacking.iv Companies also face a significant challenge when it comes to measurement, as fewtoday are able to measure business metrics beyond engagement numbers.vIn the technology realm, social media management systems (SMMS) — software tools that companies deploy tomanage accounts on social media channels such as Facebook and Twitter — have become necessary for manybrands to manage their external social engagement.vi The SMMS industry has evolved quickly, with hundreds ofmillions of dollars in venture capital funding and numerous acquisitions. As the market has matured, many vendorshave invested in marketing to improve their value propositions and market positioning.Nevertheless, we found that brands still lack clarity about to how to address social media proliferation specificallywithin their own organization. One challenge is that few detailed SMMS case studies exist, and of those, few includedetails beyond technology features. It is not surprising that vendors focus on their products, many of which arefeature-rich and complex all on their own. Yet brands seek to understand the bigger picture: the implications fortheir organizational structure, requirements for new policies and processes, how to educate stakeholders, and otheraspects of internal preparation. Technology on its own is insufficient to address the challenge.The case studies in this document aim to tie these pieces together by showing how brands today manage a complexsocial environment and effectively engage with customers. In our report published two years ago, Career Path of theCorporate Social Strategist,vii Altimeter Group predicted that demands from customers and internal business unitswould increase, and that has certainly been the case.viii In order to manage the growing complexity, both internalpreparation and technology are vital. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 1
  3. 3. Whole Foods Market Lives Up to Its Local Brand Promise: Putting LocalEngagement in the Hands of Store ManagersWhole Foods Market seeks to increase word of mouth, gain loyal customers, and identifyadvocates. With over 640 accounts and over 2,000 team members posting, they also need tostay coordinated and measure collective results.Whole Foods Market is one of the largest natural and organic foods chains in the world, with more than 60,000employees across 345 locations in the US, Canada, and the UK. The company is divided into 12 regions, each withits own acting head of marketing and the ability to make decisions independently of the other, even to stock differentproducts. In effect, each store is meant to fit and reflect its local community.Whole Foods Market sees social media as an important way to build a community outside the four walls of itsstores, stay top of mind and drive traffic back to the corporate website — particularly because it does not advertisesignificantly on the national level. With this reliance on word of mouth, Whole Foods Market focuses on overallengagement, content sharing, and the identification of brand advocates. The ultimate business goals, however, are tobring more customers into stores and increase loyalty.The Pain: Organic Social Growth Required a Tool to Manage and Coordinate ItSocial media began organically at Whole Foods Market, explains Natanya Anderson, SocialMedia and Community Team Lead. “Distributed efforts sprang up at different levels andlocations and without a clear plan in mind,” she says. As stores added their own social mediaaccounts, Whole Foods Market realized that the complexity of such a distributed ecosystemwould require procedural and organizational changes and new technology to manage it.In designing governance and workflow, the company needed to keep in mind that most of itsusers were not digital marketers but store marketers. Yet there was a lot of trust in employees.“These are the same people who are talking to customers anyway, so we didn’t need very tightcontrols,” says Anderson. As a result, local store managers were entrusted and empowered to grow their own local social media communities. Implementation: The Right Tool Would Scale, Facilitate Content Distribution, and Provide Flexible Reporting Today, Whole Foods Market uses social media management system (SMMS) Spredfast to manage complexity and measure results. Setting up the tool was easy, says Anderson, but “getting the data to the point where you want it, as well as ‘cat-herding,’ is what really takes a lot of time. Just tracking down account credentials for the hundreds of existing accounts was a major effort.” Considerable effort went into planning and drawing on whiteboards. Whole Foods Market started small, with a pilot group of power users who participated in a series of trainings and tested the SMMS for six to eight weeks. As rolled the SMMS out to additional users, Anderson points out the importance of choosing a platform that is “flexible enough where it doesn’t break as we scale and make changes.” By summer 2013, Spredfast will have been rolled out to all stores. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 2
  4. 4. The Benefit: Coordination, Content Suggestion and Distribution, and MeasurementWhole Foods Market deployed Spredfast to allow multiple users to work on the same accounts without confusionabout who’s done what or which customers have received a response. The SMMS also helps the companycoordinate content and message distribution. For example, where corporate once provided a weekly suggested-content list to stores as a Word document, it can now make content available in a content repository. Users at alllevels can also funnel content or messaging to specific stores or regions based on relevance, such as recipes, holidayideas, regional sales, or local parties. The governance features within Spredfast ensure that users have access to onlythe accounts and data they need, without exposing the company to unnecessary risk.Just as important as workflow and governance, was making sure Whole Foods Market would benefit from datacollection and insights. This was a particularly important selling point for regional managers, who wanted the ability tosee the health of social channels and to see how well individual campaigns were doing. For example, using aggregatedata, Whole Foods Market demonstrated that its larger communities resulted in more significant engagement. Now,when the cheese section in a store asks to create an account, for example, Anderson’s response is, “No, we’ve seenthat it’s tough to create enough unique daily content and grow communities around such granular accounts.”Whole Foods Market, Today and TomorrowToday, Whole Foods Market has over 640 official accounts, most of them for local stores, and over 2,000 teammembers posting on behalf of the company.Now that it has its social foundation in place, Whole Foods Market is focusing on new challenges, determininganswers to such questions as “How do we get people to visit the store more because of something they see in socialmedia?” or “Can we increase frequency of visits to the stores?” It’s still early days, but Anderson says preliminary datasuggests they are affecting not only store visits but also spending. Whole Foods Market’s corporate Facebook account sees significant engagement. This witty post struck a chord and received 3,545 likes, 903 shares, and 157 comments. Source: Facebook, Sept. 14, 2012 Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 3
  5. 5. General Motors Establishes Strategy and Organization, Then EmpowersRegional Stakeholders to Engage With Customers GloballyGeneral Motors International Operations (GMIO) seeks to gain new customers and increaseloyalty while ensuring brand consistency and capturing data. To do so, GMIO established regionalsocial media hubs in 40 countries and employed tools for monitoring and coordination, whileproviding direction, education, and best practices centrally.GM is a global company, with multiple brands in more than 120 countries around the world. Over 202,000 employeesplus 21,000 dealers work in 158 facilities on six continents.Source: Twitter, 2013Because of the complex, distributed nature of the organization, GM divides management into four distinct regions, eachof which operates independently. General Motors International Operations (GMIO) includes countries in Europe, Africa,the Middle East, Asia Pacific, and Australia. Like its counterpart GM North America, GMIO has primary goals in socialmedia to increase loyalty, gain new customers, and engage fans so that they talk to and about GM brands positively.The Pain: Fragmented Internal Social Efforts Ran Independently With No Measureable ResultsBefore GMIO formally organized for social business, efforts were fragmented. Steve Worrall, Manager, CustomerRelationship Management (CRM), Social Media & Digital Marketing at GMIO, says, “In the places within GMIO it didexist, social business was uncoordinated, driven by different teams in different regions.” For example, PR was incharge in one place, marketing in another, and in a few cases both, with competing efforts. The company recognizedthe need to move from an uncoordinated approach to an integrated social plan, with cross-departmental participationand coordinated listening, engagement, key performance indicators, and measurement. Its efforts would be basedsignificantly on what had already been done by GM North America. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 4
  6. 6. Source: General Motors International Operations, 2013Implementation: GMIO Organizes in Multiple Hub-And-Spoke Models, Then Supports Them With ResourcesGMIO set up an organizational infrastructure for social. In the quest to define ownership, the company desired acustomer-centric approach. Rather than have a single department responsible for social business, it establisheda central social hub in Shanghai, where GMIO headquarters are located, made up of marketing, communications,customer care, legal, and other business units.This central hub meets weekly with regional hubs at the country and brand levels. Each regional hub includes a SocialMedia Champion, a senior leader to help ensure success; a Social Media Coordinator, who is responsible for day-to-day operations; and representatives from marketing, communications, and customer care. GMIO also encouragedmembers from legal, HR, product planning, design, andother groups to join.This organizational structure helped formalize governance,workflow, and learning processes.ix Once theserequirements were in place, GMIO officially introduced aunified SMMS platform to coordinate engagement and ameasurement strategy to benchmark efforts.GMIO’s North American counterpart had alreadyimplemented SMMS platform Sprinklr, which improved GMIO’s monitoring tool, Social Media Navigator, shows social monitoring in GMIO countries.operational efficiency through increased coordination Source: General Motors International Operations, 2013and faster customer response time. GMIO leveraged thatrelationship, buying additional licenses. It then adaptedNorth American processes, such as how to spot hand-raisers, people who may be interested in one of GMIO’scars, and what to do once they’ve been identified. After launching Sprinklr, GMIO then partnered with consultanciesConvergination and PRIME Research to create a standard monthly analytics and reporting suite for all markets. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 5
  7. 7. Results: GMIO Has an Expansive, Yet Localized, Social FootprintWhile there were 10 to 15 people responsible for social part-time in December 2011, there are now over 150 peopleacross GMIO who work on social as part of their job. There are also social media hubs in 40 countries within GMIOand 113 corporate-approved social assets on Facebook, Twitter, blogs, RenRen, Tencent, Weibo, Youku, and others. After only half a year of implementation, over 75 people were using Sprinklr in GMIO, with the plan that 100 would be using it by the end of 2012. GMIO is only beginning to assess the business impact of its efforts, now that it has several months of data. At GM North America, Sprinklr use has resulted in reduced social support time from 12 hours to 90 minutes, as well as correlated with more people coming to GM’s defense in online conversations. Today, GMIO uses Sprinklr in countries and regions as diverse as Indonesia, Japan, Egypt, Australia, South Africa, South Korea, Thailand, Vietnam, and the Middle East.Source: General Motors International Operations, 2013 Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 6
  8. 8. Amway Invests in Social Media to Improve Brand Awareness and HelpDistributors Grow Its BusinessAligning with its relationship-based business model, Amway invests in social media to empoweremployees and over 4 million distributors. To ensure consistent brand messaging, Amway relieson internal social media leadership, as well as technology and consulting.Founded in 1959, Amway is a direct-selling company with global sales of $12 billion in 2012. Best known for itshealth and beauty products, Amway operates in more than 100 countries, with more than 20,000 employees andover 4 million distributors.The Need: Amway Seeks to Empower Distributors Yet Maintain Brand Consistency and ComplianceAmway’s social media efforts began with its distributors. As Amway’s primary sellers, its distributors saw anopportunity to grow their small businesses by cultivating customer relationships through social media. Amwayunderstood the opportunity and worked to empower all distributors equally. However, it was also imperative toensure consistency in the Amway message and to ensure stakeholders understood what they could and couldn’t do.Empowerment, therefore, had to be tempered by compliance and moderation. Organization: A Central Hub Coordinates the Social Functions of Business Units to Support Independent Distributors Jim McLain, Manager of Global CRM and Social Media at Amway, says the Amway social business infrastructure operates holistically. The company’s Social Media Business Council (SMBC) provides overarching strategy, guidelines, insights and best practices, while various departments, including digital marketing, public relations, and human resources, handle platform development,Source: YouTube, 2013 content strategy, implementation, and campaign insights.Distributors manage their own social media assets while leveraging support from corporate to meet brand guidelinesand legalities.To coordinate social engagement between distributors worldwide, offer them training, distribute content, andmeasure results, Amway required consulting services as well as technology. Its original SMMS vendor, , McLain says,“was outstanding yet didn’t get us far enough. We needed a greater emphasis on scale and our distributor focus.”Amway switched to Syncapse, a platform that could support Amway’s hundreds of corporate users, communitymanagers, and distributors. Unlike many other SMMS vendors, Syncapse has a large consulting branch that providesservices such as strategy development, custom reports and intelligence, tailored training, and technology integration.Implementation: An Incremental Rollout With Custom Workflow, Training, and MeasurementFollowing an assessment of the organization’s challenges and success criteria, Syncapse customized its SMMS forAmway corporate, with specific roles-based administration and permissions, content calendars, workflow, eventlogging, data archiving, moderation features, and data visualization. Syncapse then worked closely with Amwaystakeholders to assess the readiness of key markets and determine where to begin rollout to distributors. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 7
  9. 9. The SMMS rollout began with corporate training, and then expanded to distributors. “Early on, we took a ‘crawl,walk, run’ approach to SMMS. Training for initial global stakeholders across multiple regions, countries, andlanguages was a critical first step in global rollout,” says McLain.The process was collaborative: Syncapseprovided web-based training, and Amwaysocial media team members joined viateleconference as part of the onboardingexperience. Syncapse also helped Amwaytailor the training, and administrativefunctions where needed, for local markets.Says McLain, “Once we had somemomentum in a few key markets, the restof the rollout was efficient.”Results: Amway Distributors AreEmpowered to Ensure BrandConsistency and Provide Valuable Amway’s Social Media Business Council developed social media guidelines that are tailored to the needs of different regions, such as Australia and New Zealand, shown.Insight to Corporate Source: Social Media Guidelines for Amway IBOS of Australia and New Zealand, July 2010Amway has deployed Syncapse globally,supporting over 40 regional and brand pages and sharing content that distributors can adapt for their individual socialmedia efforts. With a standard measurement framework and success criteria in place, Amway also helps coachdistributors on optimizing their performance and engagement.In 2013, Amway will expand its social program to support all 4 million distributors. Not only will this rollout helpdistributors expand their customer reach, it will also provide Amway with significant insights into its global consumers’behaviors and consumption habits.Source: “The Amway Art of Social Media Storytelling,” The Amway Insider, September 28, 2012 Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 8
  10. 10. PUMA Scales Limited Headcount for Global EngagementPUMA seeks worldwide social engagement with locally targeted messaging. To ensure brandconsistency, PUMA first consolidates and then deploys prioritized efforts.With products in more than 120 countries and 2011 sales of nearly $4 billion, PUMA is one of the most recognizedsport and lifestyle brands in the world. The company employs more than 11,000 people worldwide and hasheadquarters in Herzogenaurach, Germany; Boston; London; and Hong Kong.In 2009, when the number of Facebook users hockey-sticked from 150 million to nearly 500 million, PUMArecognized the need to formalize its presence on the social network. Some PUMA stores and country divisions hadalready created accounts, yet efforts were fragmented. Christina Holmes, Global Social Media Manager at PUMAInternational, says that it was hard to coordinate efforts and aggregate measurement. Another challenge was thatPUMA had few employees dedicated to social media, yet it has a truly global audience. With large fan bases inplaces ranging from South America to Europe to South Korea, PUMA prioritized engagement at a local level.Source: PUMA Social, 2013The Need: Rein In and Consolidate Efforts to Maintain Brand Control, Then Re-Expand Reach in aCoordinated MannerPUMA began by consolidating efforts into a single official Facebook page. Store managers and country divisions werereluctant to shut down their pages, but Holmes says, “After educating stakeholders about targeting functionality andthe benefits of leveraging larger audiences, it was agreed that an aggregated approach was more beneficial.”Only after consolidation and effective oversight did the company begin to create pages for different categories,such as soccer, running, and others. Each page shares news specific to those sports or categories, focusing onengagement through lifestyle content rather than sales and product promotion. Twitter is set up similarly, with aprimary global account and category accounts. PUMA also has a single, global YouTube page, as well as neweraccounts for Google+, Instagram, and Pinterest. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 9
  11. 11. Implementation: Grow Engagement With the Right Tools and DataFrom the outset, PUMA’s social media priority has been to increase engagement rather than simply grow itsnumber of fans. In that effort, only a limited number of posts are sent globally; the majority are targeted to distinctregions and languages.PUMA first looked to SMMS vendor Wildfire Interactive (now a part of Google), primarily to coordinate and scheduleposts. Later, it would rely on Wildfire to help with moderation of spam and inappropriate content, language translation, andcontent targeting, as well as governance across its regional markets. Holmes notes that the regional emphases have had aclear impact. “The company has seen engagement grow significantly,” she says.Results: A Small Team Manages Worldwide Engagement; Measurement Is Standardized and HolisticFor every post, PUMA tracks impressions, likes, and shares. It collects this data throughWildfire, which also delivers the proper analytics to the each hub manager. Managers usethis data to understand what type of content performs best in which regions, what times areoptimal to post, and how else to optimize engagement.Because the brand does little sales promotion on social channels, measurement beyondsocial metrics remains a challenge, as it does for many brands today.x However, PUMAdoes occasionally run promotions or link to e-commerce offers, and in those instancesthe e-commerce team tracks clickthroughs and purchases via links.Despite a preliminary need to scale back social media efforts to ensure brand control,PUMA has managed to grow worldwide engagement. Today PUMA has just under 50accounts and six employees dedicated to social media full time. While efforts remaincentralized, numerous regional stakeholders, ranging from retail and e-commerce to the Source: PUMA’s Instagramcompany’s sustainability group, contribute ideas and content to PUMA’s global social profilemedia program. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 10
  12. 12. Social Media Management: Trends and Future EvolutionAs social media proliferates, companies must manage increasing numbers of conversations and involvedstakeholders. The four case studies covered in this report illustrate the need for an organizational andtechnology infrastructure to coordinate efforts, meet complex process requirements, and measure results. (Forrecommendations and a checklist on SMMS selection and implementation, see our previous report, A Strategyfor Managing Social Media Proliferation.)SMMS are instrumental in helping brands meet these demands. Below, we look at four trends that speak to the stateof this space and the broader social business environment.Trend #1: As social media permeates the enterprise, a variety of business needs must be met.Organizations have varying goals and infrastructures. Internally, they have distinct business units, too, includingmarketing, support, innovation, and compliance. To address these differences, SMMS vendors have developedvarying capabilities, some of them significant. (Altimeter previously defined five use cases for SMMS. For detailsand a comparison of SMMS capabilities, see our report, “A Strategy for Managing Social Media Proliferation.” )For example, Hearsay Social and Actiance serve numerous regulated companies with compliance capabilities thatmany other vendors lack.xii Social Dynamx (now a part of Lithium) and Conversocial focus on customer service,providing support-specific workflow, tracking, and reporting. Vendors like Tigerlily and Fan Appz help brandsmanage Facebook campaigns, some with more management and measurement features than others. Vendors havechanged direction too, like Wildfire Interactive, which started with self-serve Facebook applications but extendedits capabilities to broader social management. Consolidation has resulted in fewer key players, and smaller vendorsmust differentiate themselves or become stagnate.Trend #2: Companies fail to deliver a unified brand experience as increasing numbers of stakeholdersget involved.Diffuse social media efforts complicate the delivery of a consistent, customer-centric experience. Customers andprospects expect a consistent brand experience, regardless of which business unit they happen to be engagingwith. As a result, brands are forced to include more stakeholders in the process of social engagement. We foundthat up to 13 distinct business units may be involved in social media (not even including partners or agencies), eachwith different objectives and thoughts on how to achieve them.xiii For the sake of consistency and efficiency, groupsbeyond marketing, communications, and support — including R&D, resellers, product groups, and others — mustbe brought into the conversation. Some brands are doing this indirectly, emailing subject matter experts that areotherwise not involved in social engagement for input, while other brands are beginning to involve them directly in theengagement process via their SMMS.Trend #3: Acquisitions, including several by incumbent players, forecast continued growth in corporatesocial media programs and further consolidation of technologies.The SMMS landscape has gone through considerable change since the publication of our last report onthe topic.xiv Most notably, Salesforce has acquired Radian6 and Buddy Media, Oracle has acquired Vitrueand Involver, Adobe has acquired Context Optional, and Google has acquired Wildfire Interactive. In a morerecent sign that social support is gaining attention, Lithium acquired small, support-focused SMMS vendorSocial Dynamx, which had only recently launched. We expect to see additional mergers and acquisitions fromcompanies like IBM, SAP, and customer-experience software vendors within the next 12 months. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 11
  13. 13. Trend #4: Brands are finding they need internal collaboration features to be baked into SMMS for contentmanagement and increased coordination.In late 2011, we heard from SMMS vendor Expion, “The biggest complaint when brands and agencies have beenworking together has been that collaboration takes place outside of the tool.” That sentiment has been echoed withgreater frequency in the past six months. Another vendor, Spredfast, told us that “the whole ideation happens in avariety of places, but the dominant players are Excel, Word, and shared Google Docs.”Brand needs for collaboration center primarily around content creation and management, and several vendors areintroducing new features to address this need. Yet as those needs continue to grow over the next 18 to 24 months,Salesforce, Adobe, Google, and established vendors with partnerships may be best positioned to offer the type ofintegrated offerings large brands advanced in social business will require. Ultimately, as social business becomesstandard the same way e-business did,xv SMMS will be subsumed by larger suites of enterprise software.ConclusionCorporate social media is more complex than ever. Customer expectations – and their social platforms of choice –continue to evolve. Social media management systems can help brands manage engagement, yet with or withoutthis technology, few brands manage to deliver a consistent customer experience across all channels and at scale.Until social business reaches maturity within the organization – addressing business goals and involving all thenecessary stakeholders – brands will remain unable to fully address their customers’ expectations. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 12
  14. 14. Ecosystem InputThis report includes input from market influencers, vendors, and end users who were interviewed or briefed by Altimeter Group during the courseof this research. Input into this document does not represent a complete endorsement of the report by the individuals or companies listed below.Brands (4)Natanya Anderson, Social Media and Community Team Lead, Whole Foods MarketChristina Holmes, Global Social Media Manager, PUMA (now Social Media Strategist at Genuine Interactive)Jim McClain, Manager, Global CRM and Social Media, AmwayKellee Montgomery, Manager, Digital and Social Advertising, General Motors North AmericaSteve Worrall, Manager, CRM, Loyalty and Social Media, General Motors International OperationsVendors (15)Attensity SpredfastBuddy Media (Salesforce) SprinklrConversocial SyncapseEngage121 The Targeted GroupExpion ThismomentFan Appz Vitrue (Oracle)Friend2Friend Wildfire (Google) Hearsay SocialAcknowledgementsWith thanks to support from: Susan Etlinger, Charlene Li, and Alan WebberEndnotesi O f Fortune 500 companies, 73% have Twitter accounts with tweets in the past 30 days, all of the top 10 tweet, 66% are on Facebook, and 62% use YouTube.Barnes, Nora Ganim. “Social Media Surge by the 2012 Fortune 500: Increase Use of Blogs, Facebook, Twitter and More.”(http://www.umassd.edu/cmr/socialmedia/2012fortune500).The Inc. 500 are even more active on social media: 74% are on Facebook, 73% on LinkedIn, 64% on Twitter, and 45% on YouTube.Barnes, Nora Ganim. “The 2012 Inc. 500 Social Media Update: Blogging Declines As Newer Tools Rule.” (http://www.umassd.edu/cmr/studiesandresearch/2012inc500socialmediaupdate).ii O wyang, Jeremiah. A Strategy for Managing Social Media Proliferation. January 5, 2012. (http://www.altimetergroup.com/research/reports/a- strategy-for-managing-social-media-proliferation). Figure 2.iii S urvey for Corporate Social Strategists, conducted by Altimeter Group (Spring 2011). Question was “5. Which of the following internal resources relating to social business does your company have in place?”, “Social Inventory: To centralize awareness of existing assets and resources within the company.”iv F or more information about social media risk and managing it, see Webber, Alan. Guarding the Social Gates: The Imperative for Social Media Risk Management. August 9, 2012. (http://www.altimetergroup.com/research/reports/social-media-risk-management).v F or more detail, see Etlinger, Susan. The Social Media ROI Cookbook. July 24, 2012. (http://www.altimetergroup.com/research/reports/the- social-media-roi-cookbook).vi A t the end of 2011, 64% of companies with over 1,000 employees had adopted an SMMS. See Owyang. Managing Social Media Proliferation. Figure 5.vii O ne social strategist said that the number of internal demands would increase “from four to five times more requests this year from last.”Owyang, Jeremiah. Career Path of the Corporate Social Strategist. November 10, 2010. (http://www.altimetergroup.com/research/reports/report-career- path-of-the-corporate-social-strategist).viii W e found companies averaged 178 corporate social media accounts, with up to 13 business units involved. See Owyang. Managing Social Media Proliferation.ix O wyang, Jeremiah. Social Business Readiness: How Advanced Companies Prepare Internally. August 31, 2011. (http://www.altimetergroup. com/research/reports/social-business-readiness).x F or more detail, see Etlinger. Social Media ROI Cookbook.xi Owyang. Managing Social Media Proliferation.xii O f course, a focus or expertise in a certain area or vertical does not preclude vendors from meeting other needs and having clients in other verticals.xiii A s many as 13 or more types of stakeholders may be involved. See Owyang. Social Business Readiness. Figure 4.1.xiv Owyang. Social Business Readiness.xv E lectronic business, commonly referred to as ebusiness or e-business or an internet business may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 13
  15. 15. About Us Jeremiah Owyang, Altimeter Partner, Digital Strategy Analyst Jeremiah Owyang (@jowyang) focuses on social business and disruptive technologies for customer strategies. Previously, Jeremiah was a Senior Analyst at Forrester Research, Director of Corporate Media Strategy at PodTech Network, and Manager of Global Web Marketing at Hitachi Data Systems, where he launched its social media program from 2005–2007. He writes the Web Strategy blog (http://www.web- strategist.com). Andrew Jones, Senior Researcher Andrew Jones (@andrewjns) is a Senior Researcher at Altimeter Group, where he focuses on social business strategy, including how brands can manage social media complexity. He researches how emerging technology trends impact customer experience, and how brands can leverage disruption to their advantage. Andrew previously worked in digital marketing, public policy research, and served in the Peace Corps. He speaks German and Spanish. Christine Tran, Senior Researcher Christine Tran (@trantastico) is a Senior Researcher at Altimeter Group, where she researches social business strategy, and manages the research team and research operations. She has conducted formal research on brand adoption of social media in Vietnam, interviewing brand managers, entrepreneurs, VCs, and early adopters. Christine has over 10 years of program management experience, at organizations ranging from the nonprofit to technology sectors.Open ResearchThis independent research report was 100% funded by Altimeter Group. This report is published under the principle of Open Research and is intended to advance theindustry at no cost. This report is intended for you to read, utilize, and share with others; if you do so, please provide attribution to Altimeter Group.PermissionsThe Creative Commons License is Attribution-Noncommercial-Share Alike 3.0 United States at http://creativecommons.org/licenses/by-nc-sa/3.0.DisclosuresYour trust is important to us, and as such, we believe in being open and transparent about our financial relationships. With permission, we publish a list of our clientbase on our website. See our website to learn more: http://www.altimetergroup.com/disclosure.DisclaimerAlthough the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regardingthe completeness, accuracy, adequacy, or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions containedherein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark, or otherwise does not constitute or imply its endorsement,recommendation, or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject tochange without notice. Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. Contact Us Advisory Opportunities Altimeter Group Email: sales@altimetergroup.com 1875 S. Grant Street, Suite 680 San Mateo, CA 94402-2667 info@altimetergroup.com www.altimetergroup.com Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 14

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