Fed exsocialmediastudy findingsreport_final

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An in-depth social media study conducted by FedEx and Ketchum of more than 60 well-known companies has found that significant changes are on the horizon for the way companies will use social media …

An in-depth social media study conducted by FedEx and Ketchum of more than 60 well-known companies has found that significant changes are on the horizon for the way companies will use social media tools to communicate internally. The study also examines programming, team structure and budgeting trends, including how companies are increasingly working across functions to ensure collaboration on social media projects. Interviewees also discuss why some are eager to take a leadership role in social media while others are comfortable in a more general participatory mode.

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  • 1. The 2010 FedEx/Ketchum SocialMedia Benchmarking Study
  • 2. A Note from FedEx and KetchumDear Colleague,We are excited to present you with our findings and insights from the 2010 FedEx/KetchumSocial Media Benchmarking Study—a comprehensive exploration of how social mediaimpacts today’s communications landscape. This document reflects the input of leadersfrom over 60 top global organizations across most major industries.!Study participants answered the social media related questions keeping many of us up atnight: How do we leverage social media to drive internal culture, brand performance, andreputation management? What is the appropriate budget allocation to support socialmedia programming? How should we adapt internal structures to develop and roll outsocial media strategies? What is the best way to measure the ROI of social media spend?It is our sincere hope that you find the trends and best practices we uncovered as helpfulas we do, and that we will continue to build our collective strength in this newcommunications frontier together. Thanks to all those organizations who committed theirtime to this effort. This study would not have happened without your enthusiasticparticipation.Best,Bill Margaritis David B. Rockland, Ph.D.SVP, Global Communications Partner& Investor Relations Ketchum, Inc.FedEx Corporation 2
  • 3. TABLE OF CONTENTS 4 8 10 16 27 32 33 35 38 39
  • 4. Study Background
  • 5. Motivation & MethodologyFedEx and Ketchum initiated this study to benchmark bestpractices in leveraging social media to drive internal culture,brand performance, and reputation management. Both organizations recognized a lack of in-­depth research regarding how social media impacts the way companies program, budget, and set up their teams. Ketchum used a standardized interview protocol to guide 30 minute conversations with Chief Communications Officers or their Social Media Leads at 62 leading companies across most major industries. Interviews occurred between August and October 2010. 5
  • 6. Participating Companies 6
  • 7. Demographics:a Wide Range of Industries 6% 3% 3% Airline 15% 13% Consumer Products Energy Financial Services 12% Food & Beverage 7% Healthcare Manufacturing Other 3% Professional Services Retail 8% 9% Technology Telecommunication 6% 15% 7
  • 8. Executive Summary (1/2)The way the world 100% of companies reported some degree of socialcommunicates is media engagement regardless of industry.changing. You can Participants agreed that social media is a channel (not aeither adapt or strategy) that should be part of a holistic communicationbecome irrelevant. and marketing approach tied to business goals. Companies recognized that social media is distinct from traditional channels in its interactivity, transparency, and embrace of informality. These characteristics demand unparalleled degrees of collaboration across businesses and functions including Communications, Marketing, Legal/Compliance, and IT. Participants repeatedly stressed the necessity for transparency and authenticity in every social media program, no matter its simplicity or sophistication. Social media leaders argue that the voice and tone that works in traditional means credible. seven distinct phases: Listening, Reclaiming, Collaborating, Strategy & Planning, Experimenting, Assessing, and Refining. Twitter, Facebook, and YouTube are the dominant social media platforms, but participants repeatedly conveyed the need to stay on top of emerging tools and technology in order to remain relevant. 8
  • 9. Executive Summary (2/2) Organizations recognized the rise of citizen journalismto feedback, and the need to engage bloggers to support brand development and reputation management.play. Participants conveyed significantly greater focus on external rather than internal social media applications, but expressed strong interest in ramping up capabilities primarily via enhanced intranets in 2011 and beyond. Participants most frequently estimated spending between five and fifteen percent of their overall communications budgets on social media programming in 2010. Organizations are trending towards more formal collaborative social media oversight models that are inclusive of diverse business units and functions. Most organizations do not have formal internal learning programs established to promote the development of social media expertise. Companies continue to see the value in partnering with third parties to develop and execute social media programming. 9
  • 10. DefiningTerms & Players
  • 11. Defining Terms:Social Media vs. Digital AssetsParticipants agreed that social media and digital assets are equallyimportant, fundamentally different, and often complementary.Social media is most commonly characterized as a means for two-­way dialogue with internal and external stakeholders.Digital Assets are most commonly described as owned properties,tools, or rich media content (e.g., websites, apps, or video) thatcompanies create to support online programming.Companies use digital assets to enrich the conversations theyparticipate in via social media forums.Externally, the most commonly leveraged social mediaplatforms include: Digital assets and social media go hand-­ tools that power the social web. 11
  • 12. 100% of study participants reported some degreeof social media presence.The most common external objectives included: Generating word of mouth advocacy Developing brand loyalty and closer relationships with customers Addressing customer care issues Educating costumers and media about company-­related issues Supporting product/service launch/salesEach major channel (Twitter, Facebook, andYouTube) serves its own purpose and participantswere hesitant to compare effectiveness acrossmediums.Twitter is the favored channel supportingcustomer care and media relations.Facebook and YouTube are most frequentlyleveraged to develop brand loyalty and closerrelationships with customers, and to shareproduct/service information. ignoring it. 12
  • 13. Leadership, Participation, and ObservationParticipants fell into three distinct categories based on their degree of social mediaengagement. Current social media leaders are mostly B2C companies.Leadership Engrain social media in every aspect of communication. Identify and integrate new social media tools on an ongoing basis. 10% Employ in-­house team of three or more social media specialists.Participation 75% Engrain social media in some aspects of communication. Explore integration of new social media tools following validation from businesses leading in the social space. Hire 1 specialist and/or expand responsibilities of communicators to include social media competence and rely on agency support for expert counsel.Observation Engrain social media in few aspects of communication. Seek to build awareness of the social media landscape and how to play effectively. 15% Expand responsibilities of communicators to include social media competence and rely on agency support for expert counsel. have to be a leader. *Note: Percentages reflect estimates be a close follower. It based on evaluation all depends what of participant profiles developed via interviews. achieve. 13
  • 14. We found a strong social What About Companies inmedia advocate on theCompliance team, and Regulated Industries?that made all the Companies in regulated industriesdifference in the world (healthcare, financial services, energy,in terms of selling our etc.) reported social media participationideas in toleadership. despite clear legal hurdles. Participant Insights 4 ideas for social media success in regulated industries 1. Research the rules regarding disclosure and reporting. 2. Manage internal stakeholder expectations and identify internal champions from across the enterprise. 3. Establish a business case and ongoing management plan with Legal/Compliance teams. 4. In particularly risk-­averse cultures, consider focusing social media outreach on a specific theme like Corporate Responsibility efforts. 14
  • 15. B2C companies areThe B2B Opportunity leading the socialB2B companies also reported significant socialmedia programming across the major channels. B2Bs are just waking up to these tools andB2B participants lagged behind their B2C the best will learncounterparts in terms of the depth and sophisticationof programming, but shared plans for ramping up how to leverageparticipation. them to win. Participant Insights 3 ideas driving B2B social media trends 1. Even if buyers are senior and less likely to care about social media, the managers who influence them do. 2. As the prevalence of e-­commerce continues to grow, so does the opportunity to drive traffic to websites through digital and social media programming. 3. Video trumps words when it comes to explaining products and services in simple, visually compelling ways. 15
  • 16. External Social Media Programming
  • 17. I realize everyone isStrategy vs. Channel telling you social media is a unicorn,Participants agreed that social media is achannel, not a strategy horse?Social media programming should be part of aholistic communication and marketing approachtied to business goals.There was wide-­spread agreement that social media is not a Jay Baer, Independent Social Media Strategist Companies recognized that social media is distinct from traditional channels in its interactivity, transparency, and embrace of informality. These characteristics demand unparalleled degrees of collaboration across businesses and functions including Communications, Marketing, Legal/Compliance, and IT. 17
  • 18. Crawl . Walk. Run. Be Getting Started very deliberate about very conscious alongmedia programs revealed seven distinct phases the way. 18
  • 19. Nail the Fundamentals: Participation & PlanningParticipant InsightsTwo ways to crash and burn out of the gate (and how to avoid them) LACK OF ONGOING demands ongoing PARTICIPATION participation the dialogue LACK OF A CRISIS RESPONSE media-­oriented crisis STRATEGY management plan to protect against the risk of viral 19
  • 20. The Twin Pillars of Transparency & Authenticity Participants repeatedly stressed the necessity for transparency and authenticity in every social media program, no matter its simplicity or sophistication. Social media leaders argue that the voice and tone that works in CONVERSATIONAL = CREDIBLE -­up organizations brands a matter of for the company and its customers. Organizations also expressed awareness of the online -­promotional.You have to be Before launching any new social endeavor, ask yourself:genuine onlinesame as the real WHAT VALUE ARE WE ADDING TO THEworld. People realize COMMUNITIES WE SEEK TO ENGAGE? 20
  • 21. Content is king the Participating companies characterizedtools are important but the content that is most often sharedthey are only tools. among target audiences in two ways:Authentic messaging is ENTERTAINING OR HELPFUL What makes content entertaining depends on the highly regarded content. Helpful content provides information about products or services that enhances the customer experience. shared via social media channels received positive responses among customers. 21
  • 22. Using the Big Three: Twitter, Facebook,and YouTubeThe social media space is rapidly evolving and new technologies andtools are consistently emerging. Even if companies are not using thelatest platforms, (e.g., Foursquare, Gowalla, Tumblr) most agree that At present Twitter, Facebook, and YouTube are the dominant platforms, and in the following slides we feature three celebrated programs from participating companies. 22
  • 23. Tackling Twitter with GM GM tackles reputation management using multiple social media channels including Twitter. Training employees to send a mix of both personal and professional tweets and status human side even through times of crisis. To begin, GM developed an online social media training portal for novice users and offered advanced in-­person courses for more web savvy team members. About 2,000 employees completed the online introduction in its first two months alone and thousands more have participated since. GM is currently updating its social media policy and training approach to require all employees to go through training while creating two distinct groups of users those who are authorized to speak on behalf of GM and everyone else. GM social media training portal Employee driven social media programming bankruptcy and brand building efforts. Employee tweet examples include: Repaying taxpayers ahead of schedule because we are designing, Great weather for the building, and selling the best cars and trucks ever. Source: Miller, Lindsay. Can GM employees woo the country back through social media? www.ragan.com. May 3, 2010. 23
  • 24. Facebook Fantasy with PepsiCo and Doritos Doritos Canada leveraged Facebook to promote a contest where users were asked to name a mysterious new chip flavor and create a 30-­second video commercial advertising it. Doritos offered $25,000 and 1% of future consumer sales to the winning commercial and name. The contest drew over 75,000 participants, 14.5 million page views, and 2.1 million video views. More than 900,000 consumers visited the Doritos Facebook page over the course of the two-­month campaign. Doritos sales in Canada doubled during that time. Source: Wood, Cara. Creative solutions from Doritos, Club ABC Tours, Meg Whitman. Direct Marketing News. October 12, 2009. 24
  • 25. Utilizing YouTube with FordFord gave away 100 Ford Fiestas for six monthscomplete with free gas, insurance, parking and aconcierge service to 100 lucky recipients.Each one was sentdocumented for public consumption and sharedacross major social media platforms.Official Fiesta Movement content has drawn 6.5million YouTube views and 3.7 million Twitterimpressions.The program has elicited the interest of about 50,000 currently drive aFord. Ford sold 10,000 units in the first six days ofsales. Source: McCracken, George. How Ford Got Social Marketing Right. Harvard Business Review. January 7, 20110. 25
  • 26. Navigating the BlogosphereOrganizations recognized the rise of citizen journalism andthe need to engage bloggers to support brand development everywhere.and reputation management. Concentrate on where yourgeneral media relations strategies. consumers are.Most companies stressed the need to differentiate between bloggerswith real influence versus those with relatively small followings leveragingmonitoring services to determine the appropriate level of engagement. Participant Insights 3 ideas supporting stronger blogger relationships 1. Invite bloggers to on-­site events and give them special access to products and services. 2. Be transparent about relevant business goals and ensure bloggers disclose their association with the company. 3. press releases to enable them to better use their unique voices in posts. 26
  • 27. Internal Social Media Programming
  • 28. Growing Interest in Internal Social MediaApplicationsParticipants conveyed significantly greater focus on external rather than internal socialmedia applications, but expressed strong interest in ramping up capabilities primarilyvia social media equipped intranets in 2011 and beyond. The most frequentlyreferenced intranet features included leadership blogs, wikis, and -­interfaces.40% of study participants already have social media equipped intranets50% of study participants plan to redesign their intranets in the next one to two years to include greater social media capabilities of study participants do not have significant social10% media intranet capability and do not plan to add tools in the next one to two years These tools present a whole *Note: Percentages new way of reflect estimates based on evaluation collaborating of participant profiles developed via across the interviews. enterprise. 28
  • 29. Adding Value Inside the Enterprise The most common internal social media objectives were: Enhancing knowledge management Supporting collaboration within and across teams, functions, and geographies Developing culture and community Participants reported that investment in internal social media applications is most strongly tied to tool purchase and development. Upkeep and ongoing management is not a major cost. Organizations use intranet analytics (blog development,Employees are comments, discussion boardusing social media activity, etc.) and broaderall the time at engagement and communications survey results tousing the tools monitor and measure the impact of internal social mediawith in the programming.workplace. 29
  • 30. Three Keys to EffectiveIntranet ManagementParticipants agreed on three critical steps guiding effective intranetdevelopment and ongoing management: 1. Ensure proper leadership and employee buy-­in. Create a business case to build executive support. Begin and end development with employee needs in mind not a corporate vision. Engage employees throughout the design process to develop a user-­centric experience. 2. Establish strategic roll-­out plans including pilot programs. Leverage formal internal communications channels and informal influencers to drive awareness and adoption. Ensure opportunities for training and dialogue about how to leverage new tools. Be patient and develop thick 3. Build ongoing governance and moderation plans. skin. It takes a Establish clear roles and responsibilities to while to get an ensure effective content management at effective intranet corporate and local levels. off the ground. 30
  • 31. Developing Social Media Policies Participant Insights4 themes regarding employee social media policy development:1. Most companies either have, or plan to develop social media policies in the2. Effective policies are natural extensions of existing codes of conduct. For example: Keep confidential information private Only speak on behalf of the company if authorized Identify yourself as an employee if endorsing a product/service3. Strong policy development is the result of: External benchmarking many policies are published Cross-­functional collaboration typically Comms/ Marketing, Legal/Compliance, and HR play leading roles4. Employee buy-­in and adoption of policies is driven by clear internal communication and relevant learning opportunities. 31
  • 32. OperationalImplications 32
  • 33. Cracking the Code on Monitoring & Measurement Companies are distinguishing between monitoring of online mentions and activity versus measuring the ROI of social media spend. Participants cited Radian6 as the paid monitoring partner of choice, but competitors such as BuzzMetrics, Evolve24, Focus, Symphony, and Sysomos (among others) were also mentioned. The most common free services include TweetDeck and Google Alerts. Participants generally agreed that there is no consistent, reliable approach to measurement and determining ROI. There is widespread agreement that looking solely at sufficient. Companies expressed the desire to improve theEveryone is struggling way they assess quality of online interaction,to figure out how you level of user engagement, and ultimatelydetermine the impact impact on business performance.on the business. Itmight not be adollar figure. 33
  • 34. Measurement Progress:The Barcelona Principles Top experts from the Association for Measurement and the Evaluation of Communication (AMEC), the Public Relations Society of America (PRSA), and other major industry organizations have established a set of seven principles to guide communications measurement. and outlines the following agreements to inform future social media measurement efforts: Organizations need clearly defined goals and outcomes for social media. Media content analysis should be supplemented by web and search analytics, sales and CRM data, survey data and other methods. Evaluating quality and quantity is critical, just as it is with conventional media. Understanding reach and influence is important, but existing sources are not accessible, transparent or consistent enough to be reliable;; experimentation and testing are key to success. 34
  • 35. How Much Does it Cost? -­Money is allocated on a project by project basis by different functions,divisions, or sub-­brands, depending on type and need.Participants most frequently estimated spending between five and fifteenpercent of their overall external communications budgets on social mediaprogramming in 2010.Most organizations predicted budget increases in social media spendingin 2011, but participants were hesitant to quantify growth estimates.Social media programming budgets may be off-­set by investment intalent (FTEs) with specific social media-­related roles (salary is afixed cost). Typically, there is more budget allocated to digital assets than social media programming more established, better understood, and easier to measure. on investment you have to put in to get out. 35
  • 36. The Evolution of the Social media is forcingCommunications Team business units toStructure collaborate in ways they never haveCommunications tends to oversee social media programming before. You really haveand execution, but Marketing also plays a leading role to be aligned acrossparticularly when social media programming is oriented aroundproduct launch and promotion. Legal/Compliance teams are more the enterprise.integrally involved in social media programming in regulated industries.Organizations are trending towards more formal collaborative socialmedia oversight models that are inclusive of diverse business units andfunctions (Comms, Marketing, Legal/Compliance, Business Leaders).There are disparate approaches to evolving team structures. Some organizationshave created new groups of 1-­10 people focused exclusively on social media.Others rely on current staff to expand their expertise. The direction of choicecontent to be participants.Most organizations are either already including or plan to include a degree ofsocial media competency in job descriptions. 36
  • 37. Building Social Media CapabilitiesMost organizations do not have formal internal learning programsestablished to promote the development of social media expertise.Participants leverage the following learning solutions to support socialmedia competence building among communications team members: Peer-­to-­peer training: Many companies identified internal social media experts and empowered them to bring colleagues up to speed. Reverse mentoring: Younger professionals are frequently tapped to onboard more experienced team members. One-­off courses provided by agencies: Most participants mentioned leveraging agency-­sponsored workshops to build social media knowledge. Many participants advocated attending social media conferences, but works great to have highlighted that many cover familiar a peer lead training territory and the most effective ones sessions. People are are targeted at their particular more receptive to industries. new ideas from someone they 37 know.
  • 38. You need an expert Agencies & Vendorswhether in-­house oragency-­based to Most organizations continue to see value inreally make the most partnering with third parties to develop and executeof social media. social media programming. Participants reported that PR and Advertising firms both have significant influence as social media counselors. Boutique digital and social media shops also provide valuable insight to a smaller portion of study participants. Most companies did not share plans to significantly shift the nature or scope of agency engagement. 38
  • 39. Concluding Thoughts & Contact DetailsSocial media is disrupting the way the world communicates andcompanies must continue to evolve how they interact with people toremain relevant.The pace and scope of change as new tools and technology emergedemands an unparalleled degree of organizational nimbleness.As digital and social tools become the go-­to resources for everythingfrom news and information to friendship and love, smart brands willcontinue to figure out better ways to add value to the onlineexperience internally and externally.We look forward to addressing your feedback, questions, or comments.Renee Horne Daniel DworkinDirector, Digital & Social Media Engagement Senior ConsultantFedEx Corporation Ketchum Pleon Changerlhorne@fedex.com daniel.dworkin@ketchum.com 39