The Economics of theSocially Engaged Enterprise       What Separates the    Leaders from the Laggards      A PulsePoint Gr...
The Socially Engaged Enterprise Defined It is a new kind of enterprise that actively engages customers in meaningful conve...
Why Research? Why Now?1.    Well beyond experimentation2.    Moving beyond marketing and communications3.    Some leaders ...
The Research             	      4
Senior executive perspective from 19 industries The survey    •  329 respondents    •  US and Canada only    •  19 industr...
Executives agree that social engagement has tangible economic benefits                  Increased market share            ...
Respondents see a particular impact on brand                       Improve operating margin                  54%          ...
The bigger the buy in, the bigger the perceived return        Marketing team                                              ...
Adoption amongst the ‘leaders’ is still nascentC-suite social media champions      4.8%                            No chan...
Where do executives see the greatest benefits of social engagement?                                        •    Project ma...
There are business benefits                       to encouraging customers                       to talk publicly – whethe...
Most companies see marketing and communications as having theprime responsibility for social   Marketing and branding"    ...
Stakeholders speaking out: what’s the value?                                            69%"                         12%" ...
Is there a problem with finance and HR?                   Marketing                                               Today’s ...
What are the roadblocks to deeper social engagement?   Inability to prove ROI                                             ...
The development of more robust measurement techniques                       Today              In 2 years Don’t measure   ...
The C-suite is on board  – and is are key to developing a clear, consistent & robust approach	                            ...
Key questions the EIU is currently considering:       •  How can companies maintain a proactive response to the          e...
Setting the Context   for our Panel                 	         19
Socially Engaged Enterprises    See 4X Better Returns                         4x	                                         ...
6 Distinct Segments Emerged                          Trail Blazers        Creators          Thrivers           Exceptional...
The Economics of theSocially Engaged Enterprise       What Separates the    Leaders from the Laggards      A PulsePoint Gr...
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The Economics of the Socially Engaged Enterprise: What Separates the Leaders from the Laggards

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A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012) presented at Arthur W. Page Society, Spring Seminar, March 2012

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The Economics of the Socially Engaged Enterprise: What Separates the Leaders from the Laggards

  1. 1. The Economics of theSocially Engaged Enterprise What Separates the Leaders from the Laggards A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012) Presented at Arthur W. Page Society, Spring Seminar, March 2012 1
  2. 2. The Socially Engaged Enterprise Defined It is a new kind of enterprise that actively engages customers in meaningful conversations – enabled by social technologies – so both parties benefit. This mutual exchange of value is not just about products but about valuable information that builds commonality of interests and a sense of trust. 2
  3. 3. Why Research? Why Now?1.  Well beyond experimentation2.  Moving beyond marketing and communications3.  Some leaders are getting it right4.  Examples of quantifiable business impact5.  C-suite on-board with growing interest in business impact 3
  4. 4. The Research 4
  5. 5. Senior executive perspective from 19 industries The survey •  329 respondents •  US and Canada only •  19 industries represented C-level Other senior executives executives 47% 53% CEO 31% 5"
  6. 6. Executives agree that social engagement has tangible economic benefits Increased market share 81% 17% 2% Decreased costs 37% 53% 10% Improved talent retention 58% 37% 4% Improved speed to market/innovation 65% 30% 6% Improved product/service quality 68% 28% 4% Improved collaboration with partners 65% 30% 5% Improved brand or stock value 67% 29% 4% Improved marketing/sales effectiveness 84% 13% 2% 0% 20% 40% 60% 80% 100% 120% Advantage No Impact Disadvantage 6
  7. 7. Respondents see a particular impact on brand Improve operating margin 54% 46% Increase revenue 38% 62% Increase market share 42% 58%Increased perceived value of the brand/stock value 34% 66% Decreased cost of sale or production 58% 42% 0% 20% 40% 60% 80% 100% 120% No Impact Impact 7"
  8. 8. The bigger the buy in, the bigger the perceived return Marketing team 96% committed to social engagement 82% Increased marketSales team committed to 93% share from social engagement social engagement 65% initiatives   No change to market share from social engagement C-suite committed to 79% initiatives social engagement 45% Customer service team 87% committed to social engagement 58% 0% 20% 40% 60% 80% 100% 8"
  9. 9. Adoption amongst the ‘leaders’ is still nascentC-suite social media champions 4.8% No change to 22.3% market share from social engagement Online listening initiatives 11.1% initiatives 21.5% Increased market 11.1% share from social Relationships with online engagement influencers 18.9% initiatives 7.9% Crowdsourcing 16.6% Sales driven social media 6.3% campaigns 14.7% Employee use of social media 4.8% 12.1% 0% 20% 40% 60% 80% 100% 9"
  10. 10. Where do executives see the greatest benefits of social engagement? •  Project management •  Innovation " •  Collaboration " •  Efficiency gains 17%   •  Cost savings   81%   But only 17 % have agree that social engagement has responsibility well distributed throughout the organisation tangible benefits 10"
  11. 11. There are business benefits to encouraging customers to talk publicly – whether81% positive or negativeagree " 67% agree Responsibility distributed Responsibility assigned throughout the organisation to one department 11"
  12. 12. Most companies see marketing and communications as having theprime responsibility for social Marketing and branding" 41%" Marketing Communications (e.g., Public Relations)" 40%" Distributed throughout the organisation" 17%" Sales" 16%" Customer service" 11%" Human Resource" 10%" Research and Development (R&D)" 8%" Education and Training" 7%" Centre of Excellence" 6%" 12"
  13. 13. Stakeholders speaking out: what’s the value? 69%" 12%" 20%" Customers speaking out via social media increases sales 67%" 12%" 20%" Suppliers connecting via social media raises our game 54%" 21%" 25%" Employees speaking out helps us attract talent Agree" Disagree" Neither Agree nor Disagree" 13"
  14. 14. Is there a problem with finance and HR? Marketing Today’s leading advocates Sales Future leading advocates The C-Suite Customer serviceProduct & service development Human Resource Operations management Finance and accounting 0% 10% 20% 30% 40% 50% 60% 70% 80% 14"
  15. 15. What are the roadblocks to deeper social engagement? Inability to prove ROI 45% Legal or regulatory concerns 33% An unclear strategy for change 32% Complexity of organisation 25% Poor collaboration within the organisation 24% Lack of employees with appropriate skills 23% Lack of budget 22% Lack of engagement among competitors and peers 21% C-Suite does not see need for change 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 15"
  16. 16. The development of more robust measurement techniques Today In 2 years Don’t measure 28% 10% Intuition 27% 20% Key Performance Indicators 24% 30% Benchmarking 20% 33% Relevant economic metrics 19% 27% Don’t know 13% 21% 16"
  17. 17. The C-suite is on board – and is are key to developing a clear, consistent & robust approach   17"
  18. 18. Key questions the EIU is currently considering: •  How can companies maintain a proactive response to the ever-evolving social landscape? •  Are companies overly preoccupied with measuring a phenomenon that is in many ways a cultural shift? •  What are the next steps for companies as they try to develop more mature social engagement strategies? 18"
  19. 19. Setting the Context for our Panel 19
  20. 20. Socially Engaged Enterprises See 4X Better Returns 4x 7.7% 1.9% LEAST SOCIALLY ENGAGED MOST SOCIALLY ENGAGED 20
  21. 21. 6 Distinct Segments Emerged Trail Blazers Creators Thrivers Exceptional 2.7% 22.2% 14.6% Business No/Low Limited WellBUSINESS Investments Investment Architected Average Value Return High Returns High Returns Proven 7.7% Return VALUE Returns Observers Incrementalists DreamersRETURNS 18.5% 30.1% 3.9% 11.9% Limited to Low/No No Business Limited High Investments Investments Investments Returns Low/No 1.9% Scaled Returns Low Returns Returns No Social Limited Social Extensive Engagement Engagement Social Presence Presence Engagement Presence LEVELS OF SOCIAL MATURITY 21
  22. 22. The Economics of theSocially Engaged Enterprise What Separates the Leaders from the Laggards A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012) Presented at Arthur W. Page Society, Spring Seminar, March 2012 22

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