Altimeter Webinar: State of the Social Media Management System Industry

1 Social Media Management: An Industry PerspectiveFebruary 7, 2012#smmsJeremiah Owyang Andrew JonesPartner, Industry Analyst Researcher

3 This Webinar is based on our recent report: Today we take a deeper dive Includes: 1. Surveyed 144 enterprise-class corporations 2. Surveyed 27 vendors 3. Interviewed 71 brands, agencies, software vendors, and industry experts Available here: http://bit.ly/AltimeterSocial© 2012 Altimeter Group

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10 Companies not only have more accounts than ever, but more people publishing on them “Approximately how many employees post content to official social accounts?” Total Employees Avg. Number of Employees Posting 2,500 13 7,500 22 30,000 83 75,000 182 100,000+ 280 Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 140 respondents, all over 1000 employees© 2012 Altimeter Group

14 Yet companies are not coordinated % Companies with a Coordinated Approach to Social Media Deployments Across the Company Base: 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)© 2012 Altimeter Group

15 Few companies have a social media inventory % Companies with a Social Inventory of Existing Social Assets Within the Company Base: 142 global corporate social media program managers at companies with over 1000 employees (Q2 2011)© 2012 Altimeter Group

16 And immature efforts are not meeting objectives % Companies for Which Social Media Efforts Meet Business Objectives Base: 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)© 2012 Altimeter Group

17 How Social Media Program Managers Plan to Deal with Increase in Customer Conversations (Respondents were allowed to select up to three choices) Top Priorities are Scalable Deployments Base: 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)© 2012 Altimeter Group

20 What do Social Media Management Systems provide? 1) Governance • Account control • Cascading permissions • Compliance and Archiving 2) Workflow • Tag, flag, route • Followup 3) Intelligence • Reporting: Master view of all accounts • Analytics: Predictive, hot spot measurement© 2012 Altimeter Group

21 SMMS Adoption Is Growing Rapidly – Even Outpacing Predictions Base: 2010, 2011 (Estimated): 140 global corporate social media program managers at companies with over 1000 employees (Q4 2010) 2011 (Actual): 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)© 2012 Altimeter Group

22 SMMS Spending We found that average deal size is now about $75k, but some enterprise deals range from $1-3M Source: “How Corporations Should Prioritize Social Business Budgets” Altimeter Group, February 2011© 2012 Altimeter Group

SMMS Market: Confusing Messaging Frequency of Messaging Elements across 25 SMMS vendors yields a focus on “SMMS/Dashboard” and “Social Media Marketing” –yet few differentiate further. 12 Frequency of mentions 10 8 6 4 2 0© 2012 Altimeter Group

24 Five Use Cases for Social Media Management Case #1: Case #2: Case #3: Intense Response Social Broadcasting Platform Campaign Marketing Case #4: Case #5: Distributed Brand Presence Tailored Service & Support Source: “A Strategy for Managing Social Media Proliferation,” Altimeter Group (January 5, 2012)© 2012 Altimeter Group

Case #1: Intense Response Description: High volume of interactions: support or marketing. Requirements include monitoring and alerting tools, sentiment analysis, influencer identification, workflow routing, and tiered-governance features for tactical support teams.© 2012 Altimeter Group

27 Intense Response Case Study: Frontier Airlines Frontier Airlines operates more then 500 daily flights to more than 80 destinations. But when a hail storm in July damaged 22 of Frontier’s planes, it meant thousands of customers would face cancellations and delays. Image: The Denver Post, Cyrus McCrimmon / AP© 2012 Altimeter Group

28 Intense Response Case Study: Frontier Airlines As customers faced long waits at the ticket counters and reservation lines, the social media group used Radian6 to track mentions of Frontier across the social web and reach out to help customers to re- book flights, get up-to-date information, and let their customers know they were there to help.© 2012 Altimeter Group

29 Intense Response Case Study: Frontier Airlines Frontier was able to engage with over 4,000 customers on the social web over a seven-day period, and during that time saw over 700,000 visitors to their Facebook page. A more recent storm in Denver also resulted in delays and cancellations – and Frontier was ready to respond© 2012 Altimeter Group

Case #2: Social Broadcasting Description: Publishing marketing content (deals, media, news): PR or marketing. Requirements include ability to post a variety of media types; ability to target messaging based on time, geography, social networks, and demographics; and a content library.© 2012 Altimeter Group

31 Social Broadcasting Case Study: The Palms Hotel The Palms Hotel wanted to see whether social media could increase room bookings while maintaining room-rate integrity, and track transactions to show ROI.© 2012 Altimeter Group

32 Social Broadcasting Case Study: The Palms Hotel The Media Leaders, a group using HootSuite on behalf of The Palms, used targeted messaging to Twitter and Facebook users based on keywords and location, including trackable links. In a 30-day period The Palms gained 2,600 followers, exceeded the room rate reservation goal by 47% and exceeded revenue goals by 67%© 2012 Altimeter Group

Case #3: Platform Campaign Marketing Description Custom applications and features on specific social platforms: Interactive Marketers. Requirements include customizable, white-label applications such as contests, interactive media containers, Q&A, commerce features, etc.© 2012 Altimeter Group

34 Platform Campaign Marketing Case Study: Pretzel Crisps Pretzel Crisps wanted to raise brand awareness and reward fan loyalty, so they used Buddy Media to create a “$1-off” Facebook coupon exclusively for fans. Three weeks later, Pretzel Crisps switched to a coupon that offered “buy one, get one free.”© 2012 Altimeter Group

35 Platform Campaign Marketing Case Study: Pretzel Crisps Within 36 hours of posting the “buy one, get one” offer to its Facebook page, Pretzel Crisps doubled its Facebook fan base from 14,000 to 29,000. Overall, Pretzel Crisps saw an 87% redemption rate on the “$1-off” coupon offer, and a 95% redemption rate on the “buy one, get one free” offer.© 2012 Altimeter Group

36 Platform Campaign Marketing Case Study: So Delicious So Delicious wanted to create new brand advocates, expand its fan base, and ultimately increase sales. Partner agency Sterling-Rice group developed a “100 days of change” giveaway campaign idea – and then Wildfire was chosen to deliver the sweepstakes to Facebook users.© 2012 Altimeter Group

37 Platform Campaign Marketing Case Study: So Delicious During the campaign, So Delicious saw its Facebook fan base grew by more than 1,000% and received 322,664 sweepstakes entries. The company also experienced two of its most successful sales days ever, increased category share by 60%, and saw increase of sales units by 74%.* *Note: the same campaign also ran on TV and in print© 2012 Altimeter Group

Case #4: Distributed Brand Presence Description High number of dispersed customer engagement points: multiple brands, departments, locations, and partners. Requirements include scalable software that can manage a large number of users with cascading permissions, multiple social networks, and language capabilities.© 2012 Altimeter Group

39 Distributed Brand Presence Case Study: Intel Intel needed to provide content to 35 different markets, as well as empower regional stakeholders to adapt content and manage their own presence. To do so, Intel partnered with Vitrue to deploy a Social Media Management System and train hundreds of end users.© 2012 Altimeter Group

40 Distributed Brand Presence Case Study: Intel Today Intel has 4.4M+ Facebook fans with nearly 100 live Tabs and 35+ Pages globally under Facebook.com/Intel – all managed from a single dashboard. Ekaterina Walter (@ekaterina), Social Media Strategist at Intel, told us Intel has up to 200 users using Vitrue’s SMMS, both internally and at agencies. Note: Some organizations require additional dimensions to this use case. Intel is a distributed organization, but is not publishing to blogs or many other networks like LinkedIn using their SMMS.© 2012 Altimeter Group

Case #5: Tailored Service & Support Description Custom development and white-glove support: large and regulated organizations Requirements include custom work and reporting, education programs, a large support team, data security and availability, and service-level agreements.© 2012 Altimeter Group

42 Tailored Service & Support Case Study: Large lifestyle brand One of the world’s biggest lifestyle brands decided to move toward social business, and partnered with Sprinklr to: 1. Establish a standard for social engagement and customer service 2. Generate positive social sentiment toward the brand 3. Identify and catalog influencers and advocates to build relationships and promote WOM© 2012 Altimeter Group

43 Tailored Service & Support Case Study: Large lifestyle brand Beyond standard deployment features, this brand- sensitive organization had special requirements, such as:  A test environment with fake accounts, queues, and rules weeks in advance of launch  Collaboration with various client business units and agency partners to establish strategy and policies  Around-the-clock dedicated strategy, support, and engineers during initial launch week  Custom daily reports© 2012 Altimeter Group

44 Tailored Service & Support Case Study: Large lifestyle brand Results include:  Profiled 655 key influencers and 3,700 consumers for new social consumer and influencer database in first three days of launch  Real-time crisis support: provided strategic and technical solutions when campaign keywords became hijacked by an unaffiliated group  Allowed 60+ users across 11 sub-brands and various business units to engage directly with users around the globe© 2012 Altimeter Group

48 Five Future Market Trends for the Social Management Space 1. Corporate lead compliance and risk audits will mandate social media managements systems 2. An oversaturation of vendors entering the space from several directions, causing price erosion in near term 3. Beyond agency adoption, outsourced call centers fuel new growth 4. This saturated market will shake out, similar to other social software markets 5. Integration with other communication and intelligence systems will provide new value© 2012 Altimeter Group

49 Altimeter’s Continued Role  We will continue to publish additional data and findings on the Web Strategy blog • Vendors please keep us updated • We’re seeking case studies from brands  We offer the following services for Brands • Best practices workshops • Customized vendor selection based on internal interviews  We offer the following for Agencies and Vendors • Strategy session: Roadmap, partnerships, go to market • Lead generation through webinars, and in person speeches.© 2012 Altimeter Group

50THANK YOUJeremiah Owyang Andrew JonesIndustry Analyst Researcherjeremiah@altimetergroup.com andrew@altimetergroup.comweb-strategist.com/blog andrewmjones.comTwitter: jowyang Twitter: andrewjns

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Altimeter Webinar: State of the Social Media Management System Industry

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