Social business software survey results

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Social business software survey results

  1. 1. | business value of social business The business value of social business. Customer survey results.www.jivesoftware.com
  2. 2. | business value of social businessFor your employees, social business tools 02are a no-brainer.Easier ways to collaborate with each other, customers, and partners; simpler ways to share information; fasterresolution of service issues; and robust customer conversation monitoring across all forms of social media (fromTwitter to Facebook to blogs) all make the lives of line employees in sales, strategy, support and marketing easier.Most executives and managers recognize the powerful improves productivity, improves customer communication, survey covered more than 500 respondents rangingchange that social engagement inside and outside the and boosts sales. But, as in any big IT buying decision, from individual contributors to CEOs at more than 300company has already wrought on workflows, sales these leaders want to identify a clear return on companies. Responding companies ranged in size butprocesses, and organizational decision-making. They investment (ROI). The good news is that the ROI for most were large organizations with 80% having greaterunderstand that their business will become more social business tools is now quite clear and that these than 1,000 employees, 60% having greater than 5,000inherently social as the use case for the Internet changes tools can dramatically boost customer and employee employees, and 10% having greater than 100,000to a more social orientation, both in the consumer and satisfaction, reduce turnover, boost sales, and improve employees. These companies spanned 35 differentbusiness realms. idea generation within an enterprise or organization. industries, including IT, healthcare, financial services and government. The survey results provide strongRegardless, these same executives must justify every In December 2010 an independent survey firm conducted evidence that social business tools produce more thandollar spent on software and information technology (IT) the largest survey to date examining the impact of the sufficient ROI, on average, to make anyproducts. Yes, they know that Social Business Software use of Social Business Software in corporations. The senior executive happy.www.jivesoftware.com
  3. 3. | business value of social businessHigher engagement equals higher profits. 03Social tools have made it easier for people to communicate with others that are important to them in the consumerrealm and to better maintain friendships. We found this also to be true in the world of social business. Our respondentsreported an increase in employee connectedness by 39%. The survey respondents also reported that social businesstools increased employee satisfaction by 30%. All of this adds up to higher level of employee engagement. This is acritical metric that translates into real, hard-dollar ROI.At consumer electronics retailer Best Buy, a .1% increase employee engagement metrics posted earnings perin employee engagement survey ratings at a store share (EPS) growth nearly 9% higher than EPS growthtranslates into a $100,000 bump in annual revenues of comparable companies rated in the lower half of theat that location, according to research published in study. According to other research from Gallup, morethe Harvard Business Review. A 2007 study by polling satisfied employees equates to higher levels of all mannerand research company Gallup Organization found of related KPIs including: customer loyalty (+56%),that publicly traded companies rated in the top 25% in productivity (+50%) and employee retention (+50%).www.jivesoftware.com
  4. 4. | business value of social businessBetter employee retention, faster onboarding 04means higher sales per employee.A finding that the use of social business tools corresponds with increases in social engagement and improvesemployee retention is a particularly critical finding. Any reduction in employee turnover results in immediatecost savings to an organization.The accepted estimate for the cost of turnover is between During that onboarding period, those workers actually100% to 150% of an employee’s annual salary. From this cost money in several ways. Because they are operatingestimate, based on an employee base of 5,000 with an at a reduced rate of productivity but receiving fullaverage salary of $45,000 per year, a mere 1% decrease salary, they act as a drag on the key metric revenue perin employee turnover could result in $1 million in annual employee. Those same new employees are more likelysavings. to slow down fellow employees by asking questions or reducing process speed in the organization.Likewise, new social business tools incorporatesocialization capabilities that make it easier to join and Leveraging social technologies can dramaticallybecome fully productive in an organization. This also reduce onboarding time. Social business tools encouragehas real hard-dollar benefits. The average knowledge knowledge sharing in unstructured formats moreworker requires between four and six months to amenable to search. Similarly, social business toolseffectively learn and assimilate the necessary skills encourage informal micro-communications betweenand processes to perform their job effectively. employees. These low-impact, casual exchanges facilitate knowledge transfer and impart wisdom without causing significant task disruptions.www.jivesoftware.com
  5. 5. | business value of social businessBetter answers, less time searching, 05faster access to expertise.Finding the right answer to any given question can, in a diverse organization, prove frustrating. Multiple playersmay have bits and pieces of an answer. The player who holds a key piece may be on vacation. The same sort ofcollaboration and easy construction of transparent knowledge repositories that helps new employees onboardquickly also empower employees to more quickly locate the right answer to a question.Survey respondents reported a 32% decrease in time average annual cost of $14,000 per knowledge workerrequired to find appropriate answers to questions or per year. The average sales person spends more thaninformation requests. That decrease led to faster decision two hours per week looking for the correct marketingmaking, among other benefits. Further, users of social collateral. By reducing this search time by a mere 10business tools claimed that they enjoyed a decrease in minutes per week a business could realize a revenuetime spent to find information and experts (as opposed to boost of greater than $50,000 per employee. For a largeanswers) of 34%. organization with thousands of sales people, then, implementation of effective social business tools couldThese types of reductions, again, can seriously boost result in revenue increases ranging well into eight or evena corporate bottom line. IDC estimated that the average nine figures, depending on improvements in informationknowledge worker expends 9 hours per week searching dispersion and retrieval and minimization of search time.for information. This multiplies out, IDC found, to anwww.jivesoftware.com
  6. 6. | business value of social businessLess email, shorter meetings, 06higher productivity, more ideas.Even though we are now in the Post-Dilbert era, jokes about corporate life and copious time wasted sitting inunnecessary meetings and replying to useless email chains still ring true for many employees and senior managersalike. Social business appears to alleviate and moderate these woes. Our survey respondents reported a 27%reduction in the amount of email sent inside their organizations, a result largely attributed to the use of social tools.According to IDC, the average knowledge worker spends In terms of reduction of meeting time, social survey Ultimately, these types of gains mean nothing if there are13 hours per week writing and reading emails. That respondents reported a 26% decrease in time spent not corresponding increases in productivity. Respondentsrepresents an annualized cost per employee of $21,000. on meetings. Respondents also noted that meetings did in fact report an increase in product collaborationThis number likely stretches higher in higher-paying work better in conjunction with social business tools and overall productivity of 37%, an indication that theorganizations or verticals, and for higher job roles. due to social mechanisms for capture of unstructured previously described reductions in unproductive activitiesThere are indications the IDC numbers are quite information through tags and other collaboration tools translated into increases in productive activities.conservative. A survey of 1,000 workers in the United and annotation tools.Kingdom by Star, a provider of on-demand computing and Enhanced collaboration meant that social business toolscommunication services found that employees spend, on In another logical extension of these social tools users enjoyed higher project success rates and wereaverage, 32.5, 8-hour work days a year on email alone. efficiency gains, survey respondents reported a decrease also more likely to complete their projects on time. AllReducing time spent by 27% would then represent a cost in duplicated tasks of 27%. They generally stated that of this, of course, is driven by ideas. And the use of socialsavings of greater than $5,000 per employee, per year. social business tools made it easier for them to ascertain business tools correlated positively with new ideas, asBeyond hard dollar savings, reducing email has other what colleagues are doing and to search quickly and well. Respondents reported a 32% increase in ideasbeneficial effects such as making information more effectively to determine whether all or part of a task they generated within a company. The next big idea, in otheraccessible and more searchable by the entire organization are about to undertake have been previously executed by words, may come about because an employee had moreand breaking down information silos that lead to related another employee. time to think, chat with colleagues and contemplated theinefficiencies. possible rather than bang away at mundane tasks.www.jivesoftware.com
  7. 7. | business value of social businessBetter addressing the needs 07of customers, selling more.All of the above gains are primarily inward facing. So what types of ROI benefits do social business tools provideto more outward facing functions? As it turns out, the outward-facing process gains are comparable. Surveyrespondents reported an increase in their sales win rate of 23%, an increase in new customer sales of 27%, andincrease in existing customer sales of 27%. The increase in existing customer sales is particularly impressivebecause those sales likely involve a higher gross margin due to the reduced cost of sales inherent in reselling orupselling to existing customers.On the flip side of sales is customer support and Besides improving support, better communication with employees and the same applies to customers. Respondentsengagement. Social business tools drove real gains in customers also translated into a 34% increase in feed- recorded an increase in customer satisfaction of 33%,those areas, as well. Respondents reported an increase back and ideas from customers. Social business tools increased customer retention of 31% and increase ofin communication with customers of 42% driven largely make it possible to not only crowdsource innovation but brand advocates by 31 percent.by newfound abilities to engage customers in multiple also tap into the product expertise residing in your fanchannels simultaneously, from social channels to base. The increase in brand advocacy is particularly valuable.traditional email and Web channels. According to Forrester Research, 94% of customers Customers of companies that deployed social business trust “word-of-mouth” recommendations while onlyThis increase in communication accompanied a 28% were also more engaged not only with the company but 14% trust advertisements. Social marketing companydecrease in support calls, as customers were able to also with each other. Survey respondents reported that Zuberance found that brand advocates are worth fiveget the support they needed more easily without picking social community usage by customers drove significant times more than average customers because they tendup the phone. A decrease in volume of support calls has increases in web site traffic from existing customers to spend more and also will recommend a company withmultiple benefits. First, it reduces costs for your support (34%) and new customers. Giving customers a reason each recommendation on a searchable social mediateam. Second, it allows support staff to concentrate on to come back to the website regularly also added to platform reaching at least 150 other people. So any toolbigger cases and to better focus on cases involving the website sales, with survey respondents reporting an that can boost brand advocacy will quickly return its costmost loyal and important customers. increase in web-based sales (usually the lowest cost through enhanced sales and enhanced word-of-mouth type of sales) of 26%. Engaged employees are happy marketing and customer activations.www.jivesoftware.com
  8. 8. | business value of social businessSocial Business ROI is real. And it’s huge. 08After reading through this information, any CFO should think differently about social business tools and viewthese new technologies as clear revenue boosters with well-defined ROI that benefits both the top-line and thebottom-line.The benefits of social business tools seem quite logical.Based on sheer adoption numbers (hundreds of millions tools provide an invaluable framework upon which to build a true social enterprise. This enterprise super- “The imperative for businessof Facebook users are hard to refute), consumer social charges growth and innovation by tapping into the power leaders is clear: fallingplatforms have clearly illustrated a tremendous ROI interms of allowing consumers to more easily keep track of socialization and social applications to drive monetization while simultaneously boosting employee behind in creating internalof projects, communicate with friends and family, and morale, saving everyone time, and keeping customers and external networksshare information. so happy they won’t shut up about your company. could be a critical mistake.Social platforms for enterprise logically extend thesecapabilities to the organizational realm. Further, these Executives need to push their organizations toward becoming fully networked enterprises.” McKinsey Quarterly, “The rise of the networked enterprise”, December 2010www.jivesoftware.com
  9. 9. | business value of social businessSocial business software survey results. 09 39% increase in employee connectedness. 28% decrease in support calls. 25% decrease in onboarding time. 33% increase in customer satisfaction. 29% increase in executive communication. 31% increase in customer retention. 34% decrease in time to find information and experts. 34% increase in feedback and ideas from customers. 27% reduction in email sent. 34% increase in brand awareness. 26% decrease in time needed for meetings. 27% increase in new customer sales. 27% decrease in duplicated tasks. 27% increase in existing customer sales 32% increase in ideas generated within the company. 34% increase in web site traffic from existing customers. 23% increase in win rate. 32% increase in web site traffic from new customers. 32% decrease in time to find answers. 26% increase in web site sales. 37% increase in project collaboration and productivity. 31% increase in brand advocates. 30% increase in employee satisfaction. 33% increase in clicks from Google searches. 24% decrease in need for travel. 27% increase in channel sales effectiveness. 42% increase in communication with customers. 26% decrease in channel support costs.All statistics from a survey conducted Dec. 2010 by third-party market research firm. The survey was open to all Jive Software customers. More than 500 peoplefrom more than 350 companies responded; more than 60% of respondents came from companies with more than 5,000 employees. More than 10% of respondentscame from companies with more than 100,000 employees. Nearly 1/3 of respondents use Jive for both internal and external communities.Jive. First in Social Business.Jive is the largest and fastest-growing independent Social Business Software company in the world.For more information, visit www.jivesoftware.com.jive software 325 lytton avenue, palo alto, ca 94301 o 1.877.495.3700

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