Policy, education, and awareness/culture pieces are important to rolling out social successfully in an organization. How do you tell someone who’s never used social that it’s important and needs to be part of their business strategy? Involve as many departments as early on as possible.
Dell was listening for 9 months before it even started a social media presence in 2006. This laid the groundwork for success.
First and most principled thing to do is a voice of the customer or insight study. How can you decide what to do in social if you don’t understand what your customers do with it?
Be patient because there’s so much to tackle - you can’t do it all at once. Still get started, but always go back to the objectives you’re after. If you lose sight of that, you’ll be wasting time and resources quickly.
Experiment, pilot, and be flexible. Know that your plan will have hiccups. Getting your execs and key stakeholders to be more comfortable with risk is important, along with having a risk mitigation strategy in place.
Having a c-level sponsor who is ready to take on risk is crucial to success. A lack of this person will create paralysis, especially in a regulated industry where people are careful and afraid.
Come to agreement on the governance model before moving on to the strategy and program.
Get measurement under control - it will drive support, especially at the executive level. If they can see the correlation to business results (product development, revenue, brand awareness), they will feel like it’s a huge investment area.”
In the future, there shouldn’t be a ‘social strategy,’ there will just be a strategy for customer experience.
CT: Are there better ways to present this info?
One executive comments, “There’s a lot of interest in social at our company, but it’s still not a primary driver of business, and its budget is much lower than traditional channels.” Avg social budget for companies up to $1B in revenue is less than 500k a year. CMO Survey reports that social spending represented just 7.4% of marketing budgets in 2012.
The Evolution of Social Business:Moving Beyond the BasicsBrian Solis | Altimeter Group
The Challenges of SocialBusiness Strategy1. Misaligned executives2. Organizational silos/uncoordinated effort3. Lack of clear metrics to businessoutcomes4. Lack of a holistic strategy5. Lack of education6. Incremental funding
34%Social marketers who agree that theirorganizations use clear metrics to associatesocial activities with business outcomesSource: Altimeter Group. Social Business Survey, Q4 2012.14
29%Companies that measure thefinancial impact of their social mediaeffortsSource: Altimeter Group. Social Business Survey, Q4 2012.15
52%Top executives who are informed,engaged, and aligned with theircompany’s social strategySource: Altimeter Group. Social Business Survey, Q4 2012.16
13Number of business units across theenterprise that may deploy socialmediaSource: Altimeter Group. Social Business Survey, 2012.17
At least 13 different business units across theenterprise may deploy social media7.8%9.4%10.9%14.1%14.8%16.4%16.4%28.9%35.2%36.7%39.8%65.6%73.4%0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%Market ResearchLegalExecutiveITCustomer/User experienceAdvertisingProduct development/R&DHRSocial MediaDigitalCustomer SupportCorporate Communications/PRMarketing"In which of the following departments are there dedicated people(can be less than one FTE) executing social?"Source: Altimeter Group. Social Business Survey, 2012.
26%Companies that approach social mediaholistically, with business units operatingagainst an enterprise vision and strategySource: Altimeter Group. Social Business Survey, Q4 2012.19
27%Employees who are aware andtrained on their company’s socialmedia usage policiesSource: Altimeter Group. Social Business Survey, Q4 2012.20
37%Companies that rate their employees’knowledge of social media usage andrelated policies as “poor” or “very poor”Source: Altimeter Group. Social Business Survey, Q4 2012.21
Dan Brostek, Head of Member and Consumer Engagement for Aetna:Policy, education and awareness, and culturepieces are important to rolling out socialsuccessfully in an organization.How do you tell someonewho’s never used social thatit needs to be part of theirbusiness strategy?
Goals:• Understand howcustomers use socialchannels• Prioritize strategic goalswhere social can have themost impactMetrics:• Mentions, sentimentInitiatives:• Listening/monitoring• Internal auditsResources:• Monitoring platform• PT workers• Agency supportStage 1:Listen to Learn
The first and most principled thing to dois a “voice of the customer” study. Howcan you decide what to do in social ifyou don’t understand what yourcustomers do with it?Andy Markowitz, Director of Global Strategy for GE
Stage 1: Best Practices1. Define specific business goals andobjectives for listening2. Select metrics based on those businessgoals3. Select and invest in a monitoring platform4. Disseminate your learnings5. Identify opportunities for the future
28David Fenech, VP Interactive Marketing andCreative Services for Kelly Services“Always go back to theobjectives you’re after.If you lose sight of that,you’ll be wasting timeand resources quickly.”$
Stage 2: Best Practices1. Link your social presence to businessobjectives2. Pass on engagement – for now3. Develop sharable content4. Establish governance with an eye to thefuture
Goals:• Drive considerations topurchase• Provide direct support• Internal employeeengagementMetrics:• Path to purchase, lowersupport cost, CustomerSatisfactionInitiatives:• Longer term campaigns• Social support communitiesResources:• Social Strategist• Small, dedicated team• SMMSStage 3:“Dialog DeepensRelationships”
“Identify the most relevant socialplatforms, have unique and valuable things tosay, andadapt your strategy oftento incorporate findings. Keep moving forward.”Lori Johnson, VP Online StrategyFidelity Investments32
“Helping your executivesand key stakeholdersbecome more comfortablewith risk is important, alongwith having a risk mitigationstrategy in place.”Maria Poveromo, Director of Social Mediafor Adobe
Stage 3: Best Practices1. Take strategic steps to engagement2. Create rules and processes for engagement3. Look beyond engagement activity metrics tounderstand value creation4. Communicate the impact of engagementbroadly5. To scale, invest in a SMMS6. Audit regularly for new social media usage
Goals:• Set governance for social• Create discipline andprocess• Strategic business goalsMetrics:• Process efficiency, link todepartment businessgoals, customersatisfactionInitiatives:• Create Center ofExcellence• Enter Social NetworkResources:• Staffing up• CoE Tech investmentStage 4:Organized for Scale
Having a c-level sponsor whois ready to take on risk iscrucial to success.A lack of this person will createparalysis, especially in a regulated industrywhere people are careful and afraid.Ed Terpening, former VP Social Media Strategy for Wells Fargo
COME TOAN AGREEMENT ON THEGOVERNANCE MODELBEFORE MOVING ON TOTHE STRATEGY.37Jonathan Blank, Manager of Social MediaWellpoint
Stage 4: Best Practices1. BEWARE OF THE COE PITFALL2. Develop a formal social businessorganizational model3. Define the role of the CoE4. Continue to coordinate strategy through theCoE5. Develop stronger connections to businessmetrics
Center of Excellence Do’s/Don’tsCoE DOES:• Provide strategicdirection onpolicy, process, technology, metrics andtraining• Organize for scale• Establishes andcommunicates theabove in an ongoingwayCoE SHOULD NOT:• Act as a help desk• Take on too muchas the “hub,”ignoring the“spokes”
Goals:• Scale across businessunits• Moves intoHR, sales, finance, supplychain• C-level involvementMetrics:• Enterprise metrics likeNPS, LTVInitiatives:• SMMS to scale employees• Social part of planningprocessResources:• CoE Coordinates Hub(s)• Dedicated SpokeStage 5:Becoming a SocialBusiness
Get measurementunder control.It will drive support, especially at theexecutive level. If they can see thecorrelation to business results, they willfeel like it’s a huge investment area.43Ann Lewnes, CMOAdobe
Stage 5: Best Practices1. Engage executives beyond the champion withfocused pilots2. Integrate CoE into core business functions3. Mastering big data for customer intelligence4. Leverage the enterprise social networkingplatform
Goals:• Social drives transformation• Integrates social philosophyinto all aspects of enterpriseMetrics:• Deep analytics tied to functionsand LoB• Insights lead to adaptive andpredictive strategiesInitiatives:• Redefine processes• Enterprise-wide training• One strategy managed throughdisparate but complementaryteamsResources:• Social is everyone’sresponsibilityStage 6:Business is Social
In the future, there shouldn’tbe a “social strategy;”there will just be a strategyfor customer experience.Martha Hayward, VP Social MediaFidelity Investments
Stage 6: Best Practices1. Redefine the company’s vision to integratesocial2. Align incentives around convergence3. Redefine the role of the CoE
7 Success Factors of aSocial BusinessStrategyBusinesses thatuncover the gapbetween businessobjectives, socialmedia strategies, andinternal challengesand opportunities willopen dialogue thatboth closes the gapsand creates alignment.1
7 Success Factors of aSocial BusinessStrategyGoals are not enough.You need a long-termvision that communicatesto all stakeholders whythis journey is takingplace. This covers futurecustomer, employee, andstakeholder relationshipsand experiences to comeas a result of a socialstrategy.2
7 Success Factors of aSocial BusinessStrategy ARAMARK VP ConsumerStrategies: “Get allstakeholders involvedfrom the beginning, andmake them asknowledgeable aspossible. Let them takeownership…Remember:It’s a change managementchallenge as much asanything else.”3
7 Success Factors of aSocial BusinessStrategyLess than half of orgssurveyed had a detailedroadmap that extendslonger than a year. Absentwas: 1) How initiativescreated business value; 2)long-term planning oninvestments; 3) aniterative process to re-evaluate initiativesThe heart of the matter issimple: Prioritize what youwill and won’t do.4
7 Success Factors of aSocial BusinessStrategyMost organizations havead hoc approach tomanaging social, withmost knowledge residingin a small group. Buildingand socializing clearprocesses while instillingdiscipline become keycriteria for success.Training must be availableAND an organizationalpriority.5
7 Success Factors of aSocial BusinessStrategyOvertime, it’s crucial tolean away from agencysupport and develop moremature capabilities inhouse.These individuals will leadstrategy and createinternal alignment.6
7 Success Factors of aSocial BusinessStrategy Jumping immediately intotechnology selection andimplementation without astrategy, roadmap, ororganization in place is ill-advised – you may getstuck with a listeningplatform or SMMS thatdoesn’t meet yourbusiness requirements atscale.7
AT THE END OF THE DAY……YOU ARE NOT ALONE.There are steps to take to drive your customers,employees, and relationships forward in ameaningful way.
Data Matters: Altimeter Methodology• Altimeter Group conducted qualitative and quantitativeanalyses – survey, interviews, and briefings through Q42012• Interviews with 26 executives and social strategists at 15enterprises• 698 total survey respondents• Data presented in this presentation is from companies of1,000+ employees only (N=130)• Survey respondents were social media professionalsand executives who overseesocial efforts59
Programs have grown in maturity since2010, with 38% of programs in their third+yearSource: Altimeter Group. Social Business Survey, Q4 2012.9%12%17%27%27%9%5%4%9%20%33%29%5 years or more4 years to < 5 years3 years to < 4 years2 years to < 3 years1 year to < 2 yearsLess than 1 yearHow long has your social media programbeen in existence?2010 2012
Most core social media teams reside inMarketing & Corporate Communications/PR6%1%1%2%2%14%14%26%40%0% 5% 10% 15% 20% 25% 30% 35% 40% 45%OtherITExecutiveCustomer SupportAdvertisingDigitalSocial MediaCorporate Comm/PRMarketingIn which department does your CORE social mediateam reside?Source: Altimeter Group. Social Business Survey, Q4 2012.
Companies with 5,000+ employees betterstaffed for enterprise social efforts in 2012Approximately how many full-time equivalent staff currently support socialefforts in your organization, for external and internal engagement?Employees in Company Average # of Staff2010 20121,000 to < 5,000 3.1 3.15,000 to < 10,000 5.2 19.410,000 to < 50, 000 5.4 12.050,000 to < 100,000 23.8 27.9More than 100,000 20.4 49.4Source: Altimeter Group. Social Business Survey, Q4 2012.
More mature social programs generally callfor increased headcountApproximately how many full-time equivalent staff currently support socialefforts in your organization, for external and internal engagement?Length of Program Average # of Staff2010 2012Less than 1 year 3.9 2.21 year to < 2 years 7.0 8.92 years to < 3 years 12.1 6.53 years to < 4 years 10.0 14.04 years to < 5 years 34.3 48.0More than 5 years 31.1 56.6Source: Altimeter Group. Social Business Survey, Q4 2012.
22%32%35%35%30%26%25%37%48%7%13%15%15%15%23%27%33%40%43%48%0% 10% 20% 30% 40% 50% 60%Create policies and proceduresGet buy-in from stakeholdersApply social insights to the product roadmapDetermine an organizational/governance modelDevelop a listening/monitoring solutionConnect employees with social toolsIntegrate social media with digital and mobileConnecting social data to other enterprise datasources to deliver actionable insightScale our social programsDevelop internal education and trainingCreate metrics that demonstrate the value ofsocial media20122010As social matures, scaling increases in priority;developing org models, getting buy-in decreases“In 2013, what are your top three internal social media objectives?”Source: Altimeter Group. Social Business Survey, Q4 2012.
Content marketing, providing direct customersupport become higher social priorities for 201322%14%21%20%25%47%16%38%43%9%9%13%14%16%25%27%32%41%50%57%0% 10% 20% 30% 40% 50% 60%Social commerceEnabling peer-to-peer supportMobile/LocationCollaboration with customers on newproducts/servicesFormalizing an advocacy programWebsite integrationDeveloping an influencer relations or ambassadorprogramProviding direct customer support through socialchannelsListening/learning from customersDeveloping ongoing dialog and engagement withcustomersContent marketing20122010“In 2013, what are your top three external social media objectives?”Source: Altimeter Group. Social Business Survey, Q4 2012.
Social budgets were limited in 2012, with aslight increase projected for 2013Source: Altimeter Group. Social Business Survey, Q4 2012.5%9%4%23%34%5%11%6%25%26%0% 5% 10% 15% 20% 25% 30% 35% 40%More than $5 million$1 million to < $5 million$500,000 to < $1 million$100,000 to < $500,000Less than $100,000Budget Allocation Toward Social Media Efforts2013 Projection2012
Technology: Corporations budgeted most forlistening/monitoring, analytics platforms$14,844$29,366$34,737$51,867$54,559$62,024$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000Social CRMEnterprise social networksSocial media management systemsCommunity platformsAnalytics platformsListening/monitoring platformsIn 2012, what was your budget in each of the followingareas? (Chart depicts average budgets.)Source: Altimeter Group. Social Business Survey, Q4 2012.
Social Media Marketers Plan to IncreaseSpending on SMMS, Education in 201322%23%25%33%37%38%43%43%45%47%47%0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%Enterprise social network (Yammer, Chatter)Blogger/influencer networks (Federated Media, NetShelter, BlogHer)Community platforms (Lithium, Jive, Get Satisfaction)Analytics platforms (Webtrends, Omniture, Coremetrics)Social CRMExternal agency to support engagement (e.g. moderate Facebookpage)Listening/monitoring platforms (Radian6, Scout Labs, CrimsonHexagon, Netbase)Social app developmentCustom technology development or data integration servicesTraining and education (workshops, conferences, webinars)Social media management systems (Hootsuite, Spredfast, Sprinklr)Percentage of Social Marketers Surveyed Who Plan to IncreaseSpending in the Following AreasSource: Altimeter Group. Social Business Survey, Q4 2012.
47%Social media marketers who plan toincrease spending on social mediamanagement systems (SMMS) in 2013Source: Altimeter Group. Social Business Survey, Q4 2012.69
47%Social media marketers who plan toincrease spending on social mediatraining and education in 2013Source: Altimeter Group. Social Business Survey, Q4 2012.70
43%Social media marketers who plan toincrease spending on social medialistening/monitoring platforms in 2013Source: Altimeter Group. Social Business Survey, Q4 2012.71
Engagement and volume metrics lead measurementapproach for social, not financial ties“Which of the following describe your approach to measuring theoutcomes of your external social strategy?”9%11%14%29%81%82%0% 10% 20% 30% 40% 50% 60% 70% 80% 90%We don’t measure anything at allWe measure the financial impact of advocates andinfluencersWe measure the financial impact of socialcustomer serviceWe measure financial impact such as conversionsoriginating from social mediaWe measure volume metrics , such as number offans and followers, clicks, impressions and viewsWe measure engagement metrics, such aslikes, comments, replies, retweets and sharesSource: Altimeter Group. Social Business Survey, Q4 2012.
85%Those who trust recommendationsfrom “People I know”Source: Nielsen Global Trust and Advertising Report 201273
75In 2012, majority of companies had zero to fiveemployee incidents related to social mediaQ25: In the last 12 months, how often has there been an incidentwhere an employee in your organization violated your internal, organizational social media policy?No incidents49%1-5 incidents42%6-10 incidents5%11-25 incidents1%More than 25incidents3%Source: Altimeter Group. Social Business Survey, Q4 2012.