This document discusses the disconnect between how companies and consumers view social media. It summarizes initial research comparing how companies believe consumers engage with them on social media versus how consumers actually report engaging. The research found that while companies assume consumers spend significant time interacting with companies on social media, most consumer interactions are less than weekly and for social rather than commercial purposes. Consumers prefer traditional communication methods from companies over social media interactions and find commercial posts on social media annoying. However, consumers are more open to interacting with some companies like retailers and media on social media compared to financial services. The document examines implications of these differences in perspectives between companies and consumers regarding social media.

1. The Social Media Disconnect
(why companies and consumers aren’t on the same page)
Nitty Gritty
Marketing Insight & Research
October 2011
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2. What today is about
• Getting a bit closer to the
consumer view of
companies’ inroads into social
media
• And, examining this against
a yardstick of what
companies believe about how
social media works
• To better understand if
Which social media?
companies are getting ‘getting Suitability?
it’ right Preferences?
Expectations and
Barriers
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3. Engaging with consumers, markets, clients
has always been about wearing a number of
hats
Its never been a one-stop solution
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6. Companies are enjoying using Social Media
• Spells ‘innovation’
• Creative
• Has few barriers to entry
• Offers continuity
• Has few barriers to exit
“I think often they don’t go through the
same planning discipline that they
would for more conventional media.
Partly I think is the perception that
because the cost is low that the risk is
low.” General Manager Media Company
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7. Companies are diving head first into
social media
• Its what marketers ‘do’
these days
• Organisation wide
impact
• Absorbing traditional
spend on media, IT,
systems
• Action before strategy
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8. But what do consumers think about
these inroads into social sites?
What are the rules of
thumb, if any?
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9. Some Research (in progress)
Consumers Companies
• Online “snowball” survey with • Qualitative Interviews with senior
n=250+ Adults executives including CEOs
• Gauge the opinion of “commercial” • Understand their social media
within ‘social” “headspace”
• Attitudes and Insights about where
businesses could get most impact
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10. “I think many
companies don’t know
why they use social
media they just know
they should use it.”
CEO Multinational
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12. This is despite over
34,000,000 search
results when you
Google
“the rules of social
media”
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13. And so, a school of thought about social
media and the consumer emerges .....
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14. Top assumptions we
gathered
about the social
media world from
companies
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15. Consumers spend
considerable time online with
companies
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16. The social media I use
(%)
Facebook 68
You Tube 54
Comment or read
43
Blogs
Twitter 34
Linked in 30
Participate in
18
online…
RSS Feeds 8
Four Square 7
None 6
0 20 40 60 80
Social media is more likely to be used socially
(It doesn't’ t necessarily follow that a social user becomes a
‘commercial’ user)
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17. How I like to receive information from
companies (%)
Website 62
Email 61
Magazine/newsp… 49
Friend 45
TV/radio 43
Facebook 41
Mail/brochure 33
Twitter 18
Blog 15
Phone 5
None of these 3
RSS feeds 1
0 10 20 30 40 50 60 70
Traditional forms of communication are still king
The swing to social media is not completely there yet.
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18. Consumers want to interact
with companies online via
social media
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19. Should companies use social media?
(%)
9
11 30
Yes definitely all should
use social media
Yes some should use
No companies shouldn’t 50
use social media
Unsure
Some companies should use social media
About half give companies the green light
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20. How often I connect with companies using social
media (%)
No, never 20
Yes less than
22
weekly
Yes, weekly 4
Yes, a few
16
times week
Yes, daily: 22
0 5 10 15 20 25
Not quite daily
Interacting with business not yet firm in the repertoire
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21. “Companies are not people.
Social Media is about connecting with
other people and should not be used as an
advertising platform”
I find it annoying. Social media sites
such as Facebook are for networking
with friends and acquaintances. I don't
want to be hassled by companies
selling stuff.
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22. Consumers will engage with
a range of companies
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23. The Companies I connect with
(%)
49
Retailers
28
Media
Travel and 27
Tourism
24
“Should be
NFPs province of
22 government,
Employers
NFPs and
Government
14 charities”
Health 13
organisations
Education 10
organisations
9
Banks & Finance
0 10 20 30 40 50 60
Shopping, news and fun times are more sought
“corporate interaction” is not at the forefront
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24. Social media interaction with companies as a
consumer(%)
Less than 20% 77
Between 20%
17
and 40%
Between 60%
4
and 80%
Between 40%
3
and 60%
Between 80%
1
and 100%
0 20 40 60 80 100
Quantity of consumer interaction is quite small
Large chunk of time spent with business is not as a consumer
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25. Social media interaction with companies as
B2B(%)
Between 80%
38
and 100%
Between 60%
1
and 80%
Between 40%
5
and 60%
Between 20%
4
and 40%
Less than 20% 9
0 10 20 30 40 50
More experienced with B2B
This might prove difficult to unlearn
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26. “Depends if your product
needs to have a social media
profile. Social products like
food and drink are good. But
companies that provide
financial services are out of
their place. “
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27. Consumers expect
companies to have a
Facebook profile and want to
connect this way
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28. Most effective to reach me%)
Facebook 48
Twitter 12
Other ( please “a company should only
11
specify) create a facebook page if
Youtube 11
there is a legitimate
demand from people
Online
8
wanting constant
communities information”
None of these 6
Blogs 5
0 10 20 30 40 50 60
Facebook seen to be effective despite relative
low usage with companies
Possible “ halo” effect of being best known
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29. A Facebook page will build
us a community
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30. Why I use social media to interact with companies
(%)
comment on brands,… 47
conversations 44
Find/receive information 41
business purposes 21
groups and communities 21
specials and discounts 21
career prospects 20
source avideo clips, news… 17
Other 13
Don’t use social media 6
0 10 20 30 40 50
Usage is goal oriented – research, purchase ,
reward
There is not a lot of engagement for engagement’s sake
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31. I often 'like' a company just
to enter a competition but
then get annoyed when they
are in my newsfeed all the
time
“They should only use it if they
are going to genuinely engage.
Very frustrating when they
have a presence (eg twitter
account) but don't respond to
queries, or don't sound
human.”
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32. Social media is legitimate,
trusted and the way forward
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33. Views about Companies’ use of social media
(%)
I feel part of a company’s community 45
Companies that use social media
52
are innovative
Information on social media is
26
generally trustworthy
information and ideas suit Twitter 26
products or services are suited to
34
Facebook
0 20 40 60
Despite low trust, a link with ‘innovation’
Twitter or Facebook aren’t strongly differentiated with clear
functions
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34. Social media is more
accessible and therefore
preferred to mainstream
channels
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35. Preferred feedback channels
(%)
4
Letter
6
4
Phone call
3
38
Email
21
7
Website comment negative feedback
12
positive feedback
2
Blog comment
7
3
Twitter
9
4
Facebook
7
0 10 20 30 40
Traditional forms of feedback more likely to be
used to complain
Email and Website are still second nature for most people wanting
to give companies feedback
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36. Social media is one size fits all
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37. Perceptions about social media used by companies
(%)
I look at other
information
73
about a company
than rely on its…
I ignore most of
the social media
35
that companies
use
I am more loyal
to Companies
20
that use
Facebook
I have limited
time to look at
38
social media
from companies
0 20 40 60 80
Social media is one part of the equation
There is scepticism and barriers to just focussing on social media
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38. Social media impacts purchase
decisions
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39. Perceptions about how social media impacts behaviour
I like to be seen to be associating
27
with a company on FB
FB Look will influence whether I
40
associate
I am more likely to try or buy
products from companies that use 22
Facebook
I interact more with Companies that
18
use Twitter
0 10 20 30 40 50
Not a huge impact on ‘purchase’
Consumers don’t connect purchase with social sites or do they
‘want to hang out’ overly
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40. Most effective social media strategies to impact
me %)
Special offers/sales 46
Likes 43
Competitions 30
Facebook updates 28
Events 21
Messages direct to
you|04
16
Blog updates 4
Join a community or
group
3
Surveys 2
0 10 20 30 40 50
What’s in it for me strikes a chord
Drawcards revolve around traditional commercial exchange more
than communications
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41. People will express feedback
for better or worse so social
media will help control it
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42. Activity on social media directed at companies
(%)
Posted a positive 24
comment on FB
Tweeted a positive 20
comment
Tweeted a negative 13
comment
Posted a negative 9
comment on FB
Negative blog 7
comment
Positive blog 3
comment
0 5 10 15 20 25 30
More positive interaction than negative
Fans of Facebook , literally; Twitter top place for a barb
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43. The appropriate response from companies
(%)
Address the
comment with an 37
online comment
Respond to the
problem within 34
one hour
Make phone
19
contact
Other 10
0 10 20 30 40
As a general rule address online complaints
online and quickly!
Only few wanted more contact via phone
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44. Social media comes with some
cautions
(from consumer perspective)
Choice of media sends a
message
Activities that are OK for social
may not work with companies
Don’t act social if you cant back it
up
Don't forget about other channels
Its innovative so use it
innovatively!
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45. Social Media is ‘all about me’, individuals
seeking more than passive connections
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46. info@nittygritty.net.au
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