The Evolution of Social Business: Spredfast Social Leadership Series

The Evolution of Social Business:Moving Beyond the BasicsBrian Solis | Altimeter Group

The Challenges of Social Business Strategy

1. Misaligned executives2. Organizational silos/uncoordinated

effort3. Lack of clear metrics to business

outcomes4. Lack of a holistic strategy5. Lack of education6. Incremental funding

34% Social marketers who agree that their organizations use clear metrics to associate social activities with business outcomes

Source: Altimeter Group. Social Business Survey, Q4 2012.14

29% Companies that measure the financial impact of their social media efforts


52% Top executives who are informed, engaged, and aligned with their company’s social strategy


13 Number of business units across the enterprise that may deploy social media

Source: Altimeter Group. Social Business Survey, 2012.17

At least 13 different business units across the enterprise may deploy social media

Market Research

Legal

Executive

IT

Customer/User experience

Advertising

Product development/R&D

HR

Social Media

Digital

Customer Support

Corporate Communications/PR

Marketing

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

7.8%

9.4%

10.9%

14.1%

14.8%

16.4%

16.4%

28.9%

35.2%

36.7%

39.8%

65.6%

73.4%

"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 media holistically, with business units operating against an enterprise vision and strategy


27% Employees who are aware and trained on their company’s social media usage policies


37% Companies that rate their employees’ knowledge of social media usage and related policies as “poor” or “very poor”


Dan Brostek, Head of Member and Consumer Engagement for Aetna:

Policy, education and awareness, and culture pieces are important to rolling out social successfully in an organization.

How do you tell someone who’s never used social that it needs to be part of their business strategy?

Goals:• Understand how

customers use social channels

• Prioritize strategic goals where social can have the most impact

Metrics:• Mentions, sentiment

Initiatives:• Listening/monitoring

• Internal audits

Resources:• Monitoring platform

• PT workers

• Agency support

Stage 1: Listen to Learn

The first and most principled thing to do is a “voice of the customer” study. How can you decide what to do in social if you don’t understand what your customers do with it?

Andy Markowitz, Director of Global Strategy for GE

Stage 1: Best Practices

1. Define specific business goals and objectives for listening

2. Select metrics based on those business goals

3. Select and invest in a monitoring platform

4. Disseminate your learnings5. Identify opportunities for the future

Goals:• Amplify existing

marketing efforts

• Encourage sharing

Metrics:• Share of voice, Fans,

Shares, Brand metrics, traffic

Initiatives:• Social content

• Risk Management

• Training

Resources:• Dedicated manager

• Content management

Stage 2: Stake our Claim

28

David Fenech, VP Interactive Marketing and Creative Services for Kelly Services

“Always go back to the objectives you’re

after. If you lose sight of that, you’ll

be wasting time and resources quickly.”

$


1. Link your social presence to business objectives

2. Pass on engagement – for now3. Develop sharable content4. Establish governance with an eye to

the future

Goals:• Drive considerations to

purchase

• Provide direct support

• Internal employee engagement

Metrics:• Path to purchase, lower

support cost, Customer Satisfaction

Initiatives:• Longer term campaigns

• Social support communities

Resources:• Social Strategist

• Small, dedicated team

• SMMS

Stage 3: “Dialog Deepens Relationships”

Be Engaging + Relevant…Don’t Suck.

Source: Real-Time Marketing Sucks Blog: rtmsucks.tumblr.com

“Identify the most relevant social platforms, have unique and valuable things to say, and

adapt your strategy often

to incorporate findings. Keep moving forward.”

Lori Johnson, VP Online StrategyFidelity Investments

32

“Helping your executives and key stakeholders become more comfortable with risk is important, along with having a risk mitigation strategy in place.”Maria Poveromo, Director of Social Media for Adobe


1. Take strategic steps to engagement2. Create rules and processes for

engagement3. Look beyond engagement activity

metrics to understand value creation4. Communicate the impact of engagement

broadly5. To scale, invest in a SMMS6. Audit regularly for new social media

usage

Goals:• Set governance for social

• Create discipline and process

• Strategic business goals

Metrics:• Process efficiency, link to

department business goals, customer satisfaction

Initiatives:• Create Center of

Excellence

• Enter Social Network

Resources:• Staffing up

• CoE Tech investment

Stage 4: Organized for Scale

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.

Ed Terpening, former VP Social Media Strategy for Wells Fargo

COME TO AN AGREEMENT ON THE GOVERNANCE MODEL BEFORE MOVING ON TO THE STRATEGY.

37

Jonathan Blank, Manager of Social MediaWellpoint


1. BEWARE OF THE COE PITFALL2. Develop a formal social business

organizational model3. Define the role of the CoE4. Continue to coordinate strategy through

the CoE5. Develop stronger connections to business

metrics

Center of Excellence Do’s/Don’ts

CoE DOES:

• Provide strategic direction on policy, process, technology, metrics and training

• Organize for scale

• Establishes and communicates the above in an ongoing way

CoE SHOULD NOT:

• Act as a help desk

• Take on too much as the “hub,” ignoring the “spokes”

Goals:• Scale across business

units

• Moves into HR, sales, finance, supply chain

• C-level involvement

Metrics:• Enterprise metrics like

NPS, LTV

Initiatives:• SMMS to scale employees

• Social part of planning process

Resources:• CoE Coordinates Hub(s)

• Dedicated Spoke Headcount

Stage 5: Becoming a Social Business

Get measurement under control.It will drive support, especially at the executive level. If they can see the correlation to business results, they will feel like it’s a huge investment area.

43

Ann Lewnes, CMOAdobe


1. Engage executives beyond the champion with focused pilots

2. Integrate CoE into core business functions

3. Mastering big data for customer intelligence

4. Leverage the enterprise social networking platform

Goals:• Social drives transformation

• Integrates social philosophy into all aspects of enterprise

Metrics:• Deep analytics tied to

functions and LoB

• Insights lead to adaptive and predictive strategies

Initiatives:• Redefine processes

• Enterprise-wide training

• One strategy managed through disparate but complementary teams

Resources:

• Social is everyone’s responsibility

Stage 6: Business is Social

In the future, there shouldn’t be a “social strategy;” there will just be a strategy for customer experience.

Martha Hayward, VP Social MediaFidelity Investments


1. Redefine the company’s vision to integrate social

2. Align incentives around convergence3. Redefine the role of the CoE

7 Success Factors of a Social Business Strategy


Businesses that uncover the gap between business objectives, social media strategies, and internal challenges and opportunities will open dialogue that both closes the gaps and creates alignment.1


Goals are not enough. You need a long-term vision that communicates to all stakeholders why this journey is taking place. This covers future customer, employee, and stakeholder relationships and experiences to come as a result of a social strategy.

2

7 Success Factors of a Social Business Strategy ARAMARK VP

Consumer Strategies: “Get all stakeholders involved from the beginning, and make them as knowledgeable as possible. Let them take ownership…Remember: It’s a change management challenge as much as anything else.”3


Less than half of orgs surveyed had a detailed roadmap that extends longer than a year. Absent was: 1) How initiatives created business value; 2) long-term planning on investments; 3) an iterative process to re-evaluate initiatives

The heart of the matter is simple: Prioritize what you will and won’t do.

4


Most organizations have ad hoc approach to managing social, with most knowledge residing in a small group. Building and socializing clear processes while instilling discipline become key criteria for success.

Training must be available AND an organizational priority.

5


Overtime, it’s crucial to lean away from agency support and develop more mature capabilities in house.

These individuals will lead strategy and create internal alignment.

6

7 Success Factors of a Social Business Strategy Jumping immediately

into technology selection and implementation without a strategy, roadmap, or organization in place is ill-advised – you may get stuck with a listening platform or SMMS that doesn’t meet your business requirements at scale.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 a meaningful way.

Brian Solis

[email protected]

briansolis.com

Twitter: @briansolis

For more information & to buy

the books, please visit:

http://bit.ly/WTFBook

http://bit.ly/EndofBusiness

http://bit.ly/engage2

Data Addendum

Data Matters: Altimeter Methodology

• Altimeter Group conducted qualitative and quantitative analyses – survey, interviews, and briefings through Q4 2012

• Interviews with 26 executives and social strategists at 15 enterprises

• 698 total survey respondents• Data presented in this presentation is from companies of 1,000+ employees only (N=130)

• Survey respondents were social media professionals and executives who oversee social efforts

59

Programs have grown in maturity since 2010, with 38% of programs in their third+ year

Source: Altimeter Group. Social Business Survey, Q4 2012.

5 years or more

4 years to < 5 years



1 year to < 2 years

Less than 1 year

9%

12%

17%

27%

27%

9%

5%

4%

9%

20%

33%

29%

How long has your social media program been in existence?

2010 2012

Most core social media teams reside in Marketing & Corporate Communications/PR

Other

Executive

Advertising

Social Media

Marketing

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

6%

1%

1%

2%

2%

14%

14%

26%

40%

In which department does your CORE social media team reside?


Companies with 5,000+ employees better staffed for enterprise social efforts in 2012Approximately how many full-time equivalent staff currently support social efforts in your organization, for external and internal engagement?

Employees in Company Average # of Staff

2010 2012

1,000 to < 5,000 3.1 3.1

5,000 to < 10,000 5.2 19.4

10,000 to < 50, 000 5.4 12.0

50,000 to < 100,000 23.8 27.9

More than 100,000 20.4 49.4


More mature social programs generally call for increased headcountApproximately how many full-time equivalent staff currently support social efforts in your organization, for external and internal engagement?

Length of Program Average # of Staff

2010 2012

Less than 1 year 3.9 2.2

1 year to < 2 years 7.0 8.9

2 years to < 3 years 12.1 6.5



More than 5 years 31.1 56.6


Create policies and procedures

Get buy-in from stakeholders

Apply social insights to the product roadmap

Determine an organizational/governance model

Develop a listening/monitoring solution

Connect employees with social tools

Integrate social media with digital and mobile

Connecting social data to other enterprise data sources to deliver actionable insight

Scale our social programs

Develop internal education and training

Create metrics that demonstrate the value of social media

0% 10% 20% 30% 40% 50% 60%

22%

32%

35%

35%

30%

26%

25%

37%

48%

7%

13%

15%

15%

15%

23%

27%

33%

40%

43%

48%

20122010

As social matures, scaling increases in priority; developing org models, getting buy-in decreases“In 2013, what are your top three internal social media

objectives?”


Content marketing, providing direct customer support become higher social priorities for 2013

Social commerce

Enabling peer-to-peer support

Mobile/Location

Collaboration with customers on new products/services

Formalizing an advocacy program

Website integration

Developing an influencer relations or ambassador program

Providing direct customer support through social channels

Listening/learning from customers

Developing ongoing dialog and engagement with customers

Content marketing

0% 10% 20% 30% 40% 50% 60%

22%

14%

21%

20%

25%

47%

16%

38%

43%

9%

9%

13%

14%

16%

25%

27%

32%

41%

50%

57%

20122010

“In 2013, what are your top three external social media objectives?”


Social budgets were limited in 2012, with a slight increase projected for 2013


More than $5 million

$1 million to < $5 million

$500,000 to < $1 million

$100,000 to < $500,000

Less than $100,000

0% 5% 10% 15% 20% 25% 30% 35% 40%

5%

9%

4%

23%

34%

5%

11%

6%

25%

26%

Budget Allocation Toward Social Media Efforts

2013 Projection2012

Technology: Corporations budgeted most for listening/monitoring, analytics platforms

Social CRM

Enterprise social networks

Social media management systems

Community platforms

Analytics platforms

Listening/monitoring platforms

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

$14,844

$29,366

$34,737

$51,867

$54,559

$62,024

In 2012, what was your budget in each of the follow-ing areas? (Chart depicts average budgets.)


Social Media Marketers Plan to Increase Spending on SMMS, Education in 2013

Enterprise social network (Yammer, Chatter)

Blogger/influencer networks (Federated Media, NetShelter, BlogHer)

Community platforms (Lithium, Jive, Get Satisfaction)

Analytics platforms (Webtrends, Omniture, Coremetrics)

Social CRM

External agency to support engagement (e.g. moderate Facebook page)

Listening/monitoring platforms (Radian6, Scout Labs, Crimson Hexagon, Netbase)

Social app development

Custom technology development or data integration services

Training and education (workshops, conferences, webinars)

Social media management systems (Hootsuite, Spredfast, Sprinklr)

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

22%

23%

25%

33%

37%

38%

43%

43%

45%

47%

47%

Percentage of Social Marketers Surveyed Who Plan to Increase

Spending in the Following Areas


47% Social media marketers who plan to increase spending on social media management systems (SMMS) in 2013


47% Social media marketers who plan to increase spending on social media training and education in 2013


43% Social media marketers who plan to increase spending on social media listening/monitoring platforms in 2013


Engagement and volume metrics lead measurement approach for social, not financial ties“Which of the following describe your approach to measuring the

outcomes of your external social strategy?”

We don’t measure anything at all

We measure the financial impact of advocates and influencers

We measure the financial impact of social customer service

We measure financial impact such as conversions originating from social media

We measure volume metrics , such as number of fans and followers, clicks, impressions and views

We measure engagement metrics, such as likes, comments, replies, retweets and shares

0% 10%20%30%40%50%60%70%80%90%

9%

11%

14%

28%

81%

82%


85% Those who trust recommendations from “People I know”

Source: Nielsen Global Trust and Advertising Report 201273

74Most companies have a social policy, but only half have consumer-facing community policies

Q23: Which of the following social media policies does your organization currently have? (Select as many as applicable)

85.3%75.2%

51.9%

5.4% 1.6%


75

In 2012, majority of companies had zero to five employee incidents related to social media

Q25: In the last 12 months, how often has there been an incident where an employee in your organization violated your internal, organizational social media policy?

No incidents49%1-5 incidents

43%

6-10 incidents5%

11-25 incidents1%

More than 25 incidents3%


The Evolution of Social Business: Spredfast Social Leadership Series

Business

Transcript of The Evolution of Social Business: Spredfast Social Leadership Series