Jan 26, 2015
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
Source: Altimeter Group. Social Business Survey, Q4 2012.15
52% Top executives who are informed, engaged, and aligned with their company’s social strategy
Source: Altimeter Group. Social Business Survey, Q4 2012.16
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
Source: Altimeter Group. Social Business Survey, Q4 2012.19
27% Employees who are aware and trained on their company’s social media usage policies
Source: Altimeter Group. Social Business Survey, Q4 2012.20
37% Companies that rate their employees’ knowledge of social media usage and related 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 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.”
$
Stage 2: Best Practices
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
Stage 3: Best Practices
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
Stage 4: Best Practices
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
Stage 5: Best Practices
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
Stage 6: Best Practices
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
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
7 Success Factors of a Social Business Strategy
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
7 Success Factors of a Social Business Strategy
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
7 Success Factors of a Social Business Strategy
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
7 Success Factors of a Social Business Strategy
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
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
3 years to < 4 years
2 years to < 3 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?
Source: Altimeter Group. Social Business Survey, Q4 2012.
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
Source: Altimeter Group. Social Business Survey, Q4 2012.
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
3 years to < 4 years 10.0 14.0
4 years to < 5 years 34.3 48.0
More than 5 years 31.1 56.6
Source: Altimeter Group. Social Business Survey, Q4 2012.
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?”
Source: Altimeter Group. Social Business Survey, Q4 2012.
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?”
Source: Altimeter Group. Social Business Survey, Q4 2012.
Social budgets were limited in 2012, with a slight increase projected for 2013
Source: Altimeter Group. Social Business Survey, Q4 2012.
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.)
Source: Altimeter Group. Social Business Survey, Q4 2012.
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
Source: Altimeter Group. Social Business Survey, Q4 2012.
47% Social media marketers who plan to increase spending on social media management systems (SMMS) in 2013
Source: Altimeter Group. Social Business Survey, Q4 2012.69
47% Social media marketers who plan to increase spending on social media training and education in 2013
Source: Altimeter Group. Social Business Survey, Q4 2012.70
43% Social media marketers who plan to increase spending on social media listening/monitoring platforms in 2013
Source: Altimeter Group. Social Business Survey, Q4 2012.71
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%
Source: Altimeter Group. Social Business Survey, Q4 2012.
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%
Source: Altimeter Group. Social Business Survey, Q4 2012.
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%
Source: Altimeter Group. Social Business Survey, Q4 2012.