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					Social Media Today // .Biz




                             WhiTepAper Survey


                             The Coming Change
                             in Social Media
                             Business Applications
                             Separating the Biz from the Buzz

        http://chn-news.com
                                                                                  by Josh Gordon




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                                                  The Coming Change in Social Media Business Applications:
                                                                     separating the biz from the buzz
         introduction
         Social Media Today // .Biz




                                      Introduction
                                      a shift is coming in hoW orgAnizATionS uSe SoCiAl MediA
                                      Companies have been using social media primarily as a general communications
                                      tool—mostly for public relations and marketing. That’s about to change, as
                                      businesses discover its value as an essential tool for customer engagement—
                                      providing lead generation, immediate customer contact, and customer interaction.




                                      Four factors are driving this trend. First, due to      doing can offer perspective, as well as a bench-
                                      the rapid rise in the popularity of social media,       mark for managers to compare their own organiza-
table of contents                     the number of potential customers engaged on            tions’ progress and opportunities.
introduction ............... 2        social media sites was previously underestimated



                     http://chn-news.com
part i ......................... 3    by many organizations. Second, in the current           In order for a benchmark to be useful, it must be
part ii ........................ 5    economic downturn, where there are fewer                specific and detailed. To that end, I have divided
part iii ....................... 7    customers in general, finding them and engaging         this survey into three parts. Part I is an overview
in Conclusion ............ 11         them are much higher priorities. Third, there is        of both current and future intended business use
                                      now a “Main Street” acceptance of social media          of social media. Part II focuses on the business
                                      as a powerful persuasive tool. Regardless of            use of Twitter, and Part III examines the business
                                      political affiliation, managers everywhere recently     use of social networks like Facebook and LinkedIn,
                                      noticed that the largest and most successful            with a separate focus on the four general business
                                      social media campaign in history helped elect           functions that social media serves: sales, market-
                                      Barack Obama President of the United States.            ing, public relations, and internal communications.
                                      Finally, there has been a breakdown in traditional
           Methodology:               lead-generation programs. With more customer
   Social Media Today is an           contact moving online, it is easier than ever for a     Part I: Overview
     online social community          client to ignore messages from potential suppli-
    focused on issues in the          ers. Social media can help break the ice.               Marketing and Pr are currently the lead-
    social media world. This                                                                  ing business uses of social Media; sales
                                                                                              and collaborative work lag behind.
survey was conducted of its
 members and visitors who
                                      Why this study?                                         Social media is being used in business most often
                                      Social media is getting a lot of media coverage, but    as a marketing and public relations tool, while
are actively involved profes-
     sionally in social media.
                                      all the attention does not necessarily make it easier   uses in sales support and collaborative work lag
 The results shown here are           to understand which functions are actually useful       behind. Almost three quarters of respondents said
  based on a sample of 632            in business. This study was designed to provide         their organizations use social media for branding,
   survey respondents, col-           managers with guidance in that area by measuring        and two thirds use it for public relations. Only 38%
  lected between March 13,            which social media tools are being used right now,      are using it to support collaborative work, and only
    2009, and April 4, 2009.          and by whom. A look at what other businesses are        about one in four use it to support sales efforts.




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         retweet this whitePaPer                                                              The Coming Change in Social Media Business Applications:
         Click here to post on Twitter                                                                           separating the biz from the buzz
     part i: overview
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                                   at your organization, which of the following business                         when coMPeting for custoMers,
                                   functions do you use social media to improve?                                 sMaller organizations use social
                                                                                                                 Media More frequently
                                                                                                                 The smaller the company, the more frequently social
                                                                                                                 media is used to improve external communications.
                                                   Branding                              71.8%
                                       information sharing                           70.5%
                                                                                                                 As we compare social media usage at smaller com-
                                           public relations                         65.8%                        panies with 1 to 10 employees to organizations with
                                  understanding customers                        56.6%                           over 1,000, there is a steady decrease in the percent-
                                          lead generation                        54.9%                           age of usage. Companies with 10 or fewer employ-
                                        Collaborative work               38.4%
                                                                                                                 ees are about 30% more likely to use social media
                                    internal communication         32.1%
                                             Sales support        25.8%
                                                                                                                 for public relations, branding, and understanding
                                                                                                                 customers than companies with over 1,000 employ-
                                                              0     20       40          60          80    100
                                                              0     20       40          60          80    100   ees, and twice as likely to use it for lead generation.

                                                                                                                 Where larger organizations have more resources
                                  looking to the future, “lead generation”                                       to touch their customers, such as corporate ad-
                                  is the toP business function for which or-                                     vertising, social media may not be as big a priority.
                                  ganizations Most want to use social Media.
 “The smaller the                                                                                                However, with less money for outreach programs,
                                  Organizations have shifted priority. With the
   company, the                                                                                                  smaller companies can make big inroads by



             http://chn-news.com
                                  economic downturn, “lead generation” has moved
  more frequently                                                                                                focusing more on social media.
    social media                  to the top spot as the business function organiza-
       is used to                 tions are “most considering” for the future. The
 improve external                 two currently most frequently used functions,                                                      one to 10    11–100     101–1,000   over 1,000
                                                                                                                                     employees   employees   employees   employees
communications.”                  branding and public relations, follow behind. This
                                                                                                                  public relations    70.6%       69.6%       59.1%       51.9%
                                  is a highly significant shift, and is reinforced by
                                                                                                                        Branding      76.5%       73.0%       67.7%       59.3%
                                  other findings in this survey.
                                                                                                                  lead generation     66.1%       58.3%       45.2%       29.6%

                                                                                                                    Sales support     27.1%       25.2%       29.0%       17.3%

                                   on the same list as above, pick the one business                                understanding      63.8%       57.4%       55.9%       49.4%
                                                                                                                      customers
                                   function for which your organization is most consider-
                                   ing using social media.


                                                                                                                 larger organizations use social
                                                                                                                 Media More frequently for internal
                                        Sales support                                    internal
                                               6.3%                                      communication           coMMunications.
                                                                                         1.8%
                                   Collaborative                                                                 Organizations with over 1,000 employees are twice
                                           work
                                          7.9%
                                                                                              lead               as likely to use social media for internal communi-
                                                                                              generation
                                     information
                                         sharing                                              25.4%              cations as companies with 1 to 10 employees, and
                                         11.2%
                                                                                                                 roughly 18% more likely to use social media for
                                                                                              Branding
                                     understanding
                                                                                              17.3%              collaborative work. Larger organizations have more
                                        customers
                                            13.3%
                                                                                                                 complex and geographically dispersed communica-
                                                                                         public
                                                                                         relations               tions challenges. In addition, they often have more
                                                                                         16.8%
                                                                                                                 sophisticated IT support. They need the communi-
                                                                                                                 cations services more, and they have the technical
                                                                                                                 support to take advantage of them.




                                                                                                                                                                                      3


               More:http://chn-news.com
                                                                                                                 The Coming Change in Social Media Business Applications:
                                                                                                                                           separating the biz from the buzz
       part i: overview
       Social Media Today // .Biz




                                                      one to 10
                                                      employees
                                                                     11–100
                                                                    employees
                                                                                   101–1,000
                                                                                   employees
                                                                                               over 1,000
                                                                                               employees
                                                                                                             which of the following networks or tools is your
                                                                                                             organization currently using?
                                         internal       23.1%         34.8%         34.4%       50.6%
                                    communication
                                     Collaborative      38.9%         33.0%         38.7%       45.7%
                                             work                                                                                 linkedin                                         79.3%
                                                                                                                                 Facebook                                         77.2%
                                                                                                                                    Twitter                                      75.3%
                                                                                                                                     Blogs                                    68.0%
                                    More organizations encourage the use of                                                       youTube                       49.1%
                                    social Media than discourage it.                                         online communities of interest                 38.5%
                                    It was not long ago that many organizations                                                    Forums               30.7%
                                                                                                                                    groups              30.7%
                                    discouraged employees from visiting social media                                                 Wikis             27.0%
                                    sites, with many of them blocking access to sites                                                 ning        17.6%
                                                                                                                                  MySpace         17.2%
                                    outright. But today, 41.2% of businesses have                                          ratings/reviews            11.5%
                                    employees whose job function includes spending                                    other, please specify           11.5%
                                                                                                                                      Xing          7.6%
                                    time on social media sites, while only 9% report
                                    blocking internal access for employees.                                                                   0          20           40       60        80



                                    Whereas 41.9% of organizations report that they
                                    have no corporate policy of any kind regarding                          as organizations look to the future,
    “Some consider                                                                                          the social Media forM they are “Most
                                    social media, 21.8% report having a formal policy
      blogging ‘old’                                                                                        considering” using is blogs.




               http://chn-news.com
  social media, but                 for employees who want to blog.
                                                                                                            While Twitter and Facebook get the headlines, the
 it has proven itself                                                                                       social media form organizations are turning to most
  an effective com-                 Finally, about one in four organizations sponsors
                                                                                                            as they look to the future is blogging. Some con-
    munication tool.                a group on a social network for personal announce-
                                                                                                            sider blogging “old” social media, but it has proven
The ability to reach                ments and social events.
                                                                                                            itself an effective communication tool. The ability
   a mass audience                                                                                          to reach a mass audience with a personal point of
     with a personal                 which of the following is true at your organization?
                                                                                                            view and invite comments is very powerful.
  point of view and                  We require some employees to spend time on social
invite comments is                   networks to maintain our company presence.                41.2%

     very powerful.”                 We block access to social networks for some
                                     employees.                                                9.0%
                                     We have a formal policy for employees who blog or
                                     want to blog.                                             21.8%         on the same list as above, which one social media
                                     We have no corporate policy regarding social media of                   network or tool is your organization most considering
                                     any kind.
                                                                                               41.9%         using social media for in the future?
                                     We have a group on a social network for personal          25.6%
                                     announcements and social events.

                                                                                                                                     Blogs                                 18.1%
                                                                                                                                    Twitter                                17.5%
                                    linkedin, facebook, twitter, and                                         online communities of interest                           14.7%
                                    blogging lead social Media services                                                          Facebook                         13.8%
                                    and activities for business                                                                   linkedin                        13.8%
                                Four services dominate the use of social media                                                    youTube                     9.7%
                                                                                                                                     Wikis                5.4%
                                networks and tools: LinkedIn (79.3% of respon-
                                                                                                                                   Forums             4.1%
                                dents now using), Facebook (77.2% now using),                                             ratings/reviews            3.6%
                                Twitter (75.3% now using). Use of blogs follows                                                    groups           2.6%
                                                                                                                                      ning
                                closely behind, with 68% of businesses currently                                                                   2.1%
                                                                                                                                      Xing        0.7%
                                using them. Only 17.2% of organizations use                                                      MySpace          0.5%
                                MySpace for business.
                                                                                                                                              0                  10                 20




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                                                                                                            The Coming Change in Social Media Business Applications:
                                                                                                                                       separating the biz from the buzz
part ii: business applications for twitter
Social Media Today // .Biz




                             Part II:                                                                    on the same list as above, check off the one external
                                                                                                         function your organization is most considering using
                             Business Applications                                                       in the future.

                             for Twitter                                                                                                                         Keeping top management
                                                                                                                                                                 in touch with the
                                                                                                                organizing                                       financial community
                                                                                                                 meetings                                        1.4%
                             external use of twitter could                                                             6.9%
                                                                                                         offering
                             shift sharPly toward an eMPhasis on                                        products                                                           Keeping in
                                                                                                         for sale                                                          immediate touch
                             custoMer involveMent.                                                        10.0%                                                            with customers
                                                                                                                                                                           27.3%
                             For external communications, the business
                             use of Twitter shows the same shift as seen                                     getting
                                                                                                      feedback from
                             in Part I on the general findings for all social                             customers
                                                                                                                                                                           extending a
                                                                                                                                                                           personal face
                                                                                                             15.5%                                                         to customers
                             media forms. That shift is away from general                                                                                                  20.8%
                             communications, toward a focus on connecting                                                                                        Sharing
                                                                                                                                                                 breaking news
                             with the organization’s customers. Right now,                                                                                       18.1%

                             the most commonly used external Twitter
                             function is “Sharing breaking news,” followed                            internal use of twitter focuses on
                                                                                                      inforMation sharing.
                             by “Extending a personal face to customers.”
                                                                                                      Fewer organizations are using Twitter for internal
                                                                                                      communications. The top two measured options are




        http://chn-news.com
                              Please check all of the external functions offered by                   about 20% lower than the top two external uses of
                              twitter that your organization now uses.
                                                                                                      Twitter. The internal focus is on sharing information,
                                                                                                      knowledge, and resources, as well as networking.
                                        Sharing breaking news                            71.9%
                                     extending a personal face
                                                                                     63.7%               Please check all of the internal functions offered by
                                                 to customers
                                                                                                         twitter that your organization now uses.
                                   Keeping in immediate touch                    55.1%
                                               with customers
                              getting feedback from customers                  48.6%
                                                                                                                              Sharing information                              56.8%
                                     offering products for sale       20.0%
                                                                                                                          professional networking                         51.2%
                                          organizing meetings         15.3%
                                                                                                             Sharing knowledge and experience                           46.0%
                             Keeping top management in touch
                                  with the financial community         5.8%
                                                                                                            leveraging the experience of others                   34.4%

                                                                  0       20    40       60      80   Keeping up on professional developments                     34.4%
                                                                                                                       Asking for instant expertise              32.8%
                                                                                                           Keeping a team in immediate contact               30.2%
                             But as organizations look to the future, they
                                                                                                                Coordinating events or meetings           19.1%
                             are shifting their expectations. Looking ahead,
                                                                                                             Coordinating emergency responses             9.8%
                             their top pick is “Keeping in immediate touch
                             with customers,” followed by “Extending a                                                                                0      20           40       60      80

                             personal face to customers,” then followed
                             by “Sharing breaking news.” The future use                               Looking to the future, the internal uses of Twitter
                             of Twitter could shift toward greater involvement                        that organizations plan to use are almost identical
                             in customer contact (see following fig.).                                to those of the present (see fig. on next page).




                                                                                                                                                                                             5


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                                                                                                       The Coming Change in Social Media Business Applications:
                                                                                                                                     separating the biz from the buzz
        part ii: business applications for twitter
        Social Media Today // .Biz




                                      on the same list as above, check off the one                     released study from ES Research Group, “The
                                      internal function your organization is most                      New Social Media: Do They Enable B2B Selling?,”
                                      considering using in the future.
                                                                                                       only 4% of sales respondents said that Twitter
                                                                                                       had ever directly helped them win a B2B sale.
                                                  Keeping up on          Coordinating emergency
                                                                                                       However, there are also many markets where
                                      professional developments
                                                          5.8%
                                                                         responses
                                                                         4.1%                          Twitter is extremely influential.
                               Coordinating events
                                      or meetings
                                             6.9%                                Sharing information
                                                                                 22.3%
                                                                                                       You can estimate how many of your clients might
                                   leveraging the                                                      be using Twitter from a finding in a recent study
                              experience of others
                                            7.6%                                                       by the Pew Internet & American Life Project. This
                                        Asking for                               professional          study found Twitter users to be highly involved
                                 instant expertise                               networking
                                            9.9%                                 17.3%                 with other social media. According to Amanda
                                      Keeping a team in                      Sharing knowledge
                                                                                                       Lenhart, senior research specialist at Pew, “Both
                                     immediate contact                       and experience
                                                12.9%                        13.2%                     blogging and social network use increase the
                                                                                                       likelihood that an individual also uses Twitter.”
                                     Put this inforMation to work:                                     The study found that 23% of social network us-
                                                                                                       ers used Twitter or a similar service, while only
   “As organizations                 I initially signed on to Twitter because I once had
  look to the future,                to sell a high-level Silicon Valley executive who                 4% who do not use social networks have ever



                http://chn-news.com
     the same trend                  could not be reached any other way. After count-                  Tweeted. Chances are, if your customer base is
   emerges as seen                   less failed attempts to contact him through more                  engaged in social media, many will be reachable
       in the general                traditional channels, his assistant told me, “Josh,               by Twitter.
    social media and                 forget the phone, he never answers it. And he
  Twitter responses:                 won’t answer e-mail either, because he thinks it’s                Survey respondents also wrote in “other” uses
       a shift toward                ancient technology that wastes time. He thinks of                 of Twitter, including: “mindsharing” with industry
     more customer                   himself as a member of the digital elite and says                 peers; providing thought leadership; educating
    communications                   that the only people who count are all on Twit-                   others; recruiting talent; providing tech support;
   and, in particular,               ter.” I quickly signed on to Twitter and got right                notifying constituents of upcoming events; moni-
toward prospecting.”                 through to him.                                                   toring for issues regarding products or reputation;
                                                                                                       keeping in touch with bloggers; extending com-
                                  Twitter delivers the ability to communicate mini-                    munities of interest; and customer service.
                                  mally but immediately. As a customer contact
                                  tool, where speed counts, it has great potential.                    To read examples of how Twitter is being used to
                                  But, that potential is only realized if your custom-                 connect with customers, click on the following
                                  ers are on Twitter. As of now, Twitter’s market                      links: Salesforce.com and Bank of America.
                                  penetration is still uneven.
                                                                                                       Twitter is also a great way to connect with media
                                     In many B2B markets, Twitter is not effective as                  outlets. For a long list of media outlets that you
                                     a customer contact tool. According to a just-                     can connect to via Twitter, click here.




                                                                                                                                                             6


                  More:http://chn-news.com
                                                                                                       The Coming Change in Social Media Business Applications:
                                                                                                                          separating the biz from the buzz
   part iii: business applications of social networks
   Social Media Today // .Biz




                                Part III:                                                                         network usage. “Sales prospecting by target-
                                                                                                                  ing ‘self-identified’ new customers” moves up to
                                Business Applications                                                             the top choice, from No. 5 currently, and “Sales
                                of Social Networks                                                                prospecting by social networking” moves up as
                                                                                                                  well, from third place to second. Moving forward,
                            There are four general functions that social                                          it seems clear that social networks will be a top
                            networks are used for: sales, marketing, public                                       lead generation tool.
                            relations, and internal communications. Each are
                            measured separately. Here are the findings:
                                                                                                                     on the same list as above, pick the one sales function
                                                                                                                     your organization is most considering using in
                            1. Sales use of social networks                                                          the future.

                                toP uses of social networks for sales
                                                                                                                                                 understanding the client’s
                                are to Maintain and build relationshiPs.                                                                         company organization
                                                                                                                  information gathering          5.6%
                            The most common use of social media networks,                                              in preparation for                             Sales prospecting
                                                                                                                                                                      by targeting
                                                                                                                              sales calls
                            such as Facebook or LinkedIn, is “Maintaining social                                                   7.7%                               “self-identified”
                                                                                                                                                                      new customers
                                                                                                                 Sponsoring closed                                    21.0%
                            contact with clients” (67.6%). After that, about half                                  groups for select
                                                                                                                customers (dealers,
                            of businesses surveyed use social media to achieve                                   larger buyers, etc.)
  “Marketing is             a “Better understanding of client attitudes” (50.6%).
                                                                                                                               8.2%
                                                                                                                                                                         Sales prospecting
    part of the                                                                                                                                                          by social networking




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                                                                                                                   Selling products                                      18.0%
   shift toward                                                                                                              10.1%

   using social                                                                                                     Better understanding
                                                                                                                        of client attitudes
                                  Please check all the ways your organization uses
media as a way                    social networks—including facebook, linkedin, and
                                                                                                                                   11.6%                            Maintaining social
                                                                                                                                                                    contact with clients
    to connect                    Myspace—for sales.                                                                                                                17.8%

   and acquire
   customers.”                                 Maintaining social                                                 Put this inforMation to work:
                                              contact with clients                                 67.6%
                                            Better understanding
                                                of client attitudes                        50.6%
                                                                                                                  According to Brian Solis, principal at FutureWorks,
                                               Sales prospecting
                                                                                      47.7%
                                                                                                                 “Human interaction is still human interaction, and
                                             by social networking
                                         information gathering in
                                                                                    40.8%
                                                                                                                  what it takes to be successful with it has not
                                       preparation for sales calls
                                 Sales prospecting by targeting
                                                                                   38.7%
                                                                                                                  changed. What has changed is the places where
                                “self-identified” new customers
                                      understanding the client’s
                                                                                   36.6%
                                                                                                                  it happens.” Says Solis: “Social media tools help
                                           company organization
                                                Selling products          19.3%
                                                                                                                  you find conversations that can give you insight into
                                 Sponsoring closed groups for              9.7%
                                                                                                                  what individuals in your market are saying about your
                                    select customers (dealers,
                                            larger buyers, etc.)                                                  product. This can give you an opportunity to engage
                                                                      0       20           40       60     80
                                                                                                                  people on their terms, not as a salesperson, but as a
                                                                                                                  resource, and then get the sale because of it.”

                                sales use of social Media networks
                                could shift sharPly toward an eMPhasis                                            I use social networks to find out who my clients
                                on custoMer ProsPecting.                                                          really are. We all vary our modes of conversation
                            As organizations look to the future, the same trend                                   when we speak to different types of people: an
                            emerges as seen in the general social media and                                       intimidating boss, a pesky child, a policeman
                            Twitter responses: a shift toward more customer                                       giving a speeding ticket, or…a salesperson. Often,
                            communications and, in particular, toward pros-                                       when I “see” two of my clients “talking” to each
                            pecting. The two sales prospecting options rise                                       other on a social network, their conversation with
                            dramatically to become the top goals for social                                       each other is very different from my conversations




                                                                                                                                                                                           7


             More:http://chn-news.com
                                                                                                                  The Coming Change in Social Media Business Applications:
                                                                                                                                              separating the biz from the buzz
      part iii: business applications of social networks
      Social Media Today // .Biz




                                   with either of them, as someone trying to sell them.       2. Marketing use of social networks
                                   But when I see clients “talking” to their peers, I         toP uses for Marketing functions
                                   learn what is truly important to them, and it is           are ProMoting organic Messages and
                                   rarely about me or my product. I look for what they        Monitoring custoMer trends.
                                   are passionate enough to write about, how they             About half of the organizations surveyed actively
                                   react to each other, what they are afraid of, and          promote themselves through organic messaging
                                   who their heroes and villains are. Understanding a         (56%), monitor trends among their customers
                                   person’s values and passions is a first step to un-        (53.1%), and provide ways for customers to inter-
                                   derstanding them, and a prerequisite to any sale.          act with their company (51.5%). About a third use
                                                                                              social networks to research new product ideas
                                   Shel Holtz, principal of Holtz Communication + Tech-       (34.1%), while about one in four advertises on
                                   nology, warns about being too “salesy” when you            social networks (26.7%).
                                   engage potential clients in a social media environ-
                                   ment: “I see it as a place to build relationships, but      Please check all of the marketing functions offered
                                   it’s not for direct selling. That’s not what people want    by social networks—like facebook, linkedin, and
                                                                                               Myspace—that your organization now uses.
                                   to receive on Facebook. People are there to socialize,
                                   and if you can offer value though conversation,
  “Understanding                   you can build relationships with those customers.            We actively promote ourselves through
                                                                                                                   organic messaging                    56.0%

a person’s values                  If you pitch them, they will ignore you, or worse.         We monitor trends among our customers                    53.1%




              http://chn-news.com
  and passions is                                                                                   We provide ways for customers to
                                                                                                           interact with our company                   51.5%

    a first step to                Dan McCarthy, chairman and CEO of Network Com-                      We research new product ideas           34.1%
   understanding                   munications Inc., shares that he becomes better at              We started a user group (or groups)
                                                                                                                        for customers
                                                                                                                                             30.1%
     them, and a                   reaching out to new clients as they get to know him
                                                                                                      We advertise on social networks        26.7%
   prerequisite to                 though his personal profile and postings on social
                                                                                                 We sponsor interactive content online 19.2%
         any sale.”                media sites. Years ago, McCarthy realized that the
                                                                                                          We use online focus groups 18.8%
                                   people with whom he had the best business relation-
                                   ships were also those who knew the most about                                                         0     20      40       60   80

                                   his personal side. Says McCarthy, “If you connect
                                   the way you live to the way you make a living, you
                                                                                              toP Marketing use of social networks
                                   create an incredible degree of authenticity, which is      shifts toward Providing ways to interact
                                   what today’s digital generation is looking for in the      with custoMers.
                                   people they work with. My professional identity and        Looking ahead, we see the same trend repeated
                                   my personal identity are very connected.”                  as organizations refocus their social media
                                                                                              toward customer-focused programs. The top
                                   Survey respondents also wrote in “other” uses of           choice moving forward is “We provide ways for
                                   social media for sales, including: project oppor-          customers to interact with our company,” which
                                   tunity identification; posting discount codes on           is only the third most-used marketing function
                                   Facebook and Twitter; promoting educational col-           at present. Marketing is part of the shift toward
                                   lateral and events; listing salespeople in LinkedIn        using social media as a way to connect and
                                   profiles; and highlighting case studies.                   acquire customers.




                                                                                                                                                                          8


                More:http://chn-news.com
                                                                                              The Coming Change in Social Media Business Applications:
                                                                                                                         separating the biz from the buzz
part iii: business applications of social networks
Social Media Today // .Biz




                              on the same list as above, pick the one marketing                   jump in to become the resource for the community.”
                              function your organization is most considering using                Monitoring and reacting to customer behavior is key.
                              in the future.
                                                                                                  Ari Herzog, principal of Ari Herzog and Associates,
                                                                                                  learned that firsthand when a new pizza restaurant
                                                     We research new
                                                     product ideas                                opened in his town. Herzog tried it, liked it, and
                                                     6.9%
                              We use online
                                                                         We provide ways for      wrote a positive review of it on the social media
                                                                         customers to interact
                              focus groups
                                     7.5%
                                                                         with our company         review site, Yelp. A few months later, when he re-
                                                                         20.8%
                                                                                                  visited the restaurant with his mother and sister, he
                   We sponsor interactive
                          content online                                                          was surprised when a waiter came by with a free
                                  10.6%
                                                                                                  order of chips and salsa as a thank you for the
                                                                            We actively promote
                         We advertise on
                         social networks
                                                                            ourselves through     review. What kind of impression did that make?
                                                                            organic messaging
                                  10.6%                                     19.1%                 Herzog shared the story with me when I inter-
                       We started a user group
                     (or groups) for customers                                                    viewed him, and now you are among thousands
                                       11.4%                           We monitor trends among
                                                                       our customers              reading about it here. Now that’s good marketing!
                                                                       13.0%


                                                                                                   Herzog’s enthusiasm is typical of what social
                                                                                                   media can do for any brand. Says Dan McCarthy:
                                                                                                  “The Holy Grail for a marketer is positive word of
                             Put this inforMation to work:
                                                                                                   mouth. If you can capture this, it is the highest


        http://chn-news.com
                             According to Dan Schawbel, social media special-
                                                                                                   means of converting prospects to sales, and at
                             ist at EMC Corporation, and author of the book,
                                                                                                   the least expense. Social media is a way to super-
                             Me 2.0: “Social media tools are popular marketing
                                                                                                   charge word of mouth.”
                             tools because they are free, people are already
                             using them, and there’s an opportunity cost for not
                                                                                                  Survey respondents also wrote in “other” uses of
                             getting involved today. Depending on your line of
                                                                                                  social media for marketing, including: showcas-
                             business, certain social networks will work better
                                                                                                  ing case studies, running a professional group on
                             for you than others. It’s all about aligning business
                                                                                                  LinkedIn, and communicating with media outlets.
                             strategy to the use of each tool. Otherwise, you’re
                                                                                                  Link to an extensive list of social media marketing
                             wasting time and not reaching the right audience
                                                                                                  examples on Peter Kim’s blog, “Being Peter Kim.”
                             with the right message on the right network.”

                             Brian Solis indicates that there could be more going                 3. Public relations use of
                             on in social networks than you realize. He poses                     social networks
                             the question, “If a conversation takes place online                  social networks serve a variety of Public
                             and you’re not there to hear or see it, did it actu-                 relations functions.
                             ally happen?” In fact, there might even be dangers                   The four most common public relations functions
                             in not participating. Says Solis, “Conversations are                 using social media are: maintaining a company pro-
                             taking place, with or without you. If you’re not part                file page (66.6%); using social networks to distribute
                             of the conversation, then you’re leaving it to oth-                  press releases and news items (59.3%); monitoring
                             ers to answer questions and provide information,                     and responding to mentions of the company and its
                             whether it’s accurate or incorrect. Or, even worse,                  products (58%); and interacting with bloggers and
                             you may be leaving it up to your competition to                      members of the traditional press (54.6%).




                                                                                                                                                           9


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                                                                                                  The Coming Change in Social Media Business Applications:
                                                                                                                      separating the biz from the buzz
       part iii: business applications of social networks
       Social Media Today // .Biz




                                     Please check all the public relations functions                            Public profiles provide a way for businesses to talk
                                     offered by social networks—like facebook, linkedin,                        to consumers and understand them. Some of the
                                     and Myspace—that your organization now uses.
                                                                                                                most successful public profiles are those that cre-
                                                                                                                ate a genuine dialogue with their fans.”
                                                 We maintain a company
                                                            profile page                           66.6%
                                     We use social networks to distribute
                                                                                                 59.2%
                                                                                                                Link to two great examples of company profile
                                         press releases and news items
                                              We monitor and respond to
                                                                                                                pages: Dell and Visa.
                                    mentions of our company or products                      58.0%
                                    We interact with bloggers, as well as
                                                                                            54.6%
                                    with members of the traditional press                                       Survey respondents also wrote in “other” uses of
                                          We sponsor group(s) to answer
                                                   customer questions           19.6%                           social media for public relations, including: updat-
                                               We have a formal blogger
                                                      relations program             15.4%                       ing fans and customers on company news; pro-
                                                    other, please specify        8.0%
                                                                                                                moting company events; registration for events;
                                                                                                                maintaining an alumni group for past employees;
                                                                            0      20       40       60    80
                                                                                                                and promoting a fundraising program.

                                    Looking to the future, organizations plan no
                                    changes in how they use social networks to sup-                             4. Use of social networks for
      “Some of the                                                                                              internal communications
                                    port their public relations efforts, with future uses
   most successful                                                                                              organizations can save exPense by using
                                    being identical in sequence and proportion to



               http://chn-news.com
 public profiles are                                                                                            existing social networks to create work
                                    current use.
those that create a                                                                                             grouPs where docuMents, schedules, and
  genuine dialogue                                                                                              coMMunication are shared collaboratively,
                                    Put this inforMation to work:                                               froM anywhere on earth.
   with their fans.”                Public relations professionals would do well to                              While there are security concerns with posting
                                    monitor social networks for activity about their                             potentially sensitive internal communications
                                    organization and products. Shel Holtz, calls this                            on a third party’s network, the irresistible “free”
                                    essential: “If you are monitoring, you can be part                           cost for simple groups is motivation for many.
                                    of the conversation. Social media is becoming                                Currently, the top uses of these services are
                                    the communication channel for breaking news.                                “Sharing documents” and “Maintaining commu-
                                    Remember that the first reports of the US Airways                            nication with teams.”
                                    flight that water-landed in the Hudson River were
                                    first reported on Twitter by someone with a cell                              Please check all the internal workflow functions
                                                                                                                  offered by social networks—like facebook, linkedin,
                                    phone on a nearby ferry. If your company gets in                              and Myspace—that your organization now uses.
                                    the news, you may find out about it first by moni-
                                    toring social networks.”
                                                                                                                        Sharing documents                          42.1%
                                                                                                                Maintaining communications
                                The other PR function unique to social media is                                                 with teams                         42.1%

                                the ability to post a company profile page. Some                                     Creating “intranet-like”
                                                                                                                                                               34.5%
                                                                                                                   internal communications
                                companies take this free service more seriously                                        Coordinating internal
                                                                                                                      schedules and events                29.6%
                                than others. Annie Ta, from Facebook’s corporate                                     Creating “intranet-like”
                                                                                                                    communication for work               27.0%
                                communications team, says: “We encourage                                                       collaboration
                                                                                                                           Creating internal
                                businesses to really engage with consumers on                                                   work groups
                                                                                                                                                       24.8%

                                their profiles. For example, businesses should                                                                  0        20            40   60
                                update their status, post videos and photos, and
                                start discussion threads with their consumers.




                                                                                                                                                                            10


                 More:http://chn-news.com
                                                                                                                The Coming Change in Social Media Business Applications:
                                                                                                                                                separating the biz from the buzz
in concLusion
Social Media Today // .Biz




                             Looking ahead, the use of social networks to help              As organizations invest in social media programs,
                             internal workflow will remain similar to usage today           incorporating this shift into the plans should be
                             with one difference: Fewer organizations will use              considered a high priority.
                             social networks for file sharing. Among current
                             uses, “file sharing” is tied with “maintaining com-            Skeptics might say that a more customer-centric
                             munication with teams” for the top use. For the                approach is natural in a recession when busi-
                             future, it drops to fourth place, near the bottom.             ness is scarce. But a recession is not just a time
                                                                                            of slow sales. More significantly, it is also a time
                               on the same list as above, pick the one internal             when the pace of change accelerates, and the
                               workflow function your organization is considering
                               using in the future.                                         competitive landscape of industries is reshaped.

                                   Creating internal
                                      work groups
                                                                                            A research study done by Bain & Co. in the after-
                                                8.4%                      Maintaining       math of the 2001 recession discovered that com-
                                                                          communication
                        Coordinating internal
                       schedules and events
                                                                          with teams        petitive change during the recession occurred at
                                                                          20.0%
                                        9.3%
                                                                                            about twice the normal rate. In addition, compa-
                                                                                            nies that changed competitive positions against
                       Sharing documents
                                    11.6%                                 Creating          one another during the recession remained in
                                                                          “intranet-like”
                                                                          communication     their new rankings long after it had passed.
                                                                          for work
                                                                          collaboration




        http://chn-news.com
                     Creating “intranet-like”
                   internal communications                                16.3%
                                     13.4%                                                  In 1929, rival cereal makers Kellogg’s and Post
                                                                                            were in a close race to win the emerging cold
                             Put this inforMation to work:                                  breakfast cereal market. Through the Great De-
                           The results speak for themselves here, and since                 pression that followed, Kellogg’s maintained an
                           not much is changing, there is little to add.                    aggressive marketing posture, while Post slashed
                                                                                            its ad budgets. When the slow time ended, Kel-
                             Survey respondents also wrote in “other” uses of               logg’s had a market advantage over its rival that
                             social media for internal workflow, including: train-          it maintains to this day—almost 70 years later.
                             ing, building bonds with remote teams, and general             (More on that story here)
                             social use with no professional communications.
                                                                                            It would be a mistake to assume that this shift
                                                                                            toward customer-centric usage of social media
                             In Conclusion                                                  is temporary. In fact, the shift toward customer
                                                                                            engagement, and away from general communica-
                           This study is the first to document the coming                   tions, shows a more important role for social me-
                           shift in the use of social media—from a helpful                  dia use at organizations. As Peter Drucker, known
                           tool for a variety of communication needs, to an                 as the father of modern management, said, “The
                           essential tool for customer engagement.                          purpose of a business is to create a customer.”



                             about the author: Josh gordon is president of Selling 2.0, where he works to improve the
                             performance of organizations and sales teams with research-based training and consulting services.
                             An internationally recognized expert on selling, he has written four books on the subject. For more
                             information, visit www.Selling2.com.




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