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The State of Corporate Social Media 2013

Every statistic, benchmark and fact you need on corporate social media in 2013 – direct from hundreds of corporate practitioners

"The State of Corporate Social Media" is a free briefing from Useful Social Media on how large companies are using social media, written by @gnjohnson.

It is based on responses to our annual survey – and this year we had over 900 respondents – so the date is more reliable and complete than ever before.

When you download your copy, you’ll get insight on:

* How companies are organising social media expertise internally: Insight on organisational models for the best adoption of social media across your whole business

* The current ways that large corporates leverage social: We look at marketing, customer service, reputational risk and much more

* Predictions for the year: How will corporate use of social media change and evolve over 2013?

* How much should you spend on your social strategy?: Some in-depth feedback on corporate social media budgets – and whether they’re increasing!

* How your peers measure social success: A look at the metrics and KPIs that large businesses use to track social impact

With over 5,000 words of analysis, and 30+ different charts and graphs, this is an invaluable piece of research for anyone working on social media for a large company.

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The State of Corporate Social Media 2013

  1. 1. Written byNick JohnsonFounder, Useful Social Media@gnjohnson2O13#STATEOFCSMTheStateofCorporateSocialMediaCorporateSocialMediaSign up for our corporate social medianewsletter at www.usefulsocialmedia.comSponsored byfacebook.com/usefulsocialmedia@usefulsociallinkd.in/USMgroupJoin the community on:
  2. 2. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com2ContentsIntroductionForewordsMethodologyOrganisational ModelsCorporate uses of social mediaA look at the networksSocial Media FinancialsImpact and integrationDrawing Conclusions359111721283135
  3. 3. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com3HelloNick JohnsonFounderUseful Social MediaWelcome to our third annual State of Corporate Social Media briefing.An awful lot has changed in the world of corporate social media since I put pen topaper on our first edition in 2010.Social media has gone from an exciting new marketing opportunity to anunavoidable requirement of any forward-looking business. Social now informsmarketing strategy, crisis communications, customer service, customer insight,employee engagement, and much more.But in the journey from social media to social business, the going is not alwayssmooth. We know from our conversations with your peers about the manychallenges facing practitioners within large corporations. Whether it’s guidelinesand internal policy, ‘desiloisation’ and evolving organisation models, or simplytracking the impact of your work, this is a field riddled with challenges.This is where we hope to help. The briefing is designed to set out benchmarks onsocial media adoption and utilisation by large corporations, as well as highlightingkey trends which touch on the role of the corporate social media practitioner. Lastyear, the briefing came in at a somewhat unwieldy 65 pages - so we’ve streamlinedthis year, and focused on only the core issues that will impact on you in 2013.That’s not at the expense of depth, however. Indeed, this year we’re happy toannounce that we’ve brought in some of those very practitioners to help us analyseour data, and highlight how the trends we uncover will affect their (and by extensionyour) role. Bill Tolany is Head of Integrated Marketing at Whole Foods, and EstebanContreras has moved from a social strategist role at Samsung to now authoring abook on corporate social media - “Social State”. Both bring their ‘skin in the game’expertise to bear in this briefing, and we hope you will find their own take on ourfindings unique and informative. We’re also thrilled to feature a foreword from LuxNarayan, the CEO of social media benchmarking company Unmetric.I hope you find the briefing of use - and I’ll look forward to hearing what you think
  4. 4. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com4New for 2013: Expert ContributorsThis year, we’ve asked two leading thinkers (and doers!) oncorporate social media to give us their take on our findings.Our contributors are:Esteban ContrerasEsteban Contreras is the author of the bookSOCIAL STATE: Thoughts, Stats and Storiesabout the State of Social Media in 2013.Follow him on Twitter @SocialNerdiaBill TolanyBill Tolany is the Senior Director of Marketingand Integrated Media at Whole Foods Market.Follow him on Twitter @BTolanyLux NarayanLakshmanan (Lux) Narayan is the CEO andCo-Founder of Unmetric Inc, the Social MediaBenchmarking company.Find out more about Unmetricat www.unmetric.com
  5. 5. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com5A Foreword from Esteban ContrerasSocial media is no longer a corporate experiment.Of course, experimentation should always be fostered within companies, but we’re nowofficially past the phase in which social media practitioners were allowed to experimentwithout real goals or objectives.The bad news for practitioners is that results are no longer an option.The good news is that brands can no longer ignore social media, or the practitioners thathave been making the case for social technologies.2013 is off to a good start and it is already a year of social media optimization.Companies are getting serious about social.Social ads are becoming an integral part of media plans, “command centers” are becomingreal-time “news rooms,” and companies with global footprints are organizing advancedmultiple hub-and-spoke models. Social support efforts are closing in on resolution timesand driving costs down, while corporate communications teams are thinking about socialimpact beyond impressions. Buzzwords like “social business,” “earned media,” and “real-time marketing” are seamlessly becoming a reality.Now that most brands are participating in all things social, they are also looking to taketheir efforts to the next level. Some will be stuck in an optimization loop, focused entirely ondata-driven and trends-oriented efforts to drive objectives-based performance. Others willleapfrog competitors in multiple areas, ranging from customer support to risk management,paving the way for others to follow and imitate.Perhaps the best part about the end of the experimentation phase is that social media isbecoming a CEO-level agenda. As social media discussions go up the ladder into seniormanagement, CIOs, CMOs, COOs, and other corporate leaders are taking control over theirorganizations future social media efforts.Social media teams are getting smarter.Social media strategists, analytics experts, and planners are starting to get a prevalent seatat the decision-making table. Community managers and content producers are moving onto more strategic roles, re-defining brand experiences from the bottom-up. Social mediaagencies are taking on more diverse work while established agencies and consultancies aredeveloping strong social media expertise.In the end, it’s all about the customer.Consumers are smart, and their growing expectations are evidence that the overall customerexperience should be the core of how companies approach social media. Bigger budgets,smarter teams, better tools, faster turnarounds, and complex global organizations will nothave an impact unless the overall customer experience is excellent. Anyone can throwmoney at a business problem, but building a loved brand takes time and effort. In order towin, companies will still have to cultivate long-term relationships with their target markets(and audiences) in a world where reach and frequency are no longer good enough to createawareness, preference and advocacy.Customer-oriented companies will be able to leverage social technologies to drive theircompany’s business models, and they will be able to demonstrate their ability to unlock
  6. 6. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com6great potential across teams, geographies and business units.Useful Social Media, the company behind fantastic events such as the Corporate SocialMedia Summit, has once again created a an annual report about the state of corporatesocial media. This 2013 edition delivers great insights about organization models, trends,financials, and impact of social media initiatives, as well as much more. The report is basedon a survey that is filled out exclusively by corporate social media practitioners, providing anup-to-date view on what’s happening at some of the world’s most influential corporations.Social media is part of how companies do business and that won’t be changing any timesoon. Whether you are a business person, a current social media practitioner, an aspiringone, or simply someone looking to better grasp how companies are leveraging socialtechnologies, take note of the pages ahead.You’ll be glad you did.
  7. 7. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com7A Foreword from Lakshmanan NarayanCan we finally say that social media has come of age? Not yet.The ‘Texas Sharpshooter Fallacy’ describes a methodological error in which pieces ofinformation that have no relationship to one another are called out for their similarities.It’s often used for claiming the existence of a pattern. The name comes from a joke abouta Texan who fires some shots at the side of a barn, then paints a target centered on thebiggest cluster of hits and claims to be a sharpshooter.The fallacy often arises when a person has a large amount of data at their disposal, but in aclassic case of confirmation bias, only focuses on a small subset of that data. Most socialmedia reports I read are saturated with charts and findings exhibiting confirmation bias.The conclusions are often assumed, and data is curated to support what has already beendecided.This #StateOfCSM briefing is a refreshing outlier to the above trend. In fact, when a reportmakes no bones about saying that less than half CEOs are convinced about the value ofsocial media, it’s clear that the industry still has some growing up to do. However, the writingon the wall is certainly encouraging. A continuing trend from 2012 is that of the social mediadirector increasingly playing a role outside of marketing. Last year we saw a marked uptickin the number of businesses providing useful customer support, mostly on Twitter and bythe results of this report, the trend is continuing. This is indicative of a positive trend in therecognition of the ubiquitous possibilities with social media – beyond marketing.Equally interesting is the huge variance between B2C and B2B companies in adoption,focus, and inclination towards different social networks. The dominance of Facebook andLinkedIn respectively was always expected, but the orders of magnitude outlined in thisreport are an eye opener.The briefing also points to some interesting (some may say, worrying) data on expectationon social media budget growth in 2013. I do think that an organization focused on“managing conversations” will see a fundamentally different architecture from one focusedon “managing creatives”. Leading indicators of growth used to, in a pre-web1.0 world, bemedia budgets. Social media, by definition, is more people & systems intensive and in timesto come, I believe we will look at budgets beyond spend on platforms and media, and in theholistic context of investments in people, systems, and yes, marketing. The airline industryis a great windsock for this. Indeed, one just needs to look at American Airlines who replyto over 8,000 tweets per month, each within approximately 15 minutes to understand howmuch they have transformed their business to make social a key part of their strategy. It’svery easy to miss seeing the ‘invisible costs towards social media’ – in this case, the ‘cost’of transformation in systems and processes that allows for the delivery of such amazingcustomer service metrics.Speaking of metrics, as this report indicates, you cannot improve what you cannot measure.It is good to see (almost) everyone move beyond vanity metrics and brute force numbersto more meaningful ones rooted in the efficacy of micro-content and its engagement. Moreimportantly, the larger purpose it must solve. Adoption of more sophisticated measures ofcalibration is an indicator of an industry maturing.And while on the subject of maturity, do remember though, as you draw inspiration andknowledge from these pages, that social media is still a child in its infancy. With boundlessenthusiasm and a sense of unbridled optimism, she thinks she can change the world. Don’tbe the grown up that tells her what she can’t do. You haven’t seen anything yet.
  8. 8. The Fourth AnnualCorporate Social Media SummitNew YorkSuperior marketing response, sharper corporatedecision-making, enhanced innovation and a happier,more loyal customer:Become a social businessQUOTE ‘STATECSM’ to receive 15% off your pass!For more information visit www.usefulsocialmedia.com/newyorkTwo day business conference, June 12-13, 2013The New Yorker Hotel, New York#CSMNYusefulsocialmedia.com/newyorkA practical and interactive business conference built for social media,marketing and communications executives:MasterCard WorldwideAlfredo GangotenaChief Marketing OfficerThe Hertz CorporationBob StuartChief Marketing OfficerOutback SteakhouseMike KappittChief Marketing OfficerSears & K Mart Seasonaland Outdoor LivingJennifer DominiquiniChief Marketing OfficerFootlocker/EastbayDave LokesChief Marketing OfficerGet best practice from theglobal leaders: Exclusive strategicinsight on the future of social from8 Chief Marketing Officers from someof the biggest brands in the world.Get closer to yourcustomers through yoursocial strategy: Build valuablerelationships, humanize your brand andbecome customer centric to enhancelong-term customer loyalty.Stand out in a highlycompetitive market:Become a social business, achieveconsistency of message anddifferentiate your company.USMAmy SherwoodVice President - Public Relations & Consumer Affairs, YUM! BrandsDewayne HankinsDirector of Social Media, Los Angeles KingsThe summit is highly worthwhileand an excellent way to gainactionable insightsYou literally couldn’t walk awaywithout taking something youcould use in your business
  9. 9. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com9The findings in this briefing are drawn from responses to Useful Social Media’s annual ‘Stateof Corporate Social Media’ survey.Over 850 respondents contributed to this version of the survey, the majority doing so inDecember 2012 and January 2013.Areas of responsibilityApproximately 30% of respondents were responsible for US operations. Another 30% wereresponsible for European operations. Beyond these more typical markets, we have 17% ofrespondents for a responsibility for social media in Asia; 15% responsible for the MiddleEast and Africa, and 15% responsible for South and Central America. It’s worth pointing outthat these numbers add up to over 100% because several respondents were responsiblefor multiple geographic areas A change from 2012 This year, we tweaked our ‘location’ question. Previously, we asked where each respondent wasbased. This year, we asked what areas of the world they were responsible for. It’s a more illuminating question - showing global responsibility, not simply where their office is. Inturn, that hopefully engenders confidence that the briefing findings will be globally applicable - toat least some extent.Corporate focusNearly 60% of respondents came from corporates/brands/end users. The rest of ouraudience is made of up agencies, service providers, academics, institute members andthe like. For the majority of the briefing, we will, unless otherwise stated, focus only oncorporate responses.B2B/B2C DifferencesWe often break our data sets out to show differences between b2b and b2c corporate socialmedia. As anyone working in and around corporate social media will know, the problems,opportunities and methodologies for b2b and b2c businesses are often radically different.We try to use this report to highlight the areas of difference.Comparison with previous yearsThis is our third annual State of Corporate Social Media briefing. The data we collected in2012/13 can be lent context through comparison with submissions from previous years. Atcertain points in the briefing, we will take advantage of this additional context to spot trendsand make predictions for the future.Methodology
  10. 10. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com10Full DatasetWhile this document contains edited ‘highlights’ from the full State of Corporate SocialMedia survey, it isn’t everything. For those who would find it valuable, we have the fullraw dataset available. If you would like access to the (anonymised) data, please emailnick.johnson@usefulsocialmedia.comWe felt that our briefing - stretching to 65 pages - was somewhat unwieldy in 2012. Thisyear, we have stripped back and refocused on the core issues you want to discuss.However, the survey itself was more extensive than ever before, and we have a rich data setavailable to all readers.
  11. 11. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com11In 2012, we concluded that corporations were moving toward a ‘hub and spoke’ modelof social media management - where there is a small core co-ordination unit (‘hub’), butresponsibility for execution is devolved towards a number of ‘spokes’ - individuals or smallteams embedded within multiple departments.This model lends itself well to the thorough embedding of social media across a business - anoted trend in 2012, and something we expect to only accelerate across 2013.A closer look at social media organisationFrom this year’s figures, one sees much evidence that this move towards small centralisedhubs, and an expansion of ‘spokes’ - people for whom social is part of a broader role, sat ina variety of departments or geographical regions - is indeed the case.The number of people who work specifically in social media, or for whom social is a namedpart of their job role, has not changed. In 2013, 92.5% of companies have at least onemember of staff for whom ‘social media’ is a specific requirement of their job role. That’sonly 0.5% up on 2012 (though one could argue that there is little capacity for growth withsuch a high proportion).92.5%Companies who have at least onemember of staff for whom ‘socialmedia’ is a specific requirementof their job roleEqually, the majority of companies still have 2 to 3 executives with specific responsibilitiesfor social media. The size of the core ‘hub’ has not changed markedly.When one shifts attention to ‘spokes’, however, progress is more clearly identifiable. Whenwe asked how many people use social in a professional capacity (but not as a specifically-named aspect of their role), the responses showed a far more noticeable trend.In 2012, most companies had 2-3 additional executives acting as a ‘spoke’ and using socialin a professional capacity. The number of spokes has rocketed in the last year, with 58%of our respondents declaring that 4+ individuals within their company use social mediaprofessionally.Organisational Models
  12. 12. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com1258%respondents declaring that 4+individuals within their companyuse social media professionallyThese spokes are based across the business, and have chosen to leverage social media tohelp them do their job better. An organic journey towards the social business This increase in executives using social media professionally, but without it being a named focusof their role, suggests a somewhat organic journey towards ‘social business’. Had this been a top-down strategy, one would expect far higher numbers of people working on social as a specificfocus of their role - instructed, in effect, by their superiors. But our figures show that in reality, themajority of growth in social media adoption by business comes when individuals decide to use itprofessionally, but without it as a specific part of their role. b2b and b2c relations - a surprising finding One can also spot a difference between b2b and b2c adoption rates when one breaks downthe data - and the finding is a surprising one. While only 51% of b2c-only businesses had 4+executives working on social in a professional capacity, the figure was a higher 57% for b2b-onlycompanies1. This seems to suggest a surprising lead on the journey towards ‘becoming a socialbusiness’ for the b2b side of the corporate world.Businesses with4+ executivesworking on socialin a professionalcapacityB2BB2C57%51%There has alsobeen a noticeablejump in companieswith 6+ employeesusing social ina professionalcapacity201236%42%20131It’s important to note that asignificant proportion of our cor-porate respondents categorisedthemselves as having both b2band b2c elements, so where our‘corporate’ response statistics areat odds with the average of our‘b2b-only’ and ‘b2c-only’ figures,the large group of b2b and b2crespondents is responsible
  13. 13. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com13Who owns social?Unsurprisingly, social media expertise is still located primarily in the marketing department.However, the dictatorship is weakening.While the size of the ‘hub’ has not changed markedly, its location has.While 57% of social media experts working specifically on the technology were based in themarketing department in 2012, that figure has dropped considerably in 2013 - only 51% ofcorporate social media practitioners are now based in the marketing department.Corporate socialmedia practitionersnow based inthe marketingdepartment201257%51%2013This increasingly ‘spread out’ social media expertise is more evidence of social’s increasingcorporate maturity - a recognition that social’s ownership by marketing will curtailopportunities for many other departments.To back this hypothesis up, it’s also worth highlighting that 18% of social media expertsnow report directly to the CEO (up from 14% in 2012) - implying an increasing awarenessof the wide reach - and business critical nature - of corporate social media.Social mediaexperts thatreport directlyto the CEO201214%18%2013While less than a fifth is hardly evidence of a journey complete, it does represent undeniableprogress.
  14. 14. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com14 b2c/b2b focus - an interesting tidbit Break out figures on social ownership by b2b and b2c company, and an interesting discrepancybecomes obvious. We argue that social’s decreasing ownership by marketing departmentsimplies a broader adoption across business - and thus a more advanced corporate social mediamodel. The increasing direct-reporting to CEOs back up this data. The evidence in this case suggests b2c companies have made more progress in corporaterecognition of social’s value than their b2b counterparts. 60% of b2b company respondentsreported directly to the Head of Marketing - versus a far lower 43% for b2c companies. Also,while only 15% of b2b social media executives report directly to either the board or the CEO, thefigure is a far higher 28% for b2c companies. Respondentswho reportdirectly tothe Head ofMarketingB2BB2C6O%43%Respondentswho reportdirectly tothe boardor CEOB2BB2C15%28% It seems that the rapid progress made by b2b companies to ‘catch up’ to their b2c counterpartsstill has a way to go
  15. 15. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com15Impact on organisational structures61%of businesses stated that social hasimpacted on internal structures,departmental organisation, workflowand responsibilitiesThe fundamental impact is one of teamwork, collaboration and the reduction of silos. Takingsome direct quotes from our respondents, it becomes apparent that the advent of corporatesocial media adoption has had a deep and lasting impact on organisational structures.billsaysThe maturation of the social discipline is an exciting development.Some of the growth can simply be attributed to time. Comparing prevailing attitudes to thoseof the past lends perspective on the present and aids practitioners in planning for the future.New innovations and market options can also lend a depth and rigor to the discipline.The key indicator of success, however, remains a tight integration of social operations into thegeneral operations of a company. If your company develops products and serves customer ina highly centralized fashion, then your social approach should follow suit. That also holds truefor product or geographic divisions. Take how you are organized (and more importantly, howyour customers see you), and reflect it in your social structure.When we asked about this impact in more detail, it becomes clear that social has led to‘silos dissolving’; that “it has forced departments that have traditionally operated in avaccuum to work more closely”; and has led to “more frequent communication between thedifferent functional areas of the organisation”.Perhaps the best summing up of the impact social has had on internal infrastructure is thatit “‘requir[es] several of our divisions to take a more collaborative approach”.estebansaysWe are seeing 3 important trends across companies with global footprints:1 Social media’s global relevance is a catalyst for change within large organizations. What wasonce seen as experimental is now an important part of how companies view, interact andlearn about customers on a daily basis. Social media has encouraged (or force) companiesto re-think how, when, where and why they communicate with their customers.2 Social technologies are enabling collaboration across previously siloed organizations.The development of multiple hub-and-spoke models requires new ways of thinking andforces teams to realize that social cannot be “owned” by a single team or business unit.3 Social media is becoming a CEO-level agenda. As social media practitioners becomesought out in the boardroom, social goals, strategies, and tactics gain greater importanceat the top, and this will further enable social media programs to scale as needed.
  16. 16. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com16KEYFINDINGSTo sum up this section, it appears that not only has social media’s organisationalstructure within a business evolved and matured (hub and spoke becoming thecore model, spokes increasing implying embedding across departments, andincreasing direct reporting to the upper echelons of a corporation implying anincreasing recognition of the value of social from senior management), but socialhas actually impacted on the organisation and structure of the entire business, andhas wrought meaningful change on broader organisational models. Fundamentally,social has forced different departments to work more closely together to becomemore responsive and better able to serve a consumer that expects socialproficiency and one-to-one communication.
  17. 17. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com17Current focuses for social media deploymentUnsurprisingly, marketing and communications are still core focus areas for social mediause within business. Social was welcomed into corporations through marketing’s door,after all. The ability to communicate in a new, more personable and interactive way led toformidable marketing gains in terms of response rate, loyalty and satisfaction. It is thereforeprofoundly unsurprising that a clear 90% of companies now use social media as part of abroader marcomms strategy.9O%of companies now use socialmedia as part of a broadermarcomms strategyBut social is increasingly expanding into other business units. The leader of the pack is thecustomer service department. In 2013, the majority of large corporates (53%) have addedsocial media elements to their customer service function. It’s unsurprising - the speedy anddirect communication that social media offers means it is not only attractive to a consumerlooking to resolve issues, but to the savvy customer service department looking to highlighttheir responsiveness, share positive stories - and spot issues in the first place. b2c/b2b comparison Again, b2c companies take the lead here. While 50% of b2c companies now use social media forcustomer service, the b2b community lags behind with only a 36% adoption. Companies whouse social mediafor customerserviceB2BB2C36%5O% Perhaps this is unsurprising - social lends itself to customer service at high volume, not in-depthand often complex issues that arise with a smaller, more demanding customer base as tends tobe the case in b2b businesses.Corporate uses of social media
  18. 18. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com18The utility of social media as a bellwether - something giving the corporate enhancedability to spot trouble brewing - links closely into another huge area of social’s expandinginfluence within business. Again, a majority of corporations (53%) are now using social toaugment their ‘reputation preservation and crisis communications’ function. This area hasexperienced formidable growth - less than a third of companies were leveraging social forthis function in 2012. This is perhaps spurred by two things:1 The realisation that corporations no longer have the power to dictate their own brandmessaging: The company is now only one voice in the conversation, and the role of thecommunications department is only ever to influence, not dominate, discussion.2 A spate of high-profile social media ‘screw ups’ in 2012 - from Kenneth Cole and theEgyptian riots; to Nestle, Sinar Mas and Greenpeace; to Ragu Pasta Sauce alienating‘daddy bloggers’ - problems snarling up on social media have led to real embarrassment,brand damage, and in some cases, share prices dropping.Using social media for reputation preservation is now a sensible part of corporate riskmanagement.The third key area of social expansion within business is ‘customer insight’. 56% of ourcorporate respondents are now using social to get more clarity and detail on who theircustomer is, where they are, and what they like. This links in with our initial hypothesis - thatthe rise of ‘customer centricity’ as a corporate focus in 2013 is fuelled in large part by theincreasing clarity and detail that social monitoring offers. It’s akin to the shift from normalresolution to HD in televisions - the detail is now there to spot.56%corporate respondents are now usingsocial to get more clarity and detail onwho their customer is, where they are,and what they likeTo summarise, over half of all corporations are now using social media for:• Marketing• Communications• Customer Service• Increased Customer Insight (and yet only 16% of companies have a social CRMsystem)• Reputation Preservation and Crisis Communications
  19. 19. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com19Future plansPlanned increasein adoptionof social fornew businessfunctions2012 201358%53%34%75%67%49%CustomerinsightCustomerserviceEmployeeengagementIn 2013, we see a continued focus in the areas above - with the use of social media forcustomer service and insight becoming the norm. By the end of the year, social’s adoptionby customer service departments will grow by 24% to 67% of all corporations.Customer insight’s adoption will grow even quicker, to an even higher point - up 29% to75% of all corporations.billsaysSocial media’s move beyond marketing will likely continue, but notions of ownership, budget,and scale can sometimes cloud the larger point.Social media offers the potential (as yet unrealized) to fundamentally change the waycompanies do business.Social must be more than a cheaper content distribution platform or faster customer servicemechanism. We need to start harnessing its power to change the very way we createproducts and services. We need to use it to remove all friction from our interaction withcustomers.And we need its ubiquity and immediacy to aid in measuring the impact of our efforts.This potential may not be something to be “achieved”, but rather it is a continuous journeytoward remaking how our companies can ultimately improve the lives of all involvedstakeholders.The third area is perhaps most interesting. By the end of 2013, 49% of all corporaterespondents expect to be using social media for enhanced employee engagement. Thisis a development driven by b2b companies, where 53% expect to use social media foremployee engagement in 2013, compared to 34% of b2c companies.
  20. 20. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com20estebansaysMost companies are leveraging social media for marketing and there is no going back. Socialmedia is also becoming a key element for customer care, market research and corporatecommunications practitioners at most companies, showing that the ROI of social media ismulti-faceted.In my opinion, the social media barrier of entry is much greater for customer care andcorporate communications leaders; few would deny that it is easier to start publishing (ie.marketing) on Twitter than it is to properly respond to customer complaints and diligentlymonitor conversations and spot trends.Companies must adapt by investing time, resources and money to develop the rightstrategies, measure the right metrics, and use the right tools. Social media programs needto become more sophisticated and this requires great coordination and planning.SoLoMo is a nice buzz term but it is also the reality of how Internet users behave online:We share content and opinion on social networks; we seek for information in context withwhat’s around us; and we are becoming increasingly mobile thanks to advancements insmartphone and tablet technologies.KEYFINDINGSSocial is increasingly being leveraged by far more than simply the marketingdepartment. Ability with social media is now an expected skillset for the savvycommunications executive, customer service executive, customer insight andexperience executive - and even risk managers.Over 2013, this adoption of social by the entirety of a company will continue -spearheaded by b2b companies’ leveraging of social tools for better employeeengagement.
  21. 21. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com21An analysis of corporate adoption ratesof existing social networksOverall51%71%78%88%89%Facebook Twitter LinkedIn YouTube CorporateblogB2C46%48%71%83%97%Facebook Twitter YouTube CorporateblogLinkedInB2B55%7O%81%87%88%LinkedIn Twitter Facebook YouTube CorporateblogIt’s unsurprising that Facebook is used by the vast majority of b2c companies - and is themost popular social network overall for all corporate respondents. It’s the largest socialnetwork, with the most mature marketing capabilities and plenty of case studies andexamples as to how companies can take advantage. Twitter, likewise.Perhaps the most interesting observation for the b2c business is how few companies nowuse a corporate blog - and also the comparative weakness of LinkedIn. To round out thestudy, Less than 50% of b2c companies use Google+, Foursquare, Pinterest, or Instagram(indeed, less than 40% use Pinterest and only 23% use Instagram - despite the huge buzzaround them in 2012).A look at the networks
  22. 22. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com22For b2b companies, there is an equally unsurprising network at the forefront - LinkedIn’scapabilities for identification, and engagement with, a corporate audience is unrivalled (onecan perhaps track the popularity for b2b marketing by checking the number of marketingmessages filling your LinkedIn inbox).Perhaps more surprising is the widespread adoption of YouTube, and the comparativeweakness of corporate blogging - only 55% of respondents now use this method.Unsurprisingly, Instagram and Foursquare barely register (5% adoption for each), thoughPinterest has a surprisingly high 20% adoption.Another small point - more b2b companies are using Twitter than b2c companies, whichcertainly surprised me.
  23. 23. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com23Which network is the mostuseful for you?Overall2O%21%4O%Facebook LinkedIn Twitter YouTubeB2C65%Facebook Twitter YouTube LinkedIn CorporateblogOtherB2B17%21%37%LinkedIn Twitter Facebook CorporateblogYouTube Other8%5%12%6%17% 3%4%11%2%Corporateblog8%Other3%Most notable is Facebook’s total dominance in terms of utility. Considering 65% of b2ccompanies said it was the most useful network for them, it is unsurprising that 97% ofcompanies use the network.Twitter, from which one would perhaps expect a stronger showing, was the network ofchoice for only 20% of all corporations. Considering the relative immaturity of the platformin terms of specific functionality for large brands, this is perhaps explained to a certainextent. Twitter’s corporate packages are still being rolled out.For b2b companies, Facebook is way down in third place - only 17% of companies say it is
  24. 24. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com24the most useful network for them. Number one in a far more evenly spread field is LinkedIn,the choice of 37% of respondents. Twitter overtakes Facebook to take 21% of the vote.billsaysChoosing to engage on specific social networks is not an either/or proposition. Yes, we allhave limited time and must focus. But that does not mean effort on one platform shouldalways be viewed as coming at the expense of another.We should instead view each network in the same way a craftsperson views a toolbox. Somejobs call for a hammer, while others require a screwdriver. Use the right tool for the job, andwhen something goes wrong don’t blame your toolsSimilarly, consumers do not view these social options as perfect substitutes for each other.They will use Facebook, Twitter, and Pinterest for very different purposes. Rather thanrating the networks against each other, consider why your customers and prospects use aparticular network, and then help them meet their needs on that specific platform.
  25. 25. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com2558%More thanonce a day4.5%Never22%Less thanonce a day1O%Less thanonce a week5.5%Less thanonce a monthFacebookFrequency of engagement54%More thanonce a day9%Never19%Less thanonce a day1O%Less thanonce a week8%Less thanonce a monthTwitterThe declared ‘use’ of social media channels by corporates means little without looking intothe frequency of that use. While different channels have different expectations re frequencyof engagement (one would always expect more tweets than YouTube videos, for instance),companies not engaging on a network at least once a month are letting a community die -and evidently don’t value the return received for said network.When one focuses on b2c frequency of use, one finds that Facebook is indeed numberone - 66% of respondents engaging on the network over once a day - and only 11% usingthe network less than once a week.Twitter, perhaps surprisingly considering the immediacy of the network and emphasis ontrends and fast-moving information, is in second place - 54% of companies engaging onTwitter more than once a day - though with a significantly higher 17% using the service lessthan once a week.
  26. 26. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com26From here, engagement levels drop significantly. Next is corporate blogging and Google+,which is used by 10% of brands more than once a day. Only 9% use LinkedIn more thanonce a day.Pinterest - considering the specific nature of the audience, the engagement opportunity,and the relative immaturity of the network itself, has an impressive 7% of b2c companiesengaging on it more than once a day.Foursquare, YouTube and Instagram fare significantly worse - with less than 6% ofcompanies using them once a day. Instagram is more likely to be used less than once amonth, YouTube a few times a month, and Foursquare (perhaps because of the emphasisof temporary ‘deals’) only a few times a year.The picture for b2b companies is different, as one would expect. Frequency is down acrossthe board, as b2b companies struggle to engage on a daily basis, whatever network theyuse.Twitter takes the lead - with 46% of companies using it more than once a day - and only9% of respondents using it less than once a month. Facebook, perhaps surprisingly, is insecond place with 45% using the network more than once a day, and only 9% using it lessthan once a month.LinkedIn is third, which is interesting, considering most companies declared it their mostuseful network. Only 34% of respondents use the network more than once a day.From here, frequency of use drops off considerably. Corporate blogging and Google+ areboth used more than once a day by 11% and 12% of respondents respectively.In another boon to those who suggest that b2b social media is slower moving than that ofb2c counterparts, the adoption of the big 2012 networks Pinterest and Instagram is minor.Only 3% use Instagram once per day, and 5% use Pinterest with this frequency.Emerging PlatformsAcross the board, the adoption rates of emerging networks is slow. Not only are the big newnetworks of 2012 (Pinterest and Instagram) still used infrequently and by a low percentageof all respondents, but newer - or simply more global - networks like App.net, VKontakte(Russia’s Facebook) and Sina Weibo (China’s Twitter) have very poor adoption rates.Considering Sina Weibo has over 400m registered users2(the same as the far more popularGoogle+3), it represents a missed opportunity that only 29% of those respondents whodeclared themselves responsible for social media in Asia actually use the service (and only11% of all respondents).App.net - a new, paid-for social network which keeps data private and does not sell it toadvertisers, has a 6.67% adoption rate. Vkontakte has only 6% of corporate respondentsusing the service overall, and a poor 7% of those specifically responsible for social in theEuropean mainland.2Engadget, November2012 http://www.engadget.com/2012/11/16/sina-weibo-400-million-users/3September 2012, http://news.cnet.com/8301-1023_3-57514241-93/google-signs-up-400-million-users-with-100-million-active/
  27. 27. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com27estebansaysFew would be surprised that Facebook is the leading social network for corporate purposes,and few would be surprised by LinkedIn taking the lead when it comes to B2B. I’m also notsurprised by the importance of YouTube and Twitter, and how the four big social networkstend to be seen as more valuable than corporate blogs.I do find the figures of Google+ (50%), Pinterest (40%), and Instagram (23%) very interesting.While these findings seem low compared to the other social networks, it is important toremember that just a few years ago Facebook, Twitter and YouTube were in the samesituation.These days, brands jump into new social networks like Vine in a matter of days. This showshow the social universe is expanding, and brands are realizing that their presence needs tobe as diverse as its customers and the social websites and services they are using.While the figures for Sina Weibo and VK seem small, I believe this will change in 2013, andmost brands will start paying more attention to international non-English social media.
  28. 28. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com28How does your budget compare?6O%$0 - $10,00012%$10,001 -$25,0002%$1,000,001 -$2,500,0003%$500,001 -$1,000,0001%More than$2,500,0007%$25,001 -$50,0008%$50,001 -$100,0007%$50,001 -$100,000While 6% of corporates have over $500,000 to spend on social media activity, the vastmajority of our respondents have considerably less. A full 60% of those corporates whocompleted our survey have less than $10,000 to spend per year, with another 27% workingon a budget of less than $100,000.Budget increases are slowing...Over time, money pumped into social media adoption by big business is reducing. In 2011,77% of our respondents were confident of a budget increase, and in 2012 this had reducedto 62%.In 2013, for the first time since our study began, the majority of corporate respondents (a full58% of them) don’t think their budgets will increase in 2013.Social Media Financials
  29. 29. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com29Those that do see an increase are doubtful of a significant rise. 20% of respondents thinkany increase will be between 1% - 5% of last year’s total, with another 21% expecting 10%or less. When one looks at those expecting a major increase, only 5% expect an increase of75%+ compared to their 2012 resources.Again, this tallies with a trend identified last year. In our first 2011 study, 29% expected theincrease to be 75% or higher. In 2012, only 7% expected a jump of 75% or more, and thisyear that figure has reduced again.Number ofpeople expecting75% or moregrowth in social2011 20127%20135%29%...But don’t worry - social is still importantIt would be a mistake to read these figures evidence of social’s decreasing importance.After all, 93% of our 2013 respondents say that social is becoming a more important partof marketing strategy.As we felt last year, this caution over budgets can almost certainly be explained by the‘groundwork’ now being complete - hiring is slowing, and new technologies have now beenpurchased.As corporate maturity with this new channel increases, the need for external help alsodiminishes - only 36% of respondents now pay for external advice/assistance with theirsocial media presence. Costs are, perhaps thankfully, reducing significantly - and budgetgrowth will slow accordingly. B2B/B2C Comparison Again, B2B companies appear to be slightly behind their B2C counterparts when it comes tocommitting resource to social media adoption. Only 46% have more than $10,000 pa, comparedto 59% of B2C companies. Only 3% of B2Bs have more than $500,000 to spend on social mediawithin their company - compared to 4% of B2Cs. 42% of B2C companies are confident their budget for social media activity will increase over2013, and 7% are confident of that being a significant increase of 50% or more. For B2Bs, thereis more caution. Only 37% are confident of a budget increase, though the same proportion, 7%,see this being an increase of 50% or more..
  30. 30. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com30estebansaysCompanies overall are spending more wisely in social media.While a few years ago they would’ve spent large amounts of money into emerging tools andover-promising agencies, they are now ensuring that there is a return on investment.In recent years, social media practitioners have been focused on getting budgets for theirefforts. This year, they will have to optimize, innovate and demonstrate their success beforetheir budgets grow exponentially.I believe those who leverage social technologies to help leapfrog competitors will be theones getting the budget increases they need to keep growing and enhancing their efforts.
  31. 31. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com31Misplaced confidence?93%of respondents say that social isbecoming an increasingly importantpart of their marketing strategyWhile a huge 93% of respondents say that social is becoming an increasingly important partof their marketing strategy - and a significant 40% are confident that social media drivessales for their business - the metrics and KPIs used to support these claims are somewhatsuspect.4O%of respondents are confidentthat social media drives salesfor their businessAnd this caution is not only in the eyes of outsiders. Only 31% of our respondents areconfident that they’re accurately measuring the impact of social media activity, while only44% even attempt to measure ROI.Equally, while the social media practitioner is evidently confident that social media is havinga positive impact on their business, there is evidently a way to go before the C-suite buysin to the concept - only 45% of those surveyed feel that their CEO is convinced of socialmedia’s value.Those who feelthat their CEOis convinced ofsocial media’svalueConfidentNot confident45%55%Impact and integration
  32. 32. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com32Metrics not fit for purposeThere is still a surprising reliance on simplistic metrics when tracking social impact.The top metrics used by corporate social media practitioners in 2013 are Web traffic (44% ofrespondents say this is one of their top three most important metrics); increasing followernumbers (another 44% - somewhat depressingly, as outlined in the text box below) andincreasing activity/engagement. This is positive as while undeniably harder to track, thismetric better reflects social media’s impact. While only 14% chose this as one of their mostuseful metrics in 2012, that number has shot up to 43% in 2013.It’s notable that other more advanced metrics - share of conversation vs competition;revenue per follower; customer sentiment; # of evangelists - are all rarely used. All haveonly 14% or less of our respondents identifying them as key (though we’re going in the rightdirection - that’s up from only 10% in 2010).There is evidently still a considerable way to go before the metrics match the enthusiasmaround social media adoption. Why are ‘increasing follower numbers’ such a flawed metric? One of the most alarming findings in this year’s State of Corporate Social Media briefing is that44% of corporate practitioners still see ‘increasing follower numbers’ as one of their top threemost critical metrics. Why are we so against this metric? It’s akin to being a performer at a music festival. An artist can be on stage at Glastonbury orCoachella, performing live. They can use all sorts of incentives to get people to turn up and watchthe gig - free drinks, dancers, an incredible stage show. But if the audience numbers increase because people are motivated by the dancers or the drinks,they’re unlikely to buy the merchandise, or even sing along. The gig will be flat, and ultimatelypointless for the artist. It’s the same with social media. If your increase in follower numbers is because you’ve beenoffering the equivalent of free drinks or backing dancers (offers unrelated to your core productoffering, hijacking memes with little relation to your company, etc), you face the same problem.While follower numbers increase, the impact on your bottom line will be minimal. But if the audience is arriving motivated by actually listening to the music, every audience memberis far more valuable. The number of people at the gig may be smaller - significantly smaller - butultimately it adds up to higher merchandise sales, and a better response to the gig. The artist canalso expect those in the audience to go home and spread the word about the concert - leading tomore sales, and bigger audiences in the future. The same applies with your social media strategy. It’s about quality, not volume. It’s about genuine engagement, not initial contact. Follower numbers, therefore, track the wrong thing.
  33. 33. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com34KEYFINDINGSMeasurement is an interesting part of corporate social media. On the one hand,measurement is what allows companies to have a more data-driven approach tosocial (ie. leveraging metrics to derive insights and take action on such insights).On the other hand, measurement is what often shows less than desired resultsin social media (ie. owned and paid media not driving as much earned media asneeded).In addition, the lack of widely acceptable standards and the vast amount ofpossible metrics (ranging from operational and reach metrics, to growth andengagement metrics) can make the task of measurement a difficult one, especiallyfor professionals with a background in web analytics and search marketing. Ibelieve all social media efforts should be measured against objectives, and allcosts should be diligently tracked against perceived benefit. For example, PRprofessionals often make assumptions that become internal standards (ie. thevalue of an impression equals $X).Companies must standardize their approach to measurement and weigh eachmeaningful metric according to the value of the objective it represents. Forexample, growth and reach metrics should be important for companies that havegrowth and reach related targets and goals.Every company will do measurement differently, even if there are similarities acrossall of them. What is key is to understand everything that can be measured and toensure that what is most meaningful is measured correctly and consistently.
  34. 34. Join the Debate! @usefulsocial #StateofCSM usefulsocialmedia.com35Drawing ConclusionsIn some areas, social media has stayed remarkably (some would say worryingly) static.In others, real progress has been made.2012 and we have made progressThere are three distinct areas of meaningful progress in 2012:1 Social media has become far more critical to - and integrated within - broader marketingstrategy2 Social has taken meaningful steps into other areas of business, and beyond marketing- and this is set to continue (and accelerate) in 2013. The expectation is that by theend of 2013, the use of social tools for better customer service, employee engagement,crisis resolution and customer insight will become the norm. One need only consider thefact that nearly 20% of social media teams now report directly to the CEO to see thisdevelopment writ large.3 Organisational models are changing and maturing. Internally, the hub and spoke modelnow dominates, and implies social is becoming embedded across many business units.Equally, the rise of social media has led to meaningful changes in the way the wholecompany works together - precipitating an increased transparency, and a drive to betterinter-departmental collaboration.Issues to be resolved in 2013Two areas show potential problems - though one can be dealt with quite simply.Our figures show a slowdown in budgets being allocated to social activity. A simplisticreading would suggest a decreasing focus on social within business. We are more convincedby the argument that initial expenditure is over, and that maturation of social engagementin-house has reduced the need for spend on external assistance from vendors and otherservice providers.The second problem is deeper, and harder to deal with. The measurement of social media’simpact and value is still deeply flawed, and fundamentally based on the wrong metrics.The key KPIs chosen by our corporate respondents indicate a weak and simplistic focus onbasic numbers - with a depressingly small number of people pushing ahead towards morecomplex, qualitative metrics - which are far better equipped to give companies detailedinsight on their progress and activity.ConclusionsIn short, social has undeniably become a fundamental impact on how business doesbusiness. Increasingly, social networks and tools are changing companies, and helpingthem to achieve better results in all areas of business.There is still a way to go. 2013 will be characterised by the journey away from ‘social mediamarketing’ and towards becoming a ‘social business’ and all that entails.
  35. 35. Get more from USMJOIN THE COMMUNITY FOR CORPORATESOCIAL MEDIA EXECUTIVES!11IN-DEPTH INSIGHT FROMCORPORATE LEADERS ANDANALYSIS ON ALL THE KEYDEVELOPMENTS IN SOCIALOur website features exclusive interviewswith some of the best minds in corporatesocial media. Over the last few months we’vegone into detail with companies like Nokia,KLM, Orange, ESPN and Domino’s Pizza.We’ve also conducted in-depth studies oncontentmanagement,bigdata,brandadvocacyandcrisismanagementinthelastfewmonths.If you want cutting edge thinking andpractical advice on corporate social media,join us at www.usefulsocialmedia.com12WORK WITH YOUR PEERSTO SOLVE PROBLEMS ANDLEVERAGE OPPORTUNITIESWe know the best person to give youadvice is someone that has directexperience. That’s why our conferencesfeature ONLY corporate speakers withreal ‘skin-in-the-game’ experience, talkingto other corporates about how to makesocial work for their business.We’ve had over 2,000 executives join usso far. To find out more about your nextopportunity to meet them, check outwww.usefulsocialmedia.com/conferences13GET INVOLVED INTHE DISCUSSION94% of the world’s most powerful brandsare part of our community. And you cantap into that well of expertise whereveryou are. We’re on Twitter, Facebook,LinkedIn, and Google+.Come and join the conversation...WHO’S ALREADY PART OF THE COMMUNITY?WHAT YOUR PEERS THINK OF USEric ClemensManager - Enterprise Marketing,Verizon WirelessUSM has consistently deliveredrelevant events. My spend is wellworth it based on the speakers(and their content) whom are“real world” practitionersStephanie ScottSocial Media Specialist,American AirlinesLoved it:awesome!Perrine CramptonSocial Media Strategist, eBayA wonderful opportunity to connectwith fellow corporate social mediapractitioners, share best practices andinsights to help advance the professionof social media in the corporate settingJOIN US AT WWW.USEFULSOCIALMEDIA.COM
  36. 36. The Fourth AnnualCorporate Social Media SummitNew YorkSuperior marketing response, sharper corporatedecision-making, enhanced innovation and a happier,more loyal customer:Become a social businessQUOTE ‘STATECSM’ to receive 15% off your pass!For more information visit www.usefulsocialmedia.com/newyorkTwo day business conference, June 12-13, 2013The New Yorker Hotel, New York#CSMNYusefulsocialmedia.com/newyorkA practical and interactive business conference built for social media,marketing and communications executives:MasterCard WorldwideAlfredo GangotenaChief Marketing OfficerThe Hertz CorporationBob StuartChief Marketing OfficerOutback SteakhouseMike KappittChief Marketing OfficerSears K Mart Seasonaland Outdoor LivingJennifer DominiquiniChief Marketing OfficerFootlocker/EastbayDave LokesChief Marketing OfficerGet best practice from theglobal leaders: Exclusive strategicinsight on the future of social from8 Chief Marketing Officers from someof the biggest brands in the world.Get closer to yourcustomers through yoursocial strategy: Build valuablerelationships, humanize your brand andbecome customer centric to enhancelong-term customer loyalty.Stand out in a highlycompetitive market:Become a social business, achieveconsistency of message anddifferentiate your company.USMAmy SherwoodVice President - Public Relations Consumer Affairs, YUM! BrandsDewayne HankinsDirector of Social Media, Los Angeles KingsThe summit is highly worthwhileand an excellent way to gainactionable insightsYou literally couldn’t walk awaywithout taking something youcould use in your business

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Every statistic, benchmark and fact you need on corporate social media in 2013 – direct from hundreds of corporate practitioners "The State of Corporate Social Media" is a free briefing from Useful Social Media on how large companies are using social media, written by @gnjohnson. It is based on responses to our annual survey – and this year we had over 900 respondents – so the date is more reliable and complete than ever before. When you download your copy, you’ll get insight on: * How companies are organising social media expertise internally: Insight on organisational models for the best adoption of social media across your whole business * The current ways that large corporates leverage social: We look at marketing, customer service, reputational risk and much more * Predictions for the year: How will corporate use of social media change and evolve over 2013? * How much should you spend on your social strategy?: Some in-depth feedback on corporate social media budgets – and whether they’re increasing! * How your peers measure social success: A look at the metrics and KPIs that large businesses use to track social impact With over 5,000 words of analysis, and 30+ different charts and graphs, this is an invaluable piece of research for anyone working on social media for a large company.


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