Most companies can’t connect social media efforts to success
Nov 9th

For the last two months I have been eagerly anticipating the results of Dr. Ben Hanna’s Business.com 2009 survey of corporate social media utilization. Why is this report significant? With nearly 3,000 valid respondents, this is probably the largest survey ever conducted on this subject and also represents one of a handful of social media research projects with a methodology and analytics that I actually trust. Let’s get to some of the highlights and implications:
Where’s the beef?
Some of the most interesting findings were around the hot topic of “measurement.” About 65% of the respondents gauge success by “web traffic” followed by engagements with sales leads (57%), brand awareness (54%), customer engagement (50%) and revenue (42%).
But as the graph above indicates, most companies report they can’t see a connection between social media initiatives and success. For even those judging success by something as simple as “web traffic,” only 15% thought they were seeing progress. More confidence was expressed in the ability to impact brand reputation/awareness (33%), and engagement with sales leads (26%). Of the 609 respondents trying to track revenue, nearly 80% could not see an impact from social media initiatives.
Lack of adequate data is a problem
Another dilemma presented by the research is that most companies don’t believe they are getting adequate metrics to even measure results.
At the top end of the scale, 65% of respondents using web site traffic as a social media success metric report that the information they need to measure results is easily accessed when needed. Those measuring brand metrics – awareness and reputation – fall to the bottom of the scale. Only 50% believe they can measure the impact of social media initiatives on this metric. I’m actually surprised the number is even that high.
The survey also concludes that those with more experience in social media do a better job measuring impact.
Less than 10% of the companies surveyed pay to use any monitoring service. Free apps like Google Search, Google Alerts and Twitter Search lead the pack.
Surprises in user base
Nearly 65% of the survey’s respondents reported using social media as part of their normal work routine. The results by job role were somewhat surprising in that respondents working in the IT department were significantly less likely than those from almost every other department to use social media. People associated with consulting, PR, real estate and marketing were heaviest users.
Those directly involved in planning or managing company social media initiatives spend about 18 percent of their time devoted to this. Combined with other data in the research, you might conclude most companies are still “dabbling” in social media initiatives.
High community participation
I was surprised to see that over half of respondents said they participate in online business communities or forums. This is far higher than the typical 2% participation rate among monthly visitors to online blogs and communities. The researchers explained that this difference may be due to how study respondents understood the word “participate,” possibly interpreting it as “visit,” or that the rapid expansion in the number of niche online business communities may be influencing greater usage.
Top sites being used by corporations? Facebook (80%), Twitter (56%), LinkedIn Groups (39%), LinkedIn Companies (38%), and YoutTube (35%).
All in all, very enlightening research. What do you think? Were you as surprised by some of thes results as I was? What’s your take on this?
Are you using your buffalo?
Nov 6th
Inventory — A customer in France made coated metal plates and, for quality control purposes, had to keep a large volume on hand in a warehouse. This tied up valuable working capital. We had the idea to use this as a rapid-turnaround stockpile. They could sell and ship material out of the warehouse for customer emergencies as a premium service — at a premium price!
People — A local company said they needed my help because “everyone was just sitting around” with their business levels so low. I saw this as under-utilized human capital. How could they put these people to use to connect to customers and discover un-met or under-served needs? Turn EVERYONE into a sales person? Study the competition?
Information — A client had developed a weekly email update to keep their salespeople on top of changing market conditions. A survey indicated their customers were hungry for the same type of information. Their email was turned into a premium information service to increase customer satisfaction and loyalty. They leveraged information they already HAD to create a siginificant new customer benefit.
Services — I recently taught a class on recession marketing. The class content is now an asset, part of my “buffalo.” I turned some of the ideas into articles for my website and now, my blog. I promoted this content through online forums and social media. One article had more than 500 downloads in two days. These new contacts were added to my mailing list for further follow-up. The session was videotaped and edited into short topics for my website and YouTube.
How are you using the whole buffalo in your business?
An interview with GE’s Social Media Wizards
Nov 5th
The GE Social Media Team: Gary Sheffer, Jen Walsh, Sean Gannon, Lisa Lanspery, Mike Eisenreich, Megan Parker and Vivek Kemp
- Megan Parker – “The Enthusiast” and GE’s Twitter-er. An example of her creative flare: “Hey baby! GE donates $8M for UK maternal hospital”
- Sean Gannon – “The media guy” corralling stories from around the GE system for the team
- Jen Walsh – “The web expert” and fan of llamas.
- Vivek Kemp – “The reporter” and balloon artist.
- Lisa Lanspery – “The storyteller” and computer enthusiast
Megan, as GE’s lead Twitter-er, how do you describe to your mother what you do for a living?
Parker: “I’m fortunate to work and live close to my family. So when I started my role as a social media communicator, I did the most logical thing I could think of — I scheduled a Parker family meeting. We spent a couple of hours one Sunday afternoon in the family dinning room going from the principles and theories of social media up through the latest and hottest tools. I wanted to ensure that my family understood that social media has changed the way people share and converse on a large scale.”
Other than subject matter, how is it different managing social media for GE instead of doing it yourself as an individual communicating with friends?
Gannon: “The biggest difference is remembering that no matter how casual the conversation is online, what we say via various social media is, in the end, still the voice of GE. While it’s not the voice of “BIG GE,” as in an official press release or a viewpoint on our main website, what we say is nevertheless trusted by our audiences to be factually correct – 100%.
“That requires balancing the instinct to stay informal with the discipline to only inform our conversations with well-researched information. In this sense, we are much more like the news blogs of major media organizations because if you go to these sites you’ll find humor, informal writing, asides, genuine human voices (not corporate-speak) – but you’ll also find an unwavering attention to detail and facts. That’s different from shooting off a story or a comment to a friend. Causal doesn’t have to mean sloppy or lazy when it comes to the facts.”
How has GE’s social media strategy changed since its inception?
Walsh: “I like to think of GE as a corporate pioneer in the social media arena. Before ‘consumer-generated content’ became a term of art, there was the GE “Pen,” which we created in 2003 when we launched GE’s new “Imagination at Work” campaign. The basic thought is that every idea begins with a sketch, so why not let people doodle and put their own imaginations to work.
“Internally, GE employees have been able to create blogs and wikis for several years, as part our project management and workflow toolset known as SupportCentral. We launched ‘From Edison’s Desk’ in 2005 to the delight of scientists and technologists at our Global Research Center, but more importantly, to give promising, job-seeking PhD candidates a regular view into the type of work we do in our R&D labs.
“In 2006, we asked consumers around the world to “Picture a Healthy World”. After they crashed our servers (we had no idea so many people were so healthy!), we had a great set of photos and stories that we could show and share when we took over all the digital signs in Times Square on World Health Day.
“We’ve made our monthly innovation stories on GE.com sharable. And as our Managing Editor, Sean Gannon, likes to say, we’re letting everyone and anyone who visits GEreports.com “have it your way.” Just come to the site and decide if you want to get GE Reports via RSS, email, Twitter or YouTube. Thanks to Mike Eisenreich, our technologist, you can now embed our new widget. Finally, Beth Comstock, our CMO, has a moblog called “BlackBerryBeth,” where she shares her ideas and observations with thousands of communicators and marketers at GE. These regular updates keep a far-flung team connected and also inject fresh thinking into the organization.”
What on-the-job learning has been most beneficial to your success?
Kemp: “Over the past five years I’ve transferred from newspapers to broadcast news and finally to GE’s digital media team. Each jump has required a willingness to adopt new technologies and techniques. But really, the entire job of reporting is an active task of learning (and listening). You parachute into a person’s life, into a conflict, or into an event and you’re charged with learning and digesting those issues, so you may translate them into words, pictures or videos (and increasingly Twitter, blogs and podcasts).
“I’ve been fortunate to learn how to write an article, shoot and edit a digital video and narrate a broadcast story. But, honestly, the single most important on-the-job lesson I’ve learned, and been lucky enough to practice, is how to craft a story – an on-going lesson. And one I hope I’m always learning.
How will GE convert the expense of social media activities into shareholder value?
Walsh: “GE’s social media activities are part of the way we work and communicate every day. They are not an extra expense to the company, but rather part of our regular media and communications mix. GE has become a daily news publisher, sharing our stories and data in text, audio and video formats, available anytime, anywhere online. The ROI for shareholders is more timely and useful information that they can share and interact with. That’s what I call disclosure!”
Are there different skills necessary to be successful in social media compared to traditional types of marketing?
Lanspery: “Relationships are pivotal in both online and offline campaigns. What is different in social media is how information and opinions about your products and services will appear without any attempt on your part to control the source and flow of information. The key skill you need for social media is flexibility — flexibility to participate in the conversation.”
B2B’s social media superstars
Nov 4th
Success stories in this space are few and far between. A recent report showed just 14% of the largest industrial companies have a social media strategy, let alone a good one. There are many good reasons for the slow adoption of SM at the industrials, including the perilous economy and a customer base that could care less about your freakin’ tweets if their railcar of chemicals is an hour late.
A few months ago I spent time assessing the state of SM at B2B companies and overall, my research showed that B2B companies don’t seem to get the notion of community and are trying to fit traditional marketing stereotypes into the new media. Here are five breaking the mold and leading the way:
Number 5: Ingram Micro — Ingram Micro is the world’s largest technology distributor to the IT industry. You would think with a geek-fest customer base they would have all of the sweetest social media apps – and they probably do, behind a secure firewall where it belongs! Ingram makes the list for the very cool open Facebook sites connecting employees among its far-flung global operations. Recently used Twitter to “broadcast” from a partners meeting.
Number 4: Boeing — The time-lapse YouTube videos of planes being built are impressive but the cornerstone of Boeing’s social media presence is a longtime blog, started by their VP -Marketing Commercial Airplanes, as a way to expand the conversation of commercial aviation to the Web. In its first two years, Randy’s Journal, saw more than a half million individual visits. They have a secure presence on Twitter. Any good? Don’t know — I wasn’t allowed through the gate. Let me in! I have an appointment to see the wizard!
Number 3: Cisco Systems — Extraordinarily good community-building on Facebook, including a blog, message board, news and open membership for employee sites around the world. Proving to be a real B2B social media innovator as they launch products only on digital channels. They even launched a product through Second Life. I don’t know if anybody actually saw it, but they did it.
Number 2: General Electric — I’ve found that when a company is well-managed, it tends to do EVERYTHING well. GE is no exception. They have a thoughtful, integrated social media presence that is informative, professional and … fun. GE distinguishes itself as the only leading industrial company that places an actual face with its SM efforts — Megan Parker. She effectively mixes effective press release reporting with 140-character wit. The real hub of the SM wheel is GEreports.com, a blog-style information center making effective use of videos and search-by-topic capabilities. You have to love a company that has a post on its Facebook page titled “I’m over 30 and still think it’s OKAY to get hammered from time 2 time!!”
Number 1: IBM — For years their print and TV ads have puzzled me, but they seem to be getting social media right. IBM is a great example of a company with a real interest in community – a logical move since their tech audience loves online forums and bulletin boards. Check out their blog for proof of that. In fact, the IBM corporate social media presence is minimal as they let customers and employees tell their story. They’ve created the conversation and then they’ve let go of it. IBM’s social media portfolio includes virtual worlds, podcasts, video and the use of Twitter to keep its 380,000 employees (in 150 countries) connected.








You’re in marketing for one reason: Grow.
Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.
-Mark Schaefer

