altimeter webinar: state of the social media management system industry

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February 7, 2012#smms

Jeremiah OwyangPartner, Industry Analyst

Andrew JonesResearcher

Social Media Management: An Industry Perspective

© 2012 Altimeter Group

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Agenda

Social Media Proliferation

Industry Overview

Emerging Market: Social Media Management Systems

Case Studies

Selecting a Vendor

Future Trends


This Webinar is based on our recent report:Today we take a deeper dive

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Available here: http://bit.ly/AltimeterSocial

Includes:

1. Surveyed 144 enterprise-class corporations

2. Surveyed 27 vendors

3. Interviewed 71 brands, agencies, software vendors, and industry experts


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Social Media Proliferation

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In 2010 Facebook surpassed Google and Yahoo! for share of time spent on web properties

Source: Comscore, February 2011

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Toward the end of 2011, it wasn’t even close

Source: Citi Investment Research and Analysis, September 2011

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Companies now average an overwhelming number of corporate-owned accounts



Panasonic lists official accounts world-wide – each of six region has many accounts, plus global accounts

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Cisco publishes to Facebook, Twitter, Blogs, YouTube Flickr, LinkedIn, and Slideshare accounts

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Companies not only have more accounts than ever, but more people publishing on them“Approximately how many employees post content to official social accounts?”

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Total Employees Avg. Number of Employees Posting

2,500 13

7,500 22

30,000 83

75,000 182

100,000+ 280

Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

140 respondents, all over 1000 employees

© 2012 Altimeter Group© 2011 Altimeter Group© 2012 Altimeter Group

Industry Overview


Social media crises are on the rise12


Three-fourths of social media crises could have been diminished or averted

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Yet companies are not coordinated% Companies with a Coordinated Approach to Social Media Deployments Across the Company

Base: 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)


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Few companies have a social media inventory% Companies with a Social Inventory of Existing Social Assets Within the Company



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And immature efforts are not meeting objectives% Companies for Which Social Media Efforts Meet Business Objectives



How Social Media Program Managers Plan to Deal with Increase in Customer Conversations(Respondents were allowed to select up to three choices)

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Top Priorities are Scalable Deployments

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As a result, companies are moving away

from rapid adoption, and now forming

operational expertise

A strategy for social media proliferation is

needed

© 2012 Altimeter Group© 2012 Altimeter Group

Social MediaManagement Systems


1) Governance

• Account control

• Cascading permissions

• Compliance and Archiving

2) Workflow

• Tag, flag, route

• Followup

3) Intelligence

• Reporting: Master view of all accounts

• Analytics: Predictive, hot spot measurement

What do Social Media Management Systems provide?20


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SMMS Adoption Is Growing Rapidly –Even Outpacing Predictions

Base: 2010, 2011 (Estimated): 140 global corporate social media program managers at companies with over 1000 employees (Q4 2010)

2011 (Actual): 144 global corporate social media program managers at companies with over 1000 employees (Q2 2011)


SMMS Spending22

Source: “How Corporations Should Prioritize Social Business Budgets” Altimeter Group, February 2011

We found that average deal size is now about $75k, but some enterprise deals range from $1-3M


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SMMS Market: Confusing MessagingFrequency of Messaging Elements across 25 SMMS vendors yields a focus on “SMMS/Dashboard” and “Social Media Marketing” –yet few differentiate further.

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Five Use Cases for Social Media Management

Source: “A Strategy for Managing Social Media Proliferation,” Altimeter Group (January 5, 2012)

Case #1:Intense Response

Case #2: Social Broadcasting

Case #3:Platform Campaign Marketing

Case #4:Distributed Brand Presence

Case #5:Tailored Service & Support


Case Studies


Case #1: Intense Response

Description:

High volume of interactions: support or marketing.

Requirements include monitoring and alerting tools, sentiment analysis, influencer identification, workflow routing, and tiered-governance features for tactical support teams.


Frontier Airlines operates more then 500 daily flights to more than 80 destinations. But when a hail storm in July damaged 22 of Frontier’s planes, it meant thousands of customers would face cancellations and delays.

Intense Response Case Study: Frontier Airlines27

Image: The Denver Post, Cyrus McCrimmon / AP


As customers faced long waits at the ticket counters and reservation lines, the social media group used Radian6 to track mentions of Frontier across the social web and reach out to help customers to re-book flights, get up-to-date information, and let their customers know they were there to help.



Frontier was able to engage with over 4,000 customers on the social web over a seven-day period, and during that time saw over 700,000 visitors to their Facebook page.


A more recent storm in Denver also resulted in delays and cancellations – and Frontier was ready to respond


Case #2: Social Broadcasting

Description:

Publishing marketing content (deals, media, news): PR or marketing.

Requirements include ability to post a variety of media types; ability to target messaging based on time, geography, social networks, and demographics; and a content library.


The Palms Hotel wanted to see whether social media could increase room bookings while maintaining room-rate integrity, and track transactions to show ROI.

Social Broadcasting Case Study: The Palms Hotel31


The Media Leaders, a group using HootSuite on behalf of The Palms, used targeted messaging to Twitter and Facebook users based on keywords and location, including trackable links.

Social Broadcasting Case Study: The Palms Hotel32

In a 30-day period The Palms gained 2,600 followers, exceeded the room rate reservation goal by 47% and exceeded revenue goals by 67%


Case #3: Platform Campaign Marketing

Description

Custom applications and features on specific social platforms: Interactive Marketers.

Requirements include customizable, white-label applications such as contests, interactive media containers, Q&A, commerce features, etc.


Pretzel Crisps wanted to raise brand awareness and reward fan loyalty, so they used Buddy Media to create a “$1-off” Facebook coupon exclusively for fans. Three weeks later, Pretzel Crisps switched to a coupon that offered “buy one, get one free.”

Platform Campaign Marketing Case Study: Pretzel Crisps34


Within 36 hours of posting the “buy one, get one” offer to its Facebook page, Pretzel Crisps doubled its Facebook fan base from 14,000 to 29,000.

Platform Campaign Marketing Case Study: Pretzel Crisps35

Overall, Pretzel Crisps saw an 87% redemption rate on the “$1-off” coupon offer, and a 95% redemption rate on the “buy one, get one free” offer.


So Delicious wanted to create new brand advocates, expand its fan base, and ultimately increase sales. Partner agency Sterling-Rice group developed a “100 days of change” giveaway campaign idea – and then Wildfire was chosen to deliver the sweepstakes to Facebook users.

Platform Campaign Marketing Case Study:So Delicious

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During the campaign, So Delicious saw its Facebook fan base grew by more than 1,000% and received 322,664 sweepstakes entries. The company also experienced two of its most successful sales days ever, increased category share by 60%, and saw increase of sales units by 74%.*

Platform Campaign Marketing Case Study:So Delicious

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*Note: the same campaign also ran on TV and in print


Case #4: Distributed Brand Presence

Description

High number of dispersed customer engagement points: multiple brands, departments, locations, and partners.

Requirements include scalable software that can manage a large number of users with cascading permissions, multiple social networks, and language capabilities.


Intel needed to provide content to 35 different markets, as well as empower regional stakeholders to adapt content and manage their own presence. To do so, Intel partnered with Vitrue to deploy a Social Media Management System and train hundreds of end users.

Distributed Brand Presence Case Study: Intel39


Today Intel has 4.4M+ Facebook fans with nearly 100 live Tabs and 35+ Pages globally under Facebook.com/Intel – all managed from a single dashboard.

Distributed Brand Presence Case Study: Intel40

Ekaterina Walter (@ekaterina), Social Media Strategist at Intel, told us Intel has up to 200 users using Vitrue’s SMMS, both internally and at agencies.

Note: Some organizations require additional dimensions to this use case. Intel is a distributed organization, but is not publishing to blogs or many other networks like LinkedIn using their SMMS.


Case #5: Tailored Service & Support

Description

Custom development and white-glove support: large and regulated organizations

Requirements include custom work and reporting, education programs, a large support team, data security and availability, and service-level agreements.


One of the world’s biggest lifestyle brands decided to move toward social business, and partnered with Sprinklr to:

Tailored Service & Support Case Study:Large lifestyle brand

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1. Establish a standard for social engagement and customer service

2. Generate positive social sentiment toward the brand

3. Identify and catalog influencers and advocates to build relationships and promote WOM


Beyond standard deployment features, this brand-sensitive organization had special requirements, such as: A test environment with fake accounts, queues, and rules

weeks in advance of launch

Collaboration with various client business units and agency partners to establish strategy and policies

Around-the-clock dedicated strategy, support, and engineers during initial launch week

Custom daily reports


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Results include: Profiled 655 key influencers and 3,700 consumers for new

social consumer and influencer database in first three days of launch

Real-time crisis support: provided strategic and technical solutions when campaign keywords became hijacked by an unaffiliated group

Allowed 60+ users across 11 sub-brands and various business units to engage directly with users around the globe


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Selecting a Vendor


Vendor Overview: Download report http://bit.ly/AltimeterSocial

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http://bit.ly/AltimeterSocial

http://bit.ly/AltimeterSocial


Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253

Future Trends


1. Corporate lead compliance and risk audits will mandate social media managements systems

2. An oversaturation of vendors entering the space from several directions, causing price erosion in near term

3. Beyond agency adoption, outsourced call centers fuel new growth

4. This saturated market will shake out, similar to other social software markets

5. Integration with other communication and intelligence systems will provide new value

Five Future Market Trends for the Social Management Space

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We will continue to publish additional data and findings on the Web Strategy blog

• Vendors please keep us updated

• We’re seeking case studies from brands

We offer the following services for Brands

• Best practices workshops

• Customized vendor selection based on internal interviews

We offer the following for Agencies and Vendors

• Strategy session: Roadmap, partnerships, go to market

• Lead generation through webinars, and in person speeches.

Altimeter’s Continued Role49

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Jeremiah OwyangIndustry Analyst

[email protected]

web-strategist.com/blog

Twitter: jowyang

THANK YOU

Andrew JonesResearcher

[email protected]

andrewmjones.com

Twitter: andrewjns

altimeter webinar: state of the social media management system industry

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