the economics of the socially engaged enterprise: what separates the leaders from the laggards
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A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012) presented at Arthur W. Page Society, Spring Seminar, March 2012TRANSCRIPT
The Economics of the Social ly Engaged Enterprise
A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012)
Presented at Arthur W. Page Society, Spring Seminar, March 2012
W h a t S e p a r a t e s t h e L e a d e r s f r o m t h e L a g g a r d s
1
The Social ly Engaged Enterpr i se Def ined
It is a new kind of enterprise that actively engages customers in meaningful conversations – enabled by social technologies – so both parties benefit.
This mutual exchange of value is not just about products but about valuable information that builds commonality of interests and a sense of trust.
2
Why Research? Why Now?
1. Well beyond experimentation
2. Moving beyond marketing and communications
3. Some leaders are getting it right
4. Examples of quantifiable business impact
5. C-suite on-board with growing interest in business impact
3
The Research
4
5"
The survey • 329 respondents • US and Canada only • 19 industries represented
CEO 31%
C-level executives 47%
Other senior executives 53%
Senior executive perspective from 19 industries
6
Executives agree that social engagement has tangible economic benefits
84%
67%
65%
68%
65%
58%
37%
81%
13%
29%
30%
28%
30%
37%
53%
17%
2%
4%
5%
4%
6%
4%
10%
2%
0% 20% 40% 60% 80% 100% 120%
Improved marketing/sales effectiveness
Improved brand or stock value
Improved collaboration with partners
Improved product/service quality
Improved speed to market/innovation
Improved talent retention
Decreased costs
Increased market share
Advantage No Impact Disadvantage
7"
Respondents see a particular impact on brand
58%
34%
42%
38%
54%
42%
66%
58%
62%
46%
0% 20% 40% 60% 80% 100% 120%
Decreased cost of sale or production
Increased perceived value of the brand/stock value
Increase market share
Increase revenue
Improve operating margin
No Impact Impact
The bigger the buy in, the bigger the perceived return
8"
96%
93%
79%
87%
Increased market share from social engagement initiatives
Marketing team committed to social
engagement
Sales team committed to social engagement
C-suite committed to social engagement
Customer service team committed to social
engagement
0% 20% 40% 60% 80% 100%
No change to market share from social engagement initiatives
82%
65%
45%
58%
Adoption amongst the ‘leaders’ is still nascent
9"
Increased market share from social engagement initiatives
11.1% 18.9%
7.9% 16.6%
4.8% 12.1%
6.3% 14.7%
4.8% 22.3%
11.1% 21.5%
0% 20% 40% 60% 80% 100%
C-suite social media champions
Online listening initiatives
Relationships with online influencers
Crowdsourcing
Sales driven social media campaigns
Employee use of social media
No change to market share from social engagement initiatives
But only 17% have responsibility well distributed throughout the organisation
10"
81%
Where do executives see the greatest benefits of social engagement?
17%
agree that social engagement has tangible benefits
• Project management • Innovation "• Collaboration "• Efficiency gains • Cost savings
11"
81%
Responsibility distributed throughout the organisation
"
Responsibility assigned to one department
67%
There are business benefits to encouraging customers to talk publicly – whether
positive or negative agree
agree
12"
Marketing and branding"41%"
Marketing Communications (e.g., Public Relations)"40%"
Distributed throughout the organisation"17%"
Sales"16%"
Customer service"11%"
Education and Training"7%"
Human Resource"10%"
6%"Centre of Excellence"
Research and Development (R&D)"8%"
Most companies see marketing and communications as having the prime responsibility for social
13"
69%" 12%" 20%"
54%" 21%" 25%"
67%" 12%" 20%"
Agree" Disagree" Neither Agree nor Disagree"
Stakeholders speaking out: what’s the value?
Customers speaking out via social media increases sales
Employees speaking out helps us attract talent
Suppliers connecting via social media raises our game
0% 10% 20% 30% 40% 50% 60% 70% 80%
Operations management
Finance and accounting
Product & service development
Human Resource
Customer service
The C-Suite
Sales
Marketing
Is there a problem with finance and HR?
14"
Future leading advocates
Today’s leading advocates
15"
What are the roadblocks to deeper social engagement?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Inability to prove ROI 45%
Legal or regulatory concerns 33%
An unclear strategy for change 32%
Complexity of organisation 25%
24% Poor collaboration within the organisation
Lack of engagement among competitors and peers 21%
Lack of employees with appropriate skills 23%
16% C-Suite does not see need for change
Lack of budget 22%
The development of more robust measurement techniques
16"
27% Intuition
24% Key Performance Indicators
20% Benchmarking
19% Relevant economic metrics
28% Don’t measure
13% Don’t know
30%
27%
20%
10%
21%
33%
Today In 2 years
The C-suite is on board
17"
– and is are key to developing a clear, consistent & robust approach
18"
• How can companies maintain a proactive response to the
ever-evolving social landscape?
• Are companies overly preoccupied with measuring a phenomenon that is in many ways a cultural shift?
• What are the next steps for companies as they try to develop more mature social engagement strategies?
Key questions the EIU is currently considering:
S e t t i n g t h e C o n t e x t f o r o u r P a n e l
19
Social ly Engaged Enterpr i ses See 4X Better Returns
7.7%
MOST SOCIALLY ENGAGED LEAST SOCIALLY ENGAGED
4x
1.9%
20
6 Dist inct Segments Emerged
Trail Blazers 2.7%
Creators 22.2%
Thrivers 14.6%
Observers 18.5%
Incrementalists 30.1%
Exceptional Business
Value Return
Limited to No Business
Returns
No Social Engagement
Presence
Limited Social Engagement
Presence
Extensive Social
Engagement Presence
No/Low Investments High Returns
Limited Investment
High Returns
Well Architected
Proven Returns
Low/No Investments
Low/No Returns
High Investments Low Returns
Average Return
BUSINESS
VALUE
RETURNS
LEVELS OF SOCIAL MATURITY
1.9%
3.9%
Limited Investments
Scaled Returns
7.7%
Dreamers 11.9%
21
The Economics of the Social ly Engaged Enterprise
A PulsePoint Group Study based on a survey by The Economist Intelligence Unit (Wave I - 2012)
Presented at Arthur W. Page Society, Spring Seminar, March 2012
W h a t S e p a r a t e s t h e L e a d e r s f r o m t h e L a g g a r d s
22