Social business—a company’s move from a presence on social platforms to
strategic engagement that supports business goals, fosters brand
affinity and generates co-created value—is no small undertaking for
corporations, but it is undoubtedly the direction in which top companies
are heading, according to an in-depth study on social media trends
released today.
The 2012 study released by FedEx and Ketchum finds that leading companies are actively transitioning into social businesses, creating stronger communities and relationships with their internal and external audiences in the process. (Photo: Business Wire)
The move to social business for many of the world’s most recognized
companies faces a hurdle, however: Social media tools have radically
transformed the way people engage with the world around them, yet many
of the corporations studied that cater to and employ these individuals
appear to have been slower to find ways to effectively connect in these
channels.
The 2012
FedEx/Ketchum Social Media Benchmarking Study,
presented jointly by FedEx
and Ketchum,
analyzed the changing impact of social media on business today. The
study updates and expands upon research findings first released in 2010.
As part of the research, quantitative surveys were completed by 55
communications and marketing executives at companies in the U.S. and
internationally. In addition, detailed qualitative interviews were
conducted with 30 communications and social media thought leaders.
“The rise of social media is both the biggest business communications
challenge and opportunity in decades,” said Bill Margaritis, senior vice
president of Global Communications and Investor Relations at FedEx. “Our
survey provides a dynamic look at how business is evolving and expanding
its social platform use, what's working so far, and what might be next.
Younger audiences in particular expect to interact with businesses this
way; businesses building for the long-term will benefit by learning from
our findings.”
The findings suggest that these business executives believe they have a
strong framework in place for supporting the needs of customers and the
general public online, and they are most effectively using social media
to enhance brand reputation and awareness, provide customer service and
strengthen relationships across key stakeholders. The research further
suggests that these companies believe they are particularly effective at
strengthening relationships among customers (51 percent), the general
public (52 percent) and partners and suppliers (40 percent). With
effective strategies in place for these stakeholders, companies are
turning their attention to improved engagement with employees, via both
external social tools and improved social functionality of internal
platforms such as company intranets.
“Companies today recognize that employees are often their most
passionate, credible and impactful brand ambassadors, both internally
and externally, and are designing communications strategies that reflect
that reality,” said Tyler Durham, partner and managing director of
Ketchum Pleon Change. “The 2012 study revealed significant movement
among those analyzed in the area of internal social connections on two
fronts: internal engagement between the company and its employees, and
empowerment of employees to represent the brand externally. Both
approaches support the move toward true social business and will
ultimately foster real business results in terms of employee retention,
engagement and productivity.”
While about half of 2010 study participants were focused on improving
their intranets and expressed an interest in redesigning their intranets
to include greater social media capabilities, 2012 results indicated
that the participants are increasingly encouraging employees to own
social media efforts and act as confident and active ambassadors for the
organization. In fact, 85 percent of the companies who use social media
to engage employees reported that employee participation in their
organization’s social business efforts increased over the past 12
months. These companies believe they are effectively using these
strategies with employees in the social space to:
-
Strengthen relationships (46 percent)
-
Share and tap into expertise (44 percent)
-
Foster collaboration, dialogue and discussion (44 percent)
-
Increase participation in a program or an initiative (38 percent)
Interestingly, while there was extensive discussion in 2010 around
development and enforcement of employee social media policies that might
limit employee interactions with these tools, many of these companies
appear to have become more comfortable by 2012 in educating and
empowering employees and customers to operate as brand ambassadors
capable of managing the social conversation with the support of social
media policies and guidelines.
Social business also is driving organizations to become more adaptive to
marketplace needs as they use social tools to listen to their
stakeholders and respond by providing them with the content they want to
receive in the channels they want to receive it in. Organizations are
also adapting products and services to fit stakeholders’ preferences and
co-create value.
“Social media benchmarks aren’t going to help a company turn into a
social business. To be successful they really need to become an adaptive
business and understand, listen and respond to their customers,” said
Brian Solis, principal at Altimeter Group, who participated as a thought
leader in the study.
While expansion of audiences actively engaged via social media was a
clear theme of the 2012 study, another noteworthy trend was the
increasingly expanded ownership of a company’s social channels. In fact,
one-third of participating companies (34 percent) list social media as a
shared responsibility in their organization, often with pieces belonging
to communications, marketing teams and/or web and digital. Most included
companies (64 percent) also said the structure and roles in the
marketing, communications or human resources teams have changed as a
result of social business.
A significant factor in the evolution of social business can also be
attributed to executive leadership having a better understanding of how
social media is a necessary component for business success. Seven in 10
of these companies with some executive engagement in social media say
their executives believe engagement in social media adds value through
brand or reputation building. One quarter of these companies report
their executives have a high or somewhat high level of engagement in
social business in their organization.
“We wouldn’t have been this active if it wasn’t for the company’s
executives,” shared Peter Osborne, Communications Executive at Bank of
America. “Social media is now an everyday part of the conversation.”
One thing that hasn’t changed since the 2010 study is the challenge
presented in the area of measurement. A majority of the companies (80
percent) conduct some type of social media measurement, but many also
admit to challenges, particularly where external audiences are concerned.
In looking for ways to crack the ROI measurement code, 84 percent of the
companies that measure social media focus on engagement, while 69
percent track impressions, 53 percent analyze influence and 51 percent
assess tone. Some companies even report developing social scorecards in
the years since the last study, attempting to directly track the
financial impact of social media efforts. While the search for a
measurement solution goes on, 84 percent of survey participants agree
there will always be some aspects of marketing that cannot be measured,
but are important nevertheless.
More information, including the study’s full findings, can be found at http://www.2012socialbusinessstudy.com.
Methodology
Ketchum Global Research & Analytics conducted a survey among top
companies. A total of 55 online surveys were completed among the target.
Change management and workplace communication firm Ketchum Pleon Change
conducted 24 interviews with companies of various industries and sizes
and six additional interviews with thought leaders to gather supporting
qualitative data.
Interviews and surveys were conducted from March to May 2012.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with
a broad portfolio of transportation, e-commerce and business services.
With annual revenues of $43 billion, the company offers integrated
business applications through operating companies competing collectively
and managed collaboratively, under the respected FedEx brand.
Consistently ranked among the world's most admired and trusted
employers, FedEx inspires its more than 300,000 team members to remain
"absolutely, positively" focused on safety, the highest ethical and
professional standards and the needs of their customers and communities.
For more information, visit news.fedex.com.
About Ketchum
Ketchum is a leading global communications firm with operations in more
than 70 countries across six continents. Named 2012 PR Agency of the
Year (PRWeek) and the winner of an unprecedented three
consecutive PRWeek Campaign of the Year Awards, Ketchum partners
with clients to deliver strategic programming, game-changing creative
and measurable results that build brands and reputations. For more
information on Ketchum, a part of Diversified Agency Services, a
division of Omnicom Group Inc., visit www.ketchum.com.
About Diversified Agency Services
Diversified Agency Services (DAS), a division of Omnicom Group Inc.
(NYSE:OMC) (www.omnicomgroup.com),
manages Omnicom's holdings in a variety of marketing communications
disciplines. DAS includes over 200 companies, which operate through a
combination of networks and regional organizations, serving
international and local clients through more than 700 offices in 71
countries.
About Omnicom Group Inc.
Omnicom Group Inc. (www.omnicomgroup.com)
is a leading global marketing and corporate communications company.
Omnicom's branded networks and numerous specialty firms provide
advertising, strategic media planning and buying, digital and
interactive marketing, direct and promotional marketing, public
relations and other specialty communications services to over 5,000
clients in more than 100 countries.
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