“If you get hung up on the “media” part of social media, you will miss the mega change of social business. The time has come to recommend putting communities at the center of new enterprise management “to tap into the collective genius of your customers and employees.” Gartner
The information age is over. Information is available to everyone. We’re now into the age of “context” where companies need to better understand their audiences and communities. Social business is a new way of interacting, engaging, communicating and collaborating with your stakeholders to maximize the value of these relationships, and by doing so, your company stands to reap tremendous rewards and benefits. And yes, social business goes well beyond the marketing function, and it is as much about a company’s culture and mindset, as it is about its competencies and capabilities.
Buyers’ preferences and buying behaviors and patterns have changed drastically over the last few years. Your customers are buying differently so you need to sell to them differently and give them what they want because if you don’t your competitors will!
The Social Customer, enabled by Social Media and the Social Web, is a game changer that companies need to pay attention to. The customer is now in the driver’s seat, with everything from pricing to product information available in real time from trusted sources and social connections.
“Buyers don’t want to be an object of a sale . . . but rather the subject of an experience.” Paul Greenberg
According to comScore’s report “The Social Phenomenon”
- 81% of people check online comments before purchasing
- 56.3% of users said they “got to know” brands through online channels
- 58.7% made purchase decisions based on user-generated online info
- 89.9% of users still pay attention to online comments even when not making a purchase
- 56% of buyers feel stronger connections to brands that engage them on social media
- 92% of people trust user reviews over sales people – Penn Shoen and Berland
- 52% of readers said blogs factored into the critical moment they decided to buy – Jupiter Research
- 78% listen to someone else when it comes to buying not the company – Forrester Research
- Buyers wait until they have completed 60% to 80% of their research before reaching out to vendors – IDC
- 22% of time online is spent on social networking and reading blogs/reviews – Neilsen
- 70% of bloggers write about brands organically, almost half post product reviews – Technorati
- 65% of blog readers access blogs to get an opinion – Synovate
What is a Social Business? Definitions from the Experts
A social business is one with its communities, wherever they reside. As customers view businesses as one brand and not as a series of disconnected units or departments, a social business is connected, engaged and adaptive. United on all fronts, a social business connects the dots between value and customer experiences – Brian Solis – Author of the Book – “The End of Business as Usual.”
Business in 2011 changed dramatically from the pre-social web environment. The social web has changed customer, employee, supplier and partner expectations and is shaping a fresh way of interacting. The social customer, employee, supplier and partner each have a voice and the means to use that voice at scale. And people are listening. IDC Research
A social business leverages all the social tools and techniques of social media, but expands the usage and efficiencies beyond “media and marketing” to all of a company’s processes, both internal (such as human resources and talent management) and external (such as customer service, supply chain, product development, marketing, communications, sales and more) – Sandy Carter, IBM – Author of the Book “Get Bold.”
Social businesses are organizations that apply Web 2.0 technologies accompanied by organizational, cultural, and process changes to improve business performance in an increasingly connected global economic environment. The term social business reflects the broad effect that social networking can have on the diverse roles and business processes of an organization that encompasses the experiences of its employees, customers, partners, and suppliers – IDC Research
In short, a social business is not a B2B or a B2C, is it a P2P (Person to Person). – Adam Metz, Author of the Book “The Social Customer”
By 2015, the 20% of enterprises employing social media beyond marketing will lead their industries in revenue growth – Gartner
Today, getting closer to customers is a top priority for executives – Forrester Research
According to a McKinsey’s study with 1,700 executives:
- 74% are integrating Web 2.0 with customer interactions, and
- 75% are integrating Web 2.0 into employee day-to-day activities
- 69% report measurable business benefits
81% of CMO’s plan to link revenue to social media investment – Bazaarvoice and the CMO Club
IBM “The Essential CIO” insights from the CIO Study with 3,000 CIOs worldwide (May 2011), showed that 66% of CIOs from top-performing organizations see internal communication and collaboration as key to innovation.
- Number of CEOs who are now crowd sourcing with partners and customers, outside of their firewall, has increased by 60% year over year
- 50% of the outperformers leverage their ecosystem of partners, customers, suppliers and employees
The net net: when you collaborate internally and go outside of your firewall to engage with customers, partners and suppliers, you build brand equity and loyalty, add value, gain a competitive edge and increase revenue.
In part 2, we will take a look at the Challenges: Cultural, Organizational and Technical that companies are likely to encounter on their social journey, the benefits of becoming a Social Business and the Top Solutions Areas and Vendors to Consider.
Meanwhile, please participate in the conversation by providing your own thoughts, comments and real-life experiences. Would love to hear from you.
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As a revenue acceleration strategist, Francine Allaire work with corporations and emerging companies on accelerating their growth and increasing their revenue by harnessing the power of sales engagement, business partnerships, and social media strategies to enhance brand equity, generate leads and increase sales. For more information please visit: http://RevenueAccelerationStrategies.com
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