There’s a lot of passion out there for social media and it’s incorporation into every aspect of our business and personal lives. It’s almost reminiscent of Christian revival of the late 1960s and early 1970s (remember the “Jesus Movement”?). Everyone wants to preach the good word of social media and it’s amazing healing powers. Those that believe will see heaven and those who don’t will burn everlasting in a lake of fire. . .yes?
Recently, I read a post from Mr. Jay Baer who operates a wonderful blog called “Convince & Convert”. The article, “Why You’re the Key to Social Media Success”, noted that in 86% of companies, executives are still not using social media. “The biggest obstacle standing in the way of companies’ embrace of social media isn’t the tools, or measurement confusion, or even being able to make the time to do it day-to-day.” states Mr. Baer. “The biggest obstacle is corporate culture.”
Corporate culture – the policies and procedures that define how a company will operate. Sure the social media tools are there but who has the time? Or the resources? Moreover, in corporate culture many approvals are necessary to create any new ideas. New ideas are easily dismissed as too risky or even unnecessary and with social media there are very few hard facts available as to return on investment. So they still do business the old-fashioned way: using traditional marketing, identifying prospects, presenting the benefits of their product/service, and closing the sale. Face-to-face in most cases. And that’s the way most companies will continue to do business unless someone can show them that this simple time-tested formula no longer works. And you know what? The formula ain’t broke.
In this social media craze we seem to have forgotten how many profitable companies, large and small, have successfully grown their revenues, customer base and trust over the years (and continue to grow) without the help of social media. So, if 86% of company executives are still not using social media, what does that mean? That they’re now foolish? That they’ve suddenly become rigid? That the company will meet it’s doom unless they utilize social media immediately despite offering a quality product at a competitive price, delivered with exceptional customer service?
No. What this means is that most companies are not yet ready to invest money or resources on social media training & research because social media can’t really be defined. It doesn’t exist anymore beyond a label. There are too many avenues for a company to consider when choosing the right social media strategy. A video campaign on youtube? Sounds simple enough! Just have to identify a company representative to speak on camera, get the already overburdened marketing department to come up with a good script, then have the PR department take a look at it, purchase a good video camera (or hire a professional video production company?), find a location…and then what? Just stick it up on youtube? Hmm, well maybe a facebook fan page would be best. But what do we put on it? Photos? Events? Who will manage it? How do we get people to “like” us? How will that help us get more sales? Scratch that, let’s go with a blog! So who will write it? CEO? VP of Sales? How often? What do we write about? Oy vey!
Fortunately, there are a plethora of self-proclaimed social media “gurus”, “experts” and “consultants” out there (most of whom have never worked a day in their life in corporate America – check the bios!) who will help guide you through the stormy social media seas. They’ll tell you about the handful of companies that have had some measure of success through social media campaigns (usually larger companies that have the budgets and resources to investigate social media strategies) and warn you of your company’s impending doom (in about 3-5 years) if you don’t accept facebook as your personal Lord and savior. “And many false prophets shall rise, and shall deceive many.” ~Matthew 24:11.
I strongly believe that in the coming years, research will prove that social media can be a very effective part of a company’s overall business plan and you will begin to see the investments into the development of social media manager positions and training in more and more companies. How big a role social media will play in a company’s overall business plan will be determined over time. 7-10% is my guess, mostly in customer service/retention, which could still mean millions of dollars to large companies. At that time, the social media revival will begin to ebb as more and more companies kneel at the altar, confessing their sins and being spared eternal damnation.
Back in the late 80’s, the Pixies, an indie pop rock group, were the darlings of the underground alternative rock scene. We believed they were the second coming of The Beatles (they were) and people who didn’t dig them were “squares”. Well, as soon as they were getting regular radio airplay and going platinum, we no longer wanted to associate ourselves with the masses who just a year ago couldn’t recognize the greatness of our beloved band. When everyone’s “getting it” its no longer cool…right? So we began our hunt for the next best kept secret in music. . .we found it in a band called Pavement.
Something else will surely come along for people to get passionate about and perhaps one day social media won’t be the buzz-word it is today but rather just another communication tool. It’ll become common. And until “those who do” engage with “those who don’t”, social media might never be more than “…sound and fury, Signifying nothing.” But I doubt that very much. I think it’s here to stay. Like Jesus.
Nuff said.
35 comments
OK...not that the DisqUS/ReTweet is properly setup with the intro lines, lets get to the point at hand :-)
I like your comparison with the Pixies ....thats something thats unexplored. In other words, once my mom is on Facebook, shouldn't I stop using Facebook? Or, once Corporations are Social Media savvy, shouldn't we quit Social Media? I think thats a great question and Im glad you brought it up Dan :-)
Im not going to pretend to see the future, but I've written a series of posts on corporations in social media...I hate to be "that guy that leaves links back to his blog" but since its super relevant, what the hell...:-)
http://dogandogs.com/the-psychology-of-business...
One thing is for sure...Corporations and social media go together like BP and environmental protection. lol
You make a number of good points. I agree with Jay - biggest hurdle in corp america to adoption is corp culture. I'd expand it a bit to include fear -- fear of consumer feedback, fear of failure, fear of being the one who fired up that first SocMe campaign that didn't drive immediate and trackable ROI...
And of course, for many companies, the traditional way is working just fine (as you note) so why fix what isn't broken? I do think though that in 3-5 years (maybe sooner) a lot of companies are going to wish they jumped on this wagon earlier than they finally do... they're going to look at competitors that do get in early and wish they had the knowledge and built in audience.
@TomMartin
Great reference to Jay Baer. I agree to an extent here as if people were coming out and saying that companies engaging in social media across the board saw a 40% increase in sales in the first 2 weeks of signing up it would be a different story. When you tell a company CEO that they are going to shell out money for something that may have a return in let's say 4-6 months after a targeted audience is built up and engaged with it suddenly becomes about the dollars lost by paying someone to do this.
I have to agree with Tom Martin as for those that did not get in now they are going to be sorry that they did not build their audience now. I do think that something bigger in SM is on the horizon. We may or may not be using the same tools as we are today. Blogging (gasp!) could be dead then or we could something bigger and better than facebook, twitter, or something that is a combo of them all.
Social media is not going to save a business in a day but it is another form of advertising and marketing that definitely is not yesterday's news.
@SuzanneVara
@SuzanneVara
I'd agree with you, as well as Tom, in that the corporate culture is often the biggest killer of social media endeavors. Explaining to CEO's that not being in on this particular boat could be akin to thinking TV was just a fad. Or that there's no way the telephone would ever compete with the telegraph (wonder if Western Union would like to have that decision back when it looks across the street at AT&T). Bottom line is that no one can be fearful of the future and still be successful in business. However, there's no reason to rush into anything either.
But this is different. So, Dad, go ahead and like social media, too. Knock yourself out. I'm not going to abandon it just because someone who remembers when banks gave out toaster likes it too.
And, social media, as you put it, has stamina just like Jesus. Corporate executives who dismiss it now will indeed be sorry later. They'll be playing catch-up and I know they hate that.
The word here, I believe, is integration. Mix the old with the new. Make a beginning.
The problem that I think gets missed so often - and why many seem to be slow to fully adopt - is that social media is not *new*. Yes, we have more technology and tools now to help listen to and interact with clients, prospects, fans, etc. We can post stuff on FB or Twitter, drop a video on YouTube, etc.
However, at the end of the day, social media is about being there before the sale. It's about building/earning trust before you say "buy my stuff." It's more of an inbound vs. outbound marketing model. It's about face to face relationships.
Again - the technology and tools make it easier now.
I think that where so many people get hung up is the "how to?" How do we *do* social media? How do we respond when someone says something negative about our company online? What happens when people start commenting on our blog? If we listen and folks are bashing us on Twitter because our service or product sucks, what now? As I've always said, social media does not make a crappy product/service better. In fact, it likely amplifies the bad. On the flip side, if your house is in order, social media can enhance your already good product/service.
To answer the "how to respond" question for me is often, "Just be yourself I often ask folks, "how would you respond to all of those scenarios in the offline world?" The only difference with social media is that you are behind a computer (for the most part).
Social media is often described as a cocktail party. You don't walk into a party and start talking about how great you and/or your company is. If you do, you'll be drinking on your own in short time. You listen, you ask questions, you build relationships and trust. Then, when the time is right - and it makes sense - you share a bit more about what you do for a living.
Another thing: We keep talking about social media as being this THING - like it's a separate part of the overall marketing mix. Social media is a way of doing business. It should just be a part of your day to day. Many successful companies have being "doing" social media for years. They've just called it something different. I think it was Amber Naslund who once told me that we used to build relationships and close deals on golf courses. Now, it's online.
Sorry for a bunch of random thoughts slapped into this comment. It's still early here in the 801...
DJ Waldow
Director of Community, Blue Sky Factory
@djwaldow
I think as sm has evolved (and its been around for a while now) it has become more difficult for companies to pinpoint an effective sm strategy (remember when myspace was the only game in town?). I don't think sm will be more than a small % of a company's overall growth strategy so I think companies will still have time to adapt in the next few years. Those companies using trial/error with sm now will definitely have an advantage...agreed!
As I stated in my reply to Tom, I do think those companies that are investing the time/resources now will have an advantage later but there aren't many secrets in the business world so newer companies will just look at the success of company X and say, "Let's do what they're doing...it seems to work!"
Now...about those Mets.
I think that most companies will find their way in but I really think sm benefits the very small business (like mine) that doesn't have a marketing/PR dept nor do I have to check with anyone before I post. Trust me, I'll be tracking my results!
I think for a small business owner like myself, sm can be a very effective tool for letting people get to know me and for getting to know what people think of my work. I don't have to check with marketing/PR and I can be myself. I also try to meet people face-to-face whenever I can (was just in NYC where I met up with several tweeps!). Its a process that takes time, successful networkers know this.
Great points...thank you!
re: "I think for a small business owner like myself, sm can be a very effective tool for letting people get to know me and for getting to know what people think of my work."
It puts the HUMAN behind the company/brand. This is why I think it can work for larger organizations too.
Good discussion!
DJ Waldow
@djwaldow
What I am seeing though is a strong desire to jump on the social media bandwagon producing NEGATIVE results for many of my clients? Why: because they simply don't get it. They don't know what it means to use it. Dan you a right on there: confusion, ineffectiveness and total mis-application is what awaits most attempts by companies who adopt any of this stuff without a qualified professional on board. Just wait for the first business degree in social media usage: it's needed!
Mets - well, um sigh. We will recoop. No worries.
And frankly, I have never purchased a product as a result of visiting a company Facebook page or hearing about them on Twitter. **GASP** The companies I do interact with are ones that I already buy from and love. This isn’t to say that social media isn’t an effective sales mechanism for some companies, but it’s not necessarily the sales jackpot some people make it out to be.
The bottom line is social media is an innovative tool that has huge potential to create value for a large number of companies. However, companies should not be criticized for being cautious. There is a lot of work that goes into creating a successful model for social media, and not every company can justify the expense.
My challenge for all the social media evangelists is this: build a strong case for this medium by showing how it can bring value to companies of varying sizes in different industries. Of course social media worked for The Dark Knight and Inception – they’re fun products that largely rely on creating anticipation and suspense to drive demand.
It’s a lot harder for a national auto parts supplier to create that kind of buzz through social media, unless they can successful reach a market segment that gets really excited about new carburetors and windshield blades, or find a way to convince consumers its a fun product experience.
Until we can demonstrate how this medium can deliver ROI in all industries, especially those that are using the proven tactics that Dan references, there won’t be the mass adoption that many advocate for.
Thanks for your comment :)
First, embracing social business is often requires a shift in corporate culture as the first barrier to hurdle.
As you know, effective social business requires companies to share control with both customers (and other interested parties) as well as employees. A scary thought for some.
What each company needs to do is to first define their corporate objective(s). From there, they need to determine if a social strategy can benefit their ability to meet those goal(s).
If the answer is yes, then comes the definition of the social strategy.
One of the things social media pundits need to remember is one size doesn't fit all. And the larger the enterprise, then the more challenging it will be to gain adoption of social media. Additionally, for an enterprise, it's about a whole lot more than creating a Facebook page or starting to tweet.
If a larger company wants a scalable social intiative, then the resource demands (people, processes, technology) will be higher -- and so will the cross-functional demands. To be effective, enterprises will need to look beyond the siloes to build integrated and scalable strategies.
Not for nothing, the company (that is, its execs) needs to have a clear cost-benefit understanding of what social business can do for the company's bottom line. That means economic valuation (a.k.a., ROI).
And no, determing the social ROI isn't always easy to do. However, social business can and should be valued.
Failure to give execs an understanding of the potential economic gains and costs creates its own hurdles. On an enterprise level, a social initiative can cost well into six-figures if not seven. Of course, execs will want an economic understanding.
Give them that understanding of potential gains versus costs (and the social ROI can be excellent), let them put it into perspective with the rest of their corporate portfolio of intiatives, and the ability to gain buy-in goes up.
And no, companies that elect to avoid or go slow with social media aren't going go boom in the foreseeable future just because they fail to be social businesses today. Maybe someday that will happen and I do believe it's coming. But it's not here now.
My 2 cents.
Thank you for your comment. I agree with just about every point you made. I think the problem is in the "understanding of potential gains versus costs". Don't know if there's a whole lot of that going on (with a few exceptions, of course). In time, companies will begin to integrate social media into their overall business plans..or not. In the end, those companies that deliver a strong product with good service will be OK.
Your statement: "So, if 86% of company executives are still not using social media, what does that mean? That they’re now foolish? That they’ve suddenly become rigid? That the company will meet it’s doom unless they utilize social media immediately despite offering a quality product at a competitive price, delivered with exceptional customer service? No. What this means is that most companies are not yet ready to invest money or resources on social media training & research because social media can’t really be defined. It doesn’t exist anymore beyond a label."
Counterpoint:
1) How man executives access social media has to be more clearly delineated. For example, is that 86% across the SM spectrum? If it is, then you're ignoring the fact that more "executives" use LinkedIN vs. Facebook (or Twitter). It would be more interesting to see the numbers (%) per social media platform. That might open up a more interesting line of thought.
2) Most senior executives in a company don't need to access SM because their focus is P&L, Revenues, Shareholder value, increasing marketshare etc. The question again is, how many Chief Marketing Officers (CMOs) use social media to market their company's product/services. In other words a CEO has no need to check, but a VP of Marketing or CMO does. So again, what % of executives who are using (or not) is a better question than the broad sweep of 86%.
Thoughts?
As for the Senior Execs, I'll also agree that they could probably care less about a professional twitter/facebook account as their responsibilities go well beyond online chatter. And CEOs? Perhaps a few of them might engage in social media (a % breakdown would be nice). Most CMOs still focus primarily on traditional marketing methods (which still work) but are also on the lookout for a successful social media strategy.
Ultimately, the research shows that social media has not yet been widely accepted by companies as a way to increase sales/revenues and perhaps it never will. We shall see...
I recently heard someone compare twitter or facebook to the CB radio from the 70's. Remember those? It was all about people reaching out to strangers to find common ground. We've done it through various vehicles and this is simply the latest one, and with the most bells and whistles.
With that being said, we still need to follow and even master the trends if we want to connect and/or influence. After all, can you imagine trying to promote your brand via CB radio today?
We're still playing the same game, but have moved to a better sandbox.
There's so many angles to take in reaction to your post, could be an all-day discussion topic! But here's just two points of my view:
1) The SM "craze" is one of the few bright lights on the horizon of this terrible global economy and dark cloud of cynicism that's trying hard to rain on everyone's parade. (Don't let it.) But think about it: if there wasn't a feverish, positive vibe about technology/social media right now, what would people have to be hopeful about?... Almost every other sector of the economy is down - and those that are up are boring; in U.S. politics, every single progressive move is spit upon by the parties of Tea and Hell No, resulting in a negative, polarized, bitter political experience; in entertainment, the young stars go to jail with fingernails painted with "Fuck You ; in global geo, 92,000 documents are leaked about a war that people don't seem to care about, and the world yawns; in religion, almost every voice has lost it's moral authority after pedophile scandals, jihads, and military raids on peaceful flotillas. What's the world got to look forward to? Chelsea Clinton's wedding? (BIG yawn...) So the social media craze is - thank you, Jesus! - filling a huge void.
2) Like any good practice, Social Media is suffering from what I call "The Specialist Effect." If you've got an illness - take migraine headaches, for example - and you visit a chirpractor, the chiropractor will tell you with almost 100% certainty that your migraine is the result of a misaligned spine. A few adjustments should do the trick. Visit a nutritionist, and the nutritionist will tell you with almost 100% certainty that your migraine is caused by food allergies. A few tests to determine which foods are the triggers should do the the trick. Visit a psychologist, and stress is the root cause, a few sessions and you'll be good as new. A general practitioner will just prescribe something.... Etc., etc... People in the social media space - as anyone selling something (even an "idea") has to - believe in what they're selling. They're passionate about it, and that's a good thing. But perspective can get lost.
So, as as teacher in the social media space myself, I try not to succumb to the Specialist Effect: social media is not the magic bullet (for some) and one size does NOT fit all. HOWEVER, I do disagree with some of the comments that social media is "just another way of communicating" or like old dog food in a new can. It's SO much more than that, and we are lucky to be living in the times we are in. We're not just in a new CB radio era. But I'll save that evangelizing for another post, LOL!
Social Media is definitely suffering from "The Specialist Effect" - self-proclaimed marketing gurus, life coaches, SEO experts, etc - all claiming to deliver us from the world's economic and social disasters. People who, if you check their credentials, have accomplished little themselves in the real world. I do believe there are real consultants out there (like yourself) that can help a company decipher all the social media madness running amok online and who can actually determine a social media strategy for said company. But, as you stated, "one size does NOT fit all." It takes time (and money) to find a good solution.
I do agree with most that social media is primarily a communication tool - one that can do little by itself. It requires living, breathing, competent, and serviceable company individuals to take the communication to the next step. That's where we'll see the ROI of social media...perhaps.
Thanks, again!