Post on 03-Jul-2015
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Twitter or Not – The Business Case for Social Media
Jake WengroffGlobal Director, Corporate Communications
Frost & SullivanOctober 27, 2009
Pop Quiz: How many tweets have appeared on Twitter?
A) 50 million
B) 100 million
C) 500 million
D) 1 billion
E) 5 billion
ANSWER: 5 billion. On October 19, 2009, Twitter announced that the 5 billionth tweet was sent on its network.
In the Game
• LinkedIn has over 48 million members in over 200 countries around the world• A new member joins LinkedIn approximately every second, and about
half of its members are outside the U.S. • Executives from all Fortune 500 companies are LinkedIn members
Source: the companies, Wikipedia, HubSpot, Mashable
• 6 million unique monthly visitors, about the same number of accounts• 55 million monthly visits
• More than 300 million active users • 50% of active users log on to Facebook in any given day • The fastest growing demographic is those 35 years old and older • Available in 69 languages on the site
• About 70% of Facebook users are outside the United States
How does your company use social media?
• Brand/corporate positioning
• Gain new product and service ideas
• Make new connections and grow business
• Engage with customers and receive feedback
• Internal communications and training
Why We Hate Social Media
• “Free” isn’t really free
• Time, time, time!
• Damage control
(or rather, how about any control in general?)
• Who will be the voice?
(and who will be the voice when the voice resigns?)
Potential Risks of Social Networking Sites to Your Organization
(N=1166)
29%
26%
24%
20%
17%
14%
28%
28%
30%
26%
27% 32%
31%
31%
25%
26%
25%
21% 8%
9%
9%
12%
12%
14%
11%
12%
12%
12%
14%
14%
0% 20% 40% 60% 80% 100%
Wasted Time by Employees/Loss of Productivity
Allow Malware (Viruses, etc.) to get onto Computer or
Network
Confidential Information Going to Unintended Outsiders
Slow Down the Computer Network Due to increased Use
Incur Legal Liability/Financial Penalty
Increase IT Support Cost
High Risk Moderate Low No Risk Don’t know / No opinion Mean Scores
2.9
2.8
2.8
2.7
2.6
2.5
Source: Frost & SullivanQ15.Please rate the following potential risks of Social Networking Sites to your organization?
Perceived Risks of Social Networking Sites
Gatekeeping
• Does your company have a social media policy?
• What’s the risk if you don’t?
Does Your Organization Have Written
Policies Regarding Access Social
Networking Sites?
(N=1439)
59%
29%12%
Yes No Don’t Know
Organization's Policy Regarding Social Networking Sites
(N=847)
26%
32%
42%
0% 10% 20% 30% 40% 50%
Access allowed for all
employees – no restrictions –
per stated policy
Access not allowed for any
employee, enforced by
filtering software
Access allowed for some
employees, per stated policy
Does Your Organization Allow Access to Social
Networking Sites? (N=422)
80%
13%8%
Yes No Don't Know
Source: Frost & SullivanQ3. Does your organization have written policies regarding use of company computers/networks to access social networking sites? Q3b. What is your organization’s policy regarding social networking sites? Q3c. Does your organization allow access to social networking sites, despite having no formal policy in place?
Policies Regarding Social Networking Sites
Unlikely Candidates
• In the struggle to find people willing to make worthy contributions to social networking sites, look to the group that wants to engage: salespeople.
• And yes: salespeople can be positioned as Thought Leaders!
Perceived Values of Social Networking
(N=952)
54%
54%
53%
53%
52%
51%
51%
50%
45%
42%
35%
35%
35%
35%
36%
38%
38%
42%
41%
7%
7%
7%
7%
9%
9%
6%
7%
10%
13%
34%
0% 20% 40% 60% 80% 100%
Gain Additional Customers
Increase Customer Satisfaction
Get Consumer/Customer/Client Feedback
Get Low-Cost Exposure/Public Relations
Reduce Operating Costs
Increase Revenues Per Customer
Increased Collaboration
Increase Staff Satisfaction
Reduce Staff Turnover
Recruit New Staff
Highly Valuable Moderately Valuable Low Value No Value At All Don’t KnowMean Scores
3.4
3.5
3.4
3.4
3.4
3.4
3.4
3.4
3.3
3.4
Source: Frost & Sullivan
Note: Proportions less than five percent not shown in above chart.
Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s).
Perceived Value of Social Networking
Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately)
Corporate Roles within Social Networking Communities by
Total Sample and Enterprise Size
49%
44%
44%
43%
34%
17%
2%
14%
45%
41%
40%
36%
30%
12%
2%
15%
61%
47%
53%
53%
43%
23%
1%
9%
47%
45%
41%
45%
33%
19%
2%
17%
0% 10% 20% 30% 40% 50% 60% 70%
Customer Support
Energizing
Formal Marketing
Market Research
Growth Platform
Sponsor Agreements
Other
None of the above
Total Sample (N=870) Small Enterprise (N=351) Medium Enterprise (N=190) Large Enterprise (N=329)
Source: Frost & SullivanQ9. Which of the following best describes the role(s) for the social networking communities that you use for corporate purposes with regard to client relations? (Multiple mention question)
Among Those Using Web 2.0 Tools for Client Relations
Corporate Roles in Social Networking Communities by Total Sample and Enterprise Size
/ Indicates significantly higher/lower than comparison group at the 95% level.
Anticipated Change in Organization’s Future Use of Social Networking
30%
28%
2%
15%
22%
29%
28%
3%
17%
30%
36%
23%
2%
1%
8%
23%
28%
30%
1%
1%
16%
1%
24%
1%
0% 10% 20% 30% 40% 50%
Significantly Increase Use Compared to the Last 12
Months (>25%)
Somewhat Increase Use Compared to the Last 12
Months (1%-25%)
Usage Will Remain About the Same
Somewhat Decrease Use Compared to the Last 12
Months
Significantly Decrease Use Compared to the Last 12
Months
Don’t Know
Total Sample (N=1439) Large Enterprise (N=607) Medium Enterprise (N=270) Small Enterprise (N=562)
Source: Frost & SullivanQ16. Thinking about the next 12 months, how do you anticipate your organization’s overall usage of social networking will change?
Anticipated Change in Corporate Use of Social Networking by Total Sample and Enterprise Size
/ Indicates significantly higher/lower than comparison group at the 95% level.
Remarks
• Don’t ignore social networking
• Keep it organic, genuine, and authentic
• Your customers, employees, and investors will feel empowered
• Read….learn….engage!
For Additional Information
Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806jake.wengroff@frost.com Follow Frost & Sullivan on Twitter
@Frost_Sullivan@JakeWengroff