SlideShare ist ein Scribd-Unternehmen logo
1 von 20
Downloaden Sie, um offline zu lesen
IBM Global Business Services       Customer Relationship Management
Executive Report




IBM Institute for Business Value




From social media
to Social CRM
What customers want
The rst in a two-part series
IBM Institute for Business Value
IBM Global Business Services, through the IBM Institute for Business Value, develops
fact-based strategic insights for senior executives around critical public and private
sector issues. This executive report is based on an in-depth study by the Institute’s
research team. It is part of an ongoing commitment by IBM Global Business Services
to provide analysis and viewpoints that help companies realize business value.
You may contact the authors or send an e-mail to iibv@us.ibm.com for more information.
Additional studies from the IBM Institute for Business Value can be found at
ibm.com/iibv
Introduction




By Carolyn Heller Baird and Gautam Parasnis



Getting  closer  to  customers is a top priority for
CEOs, according to the IBM          CEO Study. Today’s businesses are fervently
building social media programs to do just this. But are customers as enthusiastic?
Actually, most do not engage with companies via social media simply to feel connected.
It turns out, customers are far more pragmatic. To successfully exploit the potential of
social media, companies need to design experiences that deliver tangible value in return
for customers’ time, attention, endorsement and data.

With the worldwide explosion of social media usage, businesses     facilitate increased revenue, cost reduction and ef ciencies. As
are feeling extreme pressure to be where their customers are.      might be expected, our ndings indicate social media initiatives
Today, this hub of customer activity is increasingly virtual,      are quickly springing up across organizations.
located inside a social media or social networking site. But in
an environment de ned by customer control and two-way              However, using social media as a channel for customer
dialogue, are customers and businesses in sync with each           engagement raises interesting challenges for traditional CRM
other’s expectations?                                              approaches. CRM strategy, enabled by processes and technolo-
                                                                   gies, is architected to manage customer relationships as a
Consider the speed at which social media is being adopted by       means for extracting the greatest value from customers over
consumers and businesses alike.          saw staggering numbers.   the lifetime of the relationship. These strategies typically
There were more than         million active users on Facebook,     concentrate on the operational responses required to manage
   percent outside the United States. By March            , more   the customer. With social media, though, companies are no
than    billion messages, or Tweets, had been sent through         longer in control of the relationship. Instead, customers (and
Twitter since its launch in      . By July, that number had        their highly in uential virtual networks) are now driving the
doubled to     billion. And in the Asia-Paci c region,             conversation, which can trump a company’s marketing, sales
percent of the total online population visited a social            and service efforts with unprecedented immediacy and reach.
networking site in February         , reaching a total of    .
million visitors.                                                  Companies need to embrace this shift with a new strategy –
                                                                   Social CRM, which recognizes that instead of managing
Clearly, this is where customers are congregating and busi-        customers, the role of the business is to facilitate collaborative
nesses want to be. Social media holds enormous potential for       experiences and dialogue that customers value.
companies to get closer to customers and, by doing so,
2    From social media to Social CRM – What customers want




Understanding what customers value, especially when they are               It’s about friends and family – not brands. More than half of
in the unique environment of a social platform, is a critical rst          consumers don’t even consider engaging with businesses via
step toward building a Social CRM strategy. What triggers a                social sites. For them, social media and social networking are
customer to seek out a company or brand via social media?                  about personal connections with friends and family.
What would make a customer reluctant to interact? And does                 Perception versus reality – what consumers really want. We
social engagement in uence customers’ feelings of loyalty                  discovered signi cant gaps between what businesses think
toward a company as businesses hope it does?                               consumers care about and what consumers say they want from
                                                                           their social media interactions with companies. In exchange
To nd out, the IBM Institute for Business Value surveyed                   for their time, endorsement and personal data, consumers
more than ,       consumers worldwide to understand who is                 expect something tangible. But businesses rank getting
using social media, what sites they frequent and what drives               discounts and purchasing as the least likely reasons consumers
them to engage with companies. We also asked         executives            interact with them.
to tell us why they think customers are interacting with their             The advocacy paradox – Is it the chicken or the egg? Most
organizations (see sidebar: Study methodology). What we                    businesses believe social media will increase advocacy, but only
discovered may come as a surprise to those companies that                       percent of consumers agree, and more than         percent
assume consumers are seeking them out to feel connected to                 believe passion for a business or brand is a prerequisite for
their brand. In fact, consumers are far more interested in                 social media engagement. Companies need to nd creative
obtaining tangible value, suggesting businesses may be                     ways to tap the power of the trusted social community.
confusing their own desire for customer intimacy with
consumers’ motivations for engaging.                                     What are the implications for companies? We believe they
                                                                         have their work cut out for them. Even for customer-focused
Our research shows that consumers have strong opinions about             organizations, the introduction of social media presents one of
their social media interactions and, despite their embrace of            the most disruptive forces facing businesses today. Our ndings
social media, their willingness to engage with companies                 indicate companies are establishing the foundations of Social
should not be assumed or taken for granted:                              CRM but, as could be expected, they are experiencing the
                                                                         growing pains of change and uncertainty. In their rush to join
    Consumers all over the world, across all generations, are swarming   the fray, businesses need to stay laser focused on customer
    to social media, but most interact only occasionally. Despite the    value to avoid falling into the perception gaps we’ve uncovered.
    astounding escalation of social media adoption, only a very
    small percentage of consumers engages regularly by
    responding to posts and authoring their own content.

                                                                         Obtaining tangible value is the top reason
                                                                         most consumers seek out businesses via social
                                                                         sites.
IBM Global Business Services     3




                                                    Social  media  surge
Study methodology                                   Nearly      percent of the online consumers we surveyed have at least
                                                    one account on a social networking site where they can quickly and
In October 2010, we conducted two online surveys:
                                                    easily connect with people. Almost half have accounts on media-
                                                    sharing sites where they can access or upload photos, videos and other
                                                    types of media. But only a fraction of consumers, a mere percent,
                                                    consistently take the time and effort to regularly respond to others’
                                                    comments or post original content.

                                                    Social media is ultimately about interacting with others with an
                                                    expectation of getting something in return. Even if that
                                                    “something” is intangible, such as a feeling of connectedness or
                                                    affection, participants are actively, purposefully seeking value.
                                                    For businesses, the challenge is unlocking what their customers
                                                    care about and creating social media experiences that deliver
                                                    that value. But rst, companies need to understand the
                                                    dynamics of consumer growth and activity on social sites and
                                                    take stock of consumer attitudes and the triggers that compel
                                                    them to seek out a company in the rst place.
other interested individuals.
                                                    So, who is embracing social media and which sites are they
                                                    using? As expected, Generation Y still accounts for the lion’s
                                                    share of activity, but Generation X isn’t far behind and Baby
                                                    Boomers are quickly catching up, particularly in the use of
                                                    social networking sites, such as Facebook, LinkedIn, Orkut,
                                                    and QQ. Baby Boomers have demonstrated the most growth in
                                                    terms of numbers using such sites. In         ,   percent of Baby
                                                    Boomers were using social networking sites. Based on our
                                                    survey, that number had swelled to       percent by      .
                                                    However, Baby Boomers’ use of other types of social sites is far
                                                    less aggressive, and    percent do not have accounts on any
                                                    social site, a much higher level of inactivity than Generation X
                                                    or Y (see Figure ).
4   From social media to Social CRM – What customers want




Percentage of consumers with accounts on social sites

                                                                                                                                                                        89%
      Social networking sites                                                                                                                                 79%
                                                                                                                                                    72%
                                                                                                                             57%
            Media sharing sites                                                                       42%
                                                                                         33%
                                                                                                      42%
            Microblogging sites                                                                37%
                                                                           24%
                                                                                    30%
                 Blogging sites                                            24%
                                                         12%
                                                                                27%
                             Wikis                                       22%
                                                            14%
                                                                      20%
             Social review sites                               16%
                                                      10%
                                                                    19%
    Social bookmarking sites                             12%
                                                 7%                                                  Gen Y
                                               5%                                                    Gen X
                   No accounts                             13%
                                                                      20%                            Baby Boomers


Notes: 1) Sample size N=1056. 2) Generation Y: People born between 1975 and 1992 (18 to 35 year olds); Generation X: People born between 1965 and 1974 (36 to 45 year
olds); Baby Boomers: People born in or before 1964 (46 years olds and older).
Source: IBM Institute for Business Value analysis. CRM Study 2011.


Figure 1:



Baby Boomers are not alone in their love of social networking.                                  People are ocking to sites where their circles of in uence
These sites are by far the most popular for Generations X and                                   reside. They are joining networking sites such as Facebook
Y as well. Media sharing sites (e.g., YouTube, Flickr and                                       because this is where the conversations are taking place. In
SlideShare) rank second in popularity, but the number of                                        contrast, consumers are much less inclined to have accounts on
accounts drops signi cantly. Generation Y still leads the pack                                  more niche sites, such as those dedicated to authoring blogs or
at   percent, but fewer than half of Generation X has an                                        writing restaurants reviews. However, the picture is somewhat
account on these sites, and only a third of Baby Boomers do.                                    different in emerging markets, where blogging and micoblog-
                                                                                                ging tend to be more popular (see sidebar: Trends in emerging
Microblogging, e.g., “tweeting,” comes in third and is used                                     markets).
mostly by Generation X and Y, with far less activity by Baby
Boomers. People have even fewer accounts on the remaining
types of social sites, such as blogs, wikis, social reviews and
social bookmarking sites.
IBM Global Business Services   5




                             Companies, keenly aware of this global social media phenom-
                             enon, are feeling intense pressure to get in on the action.
Trends in emerging markets
                             Nearly     percent of executives say their companies will be
                             perceived as “out of touch” if they don’t engage, and over half
                             believe their competition is successfully reaching customers
                             through social media. Not surprisingly, their rush to embrace
                             social networking sites has mirrored consumers’ adoption,
                             with     percent claiming a pro le or presence on a social
                             networking site, and over half use media sharing and microb-
                             logging sites (see Figure ).

                     9       Although the consumer stampede to social media is indeed
                             impressive, companies also need to be aware the numbers can
                             be deceiving. To get a better picture of actual social media
                             interaction, we grouped consumers based on their social
                             media engagement levels by asking them how they interact on
                             social sites – whether they typically just read, occasionally
                             interact or almost always engage. Our ndings reinforce what
                             other similar studies have also uncovered.

                             Only a small proportion of consumers – the Engaged Authors
                             at percent – nearly always respond to others’ comments or
                             author their own posts. The next and by far largest group,
                             which we dubbed the Casual Participants ( percent),
                             occasionally will respond or post their own content.




                             Only a small percentage of consumers on social
                             sites can be counted on to interact regularly.
6   From social media to Social CRM – What customers want




                                       N=349
      Social networking sites            79%                                                                          18%                 3%
                                       N=347
            Media sharing sites          55%                                                37%                                      8%
                                       N=343
            Microblogging sites          52%                                               41%                                       7%
                                       N=343
                              Wikis      48%                                         45%                                             7%
                                       N=342
                  Blogging sites         45%                                       45%                                             10%
                                       N=338
             Social review sites         36%                               52%                                                 12%
                                       N=339
    Social bookmarking sites             31%                         55%                                                     14%



Note: Numbers rounded to equal 100 percent.
Source: IBM Institute for Business Value analysis. CRM Study 2011.



Figure 2:




The last group, the Silent Observers at   percent, sits quietly            These participant categories have multiple implications for
on the sidelines. Although they have accounts, they read but do            businesses hoping to use social media to get closer to
not participate and have never contributed to a conversation or            customers. Innovative companies are identifying their Engaged
posted their own content.                                                  Authors, collaborating with them and leveraging their
                                                                           in uence as brand evangelists. The Casual Participants and, to
                                                                           some degree, the Silent Observers also constitute a rich reserve
                                                                           with the potential to engage. Businesses should view this as an
                                                                           opportunity to reach out to new and existing customers.
Targeted campaigns with incentives to                                      However, it will likely take a targeted, multichannel campaign
interact can entice the Casual Participant                                 that rewards customers for using a social option with further
to engage.                                                                 incentives to motivate them to actually interact.
IBM Global Business Services   7




 It’s  personal                                                                    Privacy concerns ( percent) and spam ( percent) topped
 For most consumers, social media is about engaging with friends and               the reasons why they are reluctant. Additionally, over a third
 family and accessing news and entertainment – not interacting with                ( percent) cite simple disinterest in the brand as their reason
 brands.                                                                           for not engaging.

 When asked why they go to social media or social networking                       Of the    percent who do interact with brands, the majority (
 sites,  percent of consumers chose “Connecting with                               percent) say they need to feel a company is communicating
 network of friends and family,” while only percent noted                          honestly before they will interact. Sixty-seven percent of
 “Interacting with brands” (see Figure ).                                          companies say they have a culture that endorses transparent
                                                                                   communications with customers; however, a third were either
 As a group, Engaged Authors are more likely to interact with                      lukewarm about this or felt their company culture was not
 companies ( percent), but even they rank this reason well                         supportive. Companies that struggle with transparency risk
 behind others on their list, with “Connecting with friends and                    being perceived by customers as insincere or manipulative.
 family” receiving a whopping       percent.                                       These types of organizations may nd it dif cult to interact
                                                                                   with the authenticity that has become a must for business-
 In fact, just over half of consumers surveyed say they do                         customer interactions in social media.
 not engage with brands via social media at all ( percent).


Reasons consumers go to social media or social networking sites
Connect with friends and family
                                                                                                                                         70%
                          Access news                                                                     49%
              Access entertainment                                                                      46%
                         Share opinion                                                            42%
                       Access reviews                                                        39%
                          Meet people                                                       38%
                          Share media                                                     36%
                   Research for work                                           28%
                              Get deals                                      26%
               Interact with brands                                           23%
                    Network for work                                   22%
                             Write blog                                22%
                    Access education                                   22%
                           Search jobs                                20%
                                   Other              .04%

 Note: Sample size N=1056.
 Source: IBM Institute for Business Value analysis. CRM Study 2011.


 Figure 3:
8   From social media to Social CRM – What customers want




What does all this mean for business? Organizations need to              In contrast, when asked why they thought customers were
be aware that less than half their customer base is likely to            following their companies on social sites, executives cite
interact with them in a social media environment. This can               getting discounts and purchasing products or services as the
  uctuate, of course, depending on the targeted market for a             two things customers were least interested in doing – the direct
particular industry or type of business. However, regardless of          opposite of the consumers’ rankings (see Figure ).
the customer pro le, as businesses build their social media
strategies, it is important they ask a fundamental question:             The same question reveals another related perception gap.
“Why would people choose to follow us in social media instead            Businesses are three times more likely to think consumers are
of reaching out via traditional channels?” The answer may be             interested in interacting with them to feel part of a community.
as simple as: “Because our customers congregate on social sites,         Businesses also overestimate consumers’ desire to engage with
and it’s how they want to communicate.” For the Engaged                  them to feel connected to their brand. In fact, these two
Authors and, now and again, the Casual Participants, that may            activities are among the least interesting from a consumer’s
be enough of a reason. However, the real opportunity lies in an          perspective.
organization’s ability to attract others who aren’t so inclined to
participate. Companies need to make a concerted effort to                Consumers are willing to interact with businesses if they
communicate openly and authentically with these customers,               believe it is to their bene t, feel they can trust the company
learn what they value and offer bene ts that entice them to act.         and decide social media is the right channel to use to get the
                                                                         value they seek. That value could be in the form of a coupon or
Perception  versus  reality                                              speci c information. Engaging with a company via social
Sixty- ve percent of businesses view social media as a new source for    media may result in a feeling of connectedness for consumers
revenue but, at the same time, many believe receiving discounts or       – an emotional, intangible gain – but the wish for intimacy is
coupons and purchasing products or services are among the least likely   not what drives most of them.
reasons a customer would seek them out on social sites. Ironically,
though, consumers say getting tangible value is the top reason they      Businesses hoping to foster closer customer connections
interact with a company, which is good news for those organizations      through social media conversations may be mistakenly
hoping to monetize social media.                                         projecting their own desires for intimacy onto customers’
                                                                         motivations for interacting. Interactions with businesses are
When asked what they do when they interact with businesses               not the same as interactions with friends. Most consumers are
or brands via social media, consumers list “getting discounts or         not motivated brand advocates who connect with a company
coupons” and “purchasing products and services” as the top               primarily to feel associated with a brand community.
two activities, respectively. They rank “reading reviews and
product rankings” third, which is also often part of the                 Despite this perception gap, the fact that customers desire to
purchasing process as customers research product information             use social sites to transact with businesses should come as
before deciding to transact.                                             welcome news to companies that want to monetize social
                                                                         media. Social commerce is quickly becoming a major force in
IBM Global Business Services   9




                                         Consumers’ ranking:                    Perception               Businesses’ ranking:  
                      The reasons they interact with companies                     gap                   Why they think consumers follow them
                                                 via social sites                                        via social sites

                                                    (61%) Discount                                       Learn about new products (73%)

                                                   (55%) Purchase                                        General information (71%)

                          (53%) Reviews and product rankings                                             Submit opinion on current products/services (69%)

                                        (53%) General information                                        Exclusive information (68%)

                                      (52%) Exclusive information                                        Reviews and product rankings (67%)

                               (51%) Learn about new products                                            Feel connected (64%)

            (49%) Submit opinion on current products/services                                            Customer service (63%)

                                          (37%) Customer service                                         Submit ideas for new products/services (63%)

                                         (34%) Event participation                                       Be part of a community (61%)

                                           (33%) Feel connected                                          Event participation (61%)

                (30%) Submit ideas for new products/services                                             Purchase (60%)

                                 (22%) Be part of a community                                            Discount (60%)

Note: Consumer: N=1056; Business: Learn N=333, General info N=336, Submit opinion N=334, Exclusive info N=333, Reviews/rankings N=333, Feel connected N=331,
Customer service N=331, Submit ideas N=332, Community N=329, Event N=332, Purchase N=334, Discounts N=331.
Source: IBM Institute for Business Value analysis. CRM Study 2011.



Figure 4:


social media, and we believe expediency, cost savings, and                                     rst to enable customers on Facebook to select products and
exclusive offers and sales will outweigh privacy fears.                                       purchase directly from a Facebook page. In         , Delta
Consumers are increasingly using social media to gain recom-                                  Airlines launched a “social media ticket window” on Facebook,
mendations, reviews and opinions from friends, family, experts                                allowing customers to book a ight without having to go to
and the collective social community. Once they access this                                    Delta’s Web site. Delta indicated Facebook is used by more
content, the impulse to purchase immediately can be strong.                                   customers while in ight than any other Web site, making it a
Having to switch channels to transact will increasingly feel like                             “natural launching point” for its initiative.
an inconvenience, if not burdensome.
                                                                                              Social commerce adoption levels will vary based on industry,
More companies are offering commerce opportunities                                            consumer concern over privacy (which is highest in China at
delivered through third-party social platforms such as                                           percent and Germany at      percent) and regulatory or legal
Facebook (see sidebar: Cold Stone Creamery – Real value for                                   restrictions. However, for most, the convenience and satisfac-
real friends). In   , -     FLOWERS.COM was among the                                         tion of “one-stop shopping” will be hard to resist.
10   From social media to Social CRM – What customers want




                                                             The  advocacy  paradox
Cold Stone Creamery – Real value for real friends            Is it the chicken or the egg? Businesses are betting that social media
                                                             interactions will engender increased customer loyalty. However, many
Cold Stone Creamery’s eGift program on Facebook is an
                                                             consumers say they need to be passionate before they’ll engage, and
excellent example of social commerce that optimizes the
                                                             they are split regarding how much in uence they think these
unique community aspect of social networking by enabling
followers to send tangible gifts to friends.
                                                             interactions will have.

                                                             In the IBM        Global CEO Study,       percent of CEOs said
                                                             “getting closer to customers” was the top priority for their
                                                             business over the next ve years. This same driver is re ected
                                                             in responses from executives surveyed for this study. Almost
                                                             three fourths ( percent) believe reaching out to customers
                                                             via social media will help them increase customer advocacy.

                                                             However, consumers are divided on this issue. Only        percent
                                                             feel social media interactions with a business will have a
                                                             favorable in uence on their loyalty to that company,       percent
                                                             are neutral and as many as a third ( percent) say their social
                                                             media interactions will not make them feel more loyal to that
                                                             business.

                                                             In addition, they are split as to whether social interaction with
                                                             a company would in uence their spending with that business.
                                                             Just under half of consumers ( percent) believe their engage-
                                                             ment would likely lead to future purchases with that company.
franchisees.14                                               Twenty-seven percent don’t think social media interactions will
                                                             in uence their spending, and       percent are neutral. Further-
                                                             more, for nearly two thirds of consumers ( percent), passion
                                                             for a brand or business is a prerequisite for engaging with that
                                                             company via social media. This means the majority of
                                                             consumers are inclined to interact only with brands they
                                                             already know and love.
IBM Global Business Services   11




In other words, consumers who engage already have an af nity
for that brand or company, and mere participation via social      American Express Small Business Saturday –
media may not necessarily result in increased loyalty or          Crossing the emotional divide
spending. But a recommendation from a friend or family
member could make a difference. In a         IBM study on the
retail industry, we found     percent of consumers ask friends
for advice before purchasing, and more than a third turn to
external sources – either fellow consumers or independent
experts – to get information about a product. Only      percent
rely on retailers and manufacturers. The power of the social
community’s endorsement and in uence can be felt each time
someone “likes” a company on Facebook or re-tweets a
company’s message on Twitter.

Companies can take advantage of this dynamic by designing
social media programs with the explicit goal of touching
customers emotionally and motivating them to share their
experiences with others. The American Express Small Business
Saturday program on Facebook is great example of a company
using social media to connect with customers based on a
shared sense of values, while also providing tangible value to
both the consumer and the company (see sidebar: American
Express Small Business Saturday – Crossing the emotional
divide).




Most consumers interact with brands or                                                                             17


businesses with which they already have a
strong connection.
12     From social media to Social CRM – What customers want




Recommendations  and  next  steps                                           If you aren’t sure what customers value, ask them. Dialogue and
Organizations need to carefully consider how they can create a social       participation is what social media is all about. Devise creative
media experience that is unique to their brand, offers customer value       ways to capture the customer insight you need with polls, idea
and exploits the power of the social community.                             jams and challenges. Let customers participate by voting on
                                                                            their favorite ideas or innovations. In fact, getting customers
Companies should consider the following to lay the foundation               invested in the outcome will help build the advocacy and
for a successful social media program that will help them                   brand af nity you seek.
reinvent their customer relationships:                                      Monetize social media, if that’s what customers want. Make it
                                                                            quick and easy for customers to transact directly within a
     Recognize social media is a game changer. We believe that for          social media experience. Develop social commerce campaigns
     many companies, social media will become the gateway, if not           that target a speci c customer need with time-sensitive offers
     the primary, communications channel to connect with                    or discounts that motivate customers to act. For people to
     customers. As companies design their social media programs,            engage and keep coming back, content should be fresh and
     they need to think of their customers holistically and consider        relevant. Provide incentives for people to share content with
     their social media interactions in the context of other                friends to capitalize on the viral bene ts a community
     customer touch points with the company.                                platform offers.
     Be clear on the differences between social media and other channels.
     Social CRM is about enabling engagement with the customer
     for the mutual bene t of the customer and the business. The
     traditional model of managing the customer relationship
     needs to adapt to the reality that the customer is now in
     control.
     Make the customer experience seamless – across social media and
     other channels. If you know your customer in one channel, you          A successful Social CRM strategy facilitates
     need to know him or her in other channels as well. This                collaborative experiences and dialogue that
     means the social solution should not be devised as an isolated
     standalone program, but needs to be thoughtfully integrated
                                                                            customers value.
     with other customer-facing initiatives.
     Start thinking like a customer. Instead of asking why your
     company should engage in social media, ask why a customer
     would choose to interact with your company in a social
     platform. Recast social interaction strategies to focus on giving
     customers the value they seek and the customer intimacy will
     come.
IBM Global Business Services   13




Conclusion                                                         To learn more about this IBM Institute for Business Value
It is understandable why companies want to use social media to     study, please contact us at iibv@us.ibm.com. For a full catalog
interact with customers. The bene ts are real and deep. First,     of our research, visit:
there is the social interaction itself, which can provide direct   ibm.com/iibv
value to the business through revenue from social commerce
and cost savings when used for customer care or research, for      Be among the rst to receive the latest insights from the IBM
example. Plus, social networking enables rapid, viral distribu-    Institute for Business Value. Subscribe to IdeaWatch, our
tion of offers and content that may reach beyond what could        monthly e-newsletter featuring executive reports that offer
be done in traditional channels – all with endorsement from        strategic insights and recommendations based on IBV research:
connections people trust. But that is just the beginning.
                                                                   ibm.com/gbs/ideawatch/subscribe
Companies also can use social platforms to mine data for brand
monitoring and valuable customer insights, which can spark
innovations for improved services, products and customer
experiences. In a constant cycle of listen-analyze-engage-
evolve, organizations can optimize their social media programs
to continually enhance their business.

With so much to gain, companies need to invest the effort to
understand how to break through the noise and offer current
and potential customers a reason to reach out to them via
social media. Businesses, eager to get closer to customers, are
building pages on social networking sites, posting videos and
mircoblogging; however, if they don’t focus on what the
majority of their customers value in social media, they may be
missing the boat. In fact, offering tangible value to consumers
may be the strongest incentive to attract the     percent of
Casual Participants who need a good reason to interact.

For companies that have been taking a “build it and they will
come” approach to social media, these consumer ndings are a
wake-up call that much more needs to be done if they want to
attract more than the most devoted brand advocates.
14   From social media to Social CRM – What customers want




Authors                                                          Contributors
Carolyn Heller Baird is the Global CRM Research Leader           Saul Berman, Partner & Vice President, Global Strategy
with the IBM Institute for Business Value, IBM Global            Consulting Leader and Innovation & Growth Services Leader,
Services. Her seasoned experience spans nearly    years with a   IBM Global Business Services
focus on customer experience and CRM strategies, digital
media development, corporate communications, marketing and       Geoffrey Hamelin, Market & Solutions Development Leader/
branding. She can be reached at cbaird@us.ibm.com.               CRM, IBM Global Business Services

Gautam Parasnis is a Partner and Vice President for IBM          Denise Arnette, Market & Solutions Development Leader/
Global Business Services and the Global CRM Leader. He has       Innovation & Growth, Strategy & Transformation, IBM
more than     years of experience developing customer            Global Business Services
experience and CRM strategies, driving enterprise CRM
                                                                 d’Artagnan Catellier, Innovation & Growth Leader, Strategy &
transformations and delivering enabling technologies. He can
                                                                 Transformation, Central and Eastern Europe, IBM Global
be reached at gautam.parasnis@us.ibm.com.
                                                                 Business Services

                                                                 Rawn Shah, Social Business Transformation Consultant, IBM
                                                                 Software

                                                                 Eric Lesser, Institute for Business Value Practice Leader, IBM
                                                                 Global Business Services
IBM Global Business Services   15




The  right  partner  for  a  changing  world                        References  
At IBM, we collaborate with our clients, bringing together            “Capitalizing on Complexity: Insights from the Global
business insight, advanced research and technology to give            Chief Executive Of cers Study.” IBM Institute for Business
them a distinct advantage in today’s rapidly changing                 Value. May      . http://www-    .ibm.com/services/us/
environment. Through our integrated approach to business              ceo/ceostudy      /index.html
design and execution, we help turn strategies into action. And
with expertise in    industries and global capabilities that span     “Statistics.” Press room. Facebook Web site, accessed
    countries, we can help clients anticipate change and pro t        January ,         . http://www.facebook.com/press/info.
from new opportunities.                                               php?statistics

                                                                      Beaumont, Claudine. “Twitter hits    billionth tweet.” The
                                                                      Telegraph. March ,      . http://www.telegraph.co.uk/
                                                                      technology/twitter/        /Twitter-hits- -billionth-
                                                                      tweet.html; Anderson, Sophie. “Twitter User Sends World’s
                                                                         Billionth Tweet.” BBC News. July ,         . http://www.
                                                                      bbc.co.uk/news/world-asia-paci c-

                                                                      “Social Networking Habits Vary Considerably Across
                                                                      Asia-Paci c Markets.” comScore press release. April ,
                                                                           . http://www.comscore.com/Press_Events/Press_
                                                                      Releases/      / /Social_Networking_Across_Asia-Paci c_
                                                                      Markets/% language% /eng-US

                                                                      For more information about the maturity of companies’
                                                                      social media strategies, refer to the second paper in this
                                                                      two-part series: “From social media to Social CRM:
                                                                      Reinventing customer relationships.” IBM Institute for
                                                                      Business Value.      .

                                                                      We de ne Generation Y as those born between          and
                                                                           ( to     year olds), Generation X as those born
                                                                      between      and       ( to      year olds) and Baby
                                                                      Boomers as those born in or before       ( years old and
                                                                      older).
16   From social media to Social CRM – What customers want




     Berman, Saul, Bill Battino and Karen Feldman. “Media’s        Markiewicz, David. “Delta Launches ‘ticket window’ on
     Looming Revenue Gap: Digital-driven challenges for            Facebook.” The Atlanta Journal-Constitution. August ,
     traditional business models.” IBM Institute for Business          . http://www.ajc.com/business/delta-launches-ticket-
     Value. March        ; IBM Institute for Business Value        window-        .html
     analysis of IBM Digital Consumer Surveys:         ,     and
                                                                   “Cold Stone Creamery launches eGift program.” Cold
           (N = ,      ).
                                                                   Stone press release. July ,   . http://www.coldstone-
     Examples of microblogging sites include Twitter, Jaiku and    creamery.com/assets/pdf/news/      /pr_cold-stone-
     Tumblr. Examples of blogging sites include Blogger,           creamery_egift_          .pdf
     WordPress and Xanga. Examples of wikis include
                                                                   “Capitalizing on Complexity: Insights from the Global
     Wikipedia, WikiHow, WikiBooks and Wikitionary.
                                                                   Chief Executive Of cers Study.” IBM Institute for Business
     Examples of social review sites include Yelp, Epinions and
                                                                   Value. May      . http://www-    .ibm.com/services/us/
     Trip Advisor. Examples of social bookmarking sites include
                                                                   ceo/ceostudy      /index.html
     Digg, Delicious, StumbleUpon and Reddit.
                                                                   Schaefer, Melissa. “Capitalizing on the Smarter
     Piskorski, Mikolaj Jan and Tommy McCall. “Mapping the
                                                                   Consumer.” IBM Institute for Business Value. February
     Social Internet.” Harvard Business Review. July-August
                                                                       .
          . http://hbr.org/    / /vision-statement-mapping-
     the-social-internet/ar/                                       American Express Small Business Saturday Facebook page,
                                                                   accessed January      . http://www.facebook.com/SmallBu
     A Global Update of Social Technographics. Forrester     ®

                                                                   sinessSaturday?v=app_                     ; “Who we are.”
     Research, Inc. September ,      .
                                                                   American Express Web site. http://about.americanexpress.
     For more information about the social media strategies and    com/oc/whoweare/; Small Business Saturday Web site,
     practices companies are putting in place and the current      accessed January ,        . http://smallbusinesssaturday.
     challenges they face, refer to the second paper in this       com/faq.html; “Small Business Saturday (SM) Firmly
     two-part series: “From social media to Social CRM:            Plants Its Roots Between Black Friday and Cyber
     Reinventing customer relationships.” IBM Institute for        Monday.” American Express press release. December ,
     Business Value.      .                                             . http://about.americanexpress.com/news/pr/        /
                                                                   post-sbs.aspx
     Wauters, Robin. “ -   -FLOWERS.COM Sets Up Shop
     Inside Facebook.” TechCrunch. July ,      . http://           For more information about Social CRM and how
     techcrunch.com/      / / / -     - owerscom-sets-up-          companies are incorporating social media into their
     shop-inside-facebook/                                         customer relationship management strategies, refer to the
                                                                   second paper in this two-part series: “From social media to
                                                                   Social CRM: Reinventing customer relationships.” IBM
                                                                   Institute for Business Value.     .
© Copyright IBM Corporation

IBM Global Services
Route
Somers, NY
U.S.A.

Produced in the United States of America
February
All Rights Reserved

IBM, the IBM logo and ibm.com are trademarks or registered trademarks
of International Business Machines Corporation in the United States, other
countries, or both. If these and other IBM trademarked terms are marked
on their rst occurrence in this information with a trademark symbol (® or
™), these symbols indicate U.S. registered or common law trademarks
owned by IBM at the time this information was published. Such trademarks
may also be registered or common law trademarks in other countries. A
current list of IBM trademarks is available on the Web at “Copyright and
trademark information” at ibm.com/legal/copytrade.shtml

Other company, product and service names may be trademarks or service
marks of others.

References in this publication to IBM products and services do not
imply that IBM intends to make them available in all countries in which
IBM operates.


         Please Recycle




                                                    GBE        -USEN-

Weitere ähnliche Inhalte

Was ist angesagt?

Social Media and CRM - Short Paper
Social Media and CRM - Short PaperSocial Media and CRM - Short Paper
Social Media and CRM - Short PaperKathan Bhatt
 
Social Is The Next Search 2010
Social Is The Next Search 2010Social Is The Next Search 2010
Social Is The Next Search 2010Plínio Okamoto
 
Navigating Social Media in the Automotive Industry
Navigating Social Media in the Automotive IndustryNavigating Social Media in the Automotive Industry
Navigating Social Media in the Automotive IndustryAbstrakt Marketing Group
 
The State of Social Marketing 2012-2013 - Pivot Conference
The State of Social Marketing 2012-2013 - Pivot ConferenceThe State of Social Marketing 2012-2013 - Pivot Conference
The State of Social Marketing 2012-2013 - Pivot ConferenceBrian Solis
 
A transportation logistics guide to getting started with social media
A transportation logistics guide to getting started with social mediaA transportation logistics guide to getting started with social media
A transportation logistics guide to getting started with social mediaEleets Transportation
 
Five Principles for Storytelling in a Multi-Screening World
Five Principles for Storytelling in a Multi-Screening WorldFive Principles for Storytelling in a Multi-Screening World
Five Principles for Storytelling in a Multi-Screening WorldOgilvy Consulting
 
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...Get Satisfaction
 
Social CRM the new rules of relationship management
Social CRM the new rules of relationship managementSocial CRM the new rules of relationship management
Social CRM the new rules of relationship managementPlínio Okamoto
 
Tribalization Of Business 2009 Webinar
Tribalization Of Business 2009 WebinarTribalization Of Business 2009 Webinar
Tribalization Of Business 2009 WebinarFrancois Gossieaux
 
Make social networking work for you
Make social networking work for youMake social networking work for you
Make social networking work for youNuno Fraga Coelho
 
Gearing up for 2011: Malaysia
Gearing up for 2011: Malaysia Gearing up for 2011: Malaysia
Gearing up for 2011: Malaysia Stan Chew
 
Understanding the Social Customer
Understanding the Social CustomerUnderstanding the Social Customer
Understanding the Social CustomerRyan Turner
 
From Contacts To People
From Contacts To PeopleFrom Contacts To People
From Contacts To PeopleChris Nolan
 

Was ist angesagt? (13)

Social Media and CRM - Short Paper
Social Media and CRM - Short PaperSocial Media and CRM - Short Paper
Social Media and CRM - Short Paper
 
Social Is The Next Search 2010
Social Is The Next Search 2010Social Is The Next Search 2010
Social Is The Next Search 2010
 
Navigating Social Media in the Automotive Industry
Navigating Social Media in the Automotive IndustryNavigating Social Media in the Automotive Industry
Navigating Social Media in the Automotive Industry
 
The State of Social Marketing 2012-2013 - Pivot Conference
The State of Social Marketing 2012-2013 - Pivot ConferenceThe State of Social Marketing 2012-2013 - Pivot Conference
The State of Social Marketing 2012-2013 - Pivot Conference
 
A transportation logistics guide to getting started with social media
A transportation logistics guide to getting started with social mediaA transportation logistics guide to getting started with social media
A transportation logistics guide to getting started with social media
 
Five Principles for Storytelling in a Multi-Screening World
Five Principles for Storytelling in a Multi-Screening WorldFive Principles for Storytelling in a Multi-Screening World
Five Principles for Storytelling in a Multi-Screening World
 
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...
To Monetize Open Social Networks, Invite Customers to Be More Than Just “Frie...
 
Social CRM the new rules of relationship management
Social CRM the new rules of relationship managementSocial CRM the new rules of relationship management
Social CRM the new rules of relationship management
 
Tribalization Of Business 2009 Webinar
Tribalization Of Business 2009 WebinarTribalization Of Business 2009 Webinar
Tribalization Of Business 2009 Webinar
 
Make social networking work for you
Make social networking work for youMake social networking work for you
Make social networking work for you
 
Gearing up for 2011: Malaysia
Gearing up for 2011: Malaysia Gearing up for 2011: Malaysia
Gearing up for 2011: Malaysia
 
Understanding the Social Customer
Understanding the Social CustomerUnderstanding the Social Customer
Understanding the Social Customer
 
From Contacts To People
From Contacts To PeopleFrom Contacts To People
From Contacts To People
 

Ähnlich wie IBM: Why people follow brands

Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1dramaiya
 
From social media to Social CRM - IBM
From social media to Social CRM - IBMFrom social media to Social CRM - IBM
From social media to Social CRM - IBMIvonne Kinser
 
From Social Media to Social SRM - IBM report
From Social Media to Social SRM - IBM reportFrom Social Media to Social SRM - IBM report
From Social Media to Social SRM - IBM reportBoris Loukanov
 
From Social Media To Social Crm 1 What Customers Want
From Social Media To Social Crm 1 What Customers WantFrom Social Media To Social Crm 1 What Customers Want
From Social Media To Social Crm 1 What Customers WantFriedel Jonker
 
Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1dramaiya
 
From social media to social crm teil 2
From social media to social crm teil 2From social media to social crm teil 2
From social media to social crm teil 2Hans-Joerg-Stricker
 
Bain brief putting social media to work
Bain brief putting social media to workBain brief putting social media to work
Bain brief putting social media to workAdam Lewis
 
Bain brief putting_social_media_to_work
Bain brief putting_social_media_to_workBain brief putting_social_media_to_work
Bain brief putting_social_media_to_workWiseMetrics
 
Bain Brief: Putting social media to work
Bain Brief:  Putting social media to workBain Brief:  Putting social media to work
Bain Brief: Putting social media to workSomatica
 
Social media and you
Social media and youSocial media and you
Social media and youGordon Diver
 
Frost & Sullivan Social Media Customer Engagement White Paper
Frost & Sullivan Social Media Customer Engagement White PaperFrost & Sullivan Social Media Customer Engagement White Paper
Frost & Sullivan Social Media Customer Engagement White PaperTherese Reuterswärd
 
Customer data and decisions: How the social data revolution transforms everyt...
Customer data and decisions: How the social data revolution transforms everyt...Customer data and decisions: How the social data revolution transforms everyt...
Customer data and decisions: How the social data revolution transforms everyt...Andreas Weigend
 
Creating a One to One Dialogue Through Social Interaction
Creating a One to One Dialogue Through Social InteractionCreating a One to One Dialogue Through Social Interaction
Creating a One to One Dialogue Through Social InteractionC.Y Wong
 
Social vs. Paid Media
Social vs. Paid MediaSocial vs. Paid Media
Social vs. Paid Mediamholste
 
Paid to Made media Whitepaper FINAL1
Paid to Made media Whitepaper FINAL1Paid to Made media Whitepaper FINAL1
Paid to Made media Whitepaper FINAL1Brian Dargan
 
Incite social media-facts and figures worth sharing(110525)
Incite social media-facts and figures worth sharing(110525)Incite social media-facts and figures worth sharing(110525)
Incite social media-facts and figures worth sharing(110525)June Kim
 
Customers in Control: The ROI of Listening to your Customers' Needs
Customers in Control: The ROI of Listening to your Customers' NeedsCustomers in Control: The ROI of Listening to your Customers' Needs
Customers in Control: The ROI of Listening to your Customers' NeedsConnie Bensen Lund
 

Ähnlich wie IBM: Why people follow brands (20)

Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1
 
From social media to social crm
From social media to social crmFrom social media to social crm
From social media to social crm
 
From social media to Social CRM - IBM
From social media to Social CRM - IBMFrom social media to Social CRM - IBM
From social media to Social CRM - IBM
 
From Social Media to Social SRM - IBM report
From Social Media to Social SRM - IBM reportFrom Social Media to Social SRM - IBM report
From Social Media to Social SRM - IBM report
 
From Social Media To Social Crm 1 What Customers Want
From Social Media To Social Crm 1 What Customers WantFrom Social Media To Social Crm 1 What Customers Want
From Social Media To Social Crm 1 What Customers Want
 
Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1Maybe your customers are just not that into you... Part 1
Maybe your customers are just not that into you... Part 1
 
From social media to social crm teil 2
From social media to social crm teil 2From social media to social crm teil 2
From social media to social crm teil 2
 
Bain brief putting social media to work
Bain brief putting social media to workBain brief putting social media to work
Bain brief putting social media to work
 
Bain brief putting_social_media_to_work
Bain brief putting_social_media_to_workBain brief putting_social_media_to_work
Bain brief putting_social_media_to_work
 
Bain Brief: Putting social media to work
Bain Brief:  Putting social media to workBain Brief:  Putting social media to work
Bain Brief: Putting social media to work
 
Social media and you
Social media and youSocial media and you
Social media and you
 
Frost & Sullivan Social Media Customer Engagement White Paper
Frost & Sullivan Social Media Customer Engagement White PaperFrost & Sullivan Social Media Customer Engagement White Paper
Frost & Sullivan Social Media Customer Engagement White Paper
 
Customer data and decisions: How the social data revolution transforms everyt...
Customer data and decisions: How the social data revolution transforms everyt...Customer data and decisions: How the social data revolution transforms everyt...
Customer data and decisions: How the social data revolution transforms everyt...
 
Creating a One to One Dialogue Through Social Interaction
Creating a One to One Dialogue Through Social InteractionCreating a One to One Dialogue Through Social Interaction
Creating a One to One Dialogue Through Social Interaction
 
Social vs. Paid Media
Social vs. Paid MediaSocial vs. Paid Media
Social vs. Paid Media
 
Paid to Made media Whitepaper FINAL1
Paid to Made media Whitepaper FINAL1Paid to Made media Whitepaper FINAL1
Paid to Made media Whitepaper FINAL1
 
Incite social media-facts and figures worth sharing(110525)
Incite social media-facts and figures worth sharing(110525)Incite social media-facts and figures worth sharing(110525)
Incite social media-facts and figures worth sharing(110525)
 
Social media intelligence
Social media intelligenceSocial media intelligence
Social media intelligence
 
Customers in Control: The ROI of Listening to your Customers' Needs
Customers in Control: The ROI of Listening to your Customers' NeedsCustomers in Control: The ROI of Listening to your Customers' Needs
Customers in Control: The ROI of Listening to your Customers' Needs
 
RESEARCH_PRINT
RESEARCH_PRINTRESEARCH_PRINT
RESEARCH_PRINT
 

Mehr von Mitya Voskresensky

Рейтинг худших компаний-клиентов 2016
Рейтинг худших компаний-клиентов 2016Рейтинг худших компаний-клиентов 2016
Рейтинг худших компаний-клиентов 2016Mitya Voskresensky
 
Российский потребитель 2015 GFK
Российский потребитель 2015 GFKРоссийский потребитель 2015 GFK
Российский потребитель 2015 GFKMitya Voskresensky
 
Портрет российской молодёжи
Портрет российской молодёжиПортрет российской молодёжи
Портрет российской молодёжиMitya Voskresensky
 
TNS: устройства для выхода в интернет
TNS: устройства для выхода в интернетTNS: устройства для выхода в интернет
TNS: устройства для выхода в интернетMitya Voskresensky
 
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...Mitya Voskresensky
 
Типы интегрированных кампаний и их результативность
Типы интегрированных кампаний и их результативностьТипы интегрированных кампаний и их результативность
Типы интегрированных кампаний и их результативностьMitya Voskresensky
 
Mobilerussiawave3 131028025458-phpapp02
Mobilerussiawave3 131028025458-phpapp02Mobilerussiawave3 131028025458-phpapp02
Mobilerussiawave3 131028025458-phpapp02Mitya Voskresensky
 
Fslidesharethestateofmen06 04-13-130605092058-phpapp02
Fslidesharethestateofmen06 04-13-130605092058-phpapp02Fslidesharethestateofmen06 04-13-130605092058-phpapp02
Fslidesharethestateofmen06 04-13-130605092058-phpapp02Mitya Voskresensky
 
Mobile usage & QR codes scanning in Russia
Mobile usage & QR codes scanning in RussiaMobile usage & QR codes scanning in Russia
Mobile usage & QR codes scanning in RussiaMitya Voskresensky
 
Millward Brown: The role of value in mobile advertising
Millward Brown: The role of value in mobile advertisingMillward Brown: The role of value in mobile advertising
Millward Brown: The role of value in mobile advertisingMitya Voskresensky
 
Исследование PWC: мифы об интернет покупателях
Исследование PWC: мифы об интернет покупателяхИсследование PWC: мифы об интернет покупателях
Исследование PWC: мифы об интернет покупателяхMitya Voskresensky
 
Pixel Perfect Precision (how to do your design clean and neat)
Pixel Perfect Precision (how to do your design clean and neat)Pixel Perfect Precision (how to do your design clean and neat)
Pixel Perfect Precision (how to do your design clean and neat)Mitya Voskresensky
 
Google & Nielsens research: mobile search moments
Google & Nielsens research: mobile search momentsGoogle & Nielsens research: mobile search moments
Google & Nielsens research: mobile search momentsMitya Voskresensky
 
Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Mitya Voskresensky
 
Research: Does celebrity advertising work ?
Research: Does celebrity advertising work ?Research: Does celebrity advertising work ?
Research: Does celebrity advertising work ?Mitya Voskresensky
 

Mehr von Mitya Voskresensky (20)

Рейтинг худших компаний-клиентов 2016
Рейтинг худших компаний-клиентов 2016Рейтинг худших компаний-клиентов 2016
Рейтинг худших компаний-клиентов 2016
 
Российский потребитель 2015 GFK
Российский потребитель 2015 GFKРоссийский потребитель 2015 GFK
Российский потребитель 2015 GFK
 
Портрет российской молодёжи
Портрет российской молодёжиПортрет российской молодёжи
Портрет российской молодёжи
 
TNS: устройства для выхода в интернет
TNS: устройства для выхода в интернетTNS: устройства для выхода в интернет
TNS: устройства для выхода в интернет
 
LINK test metodology
LINK test metodologyLINK test metodology
LINK test metodology
 
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...
Справедливая доля digital в медиа-миксе. Основные работающие инструменты в di...
 
Типы интегрированных кампаний и их результативность
Типы интегрированных кампаний и их результативностьТипы интегрированных кампаний и их результативность
Типы интегрированных кампаний и их результативность
 
Mobilerussiawave3 131028025458-phpapp02
Mobilerussiawave3 131028025458-phpapp02Mobilerussiawave3 131028025458-phpapp02
Mobilerussiawave3 131028025458-phpapp02
 
Mail 131031093328-phpapp02
Mail 131031093328-phpapp02Mail 131031093328-phpapp02
Mail 131031093328-phpapp02
 
Fslidesharethestateofmen06 04-13-130605092058-phpapp02
Fslidesharethestateofmen06 04-13-130605092058-phpapp02Fslidesharethestateofmen06 04-13-130605092058-phpapp02
Fslidesharethestateofmen06 04-13-130605092058-phpapp02
 
Mobile usage & QR codes scanning in Russia
Mobile usage & QR codes scanning in RussiaMobile usage & QR codes scanning in Russia
Mobile usage & QR codes scanning in Russia
 
Millward Brown: The role of value in mobile advertising
Millward Brown: The role of value in mobile advertisingMillward Brown: The role of value in mobile advertising
Millward Brown: The role of value in mobile advertising
 
Исследование PWC: мифы об интернет покупателях
Исследование PWC: мифы об интернет покупателяхИсследование PWC: мифы об интернет покупателях
Исследование PWC: мифы об интернет покупателях
 
3 2-12-130405050854-phpapp01
3 2-12-130405050854-phpapp013 2-12-130405050854-phpapp01
3 2-12-130405050854-phpapp01
 
Pixel Perfect Precision (how to do your design clean and neat)
Pixel Perfect Precision (how to do your design clean and neat)Pixel Perfect Precision (how to do your design clean and neat)
Pixel Perfect Precision (how to do your design clean and neat)
 
How to write a screenplay
How to write a screenplayHow to write a screenplay
How to write a screenplay
 
Google & Nielsens research: mobile search moments
Google & Nielsens research: mobile search momentsGoogle & Nielsens research: mobile search moments
Google & Nielsens research: mobile search moments
 
Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013
 
Research: Does celebrity advertising work ?
Research: Does celebrity advertising work ?Research: Does celebrity advertising work ?
Research: Does celebrity advertising work ?
 
Creative briefing seminar
Creative briefing seminarCreative briefing seminar
Creative briefing seminar
 

Kürzlich hochgeladen

Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxFinancial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxsaniyaimamuddin
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCRashishs7044
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCRashishs7044
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Riya Pathan
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfrichard876048
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Pereraictsugar
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Peter Ward
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Doge Mining Website
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 

Kürzlich hochgeladen (20)

Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxFinancial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
 
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCREnjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
 

IBM: Why people follow brands

  • 1. IBM Global Business Services Customer Relationship Management Executive Report IBM Institute for Business Value From social media to Social CRM What customers want The rst in a two-part series
  • 2. IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior executives around critical public and private sector issues. This executive report is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information. Additional studies from the IBM Institute for Business Value can be found at ibm.com/iibv
  • 3. Introduction By Carolyn Heller Baird and Gautam Parasnis Getting  closer  to  customers is a top priority for CEOs, according to the IBM CEO Study. Today’s businesses are fervently building social media programs to do just this. But are customers as enthusiastic? Actually, most do not engage with companies via social media simply to feel connected. It turns out, customers are far more pragmatic. To successfully exploit the potential of social media, companies need to design experiences that deliver tangible value in return for customers’ time, attention, endorsement and data. With the worldwide explosion of social media usage, businesses facilitate increased revenue, cost reduction and ef ciencies. As are feeling extreme pressure to be where their customers are. might be expected, our ndings indicate social media initiatives Today, this hub of customer activity is increasingly virtual, are quickly springing up across organizations. located inside a social media or social networking site. But in an environment de ned by customer control and two-way However, using social media as a channel for customer dialogue, are customers and businesses in sync with each engagement raises interesting challenges for traditional CRM other’s expectations? approaches. CRM strategy, enabled by processes and technolo- gies, is architected to manage customer relationships as a Consider the speed at which social media is being adopted by means for extracting the greatest value from customers over consumers and businesses alike. saw staggering numbers. the lifetime of the relationship. These strategies typically There were more than million active users on Facebook, concentrate on the operational responses required to manage percent outside the United States. By March , more the customer. With social media, though, companies are no than billion messages, or Tweets, had been sent through longer in control of the relationship. Instead, customers (and Twitter since its launch in . By July, that number had their highly in uential virtual networks) are now driving the doubled to billion. And in the Asia-Paci c region, conversation, which can trump a company’s marketing, sales percent of the total online population visited a social and service efforts with unprecedented immediacy and reach. networking site in February , reaching a total of . million visitors. Companies need to embrace this shift with a new strategy – Social CRM, which recognizes that instead of managing Clearly, this is where customers are congregating and busi- customers, the role of the business is to facilitate collaborative nesses want to be. Social media holds enormous potential for experiences and dialogue that customers value. companies to get closer to customers and, by doing so,
  • 4. 2 From social media to Social CRM – What customers want Understanding what customers value, especially when they are It’s about friends and family – not brands. More than half of in the unique environment of a social platform, is a critical rst consumers don’t even consider engaging with businesses via step toward building a Social CRM strategy. What triggers a social sites. For them, social media and social networking are customer to seek out a company or brand via social media? about personal connections with friends and family. What would make a customer reluctant to interact? And does Perception versus reality – what consumers really want. We social engagement in uence customers’ feelings of loyalty discovered signi cant gaps between what businesses think toward a company as businesses hope it does? consumers care about and what consumers say they want from their social media interactions with companies. In exchange To nd out, the IBM Institute for Business Value surveyed for their time, endorsement and personal data, consumers more than , consumers worldwide to understand who is expect something tangible. But businesses rank getting using social media, what sites they frequent and what drives discounts and purchasing as the least likely reasons consumers them to engage with companies. We also asked executives interact with them. to tell us why they think customers are interacting with their The advocacy paradox – Is it the chicken or the egg? Most organizations (see sidebar: Study methodology). What we businesses believe social media will increase advocacy, but only discovered may come as a surprise to those companies that percent of consumers agree, and more than percent assume consumers are seeking them out to feel connected to believe passion for a business or brand is a prerequisite for their brand. In fact, consumers are far more interested in social media engagement. Companies need to nd creative obtaining tangible value, suggesting businesses may be ways to tap the power of the trusted social community. confusing their own desire for customer intimacy with consumers’ motivations for engaging. What are the implications for companies? We believe they have their work cut out for them. Even for customer-focused Our research shows that consumers have strong opinions about organizations, the introduction of social media presents one of their social media interactions and, despite their embrace of the most disruptive forces facing businesses today. Our ndings social media, their willingness to engage with companies indicate companies are establishing the foundations of Social should not be assumed or taken for granted: CRM but, as could be expected, they are experiencing the growing pains of change and uncertainty. In their rush to join Consumers all over the world, across all generations, are swarming the fray, businesses need to stay laser focused on customer to social media, but most interact only occasionally. Despite the value to avoid falling into the perception gaps we’ve uncovered. astounding escalation of social media adoption, only a very small percentage of consumers engages regularly by responding to posts and authoring their own content. Obtaining tangible value is the top reason most consumers seek out businesses via social sites.
  • 5. IBM Global Business Services 3 Social  media  surge Study methodology Nearly percent of the online consumers we surveyed have at least one account on a social networking site where they can quickly and In October 2010, we conducted two online surveys: easily connect with people. Almost half have accounts on media- sharing sites where they can access or upload photos, videos and other types of media. But only a fraction of consumers, a mere percent, consistently take the time and effort to regularly respond to others’ comments or post original content. Social media is ultimately about interacting with others with an expectation of getting something in return. Even if that “something” is intangible, such as a feeling of connectedness or affection, participants are actively, purposefully seeking value. For businesses, the challenge is unlocking what their customers care about and creating social media experiences that deliver that value. But rst, companies need to understand the dynamics of consumer growth and activity on social sites and take stock of consumer attitudes and the triggers that compel them to seek out a company in the rst place. other interested individuals. So, who is embracing social media and which sites are they using? As expected, Generation Y still accounts for the lion’s share of activity, but Generation X isn’t far behind and Baby Boomers are quickly catching up, particularly in the use of social networking sites, such as Facebook, LinkedIn, Orkut, and QQ. Baby Boomers have demonstrated the most growth in terms of numbers using such sites. In , percent of Baby Boomers were using social networking sites. Based on our survey, that number had swelled to percent by . However, Baby Boomers’ use of other types of social sites is far less aggressive, and percent do not have accounts on any social site, a much higher level of inactivity than Generation X or Y (see Figure ).
  • 6. 4 From social media to Social CRM – What customers want Percentage of consumers with accounts on social sites 89% Social networking sites 79% 72% 57% Media sharing sites 42% 33% 42% Microblogging sites 37% 24% 30% Blogging sites 24% 12% 27% Wikis 22% 14% 20% Social review sites 16% 10% 19% Social bookmarking sites 12% 7% Gen Y 5% Gen X No accounts 13% 20% Baby Boomers Notes: 1) Sample size N=1056. 2) Generation Y: People born between 1975 and 1992 (18 to 35 year olds); Generation X: People born between 1965 and 1974 (36 to 45 year olds); Baby Boomers: People born in or before 1964 (46 years olds and older). Source: IBM Institute for Business Value analysis. CRM Study 2011. Figure 1: Baby Boomers are not alone in their love of social networking. People are ocking to sites where their circles of in uence These sites are by far the most popular for Generations X and reside. They are joining networking sites such as Facebook Y as well. Media sharing sites (e.g., YouTube, Flickr and because this is where the conversations are taking place. In SlideShare) rank second in popularity, but the number of contrast, consumers are much less inclined to have accounts on accounts drops signi cantly. Generation Y still leads the pack more niche sites, such as those dedicated to authoring blogs or at percent, but fewer than half of Generation X has an writing restaurants reviews. However, the picture is somewhat account on these sites, and only a third of Baby Boomers do. different in emerging markets, where blogging and micoblog- ging tend to be more popular (see sidebar: Trends in emerging Microblogging, e.g., “tweeting,” comes in third and is used markets). mostly by Generation X and Y, with far less activity by Baby Boomers. People have even fewer accounts on the remaining types of social sites, such as blogs, wikis, social reviews and social bookmarking sites.
  • 7. IBM Global Business Services 5 Companies, keenly aware of this global social media phenom- enon, are feeling intense pressure to get in on the action. Trends in emerging markets Nearly percent of executives say their companies will be perceived as “out of touch” if they don’t engage, and over half believe their competition is successfully reaching customers through social media. Not surprisingly, their rush to embrace social networking sites has mirrored consumers’ adoption, with percent claiming a pro le or presence on a social networking site, and over half use media sharing and microb- logging sites (see Figure ). 9 Although the consumer stampede to social media is indeed impressive, companies also need to be aware the numbers can be deceiving. To get a better picture of actual social media interaction, we grouped consumers based on their social media engagement levels by asking them how they interact on social sites – whether they typically just read, occasionally interact or almost always engage. Our ndings reinforce what other similar studies have also uncovered. Only a small proportion of consumers – the Engaged Authors at percent – nearly always respond to others’ comments or author their own posts. The next and by far largest group, which we dubbed the Casual Participants ( percent), occasionally will respond or post their own content. Only a small percentage of consumers on social sites can be counted on to interact regularly.
  • 8. 6 From social media to Social CRM – What customers want N=349 Social networking sites 79% 18% 3% N=347 Media sharing sites 55% 37% 8% N=343 Microblogging sites 52% 41% 7% N=343 Wikis 48% 45% 7% N=342 Blogging sites 45% 45% 10% N=338 Social review sites 36% 52% 12% N=339 Social bookmarking sites 31% 55% 14% Note: Numbers rounded to equal 100 percent. Source: IBM Institute for Business Value analysis. CRM Study 2011. Figure 2: The last group, the Silent Observers at percent, sits quietly These participant categories have multiple implications for on the sidelines. Although they have accounts, they read but do businesses hoping to use social media to get closer to not participate and have never contributed to a conversation or customers. Innovative companies are identifying their Engaged posted their own content. Authors, collaborating with them and leveraging their in uence as brand evangelists. The Casual Participants and, to some degree, the Silent Observers also constitute a rich reserve with the potential to engage. Businesses should view this as an opportunity to reach out to new and existing customers. Targeted campaigns with incentives to However, it will likely take a targeted, multichannel campaign interact can entice the Casual Participant that rewards customers for using a social option with further to engage. incentives to motivate them to actually interact.
  • 9. IBM Global Business Services 7 It’s  personal   Privacy concerns ( percent) and spam ( percent) topped For most consumers, social media is about engaging with friends and the reasons why they are reluctant. Additionally, over a third family and accessing news and entertainment – not interacting with ( percent) cite simple disinterest in the brand as their reason brands. for not engaging. When asked why they go to social media or social networking Of the percent who do interact with brands, the majority ( sites, percent of consumers chose “Connecting with percent) say they need to feel a company is communicating network of friends and family,” while only percent noted honestly before they will interact. Sixty-seven percent of “Interacting with brands” (see Figure ). companies say they have a culture that endorses transparent communications with customers; however, a third were either As a group, Engaged Authors are more likely to interact with lukewarm about this or felt their company culture was not companies ( percent), but even they rank this reason well supportive. Companies that struggle with transparency risk behind others on their list, with “Connecting with friends and being perceived by customers as insincere or manipulative. family” receiving a whopping percent. These types of organizations may nd it dif cult to interact with the authenticity that has become a must for business- In fact, just over half of consumers surveyed say they do customer interactions in social media. not engage with brands via social media at all ( percent). Reasons consumers go to social media or social networking sites Connect with friends and family 70% Access news 49% Access entertainment 46% Share opinion 42% Access reviews 39% Meet people 38% Share media 36% Research for work 28% Get deals 26% Interact with brands 23% Network for work 22% Write blog 22% Access education 22% Search jobs 20% Other .04% Note: Sample size N=1056. Source: IBM Institute for Business Value analysis. CRM Study 2011. Figure 3:
  • 10. 8 From social media to Social CRM – What customers want What does all this mean for business? Organizations need to In contrast, when asked why they thought customers were be aware that less than half their customer base is likely to following their companies on social sites, executives cite interact with them in a social media environment. This can getting discounts and purchasing products or services as the uctuate, of course, depending on the targeted market for a two things customers were least interested in doing – the direct particular industry or type of business. However, regardless of opposite of the consumers’ rankings (see Figure ). the customer pro le, as businesses build their social media strategies, it is important they ask a fundamental question: The same question reveals another related perception gap. “Why would people choose to follow us in social media instead Businesses are three times more likely to think consumers are of reaching out via traditional channels?” The answer may be interested in interacting with them to feel part of a community. as simple as: “Because our customers congregate on social sites, Businesses also overestimate consumers’ desire to engage with and it’s how they want to communicate.” For the Engaged them to feel connected to their brand. In fact, these two Authors and, now and again, the Casual Participants, that may activities are among the least interesting from a consumer’s be enough of a reason. However, the real opportunity lies in an perspective. organization’s ability to attract others who aren’t so inclined to participate. Companies need to make a concerted effort to Consumers are willing to interact with businesses if they communicate openly and authentically with these customers, believe it is to their bene t, feel they can trust the company learn what they value and offer bene ts that entice them to act. and decide social media is the right channel to use to get the value they seek. That value could be in the form of a coupon or Perception  versus  reality speci c information. Engaging with a company via social Sixty- ve percent of businesses view social media as a new source for media may result in a feeling of connectedness for consumers revenue but, at the same time, many believe receiving discounts or – an emotional, intangible gain – but the wish for intimacy is coupons and purchasing products or services are among the least likely not what drives most of them. reasons a customer would seek them out on social sites. Ironically, though, consumers say getting tangible value is the top reason they Businesses hoping to foster closer customer connections interact with a company, which is good news for those organizations through social media conversations may be mistakenly hoping to monetize social media. projecting their own desires for intimacy onto customers’ motivations for interacting. Interactions with businesses are When asked what they do when they interact with businesses not the same as interactions with friends. Most consumers are or brands via social media, consumers list “getting discounts or not motivated brand advocates who connect with a company coupons” and “purchasing products and services” as the top primarily to feel associated with a brand community. two activities, respectively. They rank “reading reviews and product rankings” third, which is also often part of the Despite this perception gap, the fact that customers desire to purchasing process as customers research product information use social sites to transact with businesses should come as before deciding to transact. welcome news to companies that want to monetize social media. Social commerce is quickly becoming a major force in
  • 11. IBM Global Business Services 9 Consumers’ ranking: Perception   Businesses’ ranking:   The reasons they interact with companies gap Why they think consumers follow them via social sites via social sites (61%) Discount Learn about new products (73%) (55%) Purchase General information (71%) (53%) Reviews and product rankings Submit opinion on current products/services (69%) (53%) General information Exclusive information (68%) (52%) Exclusive information Reviews and product rankings (67%) (51%) Learn about new products Feel connected (64%) (49%) Submit opinion on current products/services Customer service (63%) (37%) Customer service Submit ideas for new products/services (63%) (34%) Event participation Be part of a community (61%) (33%) Feel connected Event participation (61%) (30%) Submit ideas for new products/services Purchase (60%) (22%) Be part of a community Discount (60%) Note: Consumer: N=1056; Business: Learn N=333, General info N=336, Submit opinion N=334, Exclusive info N=333, Reviews/rankings N=333, Feel connected N=331, Customer service N=331, Submit ideas N=332, Community N=329, Event N=332, Purchase N=334, Discounts N=331. Source: IBM Institute for Business Value analysis. CRM Study 2011. Figure 4: social media, and we believe expediency, cost savings, and rst to enable customers on Facebook to select products and exclusive offers and sales will outweigh privacy fears. purchase directly from a Facebook page. In , Delta Consumers are increasingly using social media to gain recom- Airlines launched a “social media ticket window” on Facebook, mendations, reviews and opinions from friends, family, experts allowing customers to book a ight without having to go to and the collective social community. Once they access this Delta’s Web site. Delta indicated Facebook is used by more content, the impulse to purchase immediately can be strong. customers while in ight than any other Web site, making it a Having to switch channels to transact will increasingly feel like “natural launching point” for its initiative. an inconvenience, if not burdensome. Social commerce adoption levels will vary based on industry, More companies are offering commerce opportunities consumer concern over privacy (which is highest in China at delivered through third-party social platforms such as percent and Germany at percent) and regulatory or legal Facebook (see sidebar: Cold Stone Creamery – Real value for restrictions. However, for most, the convenience and satisfac- real friends). In , - FLOWERS.COM was among the tion of “one-stop shopping” will be hard to resist.
  • 12. 10 From social media to Social CRM – What customers want The  advocacy  paradox Cold Stone Creamery – Real value for real friends Is it the chicken or the egg? Businesses are betting that social media interactions will engender increased customer loyalty. However, many Cold Stone Creamery’s eGift program on Facebook is an consumers say they need to be passionate before they’ll engage, and excellent example of social commerce that optimizes the they are split regarding how much in uence they think these unique community aspect of social networking by enabling followers to send tangible gifts to friends. interactions will have. In the IBM Global CEO Study, percent of CEOs said “getting closer to customers” was the top priority for their business over the next ve years. This same driver is re ected in responses from executives surveyed for this study. Almost three fourths ( percent) believe reaching out to customers via social media will help them increase customer advocacy. However, consumers are divided on this issue. Only percent feel social media interactions with a business will have a favorable in uence on their loyalty to that company, percent are neutral and as many as a third ( percent) say their social media interactions will not make them feel more loyal to that business. In addition, they are split as to whether social interaction with a company would in uence their spending with that business. Just under half of consumers ( percent) believe their engage- ment would likely lead to future purchases with that company. franchisees.14 Twenty-seven percent don’t think social media interactions will in uence their spending, and percent are neutral. Further- more, for nearly two thirds of consumers ( percent), passion for a brand or business is a prerequisite for engaging with that company via social media. This means the majority of consumers are inclined to interact only with brands they already know and love.
  • 13. IBM Global Business Services 11 In other words, consumers who engage already have an af nity for that brand or company, and mere participation via social American Express Small Business Saturday – media may not necessarily result in increased loyalty or Crossing the emotional divide spending. But a recommendation from a friend or family member could make a difference. In a IBM study on the retail industry, we found percent of consumers ask friends for advice before purchasing, and more than a third turn to external sources – either fellow consumers or independent experts – to get information about a product. Only percent rely on retailers and manufacturers. The power of the social community’s endorsement and in uence can be felt each time someone “likes” a company on Facebook or re-tweets a company’s message on Twitter. Companies can take advantage of this dynamic by designing social media programs with the explicit goal of touching customers emotionally and motivating them to share their experiences with others. The American Express Small Business Saturday program on Facebook is great example of a company using social media to connect with customers based on a shared sense of values, while also providing tangible value to both the consumer and the company (see sidebar: American Express Small Business Saturday – Crossing the emotional divide). Most consumers interact with brands or 17 businesses with which they already have a strong connection.
  • 14. 12 From social media to Social CRM – What customers want Recommendations  and  next  steps If you aren’t sure what customers value, ask them. Dialogue and Organizations need to carefully consider how they can create a social participation is what social media is all about. Devise creative media experience that is unique to their brand, offers customer value ways to capture the customer insight you need with polls, idea and exploits the power of the social community. jams and challenges. Let customers participate by voting on their favorite ideas or innovations. In fact, getting customers Companies should consider the following to lay the foundation invested in the outcome will help build the advocacy and for a successful social media program that will help them brand af nity you seek. reinvent their customer relationships: Monetize social media, if that’s what customers want. Make it quick and easy for customers to transact directly within a Recognize social media is a game changer. We believe that for social media experience. Develop social commerce campaigns many companies, social media will become the gateway, if not that target a speci c customer need with time-sensitive offers the primary, communications channel to connect with or discounts that motivate customers to act. For people to customers. As companies design their social media programs, engage and keep coming back, content should be fresh and they need to think of their customers holistically and consider relevant. Provide incentives for people to share content with their social media interactions in the context of other friends to capitalize on the viral bene ts a community customer touch points with the company. platform offers. Be clear on the differences between social media and other channels. Social CRM is about enabling engagement with the customer for the mutual bene t of the customer and the business. The traditional model of managing the customer relationship needs to adapt to the reality that the customer is now in control. Make the customer experience seamless – across social media and other channels. If you know your customer in one channel, you A successful Social CRM strategy facilitates need to know him or her in other channels as well. This collaborative experiences and dialogue that means the social solution should not be devised as an isolated standalone program, but needs to be thoughtfully integrated customers value. with other customer-facing initiatives. Start thinking like a customer. Instead of asking why your company should engage in social media, ask why a customer would choose to interact with your company in a social platform. Recast social interaction strategies to focus on giving customers the value they seek and the customer intimacy will come.
  • 15. IBM Global Business Services 13 Conclusion To learn more about this IBM Institute for Business Value It is understandable why companies want to use social media to study, please contact us at iibv@us.ibm.com. For a full catalog interact with customers. The bene ts are real and deep. First, of our research, visit: there is the social interaction itself, which can provide direct ibm.com/iibv value to the business through revenue from social commerce and cost savings when used for customer care or research, for Be among the rst to receive the latest insights from the IBM example. Plus, social networking enables rapid, viral distribu- Institute for Business Value. Subscribe to IdeaWatch, our tion of offers and content that may reach beyond what could monthly e-newsletter featuring executive reports that offer be done in traditional channels – all with endorsement from strategic insights and recommendations based on IBV research: connections people trust. But that is just the beginning. ibm.com/gbs/ideawatch/subscribe Companies also can use social platforms to mine data for brand monitoring and valuable customer insights, which can spark innovations for improved services, products and customer experiences. In a constant cycle of listen-analyze-engage- evolve, organizations can optimize their social media programs to continually enhance their business. With so much to gain, companies need to invest the effort to understand how to break through the noise and offer current and potential customers a reason to reach out to them via social media. Businesses, eager to get closer to customers, are building pages on social networking sites, posting videos and mircoblogging; however, if they don’t focus on what the majority of their customers value in social media, they may be missing the boat. In fact, offering tangible value to consumers may be the strongest incentive to attract the percent of Casual Participants who need a good reason to interact. For companies that have been taking a “build it and they will come” approach to social media, these consumer ndings are a wake-up call that much more needs to be done if they want to attract more than the most devoted brand advocates.
  • 16. 14 From social media to Social CRM – What customers want Authors Contributors Carolyn Heller Baird is the Global CRM Research Leader Saul Berman, Partner & Vice President, Global Strategy with the IBM Institute for Business Value, IBM Global Consulting Leader and Innovation & Growth Services Leader, Services. Her seasoned experience spans nearly years with a IBM Global Business Services focus on customer experience and CRM strategies, digital media development, corporate communications, marketing and Geoffrey Hamelin, Market & Solutions Development Leader/ branding. She can be reached at cbaird@us.ibm.com. CRM, IBM Global Business Services Gautam Parasnis is a Partner and Vice President for IBM Denise Arnette, Market & Solutions Development Leader/ Global Business Services and the Global CRM Leader. He has Innovation & Growth, Strategy & Transformation, IBM more than years of experience developing customer Global Business Services experience and CRM strategies, driving enterprise CRM d’Artagnan Catellier, Innovation & Growth Leader, Strategy & transformations and delivering enabling technologies. He can Transformation, Central and Eastern Europe, IBM Global be reached at gautam.parasnis@us.ibm.com. Business Services Rawn Shah, Social Business Transformation Consultant, IBM Software Eric Lesser, Institute for Business Value Practice Leader, IBM Global Business Services
  • 17. IBM Global Business Services 15 The  right  partner  for  a  changing  world References   At IBM, we collaborate with our clients, bringing together “Capitalizing on Complexity: Insights from the Global business insight, advanced research and technology to give Chief Executive Of cers Study.” IBM Institute for Business them a distinct advantage in today’s rapidly changing Value. May . http://www- .ibm.com/services/us/ environment. Through our integrated approach to business ceo/ceostudy /index.html design and execution, we help turn strategies into action. And with expertise in industries and global capabilities that span “Statistics.” Press room. Facebook Web site, accessed countries, we can help clients anticipate change and pro t January , . http://www.facebook.com/press/info. from new opportunities. php?statistics Beaumont, Claudine. “Twitter hits billionth tweet.” The Telegraph. March , . http://www.telegraph.co.uk/ technology/twitter/ /Twitter-hits- -billionth- tweet.html; Anderson, Sophie. “Twitter User Sends World’s Billionth Tweet.” BBC News. July , . http://www. bbc.co.uk/news/world-asia-paci c- “Social Networking Habits Vary Considerably Across Asia-Paci c Markets.” comScore press release. April , . http://www.comscore.com/Press_Events/Press_ Releases/ / /Social_Networking_Across_Asia-Paci c_ Markets/% language% /eng-US For more information about the maturity of companies’ social media strategies, refer to the second paper in this two-part series: “From social media to Social CRM: Reinventing customer relationships.” IBM Institute for Business Value. . We de ne Generation Y as those born between and ( to year olds), Generation X as those born between and ( to year olds) and Baby Boomers as those born in or before ( years old and older).
  • 18. 16 From social media to Social CRM – What customers want Berman, Saul, Bill Battino and Karen Feldman. “Media’s Markiewicz, David. “Delta Launches ‘ticket window’ on Looming Revenue Gap: Digital-driven challenges for Facebook.” The Atlanta Journal-Constitution. August , traditional business models.” IBM Institute for Business . http://www.ajc.com/business/delta-launches-ticket- Value. March ; IBM Institute for Business Value window- .html analysis of IBM Digital Consumer Surveys: , and “Cold Stone Creamery launches eGift program.” Cold (N = , ). Stone press release. July , . http://www.coldstone- Examples of microblogging sites include Twitter, Jaiku and creamery.com/assets/pdf/news/ /pr_cold-stone- Tumblr. Examples of blogging sites include Blogger, creamery_egift_ .pdf WordPress and Xanga. Examples of wikis include “Capitalizing on Complexity: Insights from the Global Wikipedia, WikiHow, WikiBooks and Wikitionary. Chief Executive Of cers Study.” IBM Institute for Business Examples of social review sites include Yelp, Epinions and Value. May . http://www- .ibm.com/services/us/ Trip Advisor. Examples of social bookmarking sites include ceo/ceostudy /index.html Digg, Delicious, StumbleUpon and Reddit. Schaefer, Melissa. “Capitalizing on the Smarter Piskorski, Mikolaj Jan and Tommy McCall. “Mapping the Consumer.” IBM Institute for Business Value. February Social Internet.” Harvard Business Review. July-August . . http://hbr.org/ / /vision-statement-mapping- the-social-internet/ar/ American Express Small Business Saturday Facebook page, accessed January . http://www.facebook.com/SmallBu A Global Update of Social Technographics. Forrester ® sinessSaturday?v=app_ ; “Who we are.” Research, Inc. September , . American Express Web site. http://about.americanexpress. For more information about the social media strategies and com/oc/whoweare/; Small Business Saturday Web site, practices companies are putting in place and the current accessed January , . http://smallbusinesssaturday. challenges they face, refer to the second paper in this com/faq.html; “Small Business Saturday (SM) Firmly two-part series: “From social media to Social CRM: Plants Its Roots Between Black Friday and Cyber Reinventing customer relationships.” IBM Institute for Monday.” American Express press release. December , Business Value. . . http://about.americanexpress.com/news/pr/ / post-sbs.aspx Wauters, Robin. “ - -FLOWERS.COM Sets Up Shop Inside Facebook.” TechCrunch. July , . http:// For more information about Social CRM and how techcrunch.com/ / / / - - owerscom-sets-up- companies are incorporating social media into their shop-inside-facebook/ customer relationship management strategies, refer to the second paper in this two-part series: “From social media to Social CRM: Reinventing customer relationships.” IBM Institute for Business Value. .
  • 19.
  • 20. © Copyright IBM Corporation IBM Global Services Route Somers, NY U.S.A. Produced in the United States of America February All Rights Reserved IBM, the IBM logo and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their rst occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products and services do not imply that IBM intends to make them available in all countries in which IBM operates. Please Recycle GBE -USEN-