the state of social business 2013: the maturing of social media into social business by brian solis...

7/27/2019 The State of Social Business 2013: The Maturing of Social Media into Social Business by Brian Solis and Charlene Li

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By Brian Solis and Charlene Li

With Jessica Groopman, Jaimy Szymanski, and Christine Tran

Based on results from Altimeter Group’s 2010-2013 annual surve of social media strategists and executives

A State of the Industry Report

The State of Social Business 2013:The Maturing of Social Media

into Social Business Altimeter Research Theme: Dynamic Organization

October 15, 2013



Attribution-Noncommercial-Share Alike 3.0 United States | © 2013 Altimeter Group | 2

The State of Social Business: 2012 Benchmark Study

In our report, The Evolution of Social Business: Six Stages of Social Business Transformation,

we found that even though social media is making its wa into more and more businesses,

companies that adopt it are not created equal when it comes to social media maturit.

Our research revealed a distinct gap between companies that execute social media

sraegies ad ose a are ruly a “social usiess.” A social usiess, as e deed

in the report, is the deep integration of social media and social methodologies into the

organization to drive business impact.

As compaies maure i social, e ideied a aural progressio roug six disic

stages:

Stage 1: Planning — Listening and learning to ensure a strong foundation of strateg and

resource development, organizational alignment, and execution. Do not currentl have a

sigica presece i social media caels.

Stage 2: Presence — Staking claim and moving from planning to action, establishing a

formal and informed presence in social media.

Stage 3: Engagement — Making a commitment where social becomes critical to

relationship-building along the entire customer lifeccle.

Stage 4: Formalized — Organizing for scale in social deploment and engagement across

multiple departments, business units, and sub-brands.

Stage 5: Strategic — Becoming a social business; social initiatives are gaining visibilit

through business impact. Social methodologies and technologies become integrated

across functions.

Stage 6: Converged — Business is social; social media strategies weave into the fabric of

an evolving organization driven b a vision of improving customer and emploee relationships

and experiences.

We found that while most companies have an established presence, engage activel with

customers, or even have formalized programs, onl 17% consider themselves at the higher

ends of social business maturit (see Figure 1).

Figure 1: Most Enterprises Characterize Themselves as Intermediate in Social

Business Maturity

Q. How would ou characterize where our organizationis in its social business evolution? (Q3 2013)

6%

25%26% 26%

14%

3%

Stage 1Planning

Stage 2Presence

Stage 4Formalized

Stage 5Strategic

Stage 6Converged

Stage 3Engagement

http://www.altimetergroup.com/research/reports/evolution-social-business





A ke part of social business is how and where it lives in the organization. We found that

78% of companies have a dedicated social media team — with 22% having them at both

the corporate and division level (see Figure 4). Onl 22% do not have a dedicated team

et.

Figure 4: Three-Quarters of Companies Have a Dedicated Social Media Team

Q. Does our compan have a dedicated social media team that serves the entire compan ordivision as a shared resource? (Q3 2013)

Organizations continue to use a variet of models to support social media programs. We

found that no one format is permanent or dominant. Man companies start with a model

that mirrors the culture of their compan toda. As programs develop, new models are

tested to expand social media across disciplines, departments, and lines of business.

Most companies continue to organize as Hub and Spoke (35%), but the biggest shift

was companies moving toward Multiple Hub and Spoke, increasing from 18% in 2010

to almost 24% in 2012 (see Figure 5). Multiple Hub and Spoke is gaining traction with

organizations that move along the stages of social media maturit as it brings disparate

groups together to solve for challenges that prevent social integration into everda

orko.

Figure 5: Companies Continue to Organize for Social Media as Hub and Spoke,

with a Shift Toward Multiple Hub and Spoke

Social Business Gains Traction Throughout theOrganization

Organizations Still Experiment with Several

Models to Support Social Media

14%

22%

Yes, at the

division level

22% Not yet Yes, at the

corporate and

division level

42% Yes, at the

corporate level

2010

2012

10.8%

9.4%

28.8%

29.1%

41%

35.4%

18%

23.6%

1.4%

2.4%

Decentralized

No one department

manages or coordinates;

efforts bubble up from

the edges of the company.

Hub and Spoke

A cross-functional team

sits in a centralized position

and helps varios nodes such

as business units.

Holistic

Everyone in the company

uses social media safely

and consistently across

all organizations.

CentralizedOne department

(like Corp Communications)

manages all social activities.

Multiple Hub and Spoke(“Dandelion”)

Similar to Hub and Spoke but

applicable to multinational

companies where

“companies within companies”

act nearly autonomusly from each

other under a common brand.




B far, most core social media teams reside in Marketing or Corporate Communications

and PR, accounting for 66% of all businesses surveed (see Figure 8). Social media is

also making headwa as its own group, now matching core digital teams at 14%. As

social media becomes part of everda engagement across the enterprise, the core socialmedia team will continue to grow as a critical enabler that helps the business learn how

to be social. With the expansion of social media across the enterprise, businesses will

move along the Formalized and Strategic stages of social business evolution. This sets the

stage for social media to operate in alignment with overall business, lines of business, and

functional goals.

Figure 8: Core Social Media Teams Reside Largely in Marketing or Corporate

Communications/PR

Q. In which department does our CORE social me team reside? (Q4 2012)

The number of full-time emploees supporting social media is on the rise. Between 2010

ad 2012, compaies i oer 5,000 employees ae icreased safg for eerprise

social effors (see Figure 6). Moreoer, e umer of people i specic social media roles

has also increased over time (see Figure 7).

Figure 6: Social Media Headcount Across the Organization Is Blooming

Q. Approximatel how man full-time equivalent staff currentl support social effortsin our organization, for external and internal engagement?

Figure 7: The Core Social Media Team Increases in Size

Q. How man full-time or full-time equivalent emploees make up this dedicated social media team?(Answer for the team(s) ou are most familiar with.)

Social Media Headcount Expanded Rapidly

Marketing and Communications Becomethe Social Media Core

Marketing

Corporate Comm/PR

Social Media

Digital

Advertising

Customer Support

Executive

IT

Other

40%

26%

14%

14%

2%

2%

1%

1%

6%

Employees in Company Average # of Staff

2010 2012

1,000 to < 5,000

5,000 to < 10,000

10,000 to < 50,000

50,000 to < 100,000

More than 100,000

3.1

5.2

5.4

23.8

20.4

3.1

19.4

12.0

27.9

49.4

Role 2011 Average 2013 Average

Social Strategist

Business Unit Liaison

Content Strategist

Education/Training Manager

Community Manager

Web Developer

Social Media Manager

Social Analyst

Total

1.5

1.5

N/A

5

3

1.5

2

1

11

1.6

1.7

1.7

0.8

2.5

3.4

2.2

1.6

15.6

.




While priorities such as metrics and training remain top priorities, new initiatives are getting

attention, such as scaling social programs, making sense of social data, and integrating

with digital and mobile efforts (see Figure 10). This is supported b related objectives to

develop internal education and training, up to 43%, and connect emploees with socialtools, at 23%. Companies can’t scale social media across the enterprise with a core

team alone. As businesses move toward Formalized, Strategic, and Converged stages,

strategists learn that housing social in one group hinders growth, scale, and internal

distribution, leaving strateg development and execution in either the core or among

external agencies. To trul scale social throughout the enterprise takes empowerment

where it becomes a new instrument to achieve business goals.

Figure 10: In 2013, Companies Prioritized Measurement, Training, and Scaling

Programs

Q. In 2013, what are our top internal social media objectives?

In just a few ears, dedicated emploees have spread out beond marketing and

communications to proliferate other ke functions and lines of business. At least 13

different business units across the enterprise ma deplo social media (see Figure 9). Most

notabl, customer support (40%) and digital (37%) have become part of the everdasocial mix. And while HR has traditionall used social for recruitment, social is also now

expanding to be used for emploee engagement, development, and retention.

The number of social media practitioners is also increasing in areas where social hasn’t

ilraed efore. Produc Deelopme, Cusomer Experiece (CX)/User Experiece

(UX), Legal, ad Researc are amog areas a are eolig io social usiess. As is

migration continues, the need for all groups to work together and in line with one overall

vision and philosoph will set the stage for a Converged social business.

Figure 9: At Least 13 Business Units Have Dedicated Social Media Staff

Q. In which of the following departments are there dedicated people(can be less than one FTE) executing social? (Q4 2012)

Social Media Expands into Social Business

Marketing

Corporate Comm/PR

Social Media

Digital

Product Department/R&D

Advertising

Customer/User Experience

Customer Support

Executive

Legal

IT

HR

Market Research

73%

66%

40%

37%

35%

29%

16%

16%

15%

14%

9%

8%

11%

2013 Viewed as the Year Where Social

Scales and Integrates

48%

48%

43%37%

40%

25%

33%

27%

23%

2012 2010

26%

15%30%

15%

35%

15%35%

13%

32%

7%

22%

Create metrics that demonstratethe value of social media

Develop internaleducation and training

Scale our social programs

Connect social data to other enterprise datasources to deliver actionable insight

Integrate social mediawith digital and mobile

Connect employeeswith social tools

Develop alistening/monitoring solution

Determine anorganizational/governance model

Apply social insight tothe product roadmap

Get buy-infrom stakeholders

Create policiesand procedures




Gie e deep learigs from e-plus years of experiece, i’s lile surprise a

respondents shared that the were able to see and measure positive outcomes for

marketing optimization, customer experience, and brand health social initiatives (see

Figure 12). In progress toward a full Converged social business, customer experiencead rad eal ecome criical KPIs as ey are a social reecio of a compay’s rad

promise, reputation, and engagement strateg.

Figure 12: Social Media Programs Demonstrate Positive Outcomes for Marketing

Optimization, Customer Experience, and Brand Health

Q. Which of the following outcomes can ou atribute to our social business programin the last 12 months? (Q3 2013)

Content marketing, engagement, listening, and providing direct customer support became

higher social priorities in 2013, with more than half naming content marketing (see Figure

11). Coe markeig as a key oecie sigies a rads are lookig a social media

as a means to tell stories, market, and create awareness, preference, and even demand.

On the other hand, notable decreases in social commerce, advocac, and collaboration

programs signif a need to prioritize objectives rather than spread investments, time, and

resources across too man initiatives.

Figure 11: Top External Social Priorities Focus on Content, Engagement,

Listening, and Support

Q. In 2013, what are our top three external social media objectives?

Social Strategies Focus on Content,

Engagement, and Support

Outcomes and Measurement Favor Marketing

and Customer Experience Objectives

We have formalized metrics that show positive outcomes

We have not been able to tie this to positive outcomes

We have not formally measure this yet

53%

45%

45%

24%

19%

18% 29% 52%

37% 42%

35% 39%

26% 29%

23% 29%

23% 21%

Marketing Optimization:Improvement in effectiveness

of marketing programs

Customer Experience:Improvement in relationship with

customers, experience with brand

Brand Health:Improvement in attitudes, conversation,

and behavior toward our brand

Innovation:

Increase in product R&Dand innovation

Operation Efficiency:Reduction in company

expenses, e.g., customer service

Revenue Generation:Increase in actual product

revenue, leads, conversions

57%

50%

43%

41%

38%

32%16%

27%

25%47%

16%25%

14%20%

13%21%

9%14%

9%22%

2012 2010

Contentmarketing

Developing ongoing dialog andengagement with customers

Listening/learningfrom customers

Providing direct customer supportthrough social channels

Developing an influencer relationsor ambassador program

Websiteintegration

Formalizing anadvocacy program

Collaboration with customers onnew products/services

Mobile/ Location

Enablingpeer-to-peer support

Socialcommerce




Social media investments are distributed across all aspects of social business enablement,

with companies mostl planning to increase spending on social media management

sstems (SMMS) to help scale engagement (see Figure 15). The second area is spending

on training and education as organizations seek to educate those outside of the coresocial media teams on how to integrate social into everda processes.

Figure 15: In 2013, Nearly Half of Social Strategists Planned to Increase Spending

on Social Media Management Systems and Internal Training and Education

In 2013, there was little movement in social budgets from the previous ear (see Figure 13).

Nearl half of companies’ social budgets are less than $100K or between $100K to $500K.

Within those budgets, the highest technolog spend was for listening/monitoring platforms,

followed closel b analtics and communit platforms (see Figure 14).

Figure 13: Social Budgets Stayed Constant in 2013

Figure 14: Listening/Monitoring, Analytics, and Community Platforms Are the

Biggest Social Technology Spends in 2013

Social Media Spending Focuses on

Enabling a Social BusinessSocial Budgets Stayed Constant in 2013

Listening/monitoring platforms $62,000

Analytics platforms $54,600

Community platforms $51,900

Social media management systems $34,700

Enterprise social networks $29,400

Social CRM $14,800

More than $5 million

2013 Projection

$100,000 to < $500,000

Less than $100,000

$500,000 to < $1 million

$1 million to < $5 million

2012

26%

34%

25%

23%

6%

4%

11%

9%

5%

5%

Social media management systems(Hootsuite, Spredfast, Sprinklr)

Training and education(workshop, conferences, webinars)

Custom technology developmentor data integration services

Social appdevelopment

Listening/monitoring platforms(Radian6, Scout Labs, Crimson Hexagon, NetBase)

External agency to support engagement(e.g., moderate Facebook page)

Analytics platforms(Webtrends, Omniture, Coremetrics)

Community platforms(Lithium, Jive, Get Satisfaction)

Blogger/Influencer networks(Federated Media, NetShelter, BlogHer)

Enterprise social network (Yammer, Chatter)

SocialCRM

47%

47%

45%

43%

43%

38%

37%

33%

25%

23%

22%




The evolution of social business is constant. While models, budgets, and investments will

shift over time, the biggest impact of social media will be in the social contract companies

establish with customers and emploees. Doing so allows companies to think through the

investment and the expected return for emploees and customers so the can introducead gro muually eecial ad producie social programs.

As a function of social business evolution, social becomes part of the DNA and culture

in organizational transformation. Everthing begins with the articulation of a vision for

how social impacts customer and emploee relationships and experiences. From there,

usiesses ca rack iesmes i models, process, policies, collaoraio, orko,

and technolog to effectivel scale social throughout the organization while aligning with a

new or renewed vision and also business goals.

In the next two ears, we expect social to become part of a bigger movement where

social joins web, mobile, and other digital initiatives to lead an integrated and orchestratedtransformation. Social becomes just one part of the overall approach to successfull

engage, learn from, and lead connected customers and emploees. But it is the evolution

into a Social Business as outlined above where stakeholders learn what it takes to adapt

existing models, processes, and methodologies as part of an overall change management

initiative.

Methodology

Each ear, Altimeter Group conducts an online surve of social media strategists and

executives. Surve results in this report are onl from companies with more than 1000

emploees for 2010-2012 and 500 emploees for 2013.

In Summary

Surve Date Number of Respondents

Q2 2010 140

Q2 2011 144

Q4 2012 130

Q3 2012 65

The data that appears in this report was also used in the following reports and books:

The Seven Success Factors of Social Business Strategy b Charlene Li and Brian Solis, Jul 2013

The Evolution of Social Business: Six Stages of Social Business Transformationb Charlene Li and Brian Solis, March 2013

A Framework for Social Analytics b Susan Etlinger, August 2011

Related Altimeter Services

Social business champions need to take strategies to the next level. Altimeter has a suite

of solutions to help strategists guide organizations through an important series of steps

that lead to social business transformation.

Altimeter’s Social Business Strateg Suite is designed as a complete process, or it can beimplemeed roug a meu-drie approac o mee your specic eeds.

Discovery:

• Social Readiness Roadmap

• Social Media Polic & Risk Assessment

• Opportunit Analsis

• Socialgraphics

Strategy Development:

• Social Business Vision

• Strateg Roadmap

• Metrics Development & Alignment

• Identif and Prioritize Initiatives

Organizational Development

• Governance & Organizational Structure

• Content Strateg Roadmap

• Social Data & Analtics Roadmap

• Training Program Roadmap

• Technolog Assessments

Related Reports

http://www.altimetergroup.com/research/books/the-seven-success-factors-of-social-business-strategy


http://www.altimetergroup.com/research/reports/a-framework-for-social-analytics

http://www.altimetergroup.com/research/reports/a-framework-for-social-analytics


http://www.altimetergroup.com/research/books/the-seven-success-factors-of-social-business-strategy

the state of social business 2013: the maturing of social media into social business by brian solis...

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