Quite by surprise today, something I’ve been mulling over was made very clear.
And that is, for all the zeal and sometimes almost evangelical fervour around Social Media (and believe me, just like the Beatles song, I AM a believer) much of the argument for the social media message is completely missing the mark when it comes to some companies. I have to qualify that as some companies, because clearly several companies are embracing Social Media, even though in many cases they may be somewhat overwhelmed and wondering where to start.
Anyway, my conversation today was with a company executive. Responsible for Strategy and Business. I’m unsure how we got on to talking about Social Media, but before I knew it we were.
Tellingly, the executive said, “I’m not really convinced with this whole social networking thing…”
“Why?” I asked?
“Well, they say we ought to be doing it, but they haven’t actually explained how it will help us make money. Or even how it’s going to help us achieve our objectives.”
Now, I know this person is pretty good at spotting opportunities and has the track record to prove it. He is also a person who likes FFM (Facts, Figures and Models) and is an influencer.
“They didn’t show me anything tangible…”
“Did you see I presentation about Social Media or something?” I asked.
“Oh, yeah, we had this company in pitching some research and this “social networking stuff.” They showed us the tools but didn’t make a real business case. What do you think?”
“I think there is a case for using Social Media I said carefully, “if only because customers have changed the way they purchase and interact with companies. The one-way message is less effective. But success depends on the organisations’ goals and strategy. It needs to be supported by Senior Management and the whole organisation. And, it is still a developing area.”
On that he agreed. And I asked if I could interview him for his views because I write about Social Media and am particularly interested in its’ application (or lack thereof) to business and enterprise. I’m quite excited about doing that.
What stuck out like a sore thumb for me however was that whomever had made a presentation about adopting Social Media in this organization hadn’t done too good a job. I doubt that they’ll be invited back, and even if they are it’s going to be a question of overcoming even more barriers.
It’s not enough to tell companies they “should be “doing Social Media” anyone hoping to convince C-level decision-makers must outline the business case for Social Media.
I don’t see enough of that. I do see a lot of articles telling companies they need to get with it. I agree most do, because I believe they are missing an opportunity. But the opportunity is different for each company.
Even companies that want to get their feet wet are frustrated because their agencies either don’t understand Social Media enough to make a solid business case or they simply want to use social media tools to broadcast traditional media content – in exactly the same way. The companies end up feeling they aren’t getting the guidance they need. Conversely some agencies have a hard time getting their clients to adopt some social media in their marketing campaigns.
As a copywriter I’m finding clients are asking more and more about how/whether Social Media can help them and if I think it’s a good idea to get involved. Many feel completely out of the loop and overwhelmed by the bewildering choice of tools and applications on offer. (For the record, I always begin by asking questions. Lots of them).
Since businesses have to show tangible deliverables to top-line and bottom line revenue, this is almost always going to be the first question that will have to be addressed. I am not sure if this varies with size of company; it probably varies with company maturity (thinking of Aberdeen’s Best-in Class, Industry Average and Laggards model here).
Regardless, there must be a business case.
How can Social Media advocates/consultants address the business concerns to the satisfaction of the business?
- What are the key things they need to demonstrate in their presentations?
- Given Social Media isn’t completely proven how should you/do you sell it to businesses?
- What would business like to hear from companies advising business-wide or enterprise-wide Social Media application?
- What about B2B companies?
on 
{ 1 trackback }
{ 4 comments… read them below or add one }
Nicky: great blog. I agree and yet I don’t agree. I have to think that it may be as much about style of writing, business type, and yes, overall approach of a website. Not being able to have your blog integrated on your site in some ways says a lot about where we have taken our sites: sales oriented, stodgy, strictly a brochure, narcissistic. Your point of, how to create interactive experiences and exchanges is important. I’m trying for the right balance, but don’t know that I’m there yet. I’ve also been considering a separate space for more conversational pieces.
Hi Michele – thanks for commenting. I think you have a good point about the integration of sites and blogs. The vast majority of sites are, as you say not much more than static brochures, whereas social media demands more interaction and above all a focus on the customer. How can a blog help? I go into some detail on my other post called “Why you should Separate your website and your blog” as well as the follow-up post. When I visit sites these days I generally expect to see a link to a blog, even if it’s very different from the website. And even if there isn’t a lot in the way of interaction the fact that it’s possible says a lot.
However when it comes to making a business case I find this needs to focus on what the company is trying to do (objectives) and then showing the business how these could be achieved through a range of different approaches and tools. The toughest part can be removing pre-conceived ideas.
Nicky,
While this is an old post of yours, I just stumbled across it today. I think you’re asking some good questions but unless I need to be able to read between the lines, I don’t think you’re giving any answer to the question(s) you’ve raised.
The fact is that no one that I’ve seen (and I’ve been a business management consultant with over 30 years experience working with everything from entrepreneurs to top Fortune 500 companies) has ever been able to quantify the real benefit of social media for business. Yes, there’s this idea that people communicate differently with companies today, but still there’s no real proof that I’ve ever seen from anyone that it has much positive impact on the bottom line for companies.
In reality it appears that most companies use it becauses they don’t want to deal with the real issue of sales. They want to try every angle at marketing they can and avoid sales, which is the real way money is made in companies.
In addition, the time that has to be invested in social media by companies equates to a lot of man hours and cost to a company. Unlike other forms of marketing that are long established, there is no real record to show as proof that companies make money. An old fashioned marketing plan with advertising can tell a company that if they invest $10,000 they can expect an average of $______ return for that type of investment.
Ultimately social media may have a place in business, but it appears that it will be smaller than many today think it is. Once the newness wears off in a few years my guess is that it will not be seen as important as people are promoting it to be today.
@Dave Radetsky: Dave, this is a great comment. I am going to use it as one of my next blog posts. You raise some excellent points that I think shouldn’t be buried in a comment on an older post. The interesting thing (and maybe scary) thing is that i find myself agreeing with you on several things you’ve raised – and no I wasn’t answering my questions I wanted other people to drop in their thoughts. I don’t know about people wanting to avoid sales… that’s a really interesting idea I hadn’t even thought of. I agree wholeheartedly that sales is the way that money is made – not social media, which is simply a tool. As for quantifying the benefits of social media given the time expended on it….and to the bottom line… the 64 million dollar question hasn’t been answered yet. Anyway, I thiink I will muse over your comment and discuss in a blog post. Thank you for commenting!