Sanjeev Aggarwal's Blog

March 30, 2011

Is there a Method to Social Media Madness?



Co-authored by: Sanjeev Aggarwal and Laurie McCabe, SMB Group, and Brent Leary, CRM Essentials  SMB adoption of social media for sales, marketing, product development and customer service is on the rise – but how are SMBs tracking, analyzing and measuring the success of their social media endeavors?

In our joint SMB Group-CRM Essentials “2011 Small and Medium Business Social Business Study,” we surveyed 750 SMB (small business is 1-99 employees; medium business is 100-999 employees) decision-makers about their use and plans for social media for sales, marketing, customer service and support, product development, HR and other business functions.

Featured Study Highlights

To put social media adoption in context, we asked several questions to better understand how SMBs accomplish their business objectives though different channels and mechanisms, including, “How does your currently track, analyze and measure the success of the company’s social media efforts?”

In the medium business segment, 52% of respondents indicate that they currently use social media. Among these respondents, about 19% say they use it in and “ad hoc, informal” way, while 33% indicate they use it in a “structured, strategic” manner. When we take a deeper look at how medium businesses using social media track, analyze and measure success of social media efforts, we see that companies that take a strategic approach are more likely to incorporate a greater number and more actionable metrics to measure social media effectiveness than their informal, ad hoc counterparts (Figure 1).

  • For strategic users, actionable, customer-centric metrics such as referrals (14%), click-through rates (12%), and inbound links (11%) top the list. These are followed by social media measurements such as number of followers and friends (9%), and sentiment analysis (9%), along with anecdotal feedback (9%).

  •  Companies that use social media in an ad hoc manner are more likely to rate “softer” measurements, such as anecdotal favorable feedback (6%) and buzz from social media (4%) as top tracking criteria and yardsticks for success.

Not surprisingly, SMBs that take a structured, strategic approach–and use more actionable metrics–are also more satisfied with the results of their social media efforts than those engaging in an ad hoc manner.

This underscores the need for better integration of social media with traditional sales, marketing, and service/support solutions–along with better tools to track and measure results.
Figure 1: Medium Business: Comparison of Strategic and Ad Hoc Users Criteria to Track and Measure Social Media Implementation
 
 
 
 

 


Quick Take

For SMBs to truly evolve into “social businesses,” they need to be able to easily track, measure and tweak the results of their social media investments across a wide range of business activities, from marketing through customer service and product development.

Although the social media drumbeat is loud, SMBs’ enthusiasm will be curbed if they can’t figure out what impact their social media initiatives are having. Whether on their own or via partner solutions, vendors will need to give SMBs the tools they need to integrate and evaluate social media efforts into their larger business strategy and framework.

Because social media engagement does not occur in a vacuum, businesses will want to measure social media efforts in context of broader sales, marketing and customer service or other initiatives. Although collaboration, CRM, marketing automation and other vendors are integrating social media into their existing solutions, few provide the analytics required to track and measure the effectiveness of social media and its different channels in an actionable and streamlined manner.

March 22, 2011

Social Business: Why Having a Plan Matters


Co-authored by: Laurie McCabe and Sanjeev Aggarwal, SMB Group, and Brent Leary, CRM Essentials

 

Good plans shape good decisions. That’s why good planning helps to make elusive dreams come true.
Lester R. Bittel, The Nine Master Keys of Management

This seems to be especially true when it comes to getting business value out of social media. We recently wrapped up fielding for our joint SMB Group-CRM Essentials “2011 Small and Medium Business Social Business Study,” in which we surveyed 750 SMB (small business is 1-99 employees; medium business is 100-999 employees) decision-makers regarding their use, plans and perceptions about social media.

Although SMB interest and adoption of social media to assist with a variety of business functions—from generating leads to product development—is sky-rocketing, the question remains of how and where SMBs are actually deriving business value remains. Our study took an in-depth look at the specific activities and functions that SMBs are using social media for.

While Sanjeev Aggarwal, partner Brent Leary of CRM Essentials and I are just beginning to immerse ourselves in this very rich gold mine of data, one thing is clear:  SMBs that use social media in a “strategic and structured way” to interact with customers and prospects are much more likely to be deriving benefit from their social media investments than those who are using social media in an “ad hoc, informal” way.

Today, SMBs are most likely to be actively using social media to help with marketing and sales functions–including generating more web site traffic, generating more leads, connecting with people who aren’t yet customers, improving market awareness for their brand, reputation enhancement and creating more/better interaction with customers.

As shown on Figure 1, survey results show that those that have a more formal and structured strategy are more likely to be satisfied or very satisfied with the outcomes than those that are using social media in an informal, ad hoc way. For instance, among small businesses:

  • 39% of respondents using social media are very satisfied/satisfied with the results of using social media to “create more/better interaction with customers/prospects,” as opposed 24% of those using it an ad hoc manner.
  • 37% of structured users are very satisfied/satisfied with using social media to generate more web site traffic, compared to just 14% of ad hoc users.
  • 37% of structured users are very satisfied/satisfied with using social media to improve market awareness for the company, in contrast to 16% of ad hoc users.

Figure 1: Comparison of Small Business Satisfaction with Social Media for Business Activities: Structured vs. Ad Hoc Users

 

While we have about 30 other questions and a seemingly endless array of cross-tabs to mull over in terms of the study, one thing is already crystal clear: To get the most business value from your social media investment, you need to pause and plan—in addition to playing with—social media activities.

For more information about this study, click here.


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