A joint study by CONRAD CAINE and the University of St. Gallen into strategies, objectives and usage of Social Media in Top German Companies.
Munich, October 18, 2012 – Although more than 80 percent of the participants understand social media as a process of “dialogue & interaction”, most of the proposals and processes are only in a given case geared as a dialogue. Furthermore, companies are just starting to implement social media in their own business processes. Therefore, results accounting for hard business goals are rarely realized. These are some of the focal results of a study in the usage of social media in German companies. The study “Social Media Excellence” was conducted by the University of St. Gallen in behalf of CONRAD CAINE. Around 100 Executives of the 500 largest and highest-grossing companies have been personally interviewed for it.
At the same time the study shows that social media is used predominantly for marketing and corporate communications. Possible net product potential in customer relationship management, human resources as well as in innovation and sales processes are scarcely exploited.
“92 percent of the interviewed executives state that they are not able to properly measure the contribution of social media to corporate aims” explains Conrad Caine, founder and GM of the same-named agency for digital marketing about one of the outcomes of the study. According to Caine, this is a wake-up call, as the study goes on to say that “most of the ROI-calculations in companies are based on assumptions and weak benchmarks.”
Virtually every second person of the almost 100 interrogated experts associates transparency, authenticity and a new philosophy of communication with Social Media. Simultaneously the interviewees perceive a social change due to social media. Social relationships and communication take place on a level playing field. In addition, almost every participant expects an increasing importance of social media in the mix of communication. The allocated and planned resources are increasing absolutely and relatively to other channels, but are still rather indistinct.
The integration of social media in business processes often happens only by isolated applications. Especially in the brand (82%) and product (62%) communication an interlinkage of the processes takes place. However mostly as an “extension” of given communication processes that, due to their non-dialogical orientation, often fail to capture the interest of the target group and in some cases are even perceived as disturbing. The implementation of social media into the business model and the business processes (HR, CRM, Sales, Collaboration) of a company is currently barely deployed. A traceable financial assessment of the value of social media is thereby smothered at its inception. The success of Social Media is still measured in most cases by using the standard communication indicators and the key figures of the respective platforms.
The study further reveals extensive facts and helpful hints of advantages and additional value for companies and their respective peer groups through social media. Beyond that, the study provides insight and advice about the strategic success factors of engagements, the measuring of the success as well as the relationship to more traditional business goals.
The sharp concentration on communication is also reflected in the intended aims: branding (72%), customer retention (58%), employer branding (42%) and market research (38%) are on top of the agenda of the participants in the survey. The connection of social media with hard business aims and financial key figures however barely takes place due to a lack of integration into business processes.
This also becomes apparent in the strategy dimensions identified by CONRAD CAINE and the research scientists of the University of St. Gallen: communication, organization, technology and integration into the business processes. In most of the strategies a distinct focus on technology and communication is inherent. A setup of adequate online presences, monitoring and internal applications as well as an increasing outreach and contact to the target group can be commonly seen at most of the companies. Whereby, due to increasing experience, the focus is on multi-channel strategies with target group specific offerings (regional, functional, textual). Yet the communication of companies in the context of Social Media is still not designed for interaction. A “real” sustainable dialogue is established only in individual cases. Further an adjustment of the logic of communication towards the new character of media is claimed.
The organization of these new ways of communication also becomes more important due to an increasing activity. The participants of the survey lay the focus here on expertise development, involvement of the employees in strategy development, setup of cross-functional teams for the virtual and cross-departmental modulation and adjustment of Social Media. Only about one in ten sees a requirement for an adjustment of the organizational structure.
The collective report of the study conducted by CONRAD CAINE, an international Full-Service-Agency for digital communications and the University of St. Gallen, comprising of more than 50 pages can be received free on www.social-media-study.com
The slides of the presentation of the results of the study on October 18, 2012 in Munich can be found here: www.slideshare.net