The top 3 benefits of social web adoption for corporates
McKinsey & Company’s last survey on corporate’s use of social technologies shows interesting results on the likely positive outcome provided by these tools. In particular, the survey presents the top 3 benefits of social web for internal, customers and partners’ purposes. TRSM briefly comments these results for you…
Companies denoting at least 1 benefit from social technologies report the following gains as most important
In an internal and B2b perspective (with co-workers, partners & Co.)
1 – Speed of access to knowledge increase is the top benefit of social technologies for internal (communicating and sharing with co-workers) and B2b purposes (communicating and sharing with partners, suppliers or external-experts). In my opinion, there are a couple of explanations to that. Firstly, social media gather a gigantic amount of information of all kinds, including user-generated contents (UGC), making the requested knowledge easily and quickly available. An explicative video on YouTube might be a good example here. Indeed, if I need to acquire knowledge about “product launch management”, I can easily find videos of experts explaining the basics of such a topic. Secondly, and this is more important, the interaction enabled with adapted entity or individuals can help me access information and knowledge. If I do not benefit from sufficient knowledge on product launch management, I may use interactive tools on LinkedIn in order to find and contact quickly a partner providing me with knowledge on this matter.
2 – Cost reduction of communication with co-workers or external partners is the second top benefit of social web tools in B2b and internal communication. Indeed, when we think about it, by allowing to broadcast information for free and quickly, social networks can drastically reduce communication costs with co-workers or partners (communicating through Facebook, Google Plus, LinkedIn, or any network).
3 – Speed of access to experts increase is another top benefit. You have a technical problem requiring expertise? Tweet it or claim it on LinkedIn! Very rapidly, your network will bring you relevant help or contact. Speed of access to experts (whether inside or outside the company) is the third top benefit reported by firms. Logic. An adapted usage of specialized blogs may also explain this advantage. Surprisingly, however, business-partnering as a whole is not reckoned as a top benefit ensuing from social-technology tools. If companies can access experts more easily with social web, why couldn’t they improve their access to any business partner?
In a Business-to-Consumer (B2c) perspective (with customers)
1 – Effectiveness of marketing increase is companies’ top benefit of social technologies’ for customers’ purposes. The explanation can be related to the accurateness of targeting provided by social web tools increasing marketing’s Return-On-Investment (ROI). Of course, this is also supported by all relevant eMarketing technics making it increasingly easy to access relevant audience, develop promotion and improve advertising and digital strategies using social web.
2 – Customer satisfaction increase is the second top benefit logically provided by social web tools in B2c. The bilateral communication process between businesses and consumers enabled by social-technology gives more importance to customers. Constant interaction also allows an improvement of the voice of customer (VOC) process and enables firms to better capture expectations and preferences of their clients. Customers can better influence their environment of consumption and companies can better understand their customers… As a consequence, satisfaction increases.
3 – Marketing costs reduction, finally, is the last top measurable benefit reported by firms for customers’ purposes. Social-technology platforms allow sometimes free marketing activities and often affordable advertising services with high ROI. Online marketing activities require substantially lower spendings than traditional marketing given, as I said already, the accuracy provided in targeting. Marketing cost reduction is, again, a logical benefit ensuing from social technologies.
For further comments on the survey, see Taking advantage of social technologies.
Bughin J., Byers A.H. & Chui M. (2011), “How social technologies are extending the organization”, McKinsey Quarterly: The Online Journal of McKinsey & Company, URL: http://www.mckinseyquarterly.com/How_social_technologies_are_extending_the_organization_2888