In our final talk in this series with Aberdeen’s Trip Kucera, we wanted to find out if enterprise organizations are actually doing anything about what they’re learning around the importance of communicating via social and using social listening for a deeper understanding of customers and prospects. We found out that if your brand is lagging behind, you’re not alone.
Spotlight: How was Aberdeen able to find out if companies are putting their money where their mouth is when it comes to implementing social across the enterprise?
Trip: One way to think about the relative challenges a business has in a given area is to look at the gap between “say” and “do.” The first of those words reveals the brand’s priorities, while the second reveals their ability to execute on those priorities. In Aberdeen’s research, we capture this by asking firms to rank the value of a set of activities from one on the low end to five on the high end. We then ask them to rank their ability to execute those same activities, again on a one to five, not effective to highly effective scale.
Spotlight: And once you get their self-assessments, what is it you’re looking for?
Trip: There are two things we’re looking for in this analysis. The first is we want to be able to identify the widest gaps between perception of value and execution. This suggests impediments to adoption or simply a high level of challenge, be it technical or otherwise. It may also suggest areas where we can expect future investment and innovation.
Spotlight: So the biggest potential pain points surface, places where they know something is critical but also know they aren’t doing much about it. What’s the second thing you look for?
Trip: The second thing we want to do is look at specific areas in which high-performing companies, the Leaders, are out-executing the Followers. This points to the business impact of these activities since Leaders are defined by a set of business performance metrics. Put another way, we’re correlating adoption of specific business competencies with performance, looking for what high-performers do differently.
Spotlight: Ah ha, that tells us what steps the winners are taking that are making them winners. So what did you find out?
Trip: Generally speaking, we see something of a glass curtain when it comes to the social relationship management execution gap. There isn’t a single social media activity in which more than 50% of respondents indicated effectiveness, which would be a 4 or 5 on that 1-5 scale. This despite the fact that 70% of firms indicate that generating positive social media mentions is valuable or very valuable, a 4 or 5 on our 1-5 scale.
Spotlight: Well at least they get points for being honest. The verdict they’re giving themselves is that they just aren’t cutting it in these highly critical social development areas.
Trip: And the widest gap is around directly engaging with customers and/or prospects on social networks, which 69% of firms rated as valuable but only 34% of companies say they are executing well. Perhaps even more interesting is that these two are interdependent since you’re most likely to generate goodwill on social through happy, engaged customers. This data also suggests that social is largely being used as a broadcast channel rather than for one-to-one engagement. As we’ve discussed previously, social is an inherently personal media.
Spotlight: And if they’re still using it as a broadcast channel, that shows they still fail to understand the root of social and see it as just another outlet for their ads and push-messaging. That’s depressing.
Trip: A second way to evaluate this data is by using Aberdeen’s performance benchmarking. The story is both a bit different, but consistent in its own way. The first thing we notice is that Leaders are more effective in their execution of several key social relationship management capabilities, namely generating positive mentions and engaging with “influencers” and customers. Based on the fact that Aberdeen uses a broad set of performance metrics to rank the respondents as either “Leaders” (top 35% in weighted performance) or “Followers” (bottom 65% in weighted performance), from website conversion to annual revenue growth, we can then correlated high social effectiveness with company performance. We can also connect the specific social capabilities used by Leaders with effectiveness. We spoke about a few of those key capabilities last time and also discuss them in a new report: Social Powers Activate: Engineering Social Engagement to Win the Hidden Sales Cycle.
Spotlight: What all that tells me is there are rewards for making the effort and getting it right. That’s how you become a Leader.
Trip: But there’s another part of the story, which is that overall effectiveness, even among Leaders, is muted. There’s just one activity in which more than a majority of Leaders cite high effectiveness, effectiveness being the generation of positive buzz. While 80% of Leaders indicate “directly engaging with customers” through social media channels is valuable, the highest rated activity among Leaders, only 42% say they’re effective. This gap even among Leaders shows the challenges still involved in effective social relationship management.
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