MAD Perspectives Blog

It's been an interesting time for enterprise social media (called enterprise 2.0 by some).  In the last year, several leading social communication and social media monitoring companies have been acquired. Last weeks announcement of Microsoft's acquisition of Yammer raises the stakes for all companies enabling social connectivity within the enterprise. The difference between Yammer and Twitter, is that Yammer provides connectivity behind the firewall. It's a perfect fit for Microsoft as it is already integrated with Sharepoint. Yammer is focused on enabling real-time collaboration between users across the enterprise. It is already implemented in many large & medium enterprise customers. For the leadership team at Yammer, being acquired by Microsoft gave them access to a $360 million user installed based.  Not bad!

It was not surprising to see Salesforce.com acquire Radian6 in 2011. Given Salesforce.com's customer centricity, Radian6 complimented and enriched their customer relationship management offer. Radian6 provides social intelligence that allows users to benefit from the social chatter surrounding their customers. Salesforce.com, while not perfect, according to the wide variety of users who have volunteered comments about them over the years, has positioned itself as the innovative provider of services to help clients better understand and manage their customer relationships. Then they upped the ante with their recent acquisition of social media marketing giant, Buddy Media.

Of course, this elevated Salesforce.com's battle with Oracle whose suite of CRM solutions includes acquisitions of Siebel and Peoplesoft. Larry Ellison has been engaged in a PR battle with Salesforce.com CEO, Marc Benioff over definition of cloud, how to provision CRM solutions. Oracle has not ignored the social platforms either. They have acquired Vitrue (social media marketing) and Collective Intellect (social analytics), all to support its overall enterprise social business strategy to improve enterprise collaboration.

Now, IDC has released its Worldwide Enterprise Social Software 2012-2016 report. How timely! They project a compound growth rate of 42.4% over the next four years, with the market growing to $4.5 billion in revenue by 2016. Drivers include enterprise interest in adding social collaboration features to existing applications and desire by enterprise users for software that feels like the social media applications they use outside the workplace.

Social media is growing up as it the market consolidates. The maturity of these large enterprises provides expanded go-to-market opportunities for social platforms targeting the enterprise. These companies will certainly integrate these platforms with their various enterprise applications. Social also naturally expands their cloud service offerings as social media has been in the cloud from its inception. The question is, will these social technologies continue to innovate now that they are part of corporate america? 

Is your enterprise getting social? I'd love to hear about it.

What's your perspective?

I was in Silicon Valley meeting with various companies, two weeks ago, to talk about their social media strategies (or lack thereof). I want to share my learnings from two of these companies as they both reflect the importance of having executive support. I will not share the names of these companies as I do believe that I may not have the full story in either case. However, each left a lasting impression.

I met with the VP of Marketing for Company A, a provider of video delivery solutions. I had casually met him at an industry event and was connected to him on LinkedIn. However, I pursued the meeting via the VP of Sales for one of their divisions, as I had a very strong relationship with this individual. The VP of Sales clearly understood my goals to discuss the value of the customer insight that is found through social interactions and other online behavior. Company A has grown through acquisition over the past few years and their customer base is growing as enterprise companies produce and distribute increasing amounts of video content. 

The VP of Marketing has a very busy schedule and was kind to give me some time to discuss their use of social media and how social media can provide them with competitive intelligence. It was an interesting discussion where I found out that the company does not integrate social media into their marketing plans.  They feel they already know who their customers are and what they want. Their only goal is to streamline the sales cycle. This company is monitoring the social networks using Radian6, yet they are not actively participating. Monitoring tools like Radian6 are dependent on selecting the most relevant keywords.  Pursuit of this discussion to understand how they selected their keywords (I was thinking about the importance of long tail keywords) was a deadend. In summary, this VP of Marketing is currently unimpressed by social media's value for B2B companies. He is concerned about the investment of people resources to manage any social media agenda. Thus, for now, this company will not officially pursue a social media marketing strategy.

The second company I met with, Company B, is in the enterprise content delivery space.  Again, I was introduced to the VP of Marketing through the VP of Sales.  We had spoken several times in 2010, but his social media efforts never materialized.  He was open to discussion when I indicated I would be in the bay area.  We had a fascinating conversation.  His challenge, in developing the marketing plan for this small technology company, was a CEO who was watching and second guessing every decision.  He was unable to put a comprehensive marketing plan together, that would have included social media, due to lack of empowerment.  As a result he chose to focus on a narrow scope that proved to be challenging yet successful in increasing industry awareness and perception of the company as a market leader.

As Company B's market expands beyond large enterprise companies, they do understand that traditional offline marketing efforts may not be enough to broaden market awareness and understanding of their solutions.  Fortunately, there has been a change at the top and the new CEO is supportive and empowering of the VP of Marketing's efforts.  It's challenging in a small company to find and align resources, but now there is support from the "top" and they will tip-toe their way into social media.

I share these experiences as you may be facing similar challenges in your company. It is critical to have management support for your social media efforts. There is a strong focus on the ROI of social media in 2011.  I have ambivalent feelings about ROI as numbers can be manipulated to appear to meet goals. That said, it is important to understand your business goals and how social media can help you achieve them. For example, Company A wants to streamline its sales cycle. It would be important to understand what information customers need that would allow them to make a buying decision more quickly. Could influence be established via a social network?  Possibly. Do potential customers seek advice from other buyers and seek casual interactions to uncover their experience with Company A?  Possibly. Establishing a plan, really thinking through the activation and delivery of the plan, and taking the time to understand and define meaningful metrics will keep efforts focused.  And, given the right time frame, results will follow. 

Winning executive support is a must for entering the B2B social media space. Social media takes time and people. Without clear direction and understanding of the rules of engagement marketing, customer support, sales or product teams cannot engage to drive awareness, customer satisfaction, revenue or innovation.   Are you facing challenges getting executive support for a social media strategy? Let me know your challenges. We can all learn from each other!

What's your perspective?

I've been talking with colleagues about successful communications versus unsuccessful messaging.  Its funny how many companies, even with the rampant use of social media, still define a message and push it across all platforms regardless of relevance or context.  There is a lot of online discussion about the voice of the customer.  Imagine - the customer has a voice!  The customer has interests, questions, concerns and opininions that he would like to have addressed by vendors.

Does your company invest in research to understand its customers needs?  I'm sure it does. Does your marketing reflect those insights?  It should.  However, many times marketers get caught up in supporting a corporate message that doesn't actually resonate with their customers.  They deliver this message across every communications channel, regardless the kind of information the customer may really want to consume.

For example, should a blog consistently reiterate feature and functionality of a companies products?  Or would it be more interesting to discuss market trends that influence product functionality?  Instead of only tweeting links to product information, it might be interesting to debate industry announcements. The goal is to align the right content to the right channel to the customers using that channel.

The social web provides tools and platforms to gain insight to what your customers, competitors and industry influencers are saying and where they are saying it.  The most robust tools can be expensive and they don't necessarily make it easy to interpret all the data gathered, but they can provide  insight into trending topics which should be addressed by your content marketing.  Don't forget social media is supposed to be about authenticity and transparency.  Simple reinforcement of existing marketing messages isn't enough to drive increased customer interaction which can lead to leads and ultimately to customer acquisition.

Take the time to listen to your customers' online interactions.  Then take more time and think about the context of what they are saying and how they are saying it.  I bet you will gain some valuable insights that may surprise you!

What's your perspective?