ECONOMICS

SOCIALLY ENGAGED ENTERPRISE

of the

Absolutely. Engagement is about the mutual exchange of value independent of business transactions. Engaged customers evangelize your brand. They go out into the world—real and online—and tell people they know, and even people they don’t know, how great your product or business is. In a new digital age, people are engaging with each other online more and more deeply every day, and stakeholders have begun to expect full engagement from companies.

Does Social Engagement Matter?

Yes. Companies spend a lot of time trying to improve customer loyalty by measuring satisfaction and Net Promoter Scores. But the dirty little secret about loyalty is that it does not always correlate with sales. Engagement, on the other hand, can position your brand as #1 in a customer’s mind (vis-à-vis other choices), and that DOES translate into sales.

Does it Drive Returns?

Getting the C-suite on board is not an option; it’s a necessity. True engagement requires a cultural shift from “centralized control” to “decentralized empowerment.” To reap the benefits of social engagement, leaders have to see the power of digital media and believe in it. Two-thirds of the organizations achieving the highest returns reported that their C-suites are active advocates of social engagement. The C-suite is the catalyst for change—period. Without the executive team’s full support there may be a lot of social activity but there will be little sustainable progress.

Does the C-suite Believe?

The highest returns on engagement come from organizations that use social technologies to listen and interact with constituents in order to derive new product and service ideas, empower and/or train employees, proactively build relationships with influencers, respond to public criticism swiftly and effectively, and to create relevant content that will drive demand and sales for products and services.

What Forms of Social Make Money?

Are you a social engagement Observer, Dreamer, Incrementalist, Trail Blazer, Creator or Thriver? Where am I on the Spectrum?

4X4XCompanies that fully embrace social engagement are experiencing 4X greater business impact than less-engaged companies.

The top two areas where social engagement had the most value, according to enterprise executives, were improving their marketing and sales effectiveness, and increasing sales and market share.

IMPROVED MARKETING &SALES EFFECTIVENESS

84%

INCREASED SALES &MARKET SHARE

81%

ENGAGEMENT HAS TO BE UNBOXED

The most engaged businesses are reporting a 7.7% business impact. How much revenue would your company stand to gain if you had a 7.7% business impact on your bottom line?7.77.7

Six Profiles of Socially Engaged Enterprises

7.7%

3.9%

1.9%

Avg. Return

Exce

ptio

nal

Busin

ess R

etur

n L

imite

d / N

o Bu

sines

s Ret

urns

TRAIL BLAZERS CREATORS THRIVERS

OBSERVERS DREAMERSINCREMENTALISTS

TRAIL BLAZERS CREATORS THRIVERS

OBSERVERS DREAMERS

Investments yieldsuccess in support functions, but are

too narrowly focused.

Investments yield meaningful returns, but strategies can

be further optimized.

Investments are often limited by a lack of support or strategy.

Investments are disorganized and reactive.

No SocialEngagement

Limited SocialEngagement

ExtensiveSocial Engagement

INCREMENTALISTSInvestments are low due to shortage of

internal support.

Investments yield meaningful returns; efforts must focus onbuilding sustainability.

BUSINESSIMPACT

PERCENT INCREASE

BUSINESSIMPACT

PERCENT INCREASE

BUSINESSIMPACT

Social engagement breaks down walls between a company and it’ customers and it goes well beyond listening.

The most successful companies extend social engagement beyond marketing and communications to sales, product development and other functional areas to generate greater business impact.

Benchmarks (33%) and key performance indicators (30%) will be the top approaches for measuring social engagement in the next two years.

33%

30%

MEASURING SOCIAL ENGAGEMENT

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As companies move left to right or up on the above spectrum, their Engagement Impact increases.

ENGA

GEME

NT IM

PACT

1.2.3.4.5.6.

Listen to ConstituentsDerive New Product IdeasEmpower EmployeesBuild RelationshipsRespond to CriticismCreate Sales Demand

of big-return companies use social technologies to collaborate

with customers and employees to design new products. They predict a significant portion of new products

will be derived from social engagement insights.

57%BENCHMARKS

KPI

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