B2B SOCIAL MEDIAL LAB REPORT:
TURNING SOCIAL CONVERSATIONS INTO
COMMERCIAL CONVERSATIONS
INTRODUCTION
STR
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this SWOT analysis of the most popular B2B social
media platforms, will demonstrate the type of
critical thinking needed to successfully make
social media part of your business.
If the threats section of this SWOT analysis makes
you anxious, then be prepared to change your
thinking. The threats that exist from the use of
social media are in fact opportunities for your
business to hear feedback and fine-tune business
processes.
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As with any successful business venture, success
in B2B social media requires an understanding of
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Undoubtedly B2B use of social media is not as
prevalent as its B2C cousin, but this should be
seen as an opportunity for your business to gain
a competitive edge. This report will show that not
only is B2B social media going to help your business, it can also be conducted in a cost effective
and manageable way.
SONAR OBSERVATIONS
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your market, commitment and most importantly
Almost anywhere you look, there
a quality product (in this case, useful social media
are countless success stories about content). The B2B Social Media Report will show
you, through a variety of best practice examples,
how businesses can harness the
how to choose the correct social media platform
power of social media in order
for your market, how to build social media skills
within your organisation and how to convince
to engage customers, elevate
senior management that social media is improvawareness of a brand and improve ing company profits.
business processes. However, most
SWOT ANALYSIS OF MAJOR FORMS OF
of the current literature regarding
B2B SOCIAL MEDIA
social media focuses on how
businesses can engage individual
One of the best features of social media is the
multitude of different platforms available. Each
consumers (B2C), but what about
medium has strengths and weaknesses that may
businesses who interact with each be more appropriate for certain types of campaigns or certain industries. To get you started,
other (B2B)?
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SWOT ANALYSIS OF MAJOR FORMS OF
B2B SOCIAL MEDIA
STRENGTHS:
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Facebook:
Real time forum for business customers to
ask questions and request information.
Unlimited characters (unlike twitter).
Post full links/images/videos.
Ability to create specific event pages and
guest lists.
Twitter:
Effective way of providing business customers
with live news updates about changes to your
products, business structure or events.
Tweets find the customers if they are subscribed. There is no need for the customer to
keep checking if new information is available.
Blogs:
Great way of combining social and commercial
conversations.
Blogs allow for more in depth discussion/updates, there is no limit on how much information is provided or what form this information
is provided in.
This means anything from plain text to
video blogs.
LinkedIn:
Large membership base.
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Extremely targeted.
Members are fairly active.
Groups can be joined and created, so there
is endless opportunity for networking and
discussion.
Communication can be focussed directly
on key people within an organisation due to
LinkedIn’s profile format that provides positional information.
WEAKNESSES:
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Facebook:
Anyone can set up a Facebook page, so your
company’s official page may not be the only
Facebook page available.
This directs traffic away from your page.
Twitter:
Tweets must be useful, an extremely high
volume of tweets or irrelevant posts can
discourage subscriptions or important
information can get lost within all the noise.
Blogs:
Blogs must be continually be adding new
content so as to keep the audience engaged.
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If a blog isn’t updated regularly then readers
will stop checking it.
LinkedIn:
LinkedIn is more focussed on professional
development and career opportunities than
business marketing.
OPPORTUNITIES:
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Facebook:
Facebook is an ideal medium for a discussion forum for solving business problems and
launching events.
Twitter:
Enormous potential for reaching new business customers, due to the nature of subscriptions and retweeting.
Blogs:
Great opportunity for user driven content.
LinkedIn:
An effective channel to post event information
for training or trade shows.
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SWOT ANALYSIS OF MAJOR FORMS OF
B2B SOCIAL MEDIA
SONAR OBSERVATIONS
THREATS:
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Blogs:
Minimal. Blog administrators control what
content is available for viewing.
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Twitter:
Twitter is a high-risk medium for negative
comments.
You may remember the example of Qantas
Twitter account being flooded with negative
tweets in the aftermath of the Qantas fleet
grounding in late 2011.
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LinkedIn:
Minimal.
Some potential for negative posts from
members within groups.
LinkedIn is social networking for professionals,
so there is generally a more professional
tone to user posts than is found on other
social networking sites.
Users are often linked to a position and an
organisation, so it is rare for posts to contain
truly malicious comments.
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Facebook:
High potential for negative comments, however
page administrators can delete posts.
There are a variety of different security
settings to limit user driven content.
Be mindful of the fact that a relatively open
Facebook account in terms of security settings is desirable due to how accessible and
interactive it will be for users.
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HUB AND SPOKE
SOCIAL
EZINE
ANALOGUE
BLOG
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DIGITAL
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PROFESSIONAL
*We are indebted here to the thought leaders at Hubspot.com for inspiring
our thinking around the Hub and Spoke Model outlined above.
5.
METRICS FOR ASSESSING
RETURN ON INVESTMENT (ROI)1
Say that you have been able to gain support from
management to pursue a social media campaign,
how do you then prove that the campaign is providing ROI? Below are a variety of useful and easily
obtainable metrics of success.
saving time and money on taking phone calls and
replying to emails. If you upload an instructional
video on how to use a product on YouTube then try
to assign a dollar amount in savings to each view
that a video receives.
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On a final note regarding metrics, ensure that any
analysis of social media is accurate in the sense
that you’re measuring amounts of positive and
negative PR correctly. For example you cannot
count links to your website as positive PR if your
website is being referenced negatively.
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Try to add up how much free exposure your
company is gaining via social media.
This could be anything from how many times
a Twitter post is retweeted or if a company
website or video is linked on a blog or shared
on Facebook. Estimate how many people are
seeing this content and then think about what
that type of exposure would cost via print or
television advertising.
Measure how many likes, fans, followers,
members or users you have and by how much
this number is growing over the course of a
month or other time period. Keep in mind that
one relevant industry contact can be worth
more than the rest of your contacts combined;
so try to rank contacts based on importance
for more accurate information. Remember
that the more popular your company becomes
on social media, the more likely it is that new
customers will find you.
Think about how social media is saving you
money; if your blog or forum is answering
customer questions then you are probably
HUB AND SPOKE
SOCIAL
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THE HUB AND SPOKE MODEL - SUPPORTING YOUR
BUSINESS SOCIALLY.
ANALOGUE
BLOG
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DIGITAL
RSS
With the massive amount of social platforms
available, it is important to know where they fit in
relation to each other and your business. Have a
look at the Hub and Spoke model below and think
about how one or many of these different platforms are supporting your ‘business hub’ at the
centre of the spokes.
PROFESSIONAL
Supporting your ‘business hub’ could occur
through a variety of functions. Some platforms
may be supporting your company’s products, such
as instructional ’how to-videos’ or a real time
trouble-shooting forum.
http://advertising.microsoft.com/social-media/social-media-white-paper
We are indebted here to the thought leaders at Hubspot.com for inspiring
our thinking around the Hub and Spoke Model outlined above.
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THE HUB AND SPOKE MODEL
- SUPPORTING YOUR BUSINESS SOCIALLY.
This support from social media makes your
‘business hub’ seem more trustworthy
because business customers can see that their
purchases aren’t limited to the base product;
in fact what you’re creating is a community that
improves customer outcomes with your product.
Alternatively, Facebook or Twitter could be
increasing brand awareness and helping direct
traffic towards your ‘business hub’.
The strategy prescribed by the Hub and Spoke
model is particularly important for B2B
companies, because businesses have features
that individual customers do not.
Businesses unlike individuals cannot afford to
take unnecessary risks with purchases.
In a business environment, purchases are higher
value, higher volume and higher stakes. This
risk aversion means that social media should
be viewed as a social support network for
commercial customers, focussed on building
trust, engaging with customers and providing a
medium for an ongoing business relationship.
More importantly, risk averse business customers
will often prefer to make commercial transactions
with your ‘business hub’ rather than via a satellite
social media platform. So make sure that strong
and visible links exist between your social media
campaigns and your ‘business hub’; make the
sale out in the digital world but make sure you can
bring your customers back to the cash register to
complete the transaction.
The customer’s journey doesn’t need to end at
the hub. Strong links from social platforms to
your hub will also help customers to crossover
between forms of social media.
Imagine you have a customer who comes
across your company via a professional group
on LinkedIn, that customer may then go to your
central company website (or other type of hub)
and find a link to your twitter account. That
customer may then be engaged by real time
updates about new products of which they may
not have heard. Similarly there are plenty of
opportunities to develop links between different
media; for example Twitter is particularly
malleable, it can be linked to Facebook and
websites with relative ease.
Parting words on the Hub and Spoke model:
Customers are continually surfing the internet,
so make sure that your wave is a long
smooth ride.
HOW TO GET STARTED
With any new business practice that is to be
introduced into a company, someone within
the organisation will be able to counter your
list of benefits with numerous negatives and
uncertainties. Arguments against entry into the
social media sphere usually revolve around lack
of organizational aptitude in social media and
the fact that it can be hard to convince senior
management that social media will improve
company profits.
As you will see in the B2B social media case
studies there are ways around these problems.
For example General Electric has shown that
social media skills can be perfected in a low risk
internal environment and Cisco proves that social
media can be an all round revenue booster and
cost cutter.
THINK LIKE A SCIENTIST:
Advertisers and marketers have been forever
plagued by the difficulty of measuring how
effective a campaign is and more importantly
which aspects of the marketing mix drive sales
and which aspects are essentially a creative way
to waste money.
This same problem applies to social media
campaigns; and as such, companies will often
spend time and money developing and analysing
a variety of metrics designed to answer the
question, ‘is social media worth the effort?’
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THINK LIKE A SCIENTIST
My suggestion to you is that you should think like
a scientist, rather than use traditional and often
cumbersome metrics for measuring the success of
a social media campaign.
Let’s experiment, isolate the variable we want to
test and then adjust that variable until our social
media mechanism works. Let’s prove our theories
right in a smaller manageable context and then
translate that theory into a social media campaign
that fits the whole company.
B2B SOCIAL MEDIA EXPERIMENT
Hypothesis:
Social media will increase company profits (or solve
business problems).
change our social media presence how do our
profits react? To do this we need to hold all other
factors (variables) constant.
Results and Discussion:
You have read the phrase ‘hold all other factors
constant’ and rolled your eyes, you may be
thinking that conduct something similar to a
laboratory experiment is not possible.
However, the following example from Cisco will
prove that this scientific approach is not only
feasible, but it is a way of thinking that can vastly
improve the way social media campaigns are
designed and implemented.
Target areas may include:
• Reaching more business customers.
• Improving internal or external communication.
• Reducing traditional marketing costs.
But how do we prove that these target areas
are improving?
Method:
As with any experiment, we need to choose a
dependent variable (i.e. profits) and an independent
variable (in this case, social media). When we
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BUSINESS TO BUSINESS
SOCIAL MEDIA CASE STUDIES
INFORMATION TECHNOLOGY
FINANCIAL SERVICES
FINANCIAL SERVICES
LOGISTICS
INTERNAL SOCIAL MEDIA
HEALTH AND PHARMACEUTICALS
9.
BUSINESS TO BUSINESS
SOCIAL MEDIA CASE STUDIES
CISCO3:
Cisco’s Social Media Experiment
(ASR Router Product Launch)
This section will present a case study of a
B2B social media success story framed as an
experimental write up. Cisco’s achievement will
show how it is possible to design a measurable
social media campaign. Your company must have
a specific purpose when using social media,
otherwise you will just be adding to the numerous
dormant Facebook and blog pages.
Motivation:
One of the most difficult aspects of implementing
a B2B social media campaign is how to measure
whether or not social media will improve company
profits. In many cases, companies use social
media to reach a wider audience and boost sales,
however, social media can also help companies to
reduce operating costs.
Cisco was successful in such an endeavour by
using social media to launch a new product (the
ASR router).
Hypothesis:
Cisco could successfully launch a product using
only social media.
Method:
Traditionally a Cisco product launch involved flying
over 100 executives and members of the press
to San Jose, California, distributing conventional
press releases and running print ads in industry
newspapers and magazines. Instead Cisco used
several social media platforms in order to engage
network engineers and the press.
YouTube: Videos were made to educate
businesses and the media about the product.
Facebook: The ‘Cisco Support Group for Uber User
Internet Addicts’ allowed network engineers to
have a commercial discussion about the product
in a social environment.
Cisco Blogs and Online Forum: Cisco created
discussion topics on the product and an ‘Ask the
Expert’ option in its ‘Networking Professionals
Technology Community Forum’.
Video Conferencing:
Cisco used its own video conferencing technology,
Cisco TelePresence, to allow business customers
from around the world to a live Q&A with Cisco
executives in San Jose.
Results:
• Cisco saved over 100,000 USD, the campaign
cost one-sixth of a conventional product
launch.
• 9,000 network engineers and members of
the press were reached due to the fact that
a social media launch is extremely accessible.
• The campaign won a Leading Lights award for
Best Marketing.
A 3D Game: Cisco created an educational
computer game about the product. This game was
played by over 20,000 network engineers and was
incentivised by a prize of $10,000 and a router for
the highest scoring player.
Discussion:
LaSandra Brill, Cisco’s global social media
senior manager stated that ‘It was the crossing
the chasm point for us in the adoption phase of
social media and helped us to get over the hump
of internal acceptance.4 As you can see, Cisco
performed an experiment to prove that social media
could replace redundant business practices and
thereby cut costs.
Second Life: A virtual product launch took
place within the world of Second Life, where an
executive presented the new product in a live
Second Life event.
This successful experiment helped convince Cisco
management of the benefits of social media and now
marketers within Cisco have the freedom and support
to pursue a broad based social media strategy.
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http://www.socialmediaexaminer.com/cisco-social-media-product-launch/
10.
BUSINESS TO BUSINESS
SOCIAL MEDIA CASE STUDIES
AMERICAN EXPRESS 5:
Recognising how a target audience conducts
their business and social activities is common
feature with many successful B2B social media
campaigns. For example American Express realise
that many small business owners are heavily
involved in social media due to the relatively
low costs of obtaining business advice and
marketing their own products. With this in mind
the American Express Open Forum was created to
involve small business owners in a social website
dedicated to providing business advice, ideas and
networking opportunities.
As with all social media campaigns, popularity
drives popularity. In the case of the American
Express Open Forum this meant that within one
year, from December 2008 to December 2009,
unique visitors to the site increased from 160,000
to almost 1 million.
HSBC 6:
is that business customers and potential
customers drive much of the content. The website
encourages members to set up their own blogs or
engage in a forum where they can discuss their
entrepreneurial experiences. There are currently
148 blogs within the network.
UPS 7:
UPS is engaging a whole range of social media
platforms to target business customers. In
particular to convince small business owners that
there are opportunities for growth by using the
transportation and supply chain solutions that
UPS provides.
UPS has launched a new website that is designed
to bring the benefits of logistics to life and
facilitate sharing customer case studies. There is
also a UPS blog as well as Facebook and Twitter
accounts.
magnet for complaints into a forum for sharing
business solutions and providing feedback.
GE9:
A company may feel like they don’t yet have
the skills to launch a successful B2B social
media campaign or alternatively the company’s
management may be hesitant to change
conventional marketing styles. If this is the case,
one method of up skilling and building support
within management is to use social media as a
mode of internal communication.
GE began this process of internal social media by
trying to connect the 5,000 GE marketers that are
located globally within a diverse range of business
units. Using the private online community provider
‘Passenger’ GE launched MarkNet in March
2010. Out of the 5,000 marketers within GE, 3,200
voluntarily joined the online community after the
first four months of the website being live.
HSBC in the UK is running a social media
campaign that targets entrepreneurs and
start up businesses. The bank has created the
HSBC Business Network, which is available to
customers and non-customers alike. The
cleverest aspect of the HSBC Business Network
Many businesses fear social media platforms
such as Facebook and Twitter, due to the threat of
negative comments. In the case of UPS negative
publicity was directed at an unofficial UPS
Facebook page. So with the launch of an official
UPS Facebook page, the company was able to
transform its previous social media image as a
http://smartblogs.com/socialmedia/2010/09/16/how-cisco-definesbusiness-to-business-social-media-success-and-achieves-it/
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http://www.openforum.com/
http://www.business.hsbc.co.uk/1/2/start-up-business/starting-your-business
The structure of the site involved a variety of
idea hubs organised according to marketing
disciplines, in this way marketers from across GE
could collaborate, seek inspiration and discuss
problems with their peers. The website involves
blogs, instant messaging facilities, regular
http://socialmediainfluence.com/2010/09/14/ups-launches-a-b2b-social-marketing-campaign/
http://blog.ups.com/2010/08/30/beyond-katrina-saluting-the-spirit-of-ups-people/
http://socialmediab2b.com/2011/02/b2b-social-media-example-ge-marknet/
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11.
B2B SOCIAL MEDIA LAB REPORT
- ANALYSIS AND RECOMMENDATIONS
webinars and a resources section for shared
marketing documents. GE have found that the
participation of executives in discussions on the
website is essential to the success of the social
media venture.
One of the reasons that GE can justify the time
and money spent on this social media endeavour
is that this online internal community allows
business units within the company to utilise
existing expertise in other parts of the company
and other parts of the world to complete projects
that would otherwise incur enormous expenditure.
drove sales to Novartis’ business customers from
the ground up.
Novartis’ business customers include government
health agencies and doctor’s practices throughout
the United States, these customers were enticed
to buy Fluvirin by the growing demand that grew
through this creative viral YouTube contest.
NOVARTIS10:
The pharmaceutical industry is heavily regulated
no matter which market your company operates
in and this certainly flows onto the use of social
media. Be this as it may, Novartis successfully
used social media to promote its flu vaccine,
Fluvirin. Novartis launched a YouTube contest
called FluFlix.
The contest encouraged people to create and
share videos talking about how flu impacted
on their everyday lives. What Novartis achieved
was the foundation of a cost effective marketing
campaign, where content was driven by the end
recipients of the vaccine. This content effectively
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http://pharmamkting.blogspot.com.au/2007/09/novartis-attempts-perfect-execution-of.html
12.
B2B SOCIAL MEDIA LAB REPORT
- ANALYSIS AND RECOMMENDATIONS
SWOT RECOMMENDATION
STRENGTHS:
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WEAKNESSES:
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The fact that social media is real time means
that businesses can react instantaneously to
changes in the market.
Currently B2B uses of social media are
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Social media campaigns are often
experimental in nature, thus there is a
possibility that a campaign will cost time
and money, with no visible benefit or the
campaign could even backfire and paint your
business in a negative light.
A major threat is a lack of follow through on a
campaign. There are few worse images than
that of a dormant company Facebook page
covered in spam.
This often happens when social media is
suggested as a flavour of the month idea
and then put on the backburner as soon as
the company’s media and communications
division gets slightly busy.
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OPPORTUNITIES:
THREATS:
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It is challenging, but possible, to measure what
impact social media is having on a business’
profits. One needs to go further into the digital
realm of direct response marketing to enable
true metrics.
Effective social media campaigns require some
level of creativity and organisational aptitude.
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Social media can work in real time, a distinct
advantage over traditional forms of marketing
or sales support.
Most social platforms are relatively cheap to
get up and running and then maintain.
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SONAR OBSERVATIONS
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not that prevalent, this means that there
are plenty of gaps in the market for social
platforms that don’t need to be company
specific. For example your company could
host an industry forum, your company’s
products may not be the only products
discussed, but at the end of the day your
company name/logo will get more exposure
and the key links will all lead to your website.
Now let’s conduct a broader SWOT analysis of the
benefits and dangers that confront a business that
is new to social media.
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13.
BUSINESS TO BUSINESS
SOCIAL MEDIA CASE STUDIES
Recommendations:
So how are we supposed to interpret this SWOT
analysis? Well, there are a few golden rules that
will give your business the best chance possible at
success.
1.
Pick an appropriate social platform and
work the Hub and Spoke Model.
Write down a list of what you hope to achieve
via social media and importantly where your
customers live in the social world. Then compare
your goals with the features of each platform and
find the best match.
Think of it this way, just because your neighbour
has a four-wheel drive that they absolutely love
doesn’t make it the right vehicle for you. Perhaps
you’re more suited to a sports car. For example,
an interactive video game works for Cisco because
they are targeting network engineers in IT/
tech companies, but if your industry is financial
services then a discussion forum may be more
appropriate for targeting entrepreneurs.
2. Don’t bite off more than you can chew.
If you only have the resources and the
organisational capability to manage a single
Facebook page, then stick to that one platform.
There is no benefit in having a below average
profile across multiple platforms if it comes at
the cost of a simple yet useful and popular daily
Twitter update. Additionally, resources need to be
set aside to maintain your social media presence.
It is unfair to expect employees to voluntarily
assist with social media maintenance. Allocate
the responsibility to a particular person or team
within your organisation and give them some extra
time to manage the new project.
which tool is best for the job.
Look at the strengths, weaknesses, opportunities
and threats of each platform and rate out 5
(positive for strengths and opportunities, negative
for weaknesses and threats) how these factors
would impact on your business, highest
score wins.
Conclusion:
B2B social media is lagging behind B2C uses of
the various platforms available, but this is great
news, as this presents an opportunity for your
company to gain an edge. Some people may use
lack of relevant experience, case studies and
analysis on B2B social media as an excuse to
stand back and wait for a better time.
What do you do if you’re unsure about the
effectiveness of social media? The short answer
is: prove it! There are a number of ways you can
convince yourself, senior management and your
profit margins that social media is working
for you.
Hopefully this report fills that gap, but more
importantly, this report should show you that with
the right type of critical, scientific and strategic
thinking your company could be a pioneer; your
company could be revising the marketplace to
create a situation where your company has a
distinct advantage over your competitors.
The SWOT analysis of social media platforms for
B2B use showed us how to pick which medium
will best suit your business. This means that
you don’t need to copy a recipe for success from
another business in your industry, you can invent
the recipe without too much effort; it is all about
There are a variety of more conventional metrics
to analyse social media on a broad scale. These
metrics include: customer surveys, assigning a
dollar value to the free exposure you are getting,
counting how many likes/followers/contacts
you have and calculating savings based on old
business requirements made obsolete by ease of
information flows.
Alternatively, you could introduce an experiment
into your social media mix; this involves isolating
a variable (i.e. use of social media) within your
business and then observing the success or
failure of this endeavour. We also discussed using
social media as a mechanism to support the more
traditional aspects of your business.
14.
BUSINESS TO BUSINESS
SOCIAL MEDIA CASE STUDIES
The Hub and Spoke model showed that effective
use of social media is reliant on strong links
between social platforms and then back to
your central ‘business hub’, which may be your
website, your office or any other interface that
acts as the cash register within your business.
Remember that even if your Facebook page is
wildly popular, if the page isn’t directing traffic
back to your ‘business hub’ then you’re missing
opportunities.
internal forum or you could want a comprehensive
multifaceted social media campaign; either way
your B2B company can benefit from social media
and with a touch of scientific thinking you can
discover how.
By: Anders Sorman-Nilsson
Research: Robert Montgomery
Brain Trust and Advisors: Peter Fraser
and Gustaf Sorman-Nilsson
Finally, let’s recap the cutting edge lessons from
B2B social media winners. Cisco conducted a true
business experiment with overwhelming success.
Cisco saved money, reached more relevant
business customers and proved once and for all
that social media is a profit driver.
American Express and HSBC are providing useful
forums focussing on broader financial services,
but these two companies are gaining a captive
audience to whom they can pitch their products to.
GE has refused the setbacks associated
with conservative management and a lack of
social media skills, instead GE initiated an
internal social media campaign which has
enhanced communication globally and reduced
inefficiencies. What these case studies show us is
that there is no excuse for not reaping the benefits
of social media, your company may only need an
15.
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Our intelligence and reporting gives clients,
whether they are a corporate client or a public
relations firm, a comprehensive understanding of
their social media footprint.
We allow organisations to effectively mitigate
against social media branddamage and capitalise
on the vast social media opportunities that exist.
SR7 arms decisions makers with knowledge
to effectively retain customers and attract new
ones. As a leading independent social media
intelligence, research and advisory company
we deliver project based and ongoing reporting
and advice.
PLEASE CALL US ON +61 2 8006 2196 TO
SEE HOW SR7 AND THINQUE CAN HELP YOU IN
NAVIGATING THE DIGITAL LANDSCAPE INTO
THE FUTURE.
WWW.SR7.COM.AU
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