C-Suite Executives Not Measuring Impact of Social Business

Posted by Shelly Kramer on June 12, 2012 · 10 Comments

Although more C-suite executives are buying in to the need for a corporate social media presence, they remain largely divided on the value of social business, according to a new global study by MIT Sloan Management Review and Deloitte.

What’s more, the majority of CEOs surveyed said that social use is not measured—and this lack of metrics proves widely problematic.

“The lack of metrics means that those who wish to step up their leadership in social collaboration are without many of the traditional tools they would normally use to encourage and reward action,” said David Kiron, executive editor at MIT SMR and a co-author of the study.

We find it interesting that measurement hasn’t yet appeared on the collective C-suite radar. Other attributes of a social strategy, including clear vision and leadership, were cited in the study as critical to the adoption of social software. Yet to our way of thinking (and we know we’re not alone), collecting and analyzing metrics is just as important, and letting data help drive marketing (and sales) strategies is a key component of success.

After all, data can not only shed light on the efficacy of social software and a larger social strategy—understanding the context of that data can drive larger business decisions. And this sort of analysis and understanding goes far beyond simply listening. Of course, that’s an important part of a social presence, too. But that’s only a small part of the equation. Data analysis—and the resulting knowledge that comes from that analysis—is important in not only better understanding your audience, but also to accomplish goals ranging from reputation management to sales to customer service as well as evaluating the general effectiveness of your online marketing strategies.

A better understanding of data and its larger context can—and should—help guide a social strategy, which may address an issue that appeared in the study. The results suggest that many CIOs struggle with creating a clear, articulate vision to guide corporate-wide social business use, which may explain why many larger corporations have been slow to adopt a social strategy.

One thing is clear, and this isn’t related only to marketers or CIOs — senior level executives in general must understand the importance of data – whether it relates to sales, marketing, service or any other part of the business. And I know I’m a geek, but the relevance of data and analysis can’t be overstated. By measuring the impact of every sales initiative, marketing campaign, social media efforts, etc., and letting data drive strategy, businesses win. And customers? They win, too.

Have you seen the study results mirrored in your own experience with C-suite executives and corporations?

Image by HeavyWeightGeek via Creative Commons

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Filed under Business and Leadership, Corporate Strategy, Featured Articles, Social Media Marketing, Tactics and Tips · Tagged with corporate social media strategy, how analytics influence business decisions, importance of social media measurement, mit sloan management review and deloitte, social business: what are companies really doing, social media analytics, social media and the c-suite, social media marketing tips, social media research, social media stats

http://www.thestudyofsocial.com Matt Hixson

Nice post Shelly. I think part of the problem is that we have a ton of metrics that we must compile together to understand success or failure. In most other areas of the business we have gotten to a metric or two that allows C level execs understand the big picture. Today that is harder to do in social but I would expect that to change over the next year.
Anonymous

Yes, I expect it will. And I expect the desire on the part of the executive team to pay attention to those metrics will continue to improve as well
http://www.flybluekite.com Laura Click

Interesting thoughts, Shelly. I think that part of the problem is that the idea of “social business” is still rather amorphous to folks. This new term has really burst onto the scene this year and I think a lot of folks are left scratching their heads trying to figure out what it means.

This post encapsulates that: http://www.mpdailyfix.com/how-social-business-is-not-the-same-as-social-media/

I agree that social marketing should definitely be measured. And, it’s sad that executives are slow to come on board and understand why that’s needed. But, social business is something that’s a lot harder to track because it’s far more embedded into the overall fabric of the business culture. Until people better understand this whole idea of social business, it will be difficult to measure success.
Anonymous

You’re absolutely correct, Laura. But there are many senior level executives who are still skeptical of social media as a whole, and measuring any kind of ROI there escapes them. Social business and that concept is even more alien. It’ll happen. But it I predict it’ll be a long, slow journey. Thanks for stopping by!

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http://twitter.com/lyndonJJ Lyndon Johnson

Interesting post, thanks Shelly. I think one of the major problems is that social media is still something that C level execs [and, to be honest, most marketing/PR/social professionals] are looking to measure in isolation. It’s like trying to put a value on a single release, or a conversation with a journalist, or a traditional e-mail marketing campaign… it’s almost impossible in the majority of cases.

As part of an integrated campaign, that comprises multiple activities, the value is easy to measure – a new client, a change in perception amongst a target audience… the sooner we move towards measuring the success of social by the attainment of a larger business or communications goal the easier it will be for the C-suite to understand the value of social, and embrace it.
Anonymous

Dear Lyndon. I love you. In all seriousness (and of course, I meant that), integrated marketing is the key. Social is but a tactic and hopefully one of many. Until our marketing teams and PR pros and sales teams – and I could go on but you get my drift, realize that, measurement will be difficult if not impossible.

But we’re getting there. At least that’s what we’re seeing with the clients with whom we work. It’s slow and sometimes arduous, but it’s happening.
What about you? What are you seeing?

Oh, and thanks for coming by. And letting me profess my love to you and all.
http://twitter.com/skypulsemedia Howie at Sky Pulse Media

I am not surprised. Social impacts a small brand much more than a multi-national. Was BP hurt by Social? No. Was Nestle? only so far as changing Palm Oil cultivation they still destroy lots of water sheds. Toyota? Nope. So when a CEO sees other major companies in a brief social whirlwind only to find 1 or 2 or 3 months later everything is back to normal, they will ignore this stuff.

The one area I highly suggest C-Suite folks pay attention to social is basic listening for Quality Assurance and Product Development. (You mention Data I agree) Other than that as of now social isn’t impacting anyone’s bottom line positively or negatively. And I am not sure that will change because our memories are so short. Outrage today and tomorrow on to the next target of outrage.

And it takes a very special brand to explode using blogger power. Chobani did. But they are special.
http://soulati.com/blog Soulati

Thinking. Why the C-suite is not involved in social media is akin to why a doctor is not involved in rehab.

Is social media beneath them? In a sense, yes…many levels beneath at the front lines where the c-suite does not play.

Just my .02. Thx, Lady.
Anonymous

I think there’s still the misconception that social media is for kids – not prospects and customers. They are wrong. Sooner or later they’ll figure it out. Maybe.
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