Brand

Organizations are not yet tapping social media’s potential

A report by Deloitte Services LP, the 2009 Tribalization of Business study, evaluates the perceived potential of online communities and identifies how organisations believe they may better utilise them. The survey results indicate that while organisations are effectively using online tools to engage with customers, partners, and employees for brand discussion and idea generation, organizations are continuing to struggle with harnessing social media’s full potential.

The responses from the organisations surveyed for the report show that the biggest obstacles to creating community are:

• Getting people to join (24%)
• Stay Engaged (30%)
• Keep returning (21%)

These can be easily remedied through partnering and new management practices. However, the study indicates that very few companies are taking the steps necessary to overcome these challenges.

While 58 percent of respondents evaluated partnering with existing communities, complementary vendors or end users when developing their community, 55 percent of the companies that evaluated a partnership did not actually partner.

The study also revealed significant gaps between community goals (such as generating word of mouth customer loyalty and brand awareness) and how success is being measured.

The top 2 analytics used for measuring community are:

• Number of active users (34%)
• How often people post/comment (32%)

These results indicate that participation is still considered to be the biggest measure of success. Potentially more useful analytics, however, should include measuring the increase in search engine rank and citations/links on other sites, which are less often utilized.

Of the companies surveyed, a majority agreed that the following continue to be top business objectives of online communities:

• Increase word of mouth (38%)
• Increase customer loyalty (34%)
• Increase brand awareness (30%)
• Improve idea generation (29%)
• Improve quality of customer support (23%)

The study concludes by suggesting organisations should adapt at a strategic level and:

• Think tribe — not market segment
• Think network — not channel
• Think customer-centricity — not company-centricity

About the study:
The 2009 Tribalization of Business Survey, conducted in conjunction with Beeline Labs and the Society for New Communications Research, evaluates the true potential of online communities and identifies how enterprises may better leverage them. The survey measured the responses organizations, which have created and maintain online communities today. Participating companies include leading computer manufacturers, software, insurance, online auction, media companies, hotel chains and start-ups. start-ups.
The communities numbered from 100 members to more than one million members.

Contact:
Ed Moran, Director of Product Innovation
Technology, Media & Telecommunications
Deloitte Services LP
emoran@deloitte.com