1. Social media technologies have the potential to transform the way
companies build and manage relationships with their customers.
2. Apathy, fear and uncertainty -- more than costs -- are preventing
companies from formally adopting social media technologies.
3. Social media technologies are invading the workplace by stealth.
Companies know this, but most have no formal plan to manage them.
"Social media technologies are reaching a turning point -- they are no
longer lingering outside the domain of IT departments. Companies that do
not adapt to these changes or move fast enough will lose customers," said
Mike Pazak, Vice President of Enterprise Business Solutions at Avanade.
"We're working with organizations to deliver solutions that take advantage
of the ways social media can impact customer relationships, opening up a
new level of internal and external collaboration."
Key data includes the following:
-- More than 75 percent of companies worldwide admit that social
networking will come into the business by stealth if not proactively
managed.
-- 9 out of 10 companies understand that the next crop of employees will
usher social networking into the workplace.
-- Approximately 60 percent of respondents say integrating social media
technologies is not on the agenda.
-- Only 18 percent of respondents have any kind of strategy in place to
integrate these technologies within the company for employees.
-- More than 60 percent also agree that social networking is the next
major step in collaborative activities and technology for a business.
-- The key barriers to adoption of social media technologies are
concerns about security (76 percent); senior management apathy
(57 percent); and, fear of using unproven technologies (58 percent).
-- Half of companies fear a negative impact on productivity.
-- 3 out of 5 companies agree that senior managers do not understand the
potential that social networking offers both for employees and
customers.
-- Two-thirds of companies see improved customer satisfaction from the
adoption of social media and 64 percent report an improved reputation
in the marketplace.
-- Already 2 in 5 companies can directly associate an increase in sales
with the move to using new forms of media.
Key data for Canada includes the following:
-- The primary driver for implementing social computing technologies
within the CRM strategy is improving customer service long-term.
- 68 percent of Canadian companies view social networking as the
next step in collaborative activities and technology for a
business, and that companies that fail to embrace social
networking technologies for business purposes will be left
behind.
- Approximately 40 percent of Canadian companies fear that they
will lose customers to companies that are embracing the use of
social networking technologies.
-- Fewer Canadian companies use social media technologies than the US.
Specifically, Canadian companies are more concerned about using
unproven technology (61 percent) and security (83 percent) than their
American counterparts (49 and 77 percent), but are less concerned
with costs (28 percent vs. 41 percent) and senior management apathy
(50 percent vs. 67 percent).
-- Most Canadian companies (83 percent) believe social networking will
come into the business by stealth if it is not proactively managed,
but a mere 16 percent of Canadian firms have a fully implemented
strategy for integrating social computing for employees.
-- 87 percent of Canadian companies agree that, to meet the expectations
of younger employees, they will be forced to increase use of social
networking media and technologies.
-- Canadian companies view the key benefits as being improved feedback
(78 percent); reduction in time to resolution for support issues
(78 percent); and, particularly, creating a perception of the company
of forward-looking (89 percent).
About Avanade
Avanade is a global IT consultancy dedicated to using the Microsoft
platform to help enterprises achieve profitable growth. Through proven
solutions that extend Microsoft technologies, Avanade helps enterprises
increase revenue, reduce costs and reinvest in innovation to gain
competitive advantage. Avanade consultants deliver value according to each
customer's requirements, timeline and budget by combining insight,
innovation and the talent of our global workforce. Avanade, which is
majority owned by Accenture, was founded in 2000 by Accenture and Microsoft
Corporation. Avanade has more than 8,000 professionals serving customers in
22 countries worldwide. Additional information can be found at
www.avanade.com.
About the Survey
The Coleman Parkes Research survey, "CRM and Social Media: Creating Deeper
Customer Relationships," interviewed 541 top executives spanning senior
management, lines-of-business management, IT managers and sales and
marketing executives across North America, Europe and Asia-Pacific. For
more information on this study and Avanade's CRM expertise, please visit
http://www.avanadeadvisor.com/CRMsocialmedia.
Avanade and the Avanade logo are registered trademarks or trademarks of
Avanade Inc. Other product, service, or company names mentioned herein are
the trademarks or registered trademarks of their respective owners.
Contact Information: MEDIA CONTACTS: Avanade Charles Zaragoza (206) 239-5893 Edelman Megan Hooper (416) 979-1120 ext. 297