Marketers Bank on Social Media to Attract and Retain Profitable Customers

New Aberdeen Report Reveals How Best-in-Class Companies Are Driving Customer Advocacy in Order to Survive and Prosper in the Face of a Global Economic Downturn


BOSTON, MA--(Marketwire - March 11, 2009) - How can marketers trapped in a vortex of plunging consumer demand and growing budgetary constraints that has made it necessary to curtail or completely eliminate investments in traditional marketing channels and programs hope to attract, retain and increase the value of profitable customers? At least part of the answer lies in harnessing the power of social media marketing to encourage customer advocacy, according to research by Aberdeen Group, a Harte-Hanks Company (NYSE: HHS).

A new benchmark report, called "The ROI on Social Media Marketing: Why It Pays to Drive Word of Mouth," reveals that 68% of Best-in-Class companies are revising their marketing budgets for 2009 to increase their spending in social media marketing. Based on survey responses from more than 275 diverse enterprises, the report places particular emphasis on how Best-in-Class companies launch successful viral campaigns, form and participate in niche communities, and spur customer advocacy through various other approaches to social media marketing all the while gleaning valuable customer insights from consumer-generated content to inform future marketing actions. To access a complimentary copy, visit: http://www.aberdeen.com/summary/report/benchmark/5639-RA-social-media-marketing.asp.

Despite the seemingly obvious benefits, Aberdeen research reveals that the investment in social media marketing is not always easy to justify in terms of financial outcomes. In fact, over half of all companies indicated that it was either somewhat difficult (39%) or very difficult (20%) to make the business case for investing in social media marketing initiatives, partly due to a lack of defined performance metrics and the challenge of applying those metrics to track and measure marketing performance in terms of financial outcomes.

Aberdeen research suggests that when it comes to social media marketing, achieving the desired objectives means more than just deploying the right set of enabling technologies. Success in social media marketing also requires a combination of strategic actions and organizational capabilities. Aberdeen found that Best-in-Class companies are twice as likely as Laggards to have dedicated resources devoted to social media marketing, for example, and also more than twice as likely as Laggards to have defined performance metrics for measuring social media marketing effectiveness.

The report includes a number of recommendations to help spur performance improvements, based on the actions that Best-in-Class companies are taking. Recommended actions include using social media monitoring capabilities to identify and measure the value of key influencers, integrating social media marketing activities with other marketing tactics / media buys and correlating customer advocacy to financial outcomes.

"Companies on the whole have becoming increasingly sophisticated when it comes to leveraging word of mouth to raise brand awareness, drive marketing improvement and, ultimately, increase shareholder value," said Jeff Zabin, Research Fellow at Aberdeen Group. "The benefits of social media marketing have become increasingly clear and compelling over the past year, even if the metrics for measuring success are still evolving, and more companies today are viewing social media as a lead-in to a marketing plan as opposed to an afterthought."

A complimentary copy of this report is made available due, in part, to the following underwriters: Open Text, Scout Labs, Visible Technologies and Zuberance. To access a complimentary copy, visit: http://www.aberdeen.com/summary/report/benchmark/5639-RA-social-media-marketing.asp.

For additional access to complimentary Customer Management Research, please visit http://research.aberdeen.com/index.php/Customer-Management.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

(C) 2009 Aberdeen Group, Inc., a Harte-Hanks Company
451 D Street, Suite 710
Boston, Massachusetts 02210-1928
Telephone: (617) 854-5200
Fax: (617) 723-7897
www.aberdeen.com

Contact Information: Media Contact: Jeff Zabin Aberdeen Harte-Hanks (847) 328-4795 jeff.zabin@aberdeen.com