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Katia Pallini
About this
research report
InSites Consulting, together with sample and data
collection partner SSI and the translation agency No
Problem! conducted a quantitative online survey among
1,222 senior managers.

The targeted markets included are Belgium, The
Netherlands, France, Germany, the US and the UK.

All respondents are senior or top managers from
companies (+20fte) in different sectors, with different
sizes and offers. Splits per sector, region… are shown if
the results are relevant.
What to expect from
this research report
Market circumstances are forcing companies to change
their marketing, their behavior and their leadership style.

In his book, The Conversation Company, Steven
identifies four pillars that will guide companies through
this change process. These pillars are rethinking
customer experience, conversation management,
content strategy and collaboration.

This research project measures the current state of
companies in their journey to become a conversation
company.
The Conversation
Company Philosophy

‘The Conversation Company’ is a metaphor for the
most consumer-centric organization one can imagine,
using the power of the people as a positive lever and
thankfully accepting social media as an ideal business
partner. Company culture is the conversation guide for
all employees and clients. To optimize its conversation
potential, the Conversation Company invests in 4 C’s:
Customer Experience, Conversation management,
Content marketing & Consumer Collaboration.
4C IMPACT MODEL

                  The 4C impact model shows how ‘identification with company culture’ and ‘social
                  media integration’ influence the adoption level of the 4C pillars, which in turn have an
                  impact on employee satisfaction and the likelihood of staff recommending their own
                  company to others. Both are objective parameters of business performance.


Identification
with company
culture




                                                                           Satisfaction &
                                                                           recommendation




Social Media
adoption
5 KEY CONCLUSIONS
OF OUR RESEARCH
1
Lack of identification with the
corporate values among
top management blocks
social media integration
2
High social            Low social
media adoption         media integration




          61%            29%
                        29%
                                                     27%
                                                      27%



                                                                                    17%
                                                                                   17%                          15%
                                                                                                               15%
          39%                                                                                                                              12%
                                                                                                                                            12%




          29%    Doing nothing with social
                     Doingmedia
                                             First steps in social media
                                                  First
                                                                           Pilot phase in social media
                                                                                 Pilot
                                                                                                         Integrating social media
                                                                                                             Integrating
                                                                                                                                    Social media is integrated
                                                                                                                                         Social
                     nothing                      steps in                       phase                       social                      media
                     with social                  social                         in                          media                       integrated
                     media                        media                          social
          24%                                                                    media
3
                     24%
                     Conversation
39%                  management               Still a long way to go
                                              before the world is
 Customer
experience                                    full of conversation
                                              companies

                              16%
                              Collaboration
        19%                   management

          Content
        management


                         Current adoption of the 4C components
4
A digital gap is created in the
business world:
Those who invest today, are the
ones who will invest tomorrow
Companies that invest in all 4 C’s
have a higher satisfaction &
                                     5
recommendation rate among
their own employees
Full Research Report
4C IMPACT MODEL



Identification
with company
culture




                                   Satisfaction &
                                   recommendation




Social Media
adoption
The Company Culture
is your company’s
Conversation Guide

The most commonly used definition of company culture reads as follows:
“Company culture is a series of shared values and convictions which help individuals understand the functioning
of the company.”
A transparent company culture makes it easy for the employees to understand exactly what the company expects
of them. Culture gives people an insight into the type of behaviour the company considers appropriate.
Research confirms that company culture often forms the basis for the successful implementation of a strategy. A
strong company culture also has a positive impact on the performance and productivity of its employees. This
culture is a kind of „mental programming‟ that sets an organisation apart from its competitors.

Your culture is the personality of your organisation and the foundation your Conversation Company is built on.
Your staff and customers make this culture tangible to others. This involves a method of reasoning that works
from the inside out. A traditional company is first and foremost interested in keeping its shareholders happy.
Making customers happy only comes second, with the staff coming a poor third. A Conversation Company turns
this logic on its head. Happy staff are more than willing to keep the customers happy; happy customers mean
higher profits and this makes the shareholders happy as well. Or, as CEO of Southwest Airlines puts it:
“We take good care of our staff. Our staff take good care of our customers. And our customers take good care of
our shareholders.”
Your company culture is the conversation guide for employees and clients. Employees know how to behave and
how to communicate with clients, whereas clients know what to expect.
Lack of identification
among top management
blocks the evolution

We looked for the reasons why some companies are refusing to invest in new media. Looking at the data, we found
some typical results: the healthcare industry is lagging behind; media is a frontrunner; smaller companies are in the
lead compared to bigger companies. But I have to admit, these differences are rather small.
There is a bigger and more fundamental reason why some companies are lagging behind: their leaders. This survey
was undertaken among top managers from companies in the US, the UK and Europe[p1]. It was quite shocking to
see that about half of these top managers do not identify with the corporate identity and culture of the company they
preside over. This parameter is crucial to being open to change and evolution. Leaders who have a less emotional
bond with their company, invest less in social media. The transparency, openness and authenticity of the social web
must scare them away.
This shows that conversational leadership becomes a critical success factor for adapting companies to the
transparent world we live in. Leaders can hate their job but need to love their company. The more extreme the ‘love’
(emotional bond) between the leader and the company, the higher a company scores in social media
adoption/integration.

‘First who, then what’
I am a big fan of Jim Collins’ book ‘From good to great’. In his work he states that great companies first decide on the
‘Who?’ and then on the ‘What?’. Our research about social media integration and adoption has the same conclusion.
If you are serious about social media, the two elements you need are a conversation leader and a corporate culture
which acts as your conversation guide. After that, implementation of new projects will go a lot faster. This study also
shows that some companies (with the wrong leader and wrong culture) will never be successful in this field. Probably
these companies have even more serious problems to deal with first, don’t you think?
It’s remarkable that half
the senior and top-level
managers do not or
hardly identify with the
culture of the company
they work for.

The two main reasons
are the lack of visibility
of company values
throughout the
organization and a
limited focus on
company culture in the
recruitment process.
Company culture is built on having strong values and
living these values…

The 5 most common values are…



                         26%                      More than 1 in 4 companies has
     27%                 customer
                         centricity
                                                  ‘professionalism’ as a value.
  professionalism
                                                  France is an outlier regarding company
                                                  values: values such as responsibility, trust
                                                  and respect carry more weight.
                    16%
                    expertise

  16%                                   19%
 result driven
                                      service-oriented
But how are people living these values…



                                      Perfect fit between
           No fit between company   company & personal
           & personal values                        values   Only 1 in 2 feel
                                                             their personal values
                                                             fit closely with
                                                             those of the
Company                                                      company they
  values                                                     work for.
                                                             This percentage is
                                                             significantly higher
                                                             among top-level
Personal                                                     managers, managers
  values                                                     with more than 20
                                                             years of experience,
                                                             B2B companies and
                                                             companies not listed
                                                             on the stock market.
                           51%           49%
The better the value match the
more satisfied people are and
the more likely they are to
recommend their company to
others
37% of managers
claim their company
values are not clear
to everyone in the
company
54% of companies
recruit employees
based on matching
values
Company values…

To what extent do you agree with the following statements regarding company culture?                          Agree
 Our company values permeate everything we do                                                                 64%
 Openness, authenticity and happiness are somehow incorporated in our values                                  64%
 Our company values are clear to everyone in the company                                                      63%
 If negative customer comments appear online, we do not remove them but instead we try to help the customer   61%
 Our internal and external values are the same                                                                60%
 If a staff member says or writes something wrong, we help him adjust his behavior                            60%
 New employees are only recruited if their values match ours                                                  54%
 As an employee, you have access to social media at work                                                      52%
 My company encourages online conversations with customers                                                    44%
 Employees are allowed to talk about their work on social media                                               41%
4C IMPACT MODEL



Identification
with company
culture




                                   Satisfaction &
                                   recommendation




Social Media
adaption
Social network adoption is
high in companies. The
most actively used
platforms are Facebook,
Twitter, LinkedIn and
YouTube.

However, integration of
social media in business
processes is low. Only
12% of businesses have
fully integrated social
media in their business.

Yet our study shows that
social media integration
has a positive impact on
satisfaction and
recommendation.
Social Media Adoption
Which of the following social media platforms is your company active on?


                         Facebook                                          61%


                            Twitter                                  39%


                          LinkedIn                             29%


                          YouTube                        24%


                   A corporate blog                17%


                         MySpace              9%


                             Flickr      5%


                       Foursquare       5%


                            Netlog      4%


                            Badoo       3%
Most actively used platforms:


                  61%


                  39%


                  29%


                  24%
Social Media Adoption

Which of the following social media platforms is your company active on?




                              <500          500+            B2C            B2B


                            65%            56%               60%           62%



                            41%            37%               39%           38%



                            33%            25%               22%           41%



                            26%            21%               24%           24%
Social Media Adoption

Which of the following social media platforms is your company active on?



                                                       Products &
                          Products       Services
                                                        Services

                            60%             51%              70%



                            39%             32%              45%



                            32%             24%              33%



                            25%             16%              30%
Social Media Adoption

Which of the following social media platforms is your company active on?




                         80%        61%        51%        56%        59%   53%



                         45%        44%        35%        25%        39%   45%



                         48%        30%         8%        8%         35%   42%



                         31%        23%        19%        25%        20%   22%
Social Media Adoption

Which of the following social media platforms is your company active on?




                       FMCG & Retail   Healthcare   Finance   Media   Tech & Telco   Travel & Leisure



                         63%            43%         55%       78%       67%             62%



                         42%            39%         37%       66%       52%             50%



                         28%            29%         26%       29%       38%             24%



                         27%            30%         24%       46%       36%             35%
Social Media Integration

                 More than 1 in 2 companies are still in the early stages of integrating social media.
                 12% have fully integrated social media in their business processes.



          29%
                                      27%



                                                                    17%
                                                                                                 15%
                                                                                                                            12%




Doing nothing with social   First steps in social media   Pilot phase in social media   Integrating social media   Social media is integrated
    Doing nothing
         media                   First steps in                 Pilot phase in              Integrating                 Social media
    with social media            social media                   social media                social media                integrated
Social Media Adoption

  To what extent has your company integrated social media?




                             <500          500+              B2C   B2B

Doing nothing with social
                   media     27%          32%                29%   30%


        First small steps    30%          24%                27%   26%


 Setting up/ running pilot
                 projects    17%          17%                18%   15%


 Integrating social media    15%          16%                15%   17%


   Social media are fully
             integrated      12%          11%                11%   12%
Social Media Adoption

To what extent has your company integrated social media?




Doing nothing with social
                   media     26%   31%     46%        19%   32%   23%


        First small steps    24%   27%     20%        28%   30%   33%


 Setting up/ running pilot
                 projects
                             23%   18%     15%        19%   15%   13%


 Integrating social media    17%   14%     10%        20%   15%   17%


   Social media are fully    11%   10%     10%        13%   10%   15%
             integrated
Social Media Adoption

To what extent has your company integrated social media?




                             FMCG & Retail   Healthcare   Finance   Media   Tech & Telco   Travel & Leisure

Doing nothing with social
                   media       30%            38%         26%       27%       24%             30%


        First small steps      19%            26%         24%       20%       22%             33%


 Setting up/ running pilot
                 projects
                               19%            12%         22%       13%       22%             16%


 Integrating social media      20%            13%         15%       23%       19%             13%


   Social media are fully      12%            11%         13%       16%       14%               9%
             integrated
Companies that have
fully integrated social
media in their structure
use an average of 3
different social media
channels.
52% have access to social
media at work
41% are allowed to discuss
their work on social media
44% are encouraged to
communicate online with
customers and consumers
Companies where social
media is fully integrated have
more satisfied employees who
are more likely to recommend
their company to others.
4C IMPACT MODEL



Identification
with company
culture




                                   Satisfaction &
                                   recommendation




Social Media
Adoption
Why these Four Components?

These four new disciplines have been chosen after careful consideration.
A survey of 400 marketers has shown that companies grow faster than their sector rivals when they
use these four components in unison.
These four pillars help build a conversation lever for both your employees and your customers. Moreover,
the entire process is in line with your company culture and company values.

The first pillar, customer experience, is the most important conversation starter. If your employees and
your customers feel well-treated, they will mention this to each other.
Managing customer experience means investing in word-of-mouth. You are developing a focus for staff
and consumer satisfaction. As a result, service is no longer be seen as a cost but as an investment in
conversations.

Managing the conversations is the second pillar. This involves observing, facilitating and participating in
conversations. Your participation in conversations in social media will help humanise your company and
make it seem less distant. Asking and answering questions boosts the interaction between the company
and the market.

In addition to the reactive answering of questions, the Conversation Company also adopts an active
strategy with regard to content. Your content proves you are an expert in your field. Your company moves
away from campaign-based thinking and towards the planning of impactful, conversation-generating
content.
The final pillar is the pillar of structural collaboration between your company and the market. The
customer wants to help you and you welcome that help. The Conversation Company builds various
communities of customers, who help determine the future of the organisation.
The 4C components

Current adoption levels…




                      24%                   Today, customer experience is the
                     Conversation
  39%                management             most adopted pillar. Compared to
                                            the other countries, US-based
  Customer
  experience                                companies score significantly
                                            higher on customer experience and
                                            conversation management
                             16%            adoption. Overall, countries
                            Collaboration   providing both products and
         19%                management      services score better on each of the
                                            pillars than companies providing
          Content
        management                          either products or services.
US-based companies with less than 500
                      employees in the media or technology sector
                      are the top performers across all 4 Cs




               <500
Media


Tech & Telco
<500

Only services

                Especially Belgium-based
                companies with less than
                500 employees providing
                only services need better
                4C leverage
Customer experience is the
main driver of satisfaction
and recommendation.
Offering strong products and
a decent customer service
will boost business through
positive conversations.

However, only 54% of
companies today manage
those customer expectations
by delivering slightly more
than promised.
Moreover, just 2 out of 3 are
open to conversations with
customers in every phase of
the purchase process.
54%manage
customer expectations
by delivering slightly
more than promised
60% always
opt for solutions
that benefit the
customer in the
event of a problem
43% offer
the same services
both online and
offline
Customer Experience…

To what extent do you agree with the following statements regarding customer experience?                Agree
   The staff are trained to deliver adequate customer service                                           70%
   My company tries to be open to conversations with customers in every phase of the purchase process   63%
   In the event of problems, my company always opts for a solution which benefits the customer          60%
  Our customers can choose their own preferred channel of communication to address their questions      59%
  Every employee knows how to react to both satisfied & dissatisfied customers                          59%
  My company innovates sufficiently in terms of customer service                                        57%
  More than 80% of the comments (online and offline) about my company are positive                      56%
  My company manages every touch point with customers as a conversation starter                         55%
  My company manages expectations. We deliver slightly more than what we promise                        54%
  My company offers the same services both online and offline                                           43%
Conversations should be
managed in three stages:
observing, facilitating and
participating.

Only 40% monitor customer
conversations whereas 36%
also participate in these
online conversations.

Remarkably, less than 1 in 2
companies manage their
conversations themselves.
Also, just 38% share the
outcome of these interactions
with the entire organisation.

In other words, much of the
conversations potential
remains unused.
40% monitor
customer
conversations both
online and offline,
36% participate in
online conversations
48% of
companies
manage their
own
conversations
34% use the real names
of the people who administer
the company Twitter account
Conversation Management…

To what extent do you agree with the following statements regarding conversation management?       Agree
  My company always answers when a customer asks a question online and/or offline                  69%
  My company admits its mistakes and apologises to the customer                                    69%
  Employees participate in conversations with customers and clients                                57%
 My company offers objective added value when dealing with commercial questions from customers     56%
 My company manages its conversations itself                                                       48%
 My company monitors customer conversations both online and offline                                40%
 The conclusions of these observations are shared with all employees                               38%
 My company sometimes posts questions on public forums to gain input and feedback from customers   37%
 My company participates in online conversations                                                   36%
 My company uses the real names of the people who administer the company Twitter account           34%
Content management is
becoming increasingly
important. More companies
acknowledge the need to
change their commercial
model due to the rise of
social media.

However, only 39%
currently have a content plan.
Less than 1 in 2 believe
their company is fully aware
of the opportunities each
channel has to offer in terms
of spreading content.
A 6-Step Approach in Content Marketing…


  50%                    43%                     39%                      45%                     40%
  Topic                  Content                 Editorial               Create                   Manage                    Measure
  Selection              Conversion              Content                 Shareable                Content                   Success
                         Strategy                Planning                Content                  Conversation




Define what you want    Content marketing       Set up a roadmap so     The content must be      Once the content is       The moment the
to be famous for.       should result in        you know when and       easy to share and        launched, people will     content strategy is up
Select your content     increased revenue.      where content will be   worth sharing.           react to it. Be open to   and running, you can
domains wisely and      Think beforehand        shared. Streamline      People tend to           this engagement           measure its impact
be consistent in your   about where you         the content calendar    spread positive,         from your audience        through a set of
choice.                 want a conversation     with all other          relevant and             and be prepared to        relevant KPIs. These
                        to take place. Define   marketing actions in    appealing content        answer questions or       KPIs should be a
                        a top conversion        order to increase       that offers a benefit.   to give feedback.         combination of
                        point and lead people   impact.                                                                    business generation
                        to this point through                                                                              measures and
                        your content                                                                                       conversational
                                                                                                                           measures.
39% have a content plan
48% use the right online
channels to spread content
efficiently
44% has well aware of
the opportunities each
channel has to offer in terms
of spreading content
56% have
employees who
are responsible
for creating content.
36% have bloggers
                         amongst their employees




44% have an editor
of sorts who plans and
organizes the content
Content Management…

To what extent do you agree with the following statements regarding content management?                   Agree
  My company has employees who are responsible for creating content                                       56%
  My company knows on which content areas it wants to focus                                               50%
  My company uses the right online channels to spread content effectively                                 48%
  My company is well aware of the opportunities each channel has to offer in terms of spreading content   47%
 My company has software to process content efficiently                                                   45%
 My company facilitates the sharing of content                                                            45%
 My company has an editor of sorts who can plan and organize the content                                  44%
 My company has a plan to convert content into leads                                                      43%
 My company has a content plan                                                                            39%
 My company has bloggers amongst its employees                                                            36%
Customer collaboration
has the highest impact on
employee satisfaction and
the likelihood of someone
recommending their
company to others.
Employees value this new
form of consumer
commitment.

Still, to date, only 53%
have already taken decisions
in conjunction with their
customers and only 1 in 2
involve their customers in the
development phase.
37% actively manage
their relationship with
fans and ambassadors
50% involve
customers in the
development of
new products
28% have a small closed fan community
27% have a large open fan community
they consult with
43% have a staff/employee community
Collaboration Management…

To what extent do you agree with the following statements regarding collaboration management?   Agree
My company has already taken decisions in conjunction with its customers                        53%
My company involves customers in the development of new service possibilities                   50%
My company involves customers when launching new products                                       48%
My company involves customers in the development of new products                                45%
My company has a staff/employee community                                                       43%
My company takes most of its decisions in collaboration with staff and/or customers             41%
My company actively manages its relationships with fans and ambassadors                         37%
My company involves customers when choosing new suppliers                                       29%
My company has a small, closed fan community it consults with                                   28%
My company has a large, open fan community it consults with                                     27%
Willingness towards Future Investment
To what extent do you agree that, in the future, your company should invest in….?




                                                  47%

                                                                                    Overall, less than 50% of
                                                                                    companies are willing to
                                                                                    invest in these 4 pillars
                                         45%


              40%

                                                          44%
It’s time to act! Disbelievers will lag behind….




                        Companies with a high score
                        on the 4C pillars display a
                        significantly higher intention
                        to keep investing in these 4
                        pillars, which will result in a
                        continued growth in
                        business performance.
This will create a gap between
the unwilling majority and the
investing few.




                                                                          High
                                                             18%                       11%




                                 Intention to invest in 4C
                                                             Low                       High




                                                                          Low
                                                             62%                       10%
                                                               Currently investing in 4Cs
Placing the 4Cs in a broader perspective….




                                                            High
                                                                    Combining these two
                                                                    dimensions creates 4

                           Structural Collaboration
                                                                    relevant quadrants. Each
                                                                    quadrant requires a different
                                                                    approach.

Today, companies have
the opportunity to build                              Low
structural relationships
 with their customers.
   Apart from these
  structural contacts,
  companies can also
   benefit from open
   relationships with
      customers.                                            Low


                                                                             Social media can help you
                                                                            generate content efficiently
                                                            Reach           either on a large scale or on
                                                                                 a one-to-one basis.
Placing the 4Cs in a broader perspective….

                                                                     20%*                                 15%*




                                                                                   High
                                                                      Consumer                  Broad open

                                          Structural Collaboration
                                                                      consulting                collaboration
                                                                      board

                                                                     Low                                  High
                                                                            Conversations

                                                                      Customer                  Content
                                                                      experience
                                                                                   Low


                                                                     14%*                                 16%*
                                                                                   Reach


* % of companies who adopt the C pillar today and have the willingness for further investment
4C IMPACT MODEL



Identification
with company
culture




                                   Satisfaction &
                                   recommendation




Social Media
Adoption
A close fit in values and social
media adoption have an impact
on 4C integration, which in their
turn have an impact on
satisfaction and recommendation
Companies scoring
high on the 4C pillars
boast an average
satisfaction score 23%
and recommendation
score 27% higher than
companies




                         * High is defined as an average score of minimum 4 on 5 on the 4 pillars.
Thank you!
Let’s connect on
    linkedin.com/in/stevenvanbelleghem

    @steven_insites

    Steven@insites.eu
The research partners
Fieldwork




The field work for this study was
conducted by SSI:

• SSI helps companies make decisions
• By offering access to consumers and
  business professionals
• In more than 75 countries
• Through online and telephone
  methodologies
• For over 2,000 clients across the globe

www.surveysampling.com




                                                * High is defined as an average score of minimum 4 on 5 on the 4 pillars.
Our translate agency parnter




    Your foreign-language communication partner

    •   Translations
    •   Copywriting
    •   User-generated content summaries
    •   Coding of open-ended questions
    •   Language consultancy

    www.no-problem.be
InSites Consulting


  InSites Consulting was established in 1997, and although a marketing
  research company, the founders never really wanted to be market
  researchers. InSites Consulting really is a crazy blend of academic
  visionaries, passionate marketers and research innovators that are
  determined to challenge the status quo of marketing research. Over the
  last 10 years the company has grown at an amazing 35% per year.
  Today, there’s more than 130 employees working in five offices (BE, NL,
  UK, RO, US) getting their energy from helping world leading brands to
  improve their marketing efforts and to develop deeper connections with
  consumers on a global scale via Research Communities. InSites
  Consulting is rewarded with no less than 15 international awards The
  recipe for success: a never-ceasing enthusiasm, a lot of hard work, a
  culture of sharing, and permanent innovation in research methods and
  marketing thought leadership. And last but not least: positively surprising
  clients every day.

  www.insites-consulting.com

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The 4C's of the Conversation Company

  • 2. About this research report InSites Consulting, together with sample and data collection partner SSI and the translation agency No Problem! conducted a quantitative online survey among 1,222 senior managers. The targeted markets included are Belgium, The Netherlands, France, Germany, the US and the UK. All respondents are senior or top managers from companies (+20fte) in different sectors, with different sizes and offers. Splits per sector, region… are shown if the results are relevant.
  • 3. What to expect from this research report Market circumstances are forcing companies to change their marketing, their behavior and their leadership style. In his book, The Conversation Company, Steven identifies four pillars that will guide companies through this change process. These pillars are rethinking customer experience, conversation management, content strategy and collaboration. This research project measures the current state of companies in their journey to become a conversation company.
  • 4. The Conversation Company Philosophy ‘The Conversation Company’ is a metaphor for the most consumer-centric organization one can imagine, using the power of the people as a positive lever and thankfully accepting social media as an ideal business partner. Company culture is the conversation guide for all employees and clients. To optimize its conversation potential, the Conversation Company invests in 4 C’s: Customer Experience, Conversation management, Content marketing & Consumer Collaboration.
  • 5. 4C IMPACT MODEL The 4C impact model shows how ‘identification with company culture’ and ‘social media integration’ influence the adoption level of the 4C pillars, which in turn have an impact on employee satisfaction and the likelihood of staff recommending their own company to others. Both are objective parameters of business performance. Identification with company culture Satisfaction & recommendation Social Media adoption
  • 6. 5 KEY CONCLUSIONS OF OUR RESEARCH
  • 7. 1 Lack of identification with the corporate values among top management blocks social media integration
  • 8. 2 High social Low social media adoption media integration 61% 29% 29% 27% 27% 17% 17% 15% 15% 39% 12% 12% 29% Doing nothing with social Doingmedia First steps in social media First Pilot phase in social media Pilot Integrating social media Integrating Social media is integrated Social nothing steps in phase social media with social social in media integrated media media social 24% media
  • 9. 3 24% Conversation 39% management Still a long way to go before the world is Customer experience full of conversation companies 16% Collaboration 19% management Content management Current adoption of the 4C components
  • 10. 4 A digital gap is created in the business world: Those who invest today, are the ones who will invest tomorrow
  • 11. Companies that invest in all 4 C’s have a higher satisfaction & 5 recommendation rate among their own employees
  • 13. 4C IMPACT MODEL Identification with company culture Satisfaction & recommendation Social Media adoption
  • 14. The Company Culture is your company’s Conversation Guide The most commonly used definition of company culture reads as follows: “Company culture is a series of shared values and convictions which help individuals understand the functioning of the company.” A transparent company culture makes it easy for the employees to understand exactly what the company expects of them. Culture gives people an insight into the type of behaviour the company considers appropriate. Research confirms that company culture often forms the basis for the successful implementation of a strategy. A strong company culture also has a positive impact on the performance and productivity of its employees. This culture is a kind of „mental programming‟ that sets an organisation apart from its competitors. Your culture is the personality of your organisation and the foundation your Conversation Company is built on. Your staff and customers make this culture tangible to others. This involves a method of reasoning that works from the inside out. A traditional company is first and foremost interested in keeping its shareholders happy. Making customers happy only comes second, with the staff coming a poor third. A Conversation Company turns this logic on its head. Happy staff are more than willing to keep the customers happy; happy customers mean higher profits and this makes the shareholders happy as well. Or, as CEO of Southwest Airlines puts it: “We take good care of our staff. Our staff take good care of our customers. And our customers take good care of our shareholders.” Your company culture is the conversation guide for employees and clients. Employees know how to behave and how to communicate with clients, whereas clients know what to expect.
  • 15. Lack of identification among top management blocks the evolution We looked for the reasons why some companies are refusing to invest in new media. Looking at the data, we found some typical results: the healthcare industry is lagging behind; media is a frontrunner; smaller companies are in the lead compared to bigger companies. But I have to admit, these differences are rather small. There is a bigger and more fundamental reason why some companies are lagging behind: their leaders. This survey was undertaken among top managers from companies in the US, the UK and Europe[p1]. It was quite shocking to see that about half of these top managers do not identify with the corporate identity and culture of the company they preside over. This parameter is crucial to being open to change and evolution. Leaders who have a less emotional bond with their company, invest less in social media. The transparency, openness and authenticity of the social web must scare them away. This shows that conversational leadership becomes a critical success factor for adapting companies to the transparent world we live in. Leaders can hate their job but need to love their company. The more extreme the ‘love’ (emotional bond) between the leader and the company, the higher a company scores in social media adoption/integration. ‘First who, then what’ I am a big fan of Jim Collins’ book ‘From good to great’. In his work he states that great companies first decide on the ‘Who?’ and then on the ‘What?’. Our research about social media integration and adoption has the same conclusion. If you are serious about social media, the two elements you need are a conversation leader and a corporate culture which acts as your conversation guide. After that, implementation of new projects will go a lot faster. This study also shows that some companies (with the wrong leader and wrong culture) will never be successful in this field. Probably these companies have even more serious problems to deal with first, don’t you think?
  • 16. It’s remarkable that half the senior and top-level managers do not or hardly identify with the culture of the company they work for. The two main reasons are the lack of visibility of company values throughout the organization and a limited focus on company culture in the recruitment process.
  • 17. Company culture is built on having strong values and living these values… The 5 most common values are… 26% More than 1 in 4 companies has 27% customer centricity ‘professionalism’ as a value. professionalism France is an outlier regarding company values: values such as responsibility, trust and respect carry more weight. 16% expertise 16% 19% result driven service-oriented
  • 18. But how are people living these values… Perfect fit between No fit between company company & personal & personal values values Only 1 in 2 feel their personal values fit closely with those of the Company company they values work for. This percentage is significantly higher among top-level Personal managers, managers values with more than 20 years of experience, B2B companies and companies not listed on the stock market. 51% 49%
  • 19. The better the value match the more satisfied people are and the more likely they are to recommend their company to others
  • 20. 37% of managers claim their company values are not clear to everyone in the company
  • 21. 54% of companies recruit employees based on matching values
  • 22. Company values… To what extent do you agree with the following statements regarding company culture? Agree Our company values permeate everything we do 64% Openness, authenticity and happiness are somehow incorporated in our values 64% Our company values are clear to everyone in the company 63% If negative customer comments appear online, we do not remove them but instead we try to help the customer 61% Our internal and external values are the same 60% If a staff member says or writes something wrong, we help him adjust his behavior 60% New employees are only recruited if their values match ours 54% As an employee, you have access to social media at work 52% My company encourages online conversations with customers 44% Employees are allowed to talk about their work on social media 41%
  • 23. 4C IMPACT MODEL Identification with company culture Satisfaction & recommendation Social Media adaption
  • 24. Social network adoption is high in companies. The most actively used platforms are Facebook, Twitter, LinkedIn and YouTube. However, integration of social media in business processes is low. Only 12% of businesses have fully integrated social media in their business. Yet our study shows that social media integration has a positive impact on satisfaction and recommendation.
  • 25. Social Media Adoption Which of the following social media platforms is your company active on? Facebook 61% Twitter 39% LinkedIn 29% YouTube 24% A corporate blog 17% MySpace 9% Flickr 5% Foursquare 5% Netlog 4% Badoo 3%
  • 26. Most actively used platforms: 61% 39% 29% 24%
  • 27. Social Media Adoption Which of the following social media platforms is your company active on? <500 500+ B2C B2B 65% 56% 60% 62% 41% 37% 39% 38% 33% 25% 22% 41% 26% 21% 24% 24%
  • 28. Social Media Adoption Which of the following social media platforms is your company active on? Products & Products Services Services 60% 51% 70% 39% 32% 45% 32% 24% 33% 25% 16% 30%
  • 29. Social Media Adoption Which of the following social media platforms is your company active on? 80% 61% 51% 56% 59% 53% 45% 44% 35% 25% 39% 45% 48% 30% 8% 8% 35% 42% 31% 23% 19% 25% 20% 22%
  • 30. Social Media Adoption Which of the following social media platforms is your company active on? FMCG & Retail Healthcare Finance Media Tech & Telco Travel & Leisure 63% 43% 55% 78% 67% 62% 42% 39% 37% 66% 52% 50% 28% 29% 26% 29% 38% 24% 27% 30% 24% 46% 36% 35%
  • 31. Social Media Integration More than 1 in 2 companies are still in the early stages of integrating social media. 12% have fully integrated social media in their business processes. 29% 27% 17% 15% 12% Doing nothing with social First steps in social media Pilot phase in social media Integrating social media Social media is integrated Doing nothing media First steps in Pilot phase in Integrating Social media with social media social media social media social media integrated
  • 32. Social Media Adoption To what extent has your company integrated social media? <500 500+ B2C B2B Doing nothing with social media 27% 32% 29% 30% First small steps 30% 24% 27% 26% Setting up/ running pilot projects 17% 17% 18% 15% Integrating social media 15% 16% 15% 17% Social media are fully integrated 12% 11% 11% 12%
  • 33. Social Media Adoption To what extent has your company integrated social media? Doing nothing with social media 26% 31% 46% 19% 32% 23% First small steps 24% 27% 20% 28% 30% 33% Setting up/ running pilot projects 23% 18% 15% 19% 15% 13% Integrating social media 17% 14% 10% 20% 15% 17% Social media are fully 11% 10% 10% 13% 10% 15% integrated
  • 34. Social Media Adoption To what extent has your company integrated social media? FMCG & Retail Healthcare Finance Media Tech & Telco Travel & Leisure Doing nothing with social media 30% 38% 26% 27% 24% 30% First small steps 19% 26% 24% 20% 22% 33% Setting up/ running pilot projects 19% 12% 22% 13% 22% 16% Integrating social media 20% 13% 15% 23% 19% 13% Social media are fully 12% 11% 13% 16% 14% 9% integrated
  • 35. Companies that have fully integrated social media in their structure use an average of 3 different social media channels.
  • 36. 52% have access to social media at work 41% are allowed to discuss their work on social media 44% are encouraged to communicate online with customers and consumers
  • 37. Companies where social media is fully integrated have more satisfied employees who are more likely to recommend their company to others.
  • 38. 4C IMPACT MODEL Identification with company culture Satisfaction & recommendation Social Media Adoption
  • 39. Why these Four Components? These four new disciplines have been chosen after careful consideration. A survey of 400 marketers has shown that companies grow faster than their sector rivals when they use these four components in unison. These four pillars help build a conversation lever for both your employees and your customers. Moreover, the entire process is in line with your company culture and company values. The first pillar, customer experience, is the most important conversation starter. If your employees and your customers feel well-treated, they will mention this to each other. Managing customer experience means investing in word-of-mouth. You are developing a focus for staff and consumer satisfaction. As a result, service is no longer be seen as a cost but as an investment in conversations. Managing the conversations is the second pillar. This involves observing, facilitating and participating in conversations. Your participation in conversations in social media will help humanise your company and make it seem less distant. Asking and answering questions boosts the interaction between the company and the market. In addition to the reactive answering of questions, the Conversation Company also adopts an active strategy with regard to content. Your content proves you are an expert in your field. Your company moves away from campaign-based thinking and towards the planning of impactful, conversation-generating content. The final pillar is the pillar of structural collaboration between your company and the market. The customer wants to help you and you welcome that help. The Conversation Company builds various communities of customers, who help determine the future of the organisation.
  • 40. The 4C components Current adoption levels… 24% Today, customer experience is the Conversation 39% management most adopted pillar. Compared to the other countries, US-based Customer experience companies score significantly higher on customer experience and conversation management 16% adoption. Overall, countries Collaboration providing both products and 19% management services score better on each of the pillars than companies providing Content management either products or services.
  • 41. US-based companies with less than 500 employees in the media or technology sector are the top performers across all 4 Cs <500 Media Tech & Telco
  • 42. <500 Only services Especially Belgium-based companies with less than 500 employees providing only services need better 4C leverage
  • 43. Customer experience is the main driver of satisfaction and recommendation. Offering strong products and a decent customer service will boost business through positive conversations. However, only 54% of companies today manage those customer expectations by delivering slightly more than promised. Moreover, just 2 out of 3 are open to conversations with customers in every phase of the purchase process.
  • 44. 54%manage customer expectations by delivering slightly more than promised
  • 45. 60% always opt for solutions that benefit the customer in the event of a problem
  • 46. 43% offer the same services both online and offline
  • 47. Customer Experience… To what extent do you agree with the following statements regarding customer experience? Agree The staff are trained to deliver adequate customer service 70% My company tries to be open to conversations with customers in every phase of the purchase process 63% In the event of problems, my company always opts for a solution which benefits the customer 60% Our customers can choose their own preferred channel of communication to address their questions 59% Every employee knows how to react to both satisfied & dissatisfied customers 59% My company innovates sufficiently in terms of customer service 57% More than 80% of the comments (online and offline) about my company are positive 56% My company manages every touch point with customers as a conversation starter 55% My company manages expectations. We deliver slightly more than what we promise 54% My company offers the same services both online and offline 43%
  • 48. Conversations should be managed in three stages: observing, facilitating and participating. Only 40% monitor customer conversations whereas 36% also participate in these online conversations. Remarkably, less than 1 in 2 companies manage their conversations themselves. Also, just 38% share the outcome of these interactions with the entire organisation. In other words, much of the conversations potential remains unused.
  • 49. 40% monitor customer conversations both online and offline, 36% participate in online conversations
  • 51. 34% use the real names of the people who administer the company Twitter account
  • 52. Conversation Management… To what extent do you agree with the following statements regarding conversation management? Agree My company always answers when a customer asks a question online and/or offline 69% My company admits its mistakes and apologises to the customer 69% Employees participate in conversations with customers and clients 57% My company offers objective added value when dealing with commercial questions from customers 56% My company manages its conversations itself 48% My company monitors customer conversations both online and offline 40% The conclusions of these observations are shared with all employees 38% My company sometimes posts questions on public forums to gain input and feedback from customers 37% My company participates in online conversations 36% My company uses the real names of the people who administer the company Twitter account 34%
  • 53. Content management is becoming increasingly important. More companies acknowledge the need to change their commercial model due to the rise of social media. However, only 39% currently have a content plan. Less than 1 in 2 believe their company is fully aware of the opportunities each channel has to offer in terms of spreading content.
  • 54. A 6-Step Approach in Content Marketing… 50% 43% 39% 45% 40% Topic Content Editorial Create Manage Measure Selection Conversion Content Shareable Content Success Strategy Planning Content Conversation Define what you want Content marketing Set up a roadmap so The content must be Once the content is The moment the to be famous for. should result in you know when and easy to share and launched, people will content strategy is up Select your content increased revenue. where content will be worth sharing. react to it. Be open to and running, you can domains wisely and Think beforehand shared. Streamline People tend to this engagement measure its impact be consistent in your about where you the content calendar spread positive, from your audience through a set of choice. want a conversation with all other relevant and and be prepared to relevant KPIs. These to take place. Define marketing actions in appealing content answer questions or KPIs should be a a top conversion order to increase that offers a benefit. to give feedback. combination of point and lead people impact. business generation to this point through measures and your content conversational measures.
  • 55. 39% have a content plan 48% use the right online channels to spread content efficiently 44% has well aware of the opportunities each channel has to offer in terms of spreading content
  • 56. 56% have employees who are responsible for creating content.
  • 57. 36% have bloggers amongst their employees 44% have an editor of sorts who plans and organizes the content
  • 58. Content Management… To what extent do you agree with the following statements regarding content management? Agree My company has employees who are responsible for creating content 56% My company knows on which content areas it wants to focus 50% My company uses the right online channels to spread content effectively 48% My company is well aware of the opportunities each channel has to offer in terms of spreading content 47% My company has software to process content efficiently 45% My company facilitates the sharing of content 45% My company has an editor of sorts who can plan and organize the content 44% My company has a plan to convert content into leads 43% My company has a content plan 39% My company has bloggers amongst its employees 36%
  • 59. Customer collaboration has the highest impact on employee satisfaction and the likelihood of someone recommending their company to others. Employees value this new form of consumer commitment. Still, to date, only 53% have already taken decisions in conjunction with their customers and only 1 in 2 involve their customers in the development phase.
  • 60. 37% actively manage their relationship with fans and ambassadors
  • 61. 50% involve customers in the development of new products
  • 62. 28% have a small closed fan community 27% have a large open fan community they consult with 43% have a staff/employee community
  • 63. Collaboration Management… To what extent do you agree with the following statements regarding collaboration management? Agree My company has already taken decisions in conjunction with its customers 53% My company involves customers in the development of new service possibilities 50% My company involves customers when launching new products 48% My company involves customers in the development of new products 45% My company has a staff/employee community 43% My company takes most of its decisions in collaboration with staff and/or customers 41% My company actively manages its relationships with fans and ambassadors 37% My company involves customers when choosing new suppliers 29% My company has a small, closed fan community it consults with 28% My company has a large, open fan community it consults with 27%
  • 64.
  • 65. Willingness towards Future Investment To what extent do you agree that, in the future, your company should invest in….? 47% Overall, less than 50% of companies are willing to invest in these 4 pillars 45% 40% 44%
  • 66. It’s time to act! Disbelievers will lag behind…. Companies with a high score on the 4C pillars display a significantly higher intention to keep investing in these 4 pillars, which will result in a continued growth in business performance.
  • 67. This will create a gap between the unwilling majority and the investing few. High 18% 11% Intention to invest in 4C Low High Low 62% 10% Currently investing in 4Cs
  • 68. Placing the 4Cs in a broader perspective…. High Combining these two dimensions creates 4 Structural Collaboration relevant quadrants. Each quadrant requires a different approach. Today, companies have the opportunity to build Low structural relationships with their customers. Apart from these structural contacts, companies can also benefit from open relationships with customers. Low Social media can help you generate content efficiently Reach either on a large scale or on a one-to-one basis.
  • 69. Placing the 4Cs in a broader perspective…. 20%* 15%* High Consumer Broad open Structural Collaboration consulting collaboration board Low High Conversations Customer Content experience Low 14%* 16%* Reach * % of companies who adopt the C pillar today and have the willingness for further investment
  • 70. 4C IMPACT MODEL Identification with company culture Satisfaction & recommendation Social Media Adoption
  • 71. A close fit in values and social media adoption have an impact on 4C integration, which in their turn have an impact on satisfaction and recommendation
  • 72. Companies scoring high on the 4C pillars boast an average satisfaction score 23% and recommendation score 27% higher than companies * High is defined as an average score of minimum 4 on 5 on the 4 pillars.
  • 73. Thank you! Let’s connect on linkedin.com/in/stevenvanbelleghem @steven_insites Steven@insites.eu
  • 75. Fieldwork The field work for this study was conducted by SSI: • SSI helps companies make decisions • By offering access to consumers and business professionals • In more than 75 countries • Through online and telephone methodologies • For over 2,000 clients across the globe www.surveysampling.com * High is defined as an average score of minimum 4 on 5 on the 4 pillars.
  • 76. Our translate agency parnter Your foreign-language communication partner • Translations • Copywriting • User-generated content summaries • Coding of open-ended questions • Language consultancy www.no-problem.be
  • 77. InSites Consulting InSites Consulting was established in 1997, and although a marketing research company, the founders never really wanted to be market researchers. InSites Consulting really is a crazy blend of academic visionaries, passionate marketers and research innovators that are determined to challenge the status quo of marketing research. Over the last 10 years the company has grown at an amazing 35% per year. Today, there’s more than 130 employees working in five offices (BE, NL, UK, RO, US) getting their energy from helping world leading brands to improve their marketing efforts and to develop deeper connections with consumers on a global scale via Research Communities. InSites Consulting is rewarded with no less than 15 international awards The recipe for success: a never-ceasing enthusiasm, a lot of hard work, a culture of sharing, and permanent innovation in research methods and marketing thought leadership. And last but not least: positively surprising clients every day. www.insites-consulting.com