It is one of the findings, we often experience in reality when we advice companies: The employees understand how the digital transformation works. However, the management -especially CEOs and executives- are not seeing the urgency in moving on with the digital transformation. In a recent study of more than 1500 executive people in 106 countries released by Capgemini Consulting in partnership with MIT Sloan Management Review these findings become clear again, although the study writers make clear that the common agreement is that the future is digital.
The results show that those company executive who have the digital transformation on their agenda almost four out of five executives (81%) believe that it will offer their company a competitive advantage. They also see that it will become a critical development to their organization within the next two years. Still, nearly two out of three (63%) see that the velocity of technology change in their organizations is not moving fast enough.
Not surprisingly, many employees are becoming more and more impatient with the development and progress compared to their upper managers. This stays against the fact that 53% of the CEOs think that the pace of the digital evolution inside their company is „right“, „fast“ or „very fast“. Especially, the middle managers and staff employees think that the progress isn’t enough toward a digital realm. Just 25% of managers see the pace is right. One of the comments in the report blamed that the management was guilty of „complacency, [and] ignorance of modern technology“. And another one stated „Clueless management“.
The study’s authors categorized four different stages of digital transformation:
a. Beginners: Have been slow to adopt, or are skeptical of, more advanced digital technologies like social media and analytics.
b. Conservatives: Have deliberately hang back when it comes to new technologies.
c. Fashionista: Very aggressive in adopting new technologies, but do not coordinate well across departments.
d. Digiratis: Have the vision, and are willing to invest what it takes.
The reasons for the slow adaption for the modern digital challenge is made obvious: Time. When 53% of CEOs and executives say that the „don’t have time for this right now,” it sounds like a normal common excuse when things are not familiar or understood in the importance for the future development of companies. They (52%) simply don’t know how to do that, or are resistent to move on „this is the way we’ve always done it“.
When the study finds that 65% of organizations have just begun to step into the digital transformation process, it shows that most managers have not yet understood where the world of mobile and social media is getting us in the future. And when only 15% of respondenting CEOs and executives can be considered „mature“ adopters of digital technologies, it reflects our view of how we experience the top management that comes to us and wants input on how to change the company towards the digital realm. And whent he study authors conclude that just some companies rank in the same category as a Starbucks or Intel, which are kind of top notch in digital transformation, we might still see potential for even them to become better. It is one thing, to have a chief digital officer at Starbucks that also enables customer mobile engagements. But it is another thing to make all employees follow the rules of the digital transformation. The challenge is on…!
PS: Study can be read here.
They are on increasingly on Twitter (77%), Facebook (70%) and Youtube (69%): Fortune 500 companies. However, in terms of blogs (34%), Google+ (35%) or Pinterest (9%) they seem to be a bit behind or not seeing the value. And the report obviously forgot to look at LinkedIn. This is the findings of one of the latest research pieces of the Center for Marketing Research at the University of Massachusetts, Dartmouth.
Although from our perspective, blogging is seen to be the essential starting point of a social media strategy, most companies are not there yet. Not all industries see corporate blogging similar. The use varies significantly by industry. It is striking that no company in the pharmaceutical and tobacco section blogs. In contract, 53% of Fortune 500 companies in the telecommunications industry do. Almost 80% of the blogs show regular activity, have got RSS feeds, appreciate comments and offer subscription.
Twitter is used in eight out of the top 10 companies (Apple, Chevron, Exxon, Ford Motors, General Electric, General Motors, Phillips 66, and Wal-Mart). All these companies offer frequently status updates on Twitter. Just Berkshire Hathaway and Valero Energy are missing out. Interestingly enough, Facebook has got most followers on Twitter. Google comes in second, then Starbucks, Whole Foods Market, Walt Disney, JetBlue Airways, and Southwest Airlines.
On Facebook only Exxon is not showing up with an account. The rest, nine of the top 10 companies (Wal-Mart, Chevron, Phillips 66, Berkshire Hathaway, Apple, General Motors, General Electric, Valero Energy, and Ford Motors), has got a Facebook page. Obviously, the special retail shows strong use of Facebook (96% with a Facebook fanpage) versus 44% in the utilities sector. That Facebook has most Facebook fans is not surprising. Coca-Cola is number two with 66 million fans, followed by Walt Disney, Starbucks, Wal-Mart, and Target. These companies all collected more than 20 million fans.
What we found interesting in the report is the mention that 59% of companies link to the social platforms from their corporate homepages, whereas for the other companies it required the research team some additional searching. Looking at further social networks and results shows the different strategies. From companies ranked in the top 10 just Berkshire Hathaway has got its own YouTube account. In terms of Google+, 35% use their Google+ accounts actively while 19% set up corporate accounts which are unactive. 50% of the top 10 companies got actove Pinterest boards (Apple, Exxon, Ford, General Motors and Wal-Mart). And although Instagram is now a part of Facebook, only Ford Motors opened an account here, as Wal-Mart is the only top 10 company making use of Foursquare.
Some weeks ago, we have written about the importance to be fast on response time on Social Media platforms. We made clear, based on some research by Convince & Convert, that companies need to react in not more than 60 seconds on complaints, customer enquiries and questions that appear on company’s and brands‘ social platforms.
Now, a recent study of some of the biggest brands in the U.S., like Coca-Cola, McDonalds, Visa or Starbucks shows that providing a top standard of customer support on Twitter is not really as fantastic as it seems. Although some readings of all those good posts about these brands and their Social Media efforts might assume the companies do whatever they can in Social Business terms.
In the study, four Software Advice employees used their personal Twitter accounts to address customer service tweets to 14 consumer brands in seven industries – McDonalds, Starbucks (Fast Food), Coca Cola, Pepsi (Soft Drinks), Visa, Mastercard (Credit Cards), Wells Fargo, Bank Of America (Banking), Walmart, Home Depot (Retail), Apple*, HP (Consumer Tech), Gillette and Colgate (Personal Care).
They sent each brand’s Twitter account one tweet per weekday for four consecutive weeks, from „Urgent, to Positive/Negative, or questions about FAQ or technical issue. Then, brands were evaluated on their average response time and rate. See the results in the following infographic…
On their way to the IPO planned for later this week, some new data released by the social marketing firm SocialBakers might boost the company valuation from Facebook to a new level. A new infographic takes a look at which global brands have the best Facebook presence.
With 901 million registered global Facebook users, the numbers show that only 17% of the Facebook members are based in the US. The impact and opportunity for companies is massive. The five biggest companies generate each more than 26 million fans with Coca-Cola being the winner, calling 42 million fans their territory on Facebook – more than 21%! The runner up are Starbucks that are best in the food retail sector and Converse.
The SocialBakers figures also show the winning countries where global brands are most engaging their audience. Although the U.S. might be ahead of other countries in population penetration with brands like Starbucks, McDonald’s or Xbox. Brazil is the number two with L’Oreal Paris and Trident (Kraft), India number three with Vodafone and Pepsi, and Germany at least number 10 with McDonalds as well.
It was interesting for me to see that the fastest moving global brands are Halls, Axe, and Nokia – brands that have left my scope of attention in the last three years. Now, it would be freaking cool if we knew which ones of the 488 million mobile users are the most active on brand engagement?
Which brands catch your attention most and where are you most active?
No, I am not a big fan of wallets – only if those are filled with the right light bank notes… which not very often is the case. And I am looking forward to days when my back pocket can get rid of the heavy weight of useless coins that don’t buy big things, products or services. Now, the future seems to be nearer than I thought…
Near field communication (NFC) seems to become the rising technology enabling us to pay with our mobiles in the future. Startups like Square and some programs from brands like Starbucks and Google Wallet kick off a new era where mobile payments becomes popular today.
Gplus has created a nice infographic that nicely and easily explains how the technology works and how fast the mobile payments market is emerging and what might happen in the next few years.
Keynote speeches like the following on the future of mobile payment will also increase the speed of evolution in this field…
How do you think the mobile technology needs to evolve and be made safe for mainstream consumer use? Would you still want a receipt for your purchase? Will this evolution in payment (if it is one) really save time? Share your views…
At that day, we were brainstorming opportunities how to engage users in advertising, and how to reward them. Reward them, when they were watching the pre-rolls at our daily (on-demand) three minutes news show, when they were clicking on display ads, when were reading articles that might fit their business needs and then send them personalized advertising… and reward them when paying attention to any forms and activities of sponsored areas.
To be frankly open, the time was not ready for these types of advertising rewards from a user perspective (as well as the ad industry understanding the capabilities). However, we thought about clever loyalty programs and how to let users participate in the revenues we are generating. As we were working in the B2B scenario it was even more difficult to get this into the heads of our users. I remember, we even tested the silicon point reward model and had a personalized point counter on our side for some days. Yes, we were quite ahead of our times…
So, where are we today with the reward advertising model?
Some weeks ago, I met Julian Fourgeaud at Rovio (Angry Birds) when I was speaking at the istrategyconference in Amsterdam. Julian told me all about the opportunities they have with their mobile gaming business. If you think about their reach – Angry Birds just cracked the 200 Mio. downloads barrier- it all makes perfect sense. I was surprised how much time people spend with the game, and how addicted people became during the istrategyconference dinner (just ask my kids…) but wondered how to make a clever advertising model out of it. And I thought if reach is as benefitial as relevance form an advertising point of view. But that is another story…
Today, I was reminded of the old silicon days. I came across a new business model which is called kiip. Their business is quite simple. A code is implemented in a game which is basically an ad. The ad is a reward points model or coupon that shows up in mobile games when people achieve certain high-scores or levels in the game. So, when you beat a level, you might get a coffee from Starbucks or a discount from MINI’s merchandising shop. Or you just collect points via their loyalty schemes which motivate you to think about purchasing their latest products.
Here is the video how kiip works…
There are so many advertising opportunities or loyalty programs (i.e. like Multiply to increase the worth of brand fans) these days that won’t be as offensive as the traditional advertising model. HOWEVER, in my eyes there is one thing which needs to happen: Personalization. With silicon those days we saw who was logged in, just like Youtube, Facebook and Twitter do. So, personalized reward advertising ad models should no be a challenge anymore (under given permission). Still, I cannot see any of these rewarding systems really working for now. Or is Facebook Stories heading towards this idea? Groupon, Foursquare and Gowalla could come up with similar ideas if they just collaborate with the guys from kiip. And if credit card providers as well as loyalty card providers would change their strategies and group with these guys, chances would be amazing to make advertising engaging, personal, rewarding and finally efficient for brands. We would get offers in a personalized format, at the right time and in the right environment.
What do you think about reward advertising models? Is this an exiting area to focus on? Do you fear that data privacy (remember this Google spoof commercial…) becomes an issue as usual? Let us know…
The latest market outlook by Deloitte predicts that in 2011 social networks are likely to surpass one billion unique members and may deliver over 2 trillion advertisements. Although this sounds impressive, it is modest compared to other media, the CPM remains low and the market share remains at only 1% of the global online ad spend. The per member annual advertising revenue is approximately $4 which implies total 2011 advertising revenues of about $5 billion.
Will the publishing industry see a revival of print again? Everybody says social media is challening the print publishing industry. All of a sudden, the Content Marketing Institute has launched a media that is in some way a spin-off of the modern social web development, Chief Content Officer. The circulation is 20,000 marketers, with additional digital distribution. Yes, obviously there is a „digital spin“ off as well…
Nike signed a big sponsoring agreement with the national football association of France (FFF). After years with Adidas, France signed a contract with Nike for their national football dress. And then they did this fantastic commercial with reference to my most admired work and poem from „Cyrano de Bergerac“, ending with the famous words „J’ai touche!“. Let’s wait and see what the French team will touch us in EURO 2012…
PS: At Starbucks mobile payment becomes reality. At least in the US where you can swipe your phone in front of a scanner that is checking your Starbucks account.
Tim Bernes-Lee, the founder of the WWW, last week stated that „journalists need data skills in the future“. In his speech at a panel he concluded that…
„Journalists need to be data-savvy. These are the people whose jobs are to interpret what government is doing to the people. So it used to be that you would get stories by chatting to people in bars, and it still might be that you’ll do it that way some times. But now it’s also going to be about poring over data and equipping yourself with the tools to analyse it and picking out what’s interesting. And keeping it in perspective, helping people out by really seeing where it all fits together, and what’s going on in the country.“
In my eyes, Berners-Lee’s point is that journalists need to be able to tell the story in ways which tells a story to the reader. The technical point isn’t for the readers but for the journalists. He’s basically saying that data enables new story to come up. Aggregation of content is the future and analysis of data will become more important than just quoting the data, the way journalists work today.
China has not been the main country for Social Media usage. Time is changing though. A new Ogilvy report shows some significant changes – today Social Media in China is „mainstream reality“. The main Social Networks seem to be Renren (a social network for students), kaixin, 51.com and the market leaderQQ.
Sustainability is the key to Social Media success. Companies let their social activities explode, or are getting better but most of them have don’t think about sutainable effect. Custom Communication created an index that identifies and ranks 120 companies that are using social media in sustainability communications. Obviously, the social-media innovators like Pepsi, Dell, Starbucks, IBM and Ford are leading the bunch. A very positive example for Corporate Social Responsibility (CSR) is General Electric, whose „Ecomagination challenge is raising the bar for how companies can demonstrate their commitment to society in an engaging and social manner,“ says Matthew Yeomans, co-founder of Custom Communication.
Finally, Twitter starts their first trials rolling out their first advertising into individual users‘ Twitter streams. The first clients are from Starbucks, Red Bull and Virgin. This new monetization strategy called Promoted Tweets was announced some while ago and will kick off addressing Hootsuits’s 175 million users with showing them paid tweets. Interested to see how the users will react…
LinkedIn powers the company profile pages by integrating new company pages. Companies can now „showcase their products, services and associated recommendations“. The company pages allow brands to showcase recommendations from their customers which becomes benefitial for the brand virally and credibly on LinkedIn. When memebers on LinkedIn endorse products or services of a brand, their recommendations become visible to all of their connections. The viral effect is obvious. Thus, brands get some of the most credible, authentic endorsements of their products on Company Page’s Product tab. The question is whether the user likes the idea to become a brand testimonial…
Although I am not a huge fan of plastic toys, I have to admit this Barbie commercial gets the message across. „When I grew up“ is a good example of kid ads targeting adults…
One of the latest articles of AdAge highlights the reach of the biggest Facebook fan pages of brands.
The article makes clear that many marketers have more success these days with their social media presence than with their traditional „owned media“ – their brand sites. The question arises if the new „owned media“ will become the Facebook sites where companies invest a lot of effort in these days. In just one year the shift from „onsite to offsite“ becomes obvious when we can obey that Coke’s brand website and NabiscoWorld.com are showing a massive decline in traffic figures based on Compete data. Only Starbucks seems to maintain their brand sites web-traffic with significant e-commerce traffic success.
Many marketers are still not quite sure how and in which way to get engaged in all the social media hype. And if they do, a recent study by the Brand Science Institute shows that 73% had to show ROI figures after 12 months, although only 27% had a clear understanding of who their customers are… and probably none of how they interact on the social web. And 92% (!!!) were not aware of their Facebook dependency…
The expectations are high on social media… and especially when Facebook becomes part of the social media strategy. Posts like those of AdAge suggest that Facebook fan pages will become the new brand sites, or at least replace the importance of traditional brand sites.
And now to the experts… What is your take on this?