McKinsey Study: Companies embracing a Social Media Strategy are finding a positive ROI
The social media fight in established companies has been ongoing for years now with a few visionaries going “all-in” with Social Media and inbound marketing, an equal amount doing nothing at all. Most, however, have been sitting on the fence (this is the 10-10-80 principle you may have heard of). With the help of some years of data and great companies like McKinsey taking the time to study results, I think we’re going to see a lot more fence sitters getting on board.
The McKinsey study is no small undertaking – polling over 3,000 executives with a 2/3 response rate. From our perspective at InnoGage, we were thrilled to see the number of companies engaging in Corporate Blogging increasing to 38 percent! We’ve passed that critical 1/3 adoption rate. We believe that number will continue to rise over the next several years with more and more companies migrating from a struggling free platform to a paid platform that delivers a more powerful ROI.
One very interesting stat mentioned in the McKinsey article is that “…nearly two-thirds of respondents at companies using Web 2.0 say they will increase future investments in these technologies, compared with just over half in 2009. The healthy spending plans during both of these difficult years underscore the value companies expect to gain.” For companies consulting in Social Media such as Dachis Group and Social Business Strategies, and companies building Corporate Social Media applications, such as Jive Software and InnoGage’s business blogging software this certainly is welcome news!
Furthermore, the McKinsey research had this to say about gaining market share. “Market share gains reported by respondents were significantly correlated with fully networked and externally networked organizations. This, we believe, is statistically significant evidence that technology-enabled collaboration with external stakeholders helps organizations gain market share from the competition. They do this, in our experience, by forging closer marketing relationships with customers and by involving them in customer support and product-development efforts. …Overall, we found that respondents at 27 percent of the companies in our survey reported having both market share gains against their competitors and higher profit margins.”
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