We’re talking 20-25%. That’s the raise in knowledge worker’s productivity that McKinsey estimates can be obtained through internal usage of social collaboration tools. That number came out last summer through their social media report entitled The Social Economy, and the lead from the project, Michael Chui, was kind enough to join us in a Hangout to explain further.
More specifically, the point of McKinsey’s study is – and it’s based on an impressive and convincing amount of research – that office employees on average spend 28 hours a week or more than 60% of their time writing and reading emails, searching for information and attending meetings. Many of these things can be done more rapidly and efficiently through internal social platforms such as Chatter, Yammer and Jive.
Moving on from our findings regarding Social Customer Service, it’s now time to look at what we learned in Maersk Line’s social media study regarding Sales and not least the concept of social selling.
What is social selling?
Briefly put, social selling is about leveraging sales reps’ use of social media to perform better by getting in at an earlier stage in the sales funnel. It’s not about these employees spamming their networks/customers on e.g. LinkedIn and Twitter.
There are many good reasons why we in Maersk Line (and other companies for that matter) should care about social customer service, i.e. servicing customers via various social media outlets – in a structured way, involving colleagues from customer service.
In my previous posts about Maersk Line’s social media study I wrote about first that social media has to somehow add value to the bottom line, secondly I summarized what we’ve done in the first year and a bit. Now, it’s time (finally) to look at the actual study.
In light of our current (and future, I should add) minimal use of resources, we decided to complete the study by internal means, i.e. we wrote it ourselves. But we also decided to try involving leading international experts through a number of so-called Hangouts on Google+. This was a success.
From singular to complex value creation
The very first question we were able to answer concerned the value of our past and present value creation via the social media. This exercise was almost absurd. First of all, it is impossible to quantify added value of this kind conclusively, since it originates both directly and indirectly, both in the short and long term.
Value creation is no longer (and probably never has been) singular. It is quite all right to measure singular outcomes, but if one wants to document the total business value, simply looking at a few quantitative parameters is pointless.
Nevertheless, we were able to determine that the Return on Investment (ROI) from our Facebook page is approximately 1500%. And the results are even better on Twitter, where we have barely used any resources but have a base of followers which has a 15x greater pull.
In other words, our average Twitter follower is 15 times more influential than the average Twitter user, and when we share something on Twitter, we therefore tend to find that it ripples out into the networks of most relevance to us.
What’s next is what’s interesting Jay Baer, the President of Convince & Convert and a leading social media strategist, played a major part in the study. He said:
“It is of little value to look at the value of what you have achieved, or of what you are achieving right now for that matter. The important thing is what you intend to do going forward. Only then you will find out what it is worth, and that will depend on what you do now.”
“Through your explorative approach to social media, you have managed to bring the company culture with you. You have generated momentum, and that is the most valuable of all that you have achieved, because that is what you need to build on.”
Jay Baer continued: “Bringing the culture with you is by far the most difficult task. Even large companies, which are one-tenth of your size, cannot get it right. They are afraid to let go, as a result of which their social media programme dies before it has even begun.”
Detrimental not to adapt Michael Chui, who was the driving force behind the social media study published by McKinsey last summer, made it clear that social media can no longer be ignored. It is imperative for all large companies to adopt social media as an integral part of the organisation, or, as he said to us in one of the first Hangouts:
“It will be detrimental for companies that are unable to adapt and exploit the social technologies and the associated optimisation opportunities. This may not happen this year or next year, but it will not be long. If you do not do it, your competitors will, and then, sooner or later, you will be outperformed.”
Next step: to get it out into the business
That was the evaluation part. We then shifted our focus to what we should do in the future. The McKinsey study outlined 10 ways in which social media or technologies can create value for large companies. Of those 10, we identified the four we considered to be the most prudent for us to focus on in the coming years.
Besides our current area, in which we communicate via the official Maersk Line channels, which is an approach rooted in our communications department, we will focus on our customer service, sales and internal use of social technologies for collaboration purposes.
So, moving on from my previous post, let’s have a look at how we got started and what we’ve done to date in Maersk Line with regards to social media.
First of all, our approach has been one of insourcing. I was basically recruited to do the job, starting 1 October 2011, and I have been running with it ever since. This approach was chosen by management because they realized that it was the only way forward if it was to be credible as well as cost-efficient.
What has worked really well for us, and what the management fully understood, is the big amount of trust and empowerment that came my way. If you want to humanize the brand and ensure speed of posting you need to work with minimal oversight.
Where are we today?
So what’s the status after a year and a half? We currently have a presence on 12 social media sites, two of which are Chinese. We use these platforms in very different ways, with respect for the different users out there. However, a common trend spans the entire spectrum, namely that we regard it as a communication tool as opposed to a marketing exercise.
If you ask me, this approach does not make it boring, quite the contrary. Our presence is characterised as being very visual, narrative, trustworthy, based on that which is current and close to the business. Our aim is to engage and enter into dialogues. And we endeavour to humanise our somewhat hardware-driven business.
The top line (social) numbers
We have over 830,000 fans on Facebook, on which our engagement rate consistently falls between 5-10%. Also, we have 45,000 followers on Twitter, and 30,000 followers on LinkedIn.
In addition to all of this, we have 22,000 followers on Instagram. We have received considerable praise for our use of Instagram (and photos in general), even from Instagram themselves. Recently, we became one of their “suggested users”.
Here’s a short case video that summarizes what we’ve done the past year and a half (I know, I know, it’s a bit to the dramatic side):
[vimeo http://www.vimeo.com/59990482 w=460&h=259]
From mass media to corporate journalism
But what is it worth? Perhaps nothing? We don’t know for certain. But we believe we know that there is much more to social media than… social media alone.
Social media is merely a concept. It is a measure of where the media landscape and technology have brought us, specifically to the point where technology has become so sophisticated that it is capable of mirroring our behaviour and the actual structure of society right down to the individual level.
In other words: a society consists of individuals who are interconnected. The same can be said about the role of social media. Away with mass media; today, that space belongs to the users. And in that space we all become editors of our own lives. How do I wish to present myself? Who am I? How do I want to spend my time? With whom? Where? Etc.
What is interesting for companies is that they are also, or have the opportunity to be, publishers of their own stories. Companies have become news media agencies in their own right. But they will not get very far unless they are trustworthy. This is where the concept of corporate journalism comes in: the most digitally-advanced companies have started to employ people who report on what goes on in the company with journalistic integrity.
After all, if you fail to divulge your mistakes, no one can learn from them, in which case the company stagnates.
“What in the world is a container shipping company doing in the social media?!” We have been asked this question repeatedly since we announced our presence on Facebook, Twitter, LinkedIn and Instagram almost a year and a half ago.
The short answer is: because it adds value to the bottom line. Had this not been the case, we would (almost) not have any reason to be there.
Until now, social media have primarily been the domain of our communication department, but we are currently moving into the second phase of our strategy which will involve incorporating them into the actual business.
In order to determine what role social media should play in our business in the long term, we recently completed a study. In addition to evaluating our current value creation, this study also outlines our next step.
Over the next few weeks, I will attempt to extract the key aspects of the study in a number of blog posts.
But before we get to the study itself, it makes sense to outline what we have done to date, during the first phase of the programme.