Majority Of Companies Avoiding Social Media

Fear barrier to adoption

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[ Technology]

The majority of businesses have no formal plans to adopt social media or use its benefits that can lead to better customer relations and increased sales.

Fear and apathy are the primary barriers to using social media, according to a global survey by Avanade, an IT consultancy company.

Over half of respondents to the survey said senior executives and IT staff resist adoption out of fear it will reduce employee productivity.  Sixty percent believe management does not understand the potential social media offers employees and customers.

"Social media technologies are reaching a turning point — they are no longer lingering outside the domain of IT departments. Companies that do not adapt to these changes or move fast enough will lose customers," said Mike Pazak, Vice President of Enterprise Business Solutions at Avanade.

"We are working with organizations to deliver solutions that take advantage of the ways social media can impact customer relationships, opening up a new level of internal and external collaboration, trust and loyalty."

Approximately 60 percent of respondents say integrating social media technologies is not on the agenda and only 18 percent have any kind of strategy in place to integrate social media within the company for employees.

Among the companies that are early adopters of social media, two thirds have experienced improved customer satisfaction and 64 percent report an improved reputation in the marketplace.

Only 5 percent of U.S. companies have a fully documented and implemented strategy for integrating social media for use by employees.

The economy is a more influential factor in customer relationship management for U.S. companies than their international peers. Eighty-five percent of U.S. companies say that as we enter an economic downturn, businesses need to focus on new ways of communication with customers that add value.


Majority Of Companies Avoiding Social Media
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  • http://shannonswenson.com Shannon Swenson

    The Avanade press release has more interesting findings, notably that "More than 75 percent of companies worldwide admit that social networking will come into the business by stealth if not proactively managed."

    Thanks, Mike. I blogged about this study’s application to interactive advertising.

  • http://www.iyazam.com/ Hillel

    I think that many of these companies are still stuck a few years back when it comes to online marketing. I recently spoke with a CEO of a big company who told me that social networks are just a bunch of teenagers sharing nude pictures. Not all companies need social media – but many companies can use it to grow their business and to create awareness.


    • http://www.skybits.com Laura Gullett

      That CEO will wonder why his company goes under someday and where all their customers went.  Even after such huge strides of using Internet marketing online and advertising many social media usages more prominently by companies, politicians, news broadcasts, etc, the CEOs like this one still are blind to what is going on in social media.  It amazes me how people are so blind when it is right in front of them.

      Right now history is being created using the Internet to communicate with everyday people by Barack Obama, those CEOs need to wake up and notice how it can benefit their own company the same way.

      Thanks for sharing,

  • Craig Kessler

    The companies that are not adopting to social media practices are ignorant to the times and the technology that is out there.  This is becoming a mainstream practice that the train has left the station and those companies are going to be reacticve instead of proactive.  Eventually more and more companies will come around and begin using more social media marketing as tools to increase brand awareness.



  • http://www.petermonroe.com Peter Monroe

    It just leaves more opportunity for the little guys who move faster and adapt better to take over.  Hurrah!

  • http://officialsafetyandsecurity.com Debbie Morgan

    I’m with Peter Monroe. This leaves the door wide open for those of us with new web sites to get the word out about our products, services and great customer service!

    I use social media marketing to raise awareness for my safety and security products. I enjoy interacting with friends and helping them learn how to stay a little bit safer.

    Thanks for this great article, Mike!

  • http://pokredyt.pl/pozyczka/pozyczka-na-dowod/pozyczka-na-dowod.html Po?yczka na dow

    Mike, I want to thank you for yours good job. Nice article. Se ya!

  • http://www.ukrate.co.uk Richard

    Social media benefits will get you known for your website niche business more quickly You will gain more customers

  • http://car2be.com/ Tomas

    Social media, or social networking, is a popular and creative method of encouraging users to interact and engage with a brand, or product by allowing discussion, picture sharing and now even video sharing.

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