Majority Of Companies Avoiding Social Media

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. This should not surprise you at all.

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. Good point and in the hands of most it would indeed bring work down to a standstill. 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.

Larson note: Big companies are just starting to learn how to use MySpace and Facebook in marketing. Can they get down to the smaller entities on the ning groups and twitter attacks? They are, but their employees have the focus not to let the power of SM be corrupted? Will they stick to business of delve into monkey business? That is the fear of lager business.

Howard Larson
Larson & Associates
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