The following article was recently released by MAPI, the Manufacturer's Alliance  It's very very informative and well written. I think you'll find the analysis and result very very enlightening!

** MAPI Members - click here for a PDF version of this article and click here for the PowerPoint slides. **

Where B2B Manufacturers Are Seeing Value in Social Media

By: Cam Mackey
Assistant Vice President of Sales and Marketing
cmackey@mapi.net

Social media is an increasingly important tool being used by companies to interact with current and prospective customers, employees, and other stakeholders. Indeed, 80 percent of businesses with more than 100 employees are using at least one social media tool for marketing purposes.

When it comes to social media, however, business-to-business (B2B) companies have some unique challenges not shared by their business-to-consumer (B2C) compatriots. For example, the more complex B2B purchase process (where influencers, approvers, operators/users, buyers, and maintainers each play a role in the purchase decision) makes it challenging to develop a social media engagement strategy for such a diverse audience. Further, despite a marketing team's best efforts, ball bearings will probably never have the cool factor of a new pair of Nike running shoes or an iPad. For reasons such as these, B2B companies have adopted social media more cautiously than B2C ones, although this appears to be changing.

To help members understand how their B2B peers are using social media to communicate externally, we have shared some very recent survey data below.

Trends
The Manufacturers Alliance/MAPI has surveyed its members several times about the impact social media is having on how they communicate externally, especially to current and prospective customers. When we compare the results from our 2009 and 2011 surveys of the Marketing Council (with 35 and 38 respondents, respectively), several trends emerge. Members are realizing more value in using social media to gather voice of the customer (44 percent saw value in 2011 compared to 28 percent in 2009) and to position their company as a thought leader (63 percent in 2011 compared to 33 percent in 2009). One constant remains between the 2009 and 2011 surveys, however: the greatest value that members derive from social media is building brand awareness. Members generally still do not see line of sight connections between social media and increased sales, although there are exceptions.

Not surprisingly, another trend has been the increased adoption rates of major social media vehicles, such YouTube, LinkedIn, Facebook, and Twitter for B2B marketing purposes. YouTube, for example, is now used by nearly 90 percent of respondents to our 2011 survey, compared to fewer than half only 18 months ago. Twitter, which many members regarded with great skepticism in late 2009, when fewer than 20 percent of respondents were using the tool, is now being used by over 60 percent.

Figure 1 – Members Currently Using or Planning to Use Each Social Media Tool in Six Months—2011 versus 2009

Source(s): Manufacturers Alliance/MAPI

So how are members using these tools and more importantly, what value are they realizing?

Key Social Media Vehicles
There is no one-size-fits-all social media tool. Ninety-two percent of respondents told us that YouTube is effective for branding and awareness. Generally speaking, members find the most value in using YouTube to share training or product demo videos. According to one member, "We use YouTube to share our expertise with customers and end-users, and to build enthusiasm." Timken, for example, has a popular series of how-to videos targeted at installers such as this one. Timken has a little fun on the company's YouTube channel, too. It includes a video of a vintage Big Tim the Train educational cartoon, which has logged over 38,000 views.

Table 1 – Social Media Effectiveness

* The most effective tool for each purpose has been shaded blue.
Source(s): Manufacturers Alliance/MAPI

Members told us that they find Twitter the most effective vehicle for two purposes: connecting with current and potential customers, and addressing service issues. Common uses include keeping customers informed of relevant company and product information, events and promotional offers. Caterpillar's Twitter feed is an excellent example of these tactics in action. In addition, many companies use Twitter to communicate with their investors, and several told us that they find it extremely valuable as a crisis communications tool. Although no social media vehicles scored particularly well for addressing service issues, Twitter was the best of the bunch. This perhaps is an area where our B2B respondents might leverage the experience of several B2C companies (such as Zappos, Comcast, or Xbox) that have successfully used Twitter as a customer service tool.

Despite early doubts about the value of Facebook (in our fall 2009 survey a full 65 percent of respondents had no plans to use Facebook), nearly two-thirds of respondents' companies currently use the tool (or plan to use it in the next six months). Furthermore, 78 percent find it effective for branding and awareness, and 61 percent find it effective for connecting with current and potential customers. Overall, members use Facebook for reputation management, building enthusiasm, and engaging diverse audiences. Having contests in which fans submit photos of the company's products in action is a popular tactic to build engagement. We recommend visiting Ingersoll Rand's Facebook page where the company uses its wall to address service issues, handle product orders, or share news about community initiatives.

Measuring Impact
Members were asked which metrics they find most helpful in tracking social media performance, and their responses are laid out in Figure 2.

Figure 2 – Social Media Metrics Usage and Value

Source(s): Manufacturers Alliance/MAPI

Although they find most of the standard metrics (followers, comments, page views, etc.) of reasonable value, members voiced a great deal of frustration about drawing clear connections between social media and actual sales. Several members counseled that this perhaps should not be the goal, at least at this stage in the evolution of social media. As one member told us, "In the short run, social media is primarily about building relationships, not immediate sales. It's about listening to customers where they are discussing your industry and products. Not being in the discussion means we're not listening, learning, or responding."

For many companies, worrying too much about being able to tie social media efforts to increased sales misses the point. When starting out with social media, focus on listening and building an engaged audience. Next, share content with them that will drive them towards your website to learn more. Only then can you use social media to drive sales and resolve service issues.

Figure 3 – Maturity Model for Social Media Metrics

Source(s): Manufacturers Alliance/MAPI

Resources
Most respondents allocate headcount to social media on a part-time basis (for many members, no more than 10 percent of an employee's time). Very few B2B companies (even large ones) have headcount dedicated full time to social media. Although most respondents (nearly 80 percent) have some corporate coordination around social media, the legwork is done at the business-unit level. Over half of respondents' companies using social media do not currently have a dedicated social media policy in place, although many are in the process of creating such a policy. MAPI is collecting members' social media policies; if you would like access to this archive, or if you would like to contribute your own company’s policy, please contact us.

Lessons Learned
Members offered a variety of advice on convincing a skeptical senior management team about the value of social media. Key points include:

• Many customers, competitors, and future employees expect companies to use social media.
• It can help companies shape and respond to (but not control) opinion.
• It is changing the buying process in some industries.
• It can play a valuable role in crisis communications.
• It is a valuable tool but not a panacea.
• It is in the zeitgeist; participate or risk being passed by.