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In his new book, Steven advises companies to become conversation companies. A conversation company is a very consumer oriented company, relying on the power of people and using social media as a perfect partner. The Conversation Company invests in 4 C's to optimize its conversation potential: customer experience, conversation management, content, collaboration. This report gives an update to which extent companies are investing in these 4 dimensions.
Citation preview
Katia Pallini
About this research report
InSites Consulting, together with sample and data
collection partner SSI and the translation agency No
Problem! conducted a quantitative online survey among
1,222 senior managers.
The targeted markets included are Belgium, The
Netherlands, France, Germany, the US and the UK.
All respondents are senior or top managers from
companies (+20fte) in different sectors, with different
sizes and offers. Splits per sector, region… are shown if
the results are relevant.
What to expect from this research report
Market circumstances are forcing companies to change
their marketing, their behavior and their leadership style.
In his book, The Conversation Company, Steven
identifies four pillars that will guide companies through
this change process. These pillars are rethinking
customer experience, conversation management,
content strategy and collaboration.
This research project measures the current state of
companies in their journey to become a conversation
company.
The Conversation
Company Philosophy
‘The Conversation Company’ is a metaphor for the
most consumer-centric organization one can imagine,
using the power of the people as a positive lever and
thankfully accepting social media as an ideal business
partner. Company culture is the conversation guide for
all employees and clients. To optimize its conversation
potential, the Conversation Company invests in 4 C’s:
Customer Experience, Conversation management,
Content marketing & Consumer Collaboration.
4C IMPACT MODEL
Identification
with company
culture
Satisfaction &
recommendation
Social Media
adoption
The 4C impact model shows how ‘identification with company culture’ and ‘social
media integration’ influence the adoption level of the 4C pillars, which in turn have an
impact on employee satisfaction and the likelihood of staff recommending their own
company to others. Both are objective parameters of business performance.
5 KEY CONCLUSIONS
OF OUR RESEARCH
Lack of identification with the
corporate values among
top management blocks
social media integration
1
High social
media adoption
61%
39%
29%
24%
Doing
nothing
with social
media
First
steps in
social
media
Pilot
phase
in
social
media
Integrating
social
media
Social
media
integrated
Low social
media integration
29%
27%
17%15%
12%
Doing nothing with socialmedia
First steps in social media Pilot phase in social media Integrating social media Social media is integrated
29% 27%
17% 15%
12%
2
39% Customer
experience
24% Conversation management
19% Content
management
16% Collaboration management
Still a long way to go
before the world is
full of conversation
companies
Current adoption of the 4C components
3
A digital gap is created in the business world: Those who invest today, are the ones who will invest tomorrow
4
Companies that invest in all 4 C’s have a higher satisfaction & recommendation rate among their own employees
5
Full Research Report
4C IMPACT MODEL
Identification
with company
culture
Satisfaction &
recommendation
Social Media
adoption
The Company Culture
is your company’s
Conversation Guide
The most commonly used definition of company culture reads as follows:
“Company culture is a series of shared values and convictions which help individuals understand the functioning
of the company.”
A transparent company culture makes it easy for the employees to understand exactly what the company expects
of them. Culture gives people an insight into the type of behaviour the company considers appropriate.
Research confirms that company culture often forms the basis for the successful implementation of a strategy. A
strong company culture also has a positive impact on the performance and productivity of its employees. This
culture is a kind of „mental programming‟ that sets an organisation apart from its competitors.
Your culture is the personality of your organisation and the foundation your Conversation Company is built on.
Your staff and customers make this culture tangible to others. This involves a method of reasoning that works
from the inside out. A traditional company is first and foremost interested in keeping its shareholders happy.
Making customers happy only comes second, with the staff coming a poor third. A Conversation Company turns
this logic on its head. Happy staff are more than willing to keep the customers happy; happy customers mean
higher profits and this makes the shareholders happy as well. Or, as CEO of Southwest Airlines puts it:
“We take good care of our staff. Our staff take good care of our customers. And our customers take good care of
our shareholders.”
Your company culture is the conversation guide for employees and clients. Employees know how to behave and
how to communicate with clients, whereas clients know what to expect.
Lack of identification
among top management
blocks the evolution
We looked for the reasons why some companies are refusing to invest in new media. Looking at the data, we found
some typical results: the healthcare industry is lagging behind; media is a frontrunner; smaller companies are in the
lead compared to bigger companies. But I have to admit, these differences are rather small.
There is a bigger and more fundamental reason why some companies are lagging behind: their leaders. This survey
was undertaken among top managers from companies in the US, the UK and Europe[p1]. It was quite shocking to
see that about half of these top managers do not identify with the corporate identity and culture of the company they
preside over. This parameter is crucial to being open to change and evolution. Leaders who have a less emotional
bond with their company, invest less in social media. The transparency, openness and authenticity of the social web
must scare them away.
This shows that conversational leadership becomes a critical success factor for adapting companies to the
transparent world we live in. Leaders can hate their job but need to love their company. The more extreme the ‘love’
(emotional bond) between the leader and the company, the higher a company scores in social media
adoption/integration.
‘First who, then what’
I am a big fan of Jim Collins’ book ‘From good to great’. In his work he states that great companies first decide on the
‘Who?’ and then on the ‘What?’. Our research about social media integration and adoption has the same conclusion.
If you are serious about social media, the two elements you need are a conversation leader and a corporate culture
which acts as your conversation guide. After that, implementation of new projects will go a lot faster. This study also
shows that some companies (with the wrong leader and wrong culture) will never be successful in this field. Probably
these companies have even more serious problems to deal with first, don’t you think?
It’s remarkable that half
the senior and top-level
managers do not or
hardly identify with the
culture of the company
they work for.
The two main reasons
are the lack of visibility
of company values
throughout the
organization and a
limited focus on
company culture in the
recruitment process.
Company culture is built on having strong values and
living these values…
The 5 most common values are…
More than 1 in 4 companies has
‘professionalism’ as a value.
France is an outlier regarding company
values: values such as responsibility, trust
and respect carry more weight.
27% professionalism
26% customer
centricity
19% service-oriented
16% expertise
16% result driven
Perfect fit between
company & personal
values
No fit between company
& personal values
Company
values
Personal
values
51% 49%
But how are people living these values…
Only 1 in 2 feel
their personal values
fit closely with
those of the
company they
work for.
This percentage is
significantly higher
among top-level
managers, managers
with more than 20
years of experience,
B2B companies and
companies not listed
on the stock market.
The better the value match the more satisfied people are and the more likely they are to recommend their company to others
37% of managers
claim their company
values are not clear
to everyone in the
company
54% of companies
recruit employees based on matching values
Company values…
To what extent do you agree with the following statements regarding company culture?
Our company values permeate everything we do
Openness, authenticity and happiness are somehow incorporated in our values
Our company values are clear to everyone in the company
If negative customer comments appear online, we do not remove them but instead we try to help the customer
Our internal and external values are the same
If a staff member says or writes something wrong, we help him adjust his behavior
New employees are only recruited if their values match ours
As an employee, you have access to social media at work
My company encourages online conversations with customers
Employees are allowed to talk about their work on social media
64%
64%
63%
61%
60%
60%
54%
52%
44%
41%
Agree
4C IMPACT MODEL
Identification
with company
culture
Satisfaction &
recommendation
Social Media
adaption
Social network adoption is
high in companies. The
most actively used
platforms are Facebook,
Twitter, LinkedIn and
YouTube.
However, integration of
social media in business
processes is low. Only
12% of businesses have
fully integrated social
media in their business.
Yet our study shows that
social media integration
has a positive impact on
satisfaction and
recommendation.
Social Media Adoption
Which of the following social media platforms is your company active on?
61%
39%
29%
24%
17%
9%
5%
5%
4%
3%
YouTube
A corporate blog
MySpace
Flickr
Foursquare
Netlog
Badoo
Most actively used platforms:
61%
39%
29%
24%
Social Media Adoption
<500 500+
65% 56%
41% 37%
33% 25%
26% 21%
B2C B2B
60% 62%
39% 38%
22% 41%
24% 24%
Which of the following social media platforms is your company active on?
Which of the following social media platforms is your company active on?
Products
60% 51% 70%
39% 32% 45%
32% 24% 33%
25% 16% 30%
Services Products &
Services
Social Media Adoption
80% 61% 51% 56% 59% 53%
45% 44% 35% 25% 39% 45%
48% 30% 8% 8% 35% 42%
31% 23% 19% 25% 20% 22%
Social Media Adoption
Which of the following social media platforms is your company active on?
63% 43% 55% 78% 67% 62%
42% 39% 37% 66% 52% 50%
28% 29% 26% 29% 38% 24%
27% 30% 24% 46% 36% 35%
FMCG & Retail Healthcare Finance Media Tech & Telco Travel & Leisure
Social Media Adoption
Which of the following social media platforms is your company active on?
More than 1 in 2 companies are still in the early stages of integrating social media.
12% have fully integrated social media in their business processes.
Social Media Integration
29%
27%
17%15%
12%
Doing nothing with socialmedia
First steps in social media Pilot phase in social media Integrating social media Social media is integratedDoing nothing
with social media
First steps in
social media
Pilot phase in
social media
Integrating
social media
Social media
integrated
<500 500+
27% 32%
30% 24%
17% 17%
15% 16%
12% 11%
B2C B2B
29% 30%
27% 26%
18% 15%
15% 17%
11% 12%
Doing nothing with social
media
First small steps
Setting up/ running pilot
projects
Integrating social media
Social media are fully
integrated
To what extent has your company integrated social media?
Social Media Adoption
26% 31% 46% 19% 32% 23%
24% 27% 20% 28% 30% 33%
23% 18% 15% 19% 15% 13%
17% 14% 10% 20% 15% 17%
11% 10% 10% 13% 10% 15%
Doing nothing with social
media
First small steps
Setting up/ running pilot
projects
Integrating social media
Social media are fully
integrated
Social Media Adoption
To what extent has your company integrated social media?
30% 38% 26% 27% 24% 30%
19% 26% 24% 20% 22% 33%
19% 12% 22% 13% 22% 16%
20% 13% 15% 23% 19% 13%
12% 11% 13% 16% 14% 9%
Doing nothing with social
media
First small steps
Setting up/ running pilot
projects
Integrating social media
Social media are fully
integrated
FMCG & Retail Healthcare Finance Media Tech & Telco Travel & Leisure
Social Media Adoption
To what extent has your company integrated social media?
Companies that have
fully integrated social
media in their structure
use an average of 3
different social media
channels.
52% have access to social
media at work
41% are allowed to discuss
their work on social media
44% are encouraged to
communicate online with
customers and consumers
Companies where social media is fully integrated have more satisfied employees who are more likely to recommend their company to others.
4C IMPACT MODEL
Identification
with company
culture
Satisfaction &
recommendation
Social Media
Adoption
These four new disciplines have been chosen after careful consideration.
A survey of 400 marketers has shown that companies grow faster than their sector rivals when they
use these four components in unison.
These four pillars help build a conversation lever for both your employees and your customers. Moreover,
the entire process is in line with your company culture and company values.
The first pillar, customer experience, is the most important conversation starter. If your employees and
your customers feel well-treated, they will mention this to each other.
Managing customer experience means investing in word-of-mouth. You are developing a focus for staff
and consumer satisfaction. As a result, service is no longer be seen as a cost but as an investment in
conversations.
Managing the conversations is the second pillar. This involves observing, facilitating and participating in
conversations. Your participation in conversations in social media will help humanise your company and
make it seem less distant. Asking and answering questions boosts the interaction between the company
and the market.
In addition to the reactive answering of questions, the Conversation Company also adopts an active
strategy with regard to content. Your content proves you are an expert in your field. Your company moves
away from campaign-based thinking and towards the planning of impactful, conversation-generating
content.
The final pillar is the pillar of structural collaboration between your company and the market. The
customer wants to help you and you welcome that help. The Conversation Company builds various
communities of customers, who help determine the future of the organisation.
Why these Four Components?
The 4C components
Current adoption levels…
39% Customer
experience
24% Conversation
management
19% Content
management
16% Collaboration
management
Today, customer experience is the
most adopted pillar. Compared to
the other countries, US-based
companies score significantly
higher on customer experience and
conversation management
adoption. Overall, countries
providing both products and
services score better on each of the
pillars than companies providing
either products or services.
US-based companies with less than 500
employees in the media or technology sector
are the top performers across all 4 Cs
<500
Media
Tech & Telco
Only services
<500
Especially Belgium-based
companies with less than
500 employees providing
only services need better
4C leverage
Customer experience is the
main driver of satisfaction
and recommendation.
Offering strong products and
a decent customer service
will boost business through
positive conversations.
However, only 54% of
companies today manage
those customer expectations
by delivering slightly more
than promised.
Moreover, just 2 out of 3 are
open to conversations with
customers in every phase of
the purchase process.
54%manage
customer expectations
by delivering slightly
more than promised
60% always
opt for solutions
that benefit the
customer in the
event of a problem
43% offer
the same services
both online and
offline
Customer Experience…
To what extent do you agree with the following statements regarding customer experience?
The staff are trained to deliver adequate customer service
My company tries to be open to conversations with customers in every phase of the purchase process
In the event of problems, my company always opts for a solution which benefits the customer
Our customers can choose their own preferred channel of communication to address their questions
Every employee knows how to react to both satisfied & dissatisfied customers
My company innovates sufficiently in terms of customer service
More than 80% of the comments (online and offline) about my company are positive
My company manages every touch point with customers as a conversation starter
My company manages expectations. We deliver slightly more than what we promise
My company offers the same services both online and offline
70%
63%
60%
59%
59%
57%
56%
55%
54%
43%
Agree
Conversations should be
managed in three stages:
observing, facilitating and
participating.
Only 40% monitor customer
conversations whereas 36%
also participate in these
online conversations.
Remarkably, less than 1 in 2
companies manage their
conversations themselves.
Also, just 38% share the
outcome of these interactions
with the entire organisation.
In other words, much of the
conversations potential
remains unused.
40% monitor
customer
conversations both
online and offline,
36% participate in
online conversations
48% of
companies
manage their
own
conversations
34% use the real names
of the people who administer
the company Twitter account
Conversation Management…
To what extent do you agree with the following statements regarding conversation management?
My company always answers when a customer asks a question online and/or offline
My company admits its mistakes and apologises to the customer
Employees participate in conversations with customers and clients
My company offers objective added value when dealing with commercial questions from customers
My company manages its conversations itself
My company monitors customer conversations both online and offline
The conclusions of these observations are shared with all employees
My company sometimes posts questions on public forums to gain input and feedback from customers
My company participates in online conversations
My company uses the real names of the people who administer the company Twitter account
69%
69%
57%
56%
48%
40%
38%
37%
36%
34%
Agree
Content management is
becoming increasingly
important. More companies
acknowledge the need to
change their commercial
model due to the rise of
social media.
However, only 39%
currently have a content plan.
Less than 1 in 2 believe
their company is fully aware
of the opportunities each
channel has to offer in terms
of spreading content.
A 6-Step Approach in Content Marketing…
Topic
Selection
Content
Conversion
Strategy
Editorial
Content
Planning
Create
Shareable
Content
Manage
Content
Conversation
Measure
Success
Define what you want
to be famous for.
Select your content
domains wisely and
be consistent in your
choice.
Content marketing
should result in
increased revenue.
Think beforehand
about where you
want a conversation
to take place. Define
a top conversion
point and lead people
to this point through
your content
Set up a roadmap so
you know when and
where content will be
shared. Streamline
the content calendar
with all other
marketing actions in
order to increase
impact.
The content must be
easy to share and
worth sharing.
People tend to
spread positive,
relevant and
appealing content
that offers a benefit.
Once the content is
launched, people will
react to it. Be open to
this engagement
from your audience
and be prepared to
answer questions or
to give feedback.
The moment the
content strategy is up
and running, you can
measure its impact
through a set of
relevant KPIs. These
KPIs should be a
combination of
business generation
measures and
conversational
measures.
50% 43% 39% 45% 40%
39% have a content plan
48% use the right online
channels to spread content
efficiently
44% has well aware of
the opportunities each
channel has to offer in terms
of spreading content
56% have
employees who
are responsible
for creating content.
44% have an editor
of sorts who plans and
organizes the content
36% have bloggers
amongst their employees
Content Management…
To what extent do you agree with the following statements regarding content management?
My company has employees who are responsible for creating content
My company knows on which content areas it wants to focus
My company uses the right online channels to spread content effectively
My company is well aware of the opportunities each channel has to offer in terms of spreading content
My company has software to process content efficiently
My company facilitates the sharing of content
My company has an editor of sorts who can plan and organize the content
My company has a plan to convert content into leads
My company has a content plan
My company has bloggers amongst its employees
56%
50%
48%
47%
45%
45%
44%
43%
39%
36%
Agree
Customer collaboration
has the highest impact on
employee satisfaction and
the likelihood of someone
recommending their
company to others.
Employees value this new
form of consumer
commitment.
Still, to date, only 53%
have already taken decisions
in conjunction with their
customers and only 1 in 2
involve their customers in the
development phase.
37% actively manage
their relationship with
fans and ambassadors
50% involve
customers in the
development of
new products
28% have a small closed fan community
27% have a large open fan community
they consult with
43% have a staff/employee community
Collaboration Management…
To what extent do you agree with the following statements regarding collaboration management?
My company has already taken decisions in conjunction with its customers
My company involves customers in the development of new service possibilities
My company involves customers when launching new products
My company involves customers in the development of new products
My company has a staff/employee community
My company takes most of its decisions in collaboration with staff and/or customers
My company actively manages its relationships with fans and ambassadors
My company involves customers when choosing new suppliers
My company has a small, closed fan community it consults with
My company has a large, open fan community it consults with
53%
50%
48%
45%
43%
41%
37%
29%
28%
27%
Agree
To what extent do you agree that, in the future, your company should invest in….?
47%
44%
40%
45%
Willingness towards Future Investment
Overall, less than 50% of
companies are willing to
invest in these 4 pillars
Companies with a high score
on the 4C pillars display a
significantly higher intention
to keep investing in these 4
pillars, which will result in a
continued growth in
business performance.
It’s time to act! Disbelievers will lag behind….
Inte
nti
on
to
in
vest
in 4
C
Currently investing in 4Cs
Low High
Lo
w
Hig
h
62%
18% 11%
10%
This will create a gap between
the unwilling majority and the
investing few.
Str
uctu
ral C
oll
ab
ora
tio
n
Reach
Low
Lo
w
Hig
h
Social media can help you
generate content efficiently
either on a large scale or on
a one-to-one basis.
Today, companies have
the opportunity to build
structural relationships
with their customers.
Apart from these
structural contacts,
companies can also
benefit from open
relationships with
customers.
Placing the 4Cs in a broader perspective….
Combining these two
dimensions creates 4
relevant quadrants. Each
quadrant requires a different
approach.
Str
uctu
ral C
oll
ab
ora
tio
n
Low
Reach
High
Lo
w
Hig
h
Consumer
consulting
board
Conversations
Broad open
collaboration
Customer
experience
Content
Placing the 4Cs in a broader perspective….
20%*
* % of companies who adopt the C pillar today and have the willingness for further investment
15%*
16%* 14%*
4C IMPACT MODEL
Identification
with company
culture
Satisfaction &
recommendation
Social Media
Adoption
A close fit in values and social media adoption have an impact on 4C integration, which in their turn have an impact on satisfaction and recommendation
Companies scoring high on the 4C pillars boast an average satisfaction score 23% and recommendation score 27% higher than companies
* High is defined as an average score of minimum 4 on 5 on the 4 pillars.
The research partners
* High is defined as an average score of minimum 4 on 5 on the 4 pillars.
Fieldwork
• SSI helps companies make decisions • By offering access to consumers and
business professionals • In more than 75 countries • Through online and telephone
methodologies • For over 2,000 clients across the globe
The field work for this study was conducted by SSI:
www.surveysampling.com
Our translate agency parnter
Your foreign-language communication partner
• Translations
• Copywriting
• User-generated content summaries
• Coding of open-ended questions
• Language consultancy
www.no-problem.be
InSites Consulting was established in 1997, and although a marketing
research company, the founders never really wanted to be market
researchers. InSites Consulting really is a crazy blend of academic
visionaries, passionate marketers and research innovators that are
determined to challenge the status quo of marketing research. Over the
last 10 years the company has grown at an amazing 35% per year.
Today, there’s more than 130 employees working in five offices (BE, NL,
UK, RO, US) getting their energy from helping world leading brands to
improve their marketing efforts and to develop deeper connections with
consumers on a global scale via Research Communities. InSites
Consulting is rewarded with no less than 15 international awards The
recipe for success: a never-ceasing enthusiasm, a lot of hard work, a
culture of sharing, and permanent innovation in research methods and
marketing thought leadership. And last but not least: positively surprising
clients every day.
www.insites-consulting.com
InSites Consulting
