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PRESENTED BY

© COPYRIGHT CMO COUNCIL.
ALL RIGHTS RESERVED. 2011

VARIANCE IN THE SOCIAL BRAND EXPERIENCE | R E PORT

CONTENTS

3 Introduction

4 Summary of Findings

7 Lithium Expert Commentary

10 Detailed Findings – Marketer

23 Detailed Findings – Consumer

31 About the CMO Council

31 About Lithium

© Copyright CMO Council. All Rights Reserved. 2011 2


INTRODUCTION
The CMO Council, in partnership with Lithium, the leader in Social Customer Solutions, surveyed more
than 1,300 consumers and 132 senior marketers to understand the voice, velocity, and value of social
media. Among the insights sought, this research set out to better understand:

1. How well marketers are embracing social media in their quest to uncover market opportunities,
respond to unmet needs, pre-empt potential issues, and further brand advocacy and affinity

2. How consumers use social media to connect, engage, and elevate their own voice within a social
brand engagement

3. The reasons why consumers connect with brands in social media and the reasons brands think
consumers are “liking” their brand pages and content

4. What consumers expect from brands in social media and what brands deliver

5. Whether social media experiences are reinforcing brand perceptions, enabling richer
conversations, and promoting the sharing of positive brand experiences or if the experience is
still lacking.

The online audit revealed that social consumers are largely:

1. Open-minded

2. Engaged

3. Demanding

4. Loyal

5. Willing advocates for the brands they love

The research also uncovered significant gaps between how brands and consumers approach the social
media marketplace. The overarching finding was that consumers want more from brands online, including
better experiences, deeper engagement with each other and the brand, reasons to participate, and rewards
when they do.

Brands who gain social business advantage in 2012 will be those who feed unmet consumer appetites for:

1. Deeper engagement with each other and the brand

2. Purposeful engagement with social support and ideation

3. More rewards with special offers, greater privilege, rank, and reputation

4. Better experiences with games, contests, and other online engagement apps

The two surveys were distributed online during the fourth quarter of 2011. This report combines the
insights and findings provided by marketers and consumers, as well as prescriptive directions provided by
Lithium based on their 10 years of working with brands including Adobe, Accenture, and Salesforce.



SUMMARY OF FINDINGS
There's no question that social media is one of the most highly influential marketing engagement channels
we’ve seen. The constantly emerging nature of digital media has been pushing the engagement envelope
for some time, but what’s new and different about social media is that it’s now a two-way street.

A continuously emerging dialogue now exists been marketers and their highly social, fully networked, and
Internet-savvy consumers. The emergence of social media has forced marketers to rethink everything from
strategies to budgets to head count in order to develop and manage the constantly evolving social brand
experience.

We set out to take a closer look at the state of affairs in the busy two-way street of social media marketing
from both points of view: the consumer’s and the marketer’s. We surveyed 132 senior marketers and more
than 1,200 consumers on the subject of social media, asking each how and why they are currently using it,
what they get out of it, and what they’d like to see it do for them.

The bottom line is that consumers want more—more experiences, more engagement, more rewards, and
more reasons to connect with each other and brands through social media. And brands are missing the
boat. They see the benefits of reaching out to customers through social channels, but they aren’t yet fully
invested. While 52 percent of marketers reported they believe their brands have enjoyed greater influence
thanks to their presence in social networks like Facebook, only 17 percent said that social media is fully
meshed, aligned, and integrated into the overall marketing mix.

We also found that while the voice, velocity, and value of social media marketing do positively influence
purchasing behavior, adoption rates, and brand perception, social customers are a tough crowd. Their
expectations are high. When they seek support online, they expect it to be fast and great. When they
connect with a brand online, they expect acknowledgement, greater exclusivity, and higher status. They’re
fine with brands reaching out to them through social networks, but the message must be relevant, timely,
and valuable.

Yet this demanding audience is not to be dismissed. When they are acknowledged, rewarded, and offered
relevant information and special experiences, they become exceedingly loyal and go out of their way to
help the brand meet key business drivers—like better customer support, faster innovation, and increased
demand and awareness.

The gap between what consumers want and what they’re getting from brands online represents a timely
opportunity for social business advantage. Online consumers are decidedly willing to act on behalf of the
brands they love. Brands that give their social customers useful and engaging online experiences, a chance
to connect with each other, and special rewards and status will pull away from the pack in 2012.

Social Media: The Consumer's Point of View
Consumers say they engage with brands through channels like Facebook and other social networks largely
to learn about new products (55 percent), enter unique promotions or contests, or to play games (65
percent) offered specifically, and often exclusively, through these channels. Most consumers use social
specifically to connect with other fans (25 percent) or to share positive experiences (32 percent).

Importantly, few consumers turn to social to bad-mouth brands or complain about negative experiences.
Instead, they use open social communities to share more positive engagements and experiences.



Customers also have high expectations when connecting with brands through social. They expect answers
within 24 hours—with only 12 percent willing to wait days for resolution of support issues. But increasingly,
the expectation is an immediate response—22 percent of consumers want instant gratification, with an
additional 19 percent looking for resolution within hours.

Marketers will do well to consider a new mindset for social in 2012. Great support isn’t just something
social customers expect, it can also build brand loyalty; 33 percent of consumers say that great online
customer support keeps them loyal. Social support is the perfect way to enable consumers to help each
other with the immediacy they demand. It can also significantly offset support costs.

Customers use social media to take advantage of offers and discounts, and to share experiences about
brand they love. They are also looking for unique, exclusive experiences.

The top expectation that comes with a “like” is to be eligible for exclusive offers (67 percent), followed by
the opportunity to interact with other customers who share a consumer’s own experiences (60 percent).
Games and contests are also big draws—65 percent of consumers want to find them when making online
brand connections, and 57 percent expect them from brands on Facebook.

The great news is that few consumers feel let down by their social brand experiences. Only 3 percent
declare the engagement a “total waste of time.” What’s more, a full 40 percent of consumers want and
expect more.

And this audience is not to be trifled with. Among our respondent pool alone, 49 percent represent the
coveted 18–34 age bracket, but a large population (31 percent) represent social media users over age 45,
with 14 percent between the ages 55 and 65. On average, the consumers surveyed have 546 Facebook
friends and 95 Twitter followers, and they follow 36 brands on Facebook and 61 brands on Twitter. This is
an influencer group willing to put their loyalty into those brands who are building experiences to meet and
exceed their social expectations.
Social Media: The Marketer's Point of View
The majority of marketers (52 percent) believe their brands have a growing level of influence through social
media channels, but many (67 percent) are concerned that they don’t have the resources or time required
to properly manage their social media investments. Marketers are also increasingly concerned that they
can’t measure or quantify the return or impact of social media on the brand. As one marketing respondent
summarized, “ We are worried about what we don’t know about social media and what we are missing!”

For the most part, existing social media strategies are in place to support communications, but are not fully
integrated into overarching marketing strategies. According to the marketers surveyed, 20 percent admit
that social media strategies are really just a loosely connected channel, and 23 percent admit that while
they have some strategies brewing, there has been a general failure to launch.

But without a doubt, social media is skyrocketing in importance as an overwhelming majority (80 percent)
has moved the channel up their marketing priority list. This is certainly demonstrated as the average social
media following of the brands surveyed include 224,472 Facebook fans, 2,600 Linkedin connections, 11,780
Twitter followers, and a growing representation on emerging channels like Google+. For the most part,
these channels are being managed by an average of only three dedicated social media resources within the
marketing team.

Marketers value social media as it’s helped them become more relevant to customers (57 percent),
build better relationships (54 percent), and promote awareness and demand for a brand’s products (49
percent). But it is also adding new complexities to marketing operations, forever shifting the marketing
planning, budget allocation, and resource mix across the organization. But more importantly, marketers are
seeing a real upside to their investments through areas of positive impact to operations.



First and foremost, social media is adding to improved customer listening for brands (55 percent) and
opening new avenues to gather and further market insights (55 percent). There is a shared belief that social
media is raising the bar, offering new opportunities to test products and services, improve go-to-market
effectiveness, and even reduce budget costs once spent on more costly advertising channels. And while
many marketers have yet to start leveraging the channel to offset costs associated with customer service,
that is likely soon to come as more customers go online through social media to address specific support
needs.

Specific to customer listening and insight development, the majority of marketers have been in a gathering
mode, using social media to collect insights and opinions from their most loyal consumers. But several have
also been using the channel to gather competitive intelligence (39 percent) and catalog general trends
across all followers and fans (37 percent).

But considering that the overwhelming majority of consumers are looking for deals and savings, it is telling
that only 43 percent of marketers are using their social networks to answer this consumer call. When asked
to prioritize investments, special offers and promotions also place low on the list, with most marketers
placing these deals as the least important investment in their mix. Instead, marketers are focusing on
offline investments, search, web, and digital.

As programs like special offers, promotions, and word-of-mouth marketing fall to the bottom of today’s
marketer's complex priority list, social media could provide a valuable channel to deliver these exact
programs to a highly qualified, relevant, and loyal audience that is expecting, if not demanding, these
experiences.

One challenge lies in the basic understanding of how a consumer engages and why. According to the
marketers surveyed, 76 percent see customer communication come to their brand through email, with
55 percent of consumers calling in to a customer service line or contact center. These engagements
are typically from customers looking for service or support (80 percent), with a significant portion of
customers reaching out specific to an advertising, direct, or web campaign.

For those customers who have liked a brand, marketers feel that they have done so because the content
they have been presented with is agreeable or otherwise compelling. Marketers also feel that many
customers like or engage because they wish to be heard (41 percent) or because they want to track news or
information about products (40 percent). Only 33 percent believe that their fans are looking for incentives
or rewards, and only 27 percent believe customers are seeking special savings or experiences exclusive for
followers.

Because of this belief, few marketers are responding to “likes” with special savings or deals (22 percent),
special perks, or privileges (7 percent). And given the customer expectation for immediate response
and resolution to issues, marketers are missing an opportunity to address service and customer care by
leveraging social media to provide faster handling and better customer care (4 percent). Most marketers
are using the channel to continue conversations (31 percent), while many are allowing conversations to
grow organically (30 percent) with little censoring or editing.



LITHIUM EXPERT COMMENTARY

Expert Prescriptions and Perspectives From Lithium:
2012 Social Must Do’s

Our findings illustrate a number of clear gaps in the social media marketplace between what consumers
want and what they’re getting. It also shows clear gaps between what brands know they can get from
social media and what they’re willing to invest. Brands who take steps to fill both the social consumer
expectation and the social media investment gaps sooner rather than later will have the social business
advantage in 2012.

In particular, marketers who make deeper investments in these key areas will pull away from the pack
through the following:
1. Peer-to-Peer Engagement
Social customers are social, first and foremost. They want to interact with others like them, and they
inherently trust information they get from each other more than they trust brand messages.

Social customers who trust each other are more likely to engage, ask for and follow recommendations
and advice, and talk about their engaging and beneficial experiences with friends. Equipping them with a
greater ability to connect with each other online helps build that trust by giving social consumers what they
want—a way to connect with others like themselves.

Consumers already socialize around the brands they love offline. Peer-to-peer engagement provides your
social customers with a way to continue and expand on those conversations online. A full 55 percent of
consumers surveyed said they are already looking for product information through social media, and 74
percent said they use social media to recommend products to friends. Peer-to-peer engagement lets
brands bring these two groups together in order to share information easily. It also lets the brand capture
those conversations and make the information contained in them available to everyone. By watching which
conversations gain traction and which ones touch upon customer passion points, marketers can harvest a
considerable cache of valuable market insights.

Peer-to-peer engagement allows customers to rally around a common sense of purpose, build peer-
powered insights, and drive peer-validated solutions. Each is great for both the consumer and the brand.

Case in Point: “We built our Beauty Talk community on our website, and as we opened our doors, it was
flooded with clients dying to talk about beauty with each other. It was exactly what we wanted. What we
found was that clients were not only trying to talk with us, they were trying to talk with each other. And
they were actually engaging in ways we had no idea they would.”

—Bridget Dolan, VP of Interactive Media at Sephora
2. Social Support
We’ve all heard it: “Customer service is the new marketing.” Certainly, support is a significant part of the
customer experience and an incredibly powerful touch point for creating a positive brand impression. As
the lines between marketing and support continue to bleed together in the eyes of the consumer, savvy



marketers in 2012 will do well to remember to keep the focus on delivering great customer experiences—
whether capturing new customers or supporting existing ones.

Great online customer experiences must, above all else, deliver the outcome social customers want—and
they don’t just want to connect with brands online; they want to connect with purpose. In fact, consumers
demand immediate engagement and relevant content that is accessible anytime, anywhere, and through a
growing variety of devices and channels.

Yes, they want to see your brand on Facebook, but not just to check out your latest campaign. They want
to find useful information—everything from a simple answer to a packing question, and from an innovative
solution to a complex technical question. They want to use social media as a support channel.

With a full 63 percent of consumers reporting they search for help from other customers online before
doing anything else, social support emerges as a clear opportunity for brands to pull away from the pack
and meet and exceed social customer expectations.

Facilitating social support online can be as simple as launching a Q&A app on your Facebook page or as
robust as launching a fully branded customer community with forums, discussions, ideas, ratings, and
reviews. Providing social support is an opportunity not only to gain competitive advantage in social
media, but it is also a proven method of significant cost reduction. It costs between $6 and $75 to resolve
customer issues over the phone. It costs as little as $0.05 to help customers find answers online.

Case in Point: In one year, the AT&T Customer Care Social Media Team resolved 21,000 customer issues.
Support calls have gone down 16 percent month over month.
3. Ideation
Social customers want to be heard. They want to share their ideas, find out what others think, and watch
their ideas come to life. Ideation—co-creating with social customers—emerged from our survey as a
significantly under-utilized benefit of social media marketing. While 41 percent of consumers fully expect
to share their product ideas on Facebook, only 4 percent of brands report they actively ask their Facebook
fans to help them innovate new products.

Smart brands in 2012 will actively engage social customers in the ideation process, capture customer
feedback, and feed it into the innovation cycle. They’ll enable (and reward) social customer idea sharing
and direct input, engaging social customers in order to accelerate product and marketing innovation and
increase competitive advantage.

Case in Point: The LabVIEW ideas community has given National Instruments 12 new software features
per release.
4. Special Offers, Greater Privilege, Rank, and Reputation
Social customers not only want but expect to be rewarded for connecting with brands online, and there are
a variety of ways to go about satisfying them. Special offers and promotions bring new customers into the
fold while the chance for increased status, privilege, or rank keeps them engaged and motivates them to
contribute more.

A mere 7 percent of marketers report that they reward their most active online contributors, which creates
an open playing field for those who gamify the social customer experience in 2012; marketers should
give social customers something to work for and a reason to level up. Socially savvy brands will reward
social customers with greater status and privileges not just for their likes, but for a full range of beneficial
behaviors—from voting on product ideas to blogging about a technical solution.



Those who see the most social success in 2012 will have something for everyone, offering multiple paths
to success. While some social customers are product experts, others are friendly and welcoming, and still
others are good at getting conversations started. Each is a valuable member of the complex ecosystem that
is a brand community, each has something to offer, and each expects to be rewarded for their contribution.

Case in Point: Giffgaff community members are rewarded for managing parts of the business by answering
community questions, recruiting new members, and promoting the company. All questions are answered
by community members in an average of 93 seconds.



DETAILED FINDINGS - MARKETER

Influence of the Brand in Social Media Is Growing

The majority (52 percent) of marketers believe that the influence and voice they have in social
networks is growing, although very few (16 percent) believe that their brand has excellent or even
very good influence. Another 20 percent stated that brand influence is limited by the design of their
organization.

Q1. How do you rate your level of brand influence in social media channels?

52% Growing

20% Limited

11% Minimal (by design)

9% Very good

7% Excellent

1% Don't know


Marketer

Social Media Customer Communication Is Low

The majority of communication from customer to company takes place through email (76 percent)
or customer service lines and call centers (54 percent). Only 11 percent stated they would post on
a brand’s Facebook page to communicate, and 2 percent said they would communicate via another
customer’s Facebook page.

Q2. How do your customers typically interact or communicate with you?

76% Email

54% Call a customer service line or contact center

27% Attend live events or tradeshows

21% Online form

20% Attend online and offline events

19% Visit retail locations

12% Join an online discussion group or forum

11% Post on the brand’s Facebook page

10% Attend

8% Tweet

4% SMS text message (mobile)

2% Post on a customer’s Facebook page

13% Other


Marketer

Reaching Out for Service and Support

Customers (80 percent) are proactively reaching out to companies to get service or support. Another
key reason to reach out is in response to a campaign or web event (43 percent). According to
marketers, equal percentages of customers reach out to complain about products, learn about new
products, and provide feedback or ideas (29 percent). Only 22 percent of marketers saw customers
reach out to share positive experiences.

Q3. Why do customers typically reach out to your company?

80% To look for service or support

43% In response to an ad campaign or Web content

29% To complain about a bad experience

29% To learn about new and upcoming products

29% To give the company feedback or ideas

22% To share a positive experience

12% To engage with personality/celebrity spokespersons

9% To connect with other brand fans

7% Other

Are Companies Ready for Social Media Engagement?

There are signiﬁcant concerns regarding an organization’s capacity to engage customers in social
media as resource requirements and availability was the top concern (67 percent) voiced by
marketers. The ability—or more speciﬁcally the inability—to quantify and measure the effectiveness
of engagement is also a concern for 49 percent of marketers, while 43 percent believe these initiatives
require expertise that they do not have.

Q4. What concerns you the most about your investments in social media initiatives?

67% Requires resources and time we don’t have

49% I can’t brand. or measure return or impact
on my
quantify

Requires new competency and expertise
43% we don’t have

Can’t manage and control what’s said about my
27% brand or how my brand is used

19% Other


Marketer

Stages of Integrating Social Media Strategies

Marketers are struggling to fully integrate social media into their multi-channel strategies. In fact,
34 percent say they have not developed fully integrated strategies for social media, while another 23
percent say they are developing social media strategies, but execution is a struggle. An additional 21
percent say they have loosely connected channels and are working on getting them aligned and into
the overall strategy. Only 17 percent believe their social media strategies are fully integrated with
overall marketing and go-to-market strategies.

Q5. How would you describe your existing social media strategy?

34% Supportive of our communications, but not fully
integrated into strategies
23% We have some social media strategies brewing,
but we are still struggling to execute.
Loosely connected channels today, but working
21% to get everything aligned and into the strategy
Fully integrated and meshed with our overall
17% marketing and go-to-market strategies

4% Strategy? What strategy?


Marketer

Social Media Positively Affects Marketing Operations

Almost half (47 percent) of marketers state that social media has increased the complexity of
marketing planning and mix allocation. But an increasing number of marketers are leveraging social
to gain better insights, as 55 percent of marketers enjoy improved customer listening, engagement,
and conversations, and 55 percent state it has opened avenues to gather and further market insights.
Another 20 percent even believe that social media has introduced new efficiencies and effectiveness
to go-to-market strategies.

Q6. How has social media impacted your marketing operations?

55% Improved customer listening, engagement,
and conversations
55% Opened new avenues to gather and further
market insights
Increased the complexity of marketing planning
47% and mix allocation
Opened new opportunities to survey, test, and
25% research products and services

20% Improved customer intelligence
Introduced new efficiencies and effectiveness
20% in our go-to-market programs
Increased headcount to add new talent to manage
14% social media

14% Reduced advertising/media spend

5% Lowered the cost of customer service

11% Other


Marketer

Marketers Are Involved in the Social Media Space

A vast majority of marketers are heavily involved in the development of social media marketing
operations (70 percent), participating and monitoring them closely and often. Others find that
keeping track of social media monitoring reports is sufficient (24 percent).

Q7. How actively involved are you in the development of your social media strategy?

70% Totally involved, actively engaged. I participate
and monitor closely.
24% Moderately involved—I see reports.

5% I’m not involved in our social media strategy.

Leveraging Social Media to Gain Intelligence

Customer insight and listening programs provide valuable leverage tools for marketers, the most
widely used being the aggregation of insight on preferences, opinions, and reviews (65 percent).
Many also use social media to seed discussion topics in order to gain specific market intelligence from
customers (51 percent) and gathering competitive intelligence (40 percent) on other organizations.
However, there is still a small percent (18 percent) of marketers who are not leveraging social media
as a listening post.

Q8. How do you leverage social media specific to customer insight and customer
listening programs?

65% Gather insights on preferences, opinions,
and reviews

51% Seed discussionintelligence
specific market
topics to focus conversations for

Distribute special promotions, coupons, and
43% discounts

40% Collect competitive intelligence
Catalog general trends in overall sentiment, fans,
37% or followers

18% Not currently leveraging social as a listening post

5% Other


Marketer

“Liking” a Brand

Marketers believe that when a customer “likes” a brand, it is a reaction to agreeable content (57
percent). They also believe brand fans are looking for news and information about the brand
and its products (40 percent) or demonstrating their customer loyalty (24 percent). There is an
understanding that customers are looking for incentives or rewards (33 percent), but more marketers
believe that fans are looking for a way to be heard (41 percent).

Q9. When a customer engages or “likes” your brand, what do you believe that means?

57% The content is agreeable.

41% They want to be heard.
They want to track news on the brand
40% and products.
They are looking for incentives or rewards for
33% engaging with the brand.
They are looking for special savings or events just
27% for followers.

24% They are loyal customers.

24% They want to engage with other customers.

14% They want to contribute and help customers.


Marketer

“Like” Is a Signal for Marketers to Engage

Nearly one in four marketers is simply not sure how to respond to customer “likes” online. While
most marketers will respond with deeper conversation and engagement (31 percent) or spark further
community conversation (30 percent), those delivering unique offers, discounts, and deals are in the
minority (22 percent).

Q10. How do you respond to a customer “like” on Facebook?

31% Engage in further conversation with the customer

30% Foster more community conversations to spark
ongoing engagements
Allow conversations to grow organically without
30% censorship or editing
Deliver special offers, discounts, or deals exclusive
22% to fans

22% Deliver more targeted, individualized messaging
Not sure how to respond yet, just know we have
21% a lot of “likes”
Deliver more advertising to a more captive
10% audience

10% Provide enhanced service and support

7% Promote perks, privileges, or beneﬁts
Reward power-posters and build advocacy
7% among brand champions
Work to provide faster handling and better
4% customer care

4% Develop new products or innovations

15% Other


Marketer

Traditional Elements of the Marketing Mix Prioritized

The marketing mix is transforming to a more balanced blend of online and offline investments. While
offline spend still tops the list (23 percent), online advertising (16 percent) and websites (14 percent)
are beginning to see the majority of investments.

Q11. We currently prioritize our marketing mix investments in this order:
(1=most important, 11=least important)

1 2 3 4 5 6 7 8 9 10 11 12

Offline advertising 30 13 8 11 6 5 14 6 10 10 16 2
Online advertising 12 21 15 14 14 7 11 14 13 7 3 0
Search marketing 16 15 15 16 13 25 9 11 3 5 3 0
Direct response (mail, email) 15 14 22 18 14 19 13 5 6 2 3 0
Internet websites 16 19 20 19 19 7 14 9 5 2 1 0
Social media and group deal
3 5 5 11 19 15 22 21 13 5 12 0
delivery
Experiential marketing
7 12 14 11 15 13 14 16 16 8 5 0
(events, shows)
Public relations and community
6 10 9 20 9 16 11 17 21 8 4 0
programs
Promotions and merchandising 6 5 8 4 3 7 6 15 26 41 9 0
Special offers and promotions 0 6 6 6 8 8 5 13 9 34 34 1
Word-of-mouth marketing 16 10 8 1 10 8 11 3 9 8 41 2
Other 4 1 1 0 1 1 1 1 0 1 0 6

Social Media on the Rise for Marketers

Given the opportunity to directly engage with consumers through social and the belief that social can
enhance brand inﬂuence online, it is no surprise that 80 percent of marketers have move social up
their priority list in the past 12 months.

Q12. Over the last 12 months, social media has moved in this priority list:

80% Moved up

19% Stayed the same

1% Moved down


Marketer

DEMOGRAPHICS

Q13. Social media helps us to:

57% Be more relevant to our customers

54% Build better customer relationships

50% Build awareness and demand for our products

32% Build brand loyalty

30% Improve our customer service and responsiveness

26% Make more informed marketing decisions

17% Reduce our marketing spend

7% Increase customer lifetime value

6% Increase revenue

Q14. Please share some stats on the state of your social networks:

Number of fans on Number of connections Number of followers Number of connections
User Range
Facebook on LinkedIn on Twitter in your Google+ circle

0-300 48% 55% 50% 93%
301-600 7% 19% 9% 2%
601-900 2% 6% 7% 2%
900 43% 20% 34% 3%


Marketer

Q15. What is your title?

30% Chief Marketing Officer

16% Director of Marketing

8% VP of Marketing, Digital Marketing

7% SVP, EVP of Marketing

4% Director of Communications

1% VP of Communications

1% Director of Social Media

33% Other


Marketer

Q16. What best describes your industry sector?

18% Professional Services
17% Information Technology
11% Retail
7% Financial Services
4% Insurance
4% Food and Beverage
4% Education
4% Travel and Hospitality
3% Telecommunications
2% Media and Publishing
2% Manufacturing
2% Entertainment
1% Wholesale/Distribution
1% Aerospace & Defense
1% Electronics and Miscellaneous Technology
1% Construction
1% Automotive
1% Packaged Goods
1% Government
1% Life Sciences
1% Consumer Durables
1% Pharmaceuticals
1% Utilities
1% Energy
0% Chemicals
0% Transportation
12% Other


Marketer

Q17. What is your company size by revenue?

39% Less than $50 million

19% Greater than $5 billion

12% $51 million to $100 million

10% $1.1 billion to $5 billion



4% $751 million to $1 billion




DETAILED FINDINGS - CONSUMER

Review and Participate With Social Networks

There are a variety of reasons any consumer might visit a brand’s social networking site, including a
general enthusiasm for their products, the desire to show others they like the brand, or to connect
with other fans. While these reasons for engagement are signiﬁcant , according to consumers the
most compelling reasons for engaging are to participate in games, promotions, and contests (65
percent) and to learn about new products (55 percent).

Q1. I connect with brands on Facebook and other social networks:

65% For the games, contests, and promotions

55% To learn about new products

38% To show I’m a fan

32% To say something nice about a great experience

27% Because I love their campaigns

25% To connect with other brand fans
For a speciﬁc event or opportunity for a unique
20% experience (like chatting with my favorite actor or
to ask an expert a question)
13% For service or support
To share a great idea I have for new products
13% or features

8% To complain about a bad experience

4% I do not use social media at all.


Consumer

Online Dominates Consumer Communication

A high percentage of consumers reported communicating with a brand via email (65 percent) or
by ﬁlling out a form on the company website (50 percent). These channels of communication far
outweigh others like visiting a retail location (25 percent), sending an SMS text (12 percent), or
attending a brand event (6 percent).

Q2. When I want to communicate with a brand, I…

65% Send an email

50% Fill out a form on the company website

44% Call a customer service line

33% Post on the brand’s Facebook page

29% Post on my Facebook page

25% Visit their retail location

23% Join a discussion group or forum

12% Send an SMS text message

12% Tweet

6% Attend their events


Consumer

I Need Help…Where Do I Go?

The Internet, being the first resource for any and all brand information and questioning, is the space
consumers turn to when seeking help or advice about a brand. With that being said, there are very
specific avenues consumers will choose to find solutions to their brand information woes. The
company website was the number one place consumers found their answers—comprising 77 percent
of responses—although another 63 percent reported consulting other individuals online who had
similar issues to them. Another 46 percent decided to search online for product experts, and 44
percent used forms on the company website to receive help.

Q3. When I need answers, product advice, or troubleshooting, I:

77% Go to the company website and search
their content
63% Search online to connect with people who
have similar issues

46% Search online for product experts
Go to the company website and fill out a
44% service request
Go to a store or office location to speak
29% with someone directly

25% Phone the company
Search third-party sites like online news
17% or editorital sites


Consumer

What Is Your Feedback Response Time?

Most consumers (47 percent) hold fairly reasonable expectations of having their customer support
issues addressed within 24 hours. However, a combined 41 percent expected that they be addressed
either immediately (22 percent) or within one hour (19 percent).

Q4. When I connect with a brand online for a customer service or support issue,
I expect answers:

47% Within 24 hours

22% Immediately

19% Within an hour

12% Within a few days

Everybody Wants a Discount

We see the continued theme of using social media to take advantage of special offers and discounts
(79 percent) and to play games, enter contests, and download special apps (60 percent). Also, many
consumers intend to start sharing experiences with social peers about the products they use (51
percent) and following/liking brands on Twitter and Facebook (52 percent).

Q5. These are some of the new ways I’m using social media this year:

79% To take advantage of special offers and discounts
To play games, enter contests, and download
60% special apps offered by my favorite brands
To follow brands on Twitter and/or like them
52% on Facebook

51% To share my experiences with the products I use

39% To get product advice from other social customers
To help other social customers by sharing my
19% product knowledge


Consumer

Support Your Customers

Some 46 percent of consumers surveyed expect great customer support from the brands they love,
and 33 percent believe that a commitment to customer support is a signiﬁcant factor in their loyalty
to the brand. While this may be subject to the brand and offering, the importance of customer support
cannot be overlooked when addressing the issue of brand loyalty. It also seems that consumers are
less willing to bad mouth a company based on poor customer support (2 percent) as opposed to
praising it for good support (14 percent).

Q6. Great customer support online is something that:

46% I expect

33% Keeps me loyal to a brand

14% Makes me tell my friends about a brand

4% I complain about to friends when it’s not available

2% I’m willing to pay a premium for

Peer Pressure Is a Good Thing in Social Media

The more consumers engage in social media, the more they inspire each other to engage with new
and different brands. In fact, 80 percent said they were more likely to engage with a brand based on
a friend’s suggestion, and 74 percent said they were likely to encourage friends to try new products.
Undoubtedly, this increases consumers’ engagement with brands, as 72 percent stated they were
more likely to stay engaged with their favorite brands. Marketers should be monitoring the 42 percent
of consumers who use social media to share negative experiences with brands and products, as they
are likely inﬂuencing the 32 percent who decide not to buy a product based on that negative feedback.

Q7. Because of social media, I am more likely to:

80% Try new things based on friends’ suggestions

74% Encourage my friends to try new products

72% Stay more engaged with the brands I like
Share any negative experiences with brands
42% or products
Not buy certain products because I learned of
32% a negative customer experience


Consumer

Consumers Like Brands in Order to Engage With Them

The top reasons consumers “liked” brands on Facebook were because they are loyal customers (49
percent), they want to track brand news (46 percent), they are looking for incentives or rewards for
engaging with the brand (46 percent), and they are looking for special savings or events (43 percent).
Another strong reason to engage is to establish a voice online, as 26 percent said they just wanted to
be heard, and another 24 percent said they wanted to contribute and help other customers.

Q8. I like brands on Facebook because:

49% I’m a loyal customer

46% I want to track news on the brand and products
I’m looking for incentives or rewards for engaging
46% with the brand

43% I am looking for special savings or events

30% The content is agreeable

26% I want to be heard

24% I want to contribute and help customers
I want to recommend or connect my friends to
19% my favorite brands

17% I want to engage with other customers


Consumer

The Expectations of “Liking”

Consumers expect certain things when they commit to “liking” a brand on Facebook. They expect
to be eligible for exclusive offers (67 percent), to interact with other consumers and compare
experiences (60 percent), to find games, contests, and other unique experiences (57 percent), and to
share ideas for new products and features (41 percent). Half of consumers also expect to find service
and support from their social networking site (50 percent).

Q9. When I like a brand on Facebook, I expect:

67% To be eligible for exclusive offers
To interact with other customers and share my
60% experiences
To find games, contests, and other unique
57% experiences

50% To find service and support

41% To share my ideas for new products and features

25% Nothing much

Social Media Creates Positive Experiences

Satisfaction with social brand engagements are high as 34 percent of consumers say they received
more than what they expected during their last interaction with a social media outlet. Another 40
percent explained that their experience was positive, yet they wanted a bit more. Only 18 percent said
the experience was “so so,” and only a combined 9 percent said either there was no experience (6
percent) or it was a waste of time (3 percent).

Q10. My last experience with a brand through social media was:

40% A good experience, but I want more

34% Exactly what I expected and more

18% I engaged, but the experience was just so-so
All I get is what I could get online; where is the
6% experience?

3% What a waste of time!


Consumer

Social Media Engagement

The majority of consumers on Facebook have between 0 and 300 friends (74 percent), although
the average of those surveyed is slightly higher at 546 friends. A signiﬁcant majority (92 percent)
of Twitter users have between 0 and 300 followers, with the average number being 94. While
consumers increase engagement through interaction with peers, they are also limited by the number
of other consumers they engage with. Furthermore, the average consumer follows 36 brands using
Twitter, while the average Facebook consumer follows up to 61 brands.

Q11. Please share some stats on the state of your social networks:

Number of Brands I Follow Number of Brands I Follow
User Range Facebook Friends Twitter Followers
on Twitter on Facebook

0-300 74% 92% 97% 94%
301-600 12% 3% 3% 6%
601-900 3% 3% less than 1% less than 1%
900+ 11% 2% less than 1% less than 1%

DEMOGRAPHICS

Q12. I am:
2% Under 18

25% 18 – 24

24% 25- 34

18% 35 – 44

17% 45 – 54

14% 55 – 64

0% 65+

Q13. I am:

52% Female

48% Male



ABOUT THE CMO COUNCIL

The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange,
thought leadership, and personal relationship-building among senior corporate marketing
leaders and brand decision-makers across a wide range of global industries. The CMO Council’s
6,000 members control more than $300 billion in aggregated annual marketing expenditures
and run complex, distributed marketing and sales operations worldwide. In total, the CMO
Council and its strategic interest communities include more than 12,000 global executives
across 100 countries in multiple industries, segments, and markets. Regional chapters and
advisory boards are active in the Americas, Europe, Asia Paciﬁc, Middle East, and Africa.
The Council’s strategic interest groups include the Coalition to Leverage and Optimize Sales
Effectiveness (CLOSE), Marketing Supply Chain Institute, Customer Experience Board,
LoyaltyLeaders.org, Online Marketing Performance Institute, and the Forum to Advance the
Mobile Experience (FAME). www.cmocouncil.org

ABOUT LITHIUM

Lithium helps top brands ﬁnd their social customers, give them customer experiences they
love, and build brand nations—vibrant online communities full of passionate customers. For
top brands such as Sephora, The Home Depot, Barnes and Noble, and Autodesk, Lithium is
the leading provider of social customer solutions that deliver real business results. The Lithium
Social Customer Suite offers complete social media monitoring, a comprehensive community
platform, customer intelligence and social analytics across millions of blogs, forums, and social
networking sites. Founded in 2001, Lithium is privately held with headquarters in Emeryville,
California. For more information, visit www.lithium.com.


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