The use of social media is prevalent within Fortune 500, Inc. 500 companies, and small businesses. Why are companies using social media?
Companies are using social media to grow their business and to bring value to both their company and their customers. The McKinsey Global Institute conducted an in-depth analysis four industry sectors that represent almost 20 per cent of global industry sales. The analysis suggests that social platforms can unlock $900 billion to $1.3 trillion in value in those sectors alone.
Fronetics Strategic Advisors conducted a survey of individuals within the logistics and supply chain industries. The objective of the survey was to gain insight into the use of social media within these industries. Specifically, to learn more about why companies within the logistics and supply chain industries are using social media, the benefits they have realized, and challenges they have encountered.
The supply chain and logistics industries are recent adopters
Social media use is relatively new for companies within the logistics and supply chain industries. 64 per cent of survey respondents reported that their company has used social media for between one and five years. Thirty-six per cent of respondents reported that their company has used social media for less than one year.
Motivations for use
Why have companies begun to use social media? The survey asked respondents to rate statements on why their company uses social media. The following statements received the highest rankings (somewhat to very important:
- Increasing the visibility of their company (95 per cent);
- Improving brand image (90 per cent);
- Establishing the company as a thought leader (86 per cent);
- Attracting new leads and customers (82 per cent).
Benefits and challenges
The majority (68 per cent) of respondents reported that their companies are realizing benefits from social media. The primary benefits reported were: increased engagement with customers (80 per cent); increased market intelligence (80 per cent); and increased business intelligence (73 per cent).
With respect to challenges, time constraints (48 per cent), budgetary constraints (43 per cent), and lack of strategy (33 per cent), were the primary challenges reported.
Most companies manage social media in-house
The majority (92%) of respondents reported that social media is managed in-house by either a marketing department, a staff member devoted full-time to social media, or a staff-member devoted part-time to social media.
Although companies within the logistics and supply chain industries have only recently begun to use social media, they are already realizing benefits and are identifying social media as a strategic tool.
In addition to customer engagement, the benefits identified by social media include increased market intelligence, and increased business intelligence. In short – information. When asked why their company uses social media, responses generally focused on brand and image.
With respect to social media strategy, the majority of companies manage it in-house. Interestingly, the top three challenges identified by companies include: time, money, and defining a strategy.
What is your company’s experience with social media?
Fronetics Strategic Advisors is a management consulting firm focused on strategy and inbound marketing for the logistics and supply chain industries.