Social Media Marketing

Many executives may remain doubtful use of social media in the workplace is anything other than a diversion from the work . But companies that stop or severely restrict the modern communications technologies may miss out on assorted opportunities.

To assess the business value reasonable through such forums as blogs, wikis, discussion boards, and innovation platforms, the CIO practice at Forrester Research recently surveyed 303 information-technology staffers who use social media in the course of servicing their organizations. Seventy-two percent of the respondents said social media has a positive impact on productivity in the front office, 70% said it makes IT operations more productive, and 61% said it makes the back office more productive. Only 46%, however, saw a positive influence on marketing.

In Forrester's survey, 72% of respondents said social media helps them get answers to questions, 68% said it helps them find information they need to be successful, and 62% said it lets people know what kind of help is available.

And large majorities of respondents said social media has a positive impact on brand reputation (86%), innovation (80%), and customer service (78%). The finding on brand reputation is particularly notable, considering some striking instances in which social media has helped damage companies' images.

For example, after United Airlines rejected a damage claim by Canadian musician Dave Carroll, who says he saw baggage handlers throwing his guitar around on the tarmac, he posted a video on YouTube of himself singing a song called "United Breaks Guitars." The video has racked up more than 8 million views since it was posted in July 2009. Also, Greenpeace supporters this year barraged Nestle's Facebook page with complaints that the company's sourcing practices contributed to rain forest destruction in Indonesia.

In addition to supplementing help desks with social media platforms, Forrester advises CIOs and CFOs to develop collaborative learning around social media by asking savvy IT employees to run lunch-and-learn sessions. And even companies that opt to continue restricting the use of social media should consider different policies for IT staff in order to stimulate experimentation, Forrester says.