I read this paper on the State of Corporate Social Media in 2013, and I found the following points very insightful:
1. Social Media impact is being measured by flawed metrics in companies.”
Top 3 metrics:
1. Web traffic (44%)
2. Number of followers (44%)
3. Activity/engagement (only 14%)
Other metrics like share of conversation vs competition; revenue per follower; customer sentiment; # of evangelists are rarely used.
44% of corporate social media users still see increasing follower numbers as their top goal in social media. Rather than measuring the engagement with the existing x number of followers, companies are trying to measure how many more they can rope in into their social media broadcast. Quantity over quality, in other words.
2. It is also easier to create content on social media (by broadcasting marketing materials/promotions/CSR, etc.) than using the channel to actually hold meaningful conversations with customers. Using social media channels for customer service is hard, requiring significant commitment from the company. I personally think that the investment has a great ROI, though. Many companies in Singapore are trying hard in this area and I appreciate the effort they put in to solve problems online. I have had a good experience with DBS bank through social media.
<You can download your copy of the paper here if you are interested>