Indian firms are laggards in maximizing benefits of social media

by CXOtoday News Desk    Mar 07, 2013

Failed Social MediaWhile many Indian companies claim they are on the social media bandwagon, it doesn’t necessarily mean they are reaping the benefits of this platform. According to the results of a report by blueocean, Indian companies have a long way to go with respect to maximizing the benefits of social media.

The report titled ‘2013 Social Effectiveness Index (SEI) 20’ found that the effective utilisation of social media for business is found wanting. The key challenge for Indian companies is to understand exactly how social media interacts with consumers, enables product and brand recognition, and drives customer acquisition, retention and loyalty. With social media in its nascent stages, there is an undeniable opportunity for companies to create a well-established, customer-centric image.

The nationwide study accessing the Social Media Effectiveness of 20 of India’s Most Admired Companies, incorporated sectors that included IT, ITES, BPO, Oil & Gas, Automotive, Apparel, FMCG, Metals & Mining, Infrastructure, and Auto Components.

The 2013 SEI 20 rankings revealed the following as top five performers -
1. Tata Steel
2. Tata Motors
3. Dell India
4. Tata Consultancy Services
5. Bosch

Dr. Kumar Mehta, Global CEO, blueocean market intelligence said, “The top performers truly understand how social media can be used to achieve business goals. Business of all sizes can benefit from their experience and learn how to provide high quality customer engagement on digital channels by focusing on metrics that typically have the greatest business impact.

According to the study, engaging consumers across channels will work well to drive greater volumes of conversations, and effective campaigns. The study also observed, good chartered social media plans strategies that are in sync with the core business objectives will have the greatest influence over customer experience.

Greater volumes of conversations and effective campaigns that worked well towards engaging consumers across channels drove higher social effectiveness rankings, the study observed. Well-defined social media strategies that tightly align with core business objectives have the greatest influence over customer experience, the study added.

The SEI 20 ranking methodology is designed to measure business impact by integrating analytics, measurement, and monitoring. It captures conversations across the breadth of social networks and online communities, and correlates their impact with key business metrics such as revenue and brand value. It also directly measures business to consumer interactions in social media, including how Facebook and Twitter drive site visitors and purchase behaviour.

Ashwin Mittal, President, blueocean market intelligence said, “Social Media and other sources of unstructured data present a huge (almost unlimited) amount of “new” data. The relative success of harnessing the power of unstructured data will depend on the ability to filter and remove noise from the entire gamut of data, to unravel rich and relevant data organised and analysed to address specific business problems. Apart from text and sentiment analytics with unstructured data, with advancement of technology, Social Network Analytics will become an important tool to engage with customers, especially in the Social Media space.”