Report: Social Media and the Logistics and Supply Chain Industries

by Fronetics | Apr 21, 2016 | Blog, Marketing, Social Media, Strategy, Supply Chain

By Jonathan Joseph Bondhus (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

Fronetics’ new report explores the adoption of social media within the logistics and supply chain industries. Learn why your company is at a disadvantage if you are not participating.

It is estimated that over $1 trillion annually could be realized across the value chain through the use of social technologies. Yet companies in the logistics and supply chain industries have lagged behind when it comes to social media participation. The question is: why?

In short, many companies within these industries did not realize that their customers, employees, and competitors were leveraging social media to conduct business. In today’s world, the exponential growth of social media platforms is largely fueled by commercial activity. Consumers and corporations alike are increasingly turning online to do research and make purchases. This holds true for both the B2C and B2B sectors. In fact, a dominant 88% of B2B marketers are using social media in their marketing programs.

Companies within the supply chain and logistics industries, however, have begun to recognize the value of social media — and are starting to reap the benefits. Both large and small businesses alike can profit from the use of social technologies as part of their marketing strategy, and they can reduce their marketing costs by doing so.

About the report

This report offers an overview of social media and social technologies. It identifies users and usage patterns, and describes some of the benefits which companies within the logistics and supply chain industries can realize through participation. Further It offers insight into how businesses are using social media and some strategies for measuring ROI.

Learn more about how your company can benefit by participating in social media by downloading the report below.

Social media means business

by Fronetics | Mar 10, 2015 | Blog, Marketing, Social Media

Companies who are not participating in social media and using social technologies are at a disadvantage; social media means business.

^{In a 2013 article in MIT Sloan Management Review, Gerald C. Kane, Associate Professor at the Carroll School of Management at Boston College, wrote: “When asked to define social media, most people probably rely on something similar to Supreme Court Justice Potter Stewart’s definition of obscenity: ‘I know it when I see it.’” Unfortunately this approach to defining social media tends to perpetuate stereotypes and does not accurately reflect what social media is and how it can be utilized by business. What, then, is social media? Social media is defined by the Oxford English Dictionary as: “websites and applications that enable users to create and share content or to participate in social networking.” These websites and applications are inclusive of Twitter, Facebook, LinkedIn, and Google+. Social media is part of a larger framework called social technologies. The McKinsey Global Institute defines social technologies as: “IT products and services that enable the formation and operation of online communities, where participants have distributed access to content and distributed rights to create, add, and/or modify content. Social technologies are inclusive of Yammer, Jive, Moxie, and}^{Supply Chain Operating Networks such as Descartes, GT Nexus, Elemica, E2open, LeanLogistics, and One Network. Also included in social technologies are network-based business intelligence and analytics.}

^{Social media is business}

^{Clara Shih, CEO and Founder of Hearsay Social, and Lisa Shalett, Managing Director and Head of Brand Marketing and Digital Strategy at Goldman Sachs, call attention to the fact that when you get right down to it, social media encompasses “a set of new and innovative ways for businesses and customers to do what they have always done: build relationships, exchange information, read and write reviews, and leverage trusted networks of friends and experts.” Furthermore, engaging in social media and utilizing social technologies provides business with the tools to manage status, social networks, and established relationships—all drivers of firm performance. Social media and social networking also enable companies to be able to better manage risk, create demand, define their reputation, innovate, and enhance business intelligence.}

^{Companies who don’t use social media are at a disadvantage}

^{Companies who are not participating in social media and using social technologies are at a disadvantage. One of the primary reasons is that customers (current and future), employees, and competitors are participating. Kane points out that “competitors are innovating and experimenting with social media to conduct their own business faster, at a greater scope, and with broader reach than is possible without these tools. If competitors can figure out how to use social media for their advantage (and they will), then the manager and his or her business will lose out—unless he or she can keep up. After all, there is no such thing as social business—there is only business.” Similarly, Shih and Shalett note that “[s]ocial media offers a variety of opportunities for brands to understand and participate in those conversations. While participating in social media is not without risk, not participating might prove to be the greater risk—especially to reputations.” By the same token, Freek Vermeulen an Associate Professor of Strategy and Entrepreneurship at the London Business School puts forth: “Status, social networks, and prior relationships are the forgotten drivers of firm performance. Underestimate them at your peril. How you manage them should be as much part of your strategizing as analyses of differentiation, value propositions, and customer segments.”}

^{Kane also points out that social media enables customers to share information about their experiences globally, and allows employees to collaborate so as to improve customer service.}

^{The benefits outweigh the risks}

^{In 2012 The McKinsey Global Institute reported that 72% of companies surveyed use social technologies in their business and that 90% of those companies reported seeing benefits. “The benefits of social technologies will likely outweigh the risks for most companies. Organizations that fail to invest in understanding social technologies will be at greater risk of having their business models disrupted by social technologies.”}

^{A 2014 survey found that}^{companies within the logistics and supply chain industries are using social media and realizing benefits}^{. The survey found that the three most popular social networks for companies in the logistics and supply chain are Twitter, (95%), LinkedIn (86%), and Facebook (77%). Specific benefits realized from social media include:}^{increased engagement with customers (86%), increased market intelligence (80%), and increased business intelligence (73%). Other benefits include:}

^{Increased customer retention;}
^{Increased demand for products and services;}
^{Increased leads;}
^{Shortened sales cycles.}

Social media means business.

Social media means business

by Fronetics | Mar 10, 2015 | Blog, Marketing, Social Media

Companies who are not participating in social media and using social technologies are at a disadvantage; social media means business.

^{In a 2013 article in MIT Sloan Management Review, Gerald C. Kane, Associate Professor at the Carroll School of Management at Boston College, wrote: “When asked to define social media, most people probably rely on something similar to Supreme Court Justice Potter Stewart’s definition of obscenity: ‘I know it when I see it.’” Unfortunately this approach to defining social media tends to perpetuate stereotypes and does not accurately reflect what social media is and how it can be utilized by business. What, then, is social media? Social media is defined by the Oxford English Dictionary as: “websites and applications that enable users to create and share content or to participate in social networking.” These websites and applications are inclusive of Twitter, Facebook, LinkedIn, and Google+. Social media is part of a larger framework called social technologies. The McKinsey Global Institute defines social technologies as: “IT products and services that enable the formation and operation of online communities, where participants have distributed access to content and distributed rights to create, add, and/or modify content. Social technologies are inclusive of Yammer, Jive, Moxie, and}^{Supply Chain Operating Networks such as Descartes, GT Nexus, Elemica, E2open, LeanLogistics, and One Network. Also included in social technologies are network-based business intelligence and analytics.}

^{Social media is business}

^{Clara Shih, CEO and Founder of Hearsay Social, and Lisa Shalett, Managing Director and Head of Brand Marketing and Digital Strategy at Goldman Sachs, call attention to the fact that when you get right down to it, social media encompasses “a set of new and innovative ways for businesses and customers to do what they have always done: build relationships, exchange information, read and write reviews, and leverage trusted networks of friends and experts.” Furthermore, engaging in social media and utilizing social technologies provides business with the tools to manage status, social networks, and established relationships—all drivers of firm performance. Social media and social networking also enable companies to be able to better manage risk, create demand, define their reputation, innovate, and enhance business intelligence.}

^{Companies who don’t use social media are at a disadvantage}

^{Companies who are not participating in social media and using social technologies are at a disadvantage. One of the primary reasons is that customers (current and future), employees, and competitors are participating. Kane points out that “competitors are innovating and experimenting with social media to conduct their own business faster, at a greater scope, and with broader reach than is possible without these tools. If competitors can figure out how to use social media for their advantage (and they will), then the manager and his or her business will lose out—unless he or she can keep up. After all, there is no such thing as social business—there is only business.” Similarly, Shih and Shalett note that “[s]ocial media offers a variety of opportunities for brands to understand and participate in those conversations. While participating in social media is not without risk, not participating might prove to be the greater risk—especially to reputations.” By the same token, Freek Vermeulen an Associate Professor of Strategy and Entrepreneurship at the London Business School puts forth: “Status, social networks, and prior relationships are the forgotten drivers of firm performance. Underestimate them at your peril. How you manage them should be as much part of your strategizing as analyses of differentiation, value propositions, and customer segments.”}

^{Kane also points out that social media enables customers to share information about their experiences globally, and allows employees to collaborate so as to improve customer service.}

^{The benefits outweigh the risks}

^{In 2012 The McKinsey Global Institute reported that 72% of companies surveyed use social technologies in their business and that 90% of those companies reported seeing benefits. “The benefits of social technologies will likely outweigh the risks for most companies. Organizations that fail to invest in understanding social technologies will be at greater risk of having their business models disrupted by social technologies.”}

^{A 2014 survey found that}^{companies within the logistics and supply chain industries are using social media and realizing benefits}^{. The survey found that the three most popular social networks for companies in the logistics and supply chain are Twitter, (95%), LinkedIn (86%), and Facebook (77%). Specific benefits realized from social media include:}^{increased engagement with customers (86%), increased market intelligence (80%), and increased business intelligence (73%). Other benefits include:}

^{Increased customer retention;}
^{Increased demand for products and services;}
^{Increased leads;}
^{Shortened sales cycles.}

Social media means business.

What businesses can learn from Ello

by Fronetics | Nov 11, 2014 | Blog, Current Events, Marketing, Social Media, Strategy

Ello launched in beta on August 7^th. By the last week in September the invite-only social network was receiving more than 50,000 invite requests per hour.

What sets Ello apart from other social networks? Ello is ad-free and doesn’t sell user data to third parties. On October 23^rd Ello became a Public Benefit Corporation; therefore, making it virtually impossible for Ello to ever sell ads or user data.

The company’s manifesto points to the frustrations which were the impetus for founding Ello, and to the company’s strategic direction:

“Your social network is owned by advertisers.

Every post you share, every friend you make, and every link you follow is tracked, recorded, and converted into data. Advertisers buy your data so they can show you more ads. You are the product that’s bought and sold.

We believe there is a better way. We believe in audacity. We believe in beauty, simplicity, and transparency. We believe that the people who make things and the people who use them should be in partnership.

We believe a social network can be a tool for empowerment. Not a tool to deceive, coerce, and manipulate — but a place to connect, create, and celebrate life.

You are not a product.”

Ello’s mindset resonates. Not only are people clamoring to join the social network, investors are pounding on the door. CEO and Co-Founder Paul Budnitz told BusinessWeek:“I have every investor in the world in my inbox. Someone today offered to fly us out in a private jet to talk, and we said we’re just too busy.” Ello is only open to additional financing from backers with similar values.

What can businesses learn from Ello’s rapid rise to stardom? No one wants to be thought of as a product. If your company recognizes this and your social media strategy reflects this – you are more likely to be successful and rise to stardom (or at the very least increase your revenue).

Your company should use social media to:

Build trust and relationships with prospects and customers;
Engage with customers;
Listen;
Learn from your customers.

As Alexandra Samuel, Vice-President of Social Media at Vision Critical, recently wrote in an article for the HBR Blog Network: “Instead of relying on algorithms and ad targeting to get dollars out of their customers’ wallets, companies need to think about the value they can offer to their customers’ online lives.”