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Does Social Media Work for B2B Companies?
Heck yeah it does. Or, at least, it should. I would argue that B2B companies have a lot more to bring to social media -- many high-tech or manufacturing companies deal with very specific products and customers. The community already exists. I would say that all that's needed is to give customers, partners, employees and potential customers an online area to join. The sad reality, however, is that B2B companies in general lag behind the B2C space when it comes to social media.
Last week we hosted a webinar, "Get Past the Social Media Hype," where the 1to1 Media editorial staff examined how social media like blogs, podcasts, online communities, and other social networks can work in the business world. We had a lot of questions about where it fits in the B2B space.
Unfortunately, as of now it's not fitting as well as it could be. We wrote an article about B2B in social media back in March. Some excerpts:
- A Forrester study found that there were 29 B2B blogs at Fortune 500 companies in December 2006, with the number increasing to just 55 by January 2008.
- A recent eMarketer study predicts that in 2008 U.S. B2B online advertising spending will increase by 25.7 percent to $4.4 billion. By 2011 online B2B advertising is predicted to hit $8 billion and account for 19 percent of the total $42 billion that eMarketer forecasts will be spent on the Internet that year. That growth will be driven by several trends, including the continuing shift of ad dollars to the Internet from trade publications and local newspapers, the growing use of online lead generators such as virtual trade shows and webinars, and the rise of social media marketing techniques. Things like webinars, white papers, and podcasts are what B2B marketers currently excel at.
The market is ripe for B2B companies to expand their online presence, but it's not really happening yet. Productively using social media in B2B marketing means tapping into networks of like-minded participants without dominating or stifling the conversation. As blogs, wikis, and social networks amplify customer voices, marketers who listen gain deeper knowledge about target audiences and prospect preferences. They must also work harder, and over longer periods of time, to create conversation and engagement, instead of merely broadcasting messages. This could be at the C-level, to help raise their profiles, or at the tactical support or user level.
Tim Collins of Wells Fargo mentioned in his interview with me the success of one of its product blogs. The product is financial software for controllers and other accounting employees. The blog is a means for customers to share best practices about how to use it, how to get around roadblocks, and for them to connect as peers in general. None such community existed before, offline or online. All it took was a relevant blog on Wells Fargo's part.
Companies that take a risk with social media might find themselves with a competitive differentiator. It's a chance to be seen as a trusted advisor by customers and potential customers, and it provides customer insight that might not otherwise be made available. B2B customers are probably using social media as consumers, so why not give them the opportunity to use it in business as well?
What do you think? Any B2B companies out there have experience with social media, good or bad?
As well as customers and potential customers - think further down the customer tree. If you are a manufacturer and your "customer" is distributors - can a well done social media community provide "component marketing"? driving the demand side for your products from your distributors customers?
For your direct customers, I can see the same manufacturer leveraging this type of community as a best practice and marketing engine. Enabling the distributor to increase their revenue - which would help our hypothetical manufacturer