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Part I:
     Social Media Outlook 2012




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Sallie Burnett
                            Strategist. Leader. Innovator.


     •    President of Customer Insight Group, Inc., a leading strategic
          relationship-marketing firm
            –   Customer insight Group is a leading strategic marketing firm that helps
                companies engage, retain and grow profitable customers relationships.
                We help companies assess and improve customer strategy to achieve
                measurable business objectives. We provide loyalty audits, social media
                customer engagement programs and innovative loyalty programs.
     •    Digital marketing professor at prestigious Daniels College of
          Business

     •    Contact Information
            –   Email: sallie@customerinsightgroup.com
            –   Website: www.customerinsightgroup.com
            –   Twitter: @sallieburnett
            –   LinkedIn Group: Customer Relationships — Engage.Keep.Grow.




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
The State of Social Media Today
     What’s Happening Right NOW
         Social Media is the fastest growing interactive marketing
         channel and is expected to reach 3.1 billion by 2014

         At that point, social media will be a bigger marketing
         channel than both email and mobile, but still a fraction of
         the size of search ($31.6B) or display advertising ($16B).


         Some amazing numbers have emerged:
            •Facebook reached 800 million global active users
            •Twitter now has over 200 million users
            •LinkedIn recently surpassed 135 million
            • Google+ has quickly climbed to 150 million active
              users
            •50% of social networks users are connected to brands



© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Poll Question


Who do you think is the most popular
Internet Brand?

Google
Facebook
YouTube
MSN
Disney
Apple
 Yahoo


             © 2012 Customer Insight Group, Inc. All
                      rights reserved. *
             www.customerinsightgroup.com • +1

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This document discusses how companies can reinvent themselves by becoming "wikibrands" that engage customers in an active participatory role. It argues that a premium brand is now defined by customer participation rather than just purchases. To succeed as a wikibrand, companies must embrace social business practices, have an activist customer culture, and find ways for customers to participate beyond just buying products. The document outlines six benefits of becoming a wikibrand, including increased brand advocacy, perception, support, serendipity, content, and insights. It also provides 10 factors for success, such as having the right culture, focus, language/content/outreach, incentives/motivations, rules/guidelines, and tools/platforms

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Most Popular Internet Brands
       US Internet users spend more time on Facebook than                                   ANYother Web brand




                                     17.2
  53.5                               Yahoo                            9.5                      4.5
                                                                   AOL Media                 YouTube               4.3
Facebook                                                            Network                                         EA

                                                                                    9.1                     4.3          3.5
                                                   12.5                     MSN/WindowsLi                   Ebay         Apple
                                                   Google                      ve Bing




     Top 9 US Web brands by total minutes in billions, home and work,
     May 2011 Source: Nielsen 2011 Q3 Social Media Report

© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Where did
                                everyone go?




                     You                                                  Customers


© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Search Goes Social With




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Search Goes Social With




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Overview
         Social Media’s popularity continues
         to grow, connecting people and the
         products they want to buy.
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© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Social Media & Consumers
                                                                                     2012 Outlook




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
What sites are CONSUMERSusing?
                                                                                                                      72%
    Social networking sites                                                                                                  79%
                                                                                                                                    89%
                                                                                33%
         Media sharing sites                                                             42%
                                                                                                       57%
                                                                       24%
         Microblogging sites                                                        37%
                                                                                       42%
                                                           12%
                   Blogging sites                                      24%
                                                                             30%
                                                             14%
                                 Wikis                               22%
                                                                        27%
                                                         10%
           Social review sites                                 16%
                                                                 20%
                                                      7%
 Social bookmarking sites                                  12%
                                                                  19%




                                                                                                                                             Global Study
                                                                   20%
                     No accounts                    5%
                                                            13%

                                            0%       10%       20%       30%       40%       50%       60%      70%       80%      90%    100%

                                               Baby Boomers                    Gen X            Gen Y
Notes: 1) Sample size N=1056. 2) Generation Y: People born between 1975 and 1992 (18 to 35 year olds): Generation X: People born
between 1965 to 1974 (36 to 45 year olds): Baby Boomers: People born in or before 1964 (46 year olds and older).
Source: IBM Institute for Business Value analysis. CRM Study 2011.




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
How do CONSUMERSaccess social media?

               E-Reader          2%

            Internet TV          2%

                    iPAD         3%

      Gaming console             3%

        Mobile phone                                   37%

            Computers                                                                          97%

                            0%    10%   20%    30%    40%   50%    60%    70%   80%    90% 100% 110%

                                                              Source: Nielson 2011 Q3 Social Media Report




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

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When compared to the average adult
     internet user, active social networks are…

                      45%                                53%                                 33%
                                                   of all active social
               more likely to go on                                                 more likely to give their
                                                  networkers follow a
                       date                                                         option on TV programs
                                                          brand


                                                         47%
                      75%                                                                    60%
                                                 more likely to be heavy
              more likely to be heavy                 spenders on                      Create reviews of
               spenders on music                   clothing, shoes &                 products and services
                                                      accessories


                      26%                                19%                                 18%
             more likely to give their           more likely to attend a
                                                                                    more likely to work out
             opinion on politics and             professional sporting
                                                                                    at a gym or health club
                 current events                          event

                                                                  Source: Nielson 2011 Q3 Social Media Report




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Poll Question
Where do you go for product information?
• Wikis
• Review Sites
• Online News
• Company Websites
• Social Media



   © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Successful brands meet the
                            customer on their terms.

                                  Wikis                              44%
                       Review Sites                                     49%
                       Online News
                                                                             57%
             Company Websites
                                                                                   68%
                        Social Media
                                                                                   70%
                                             0%        10% 20%
                                                                             30%    40%   50%       60%
         Source: Social Media and Online PR Report | http://ecly.co/OPR-sm                                  70%




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Social Media & Brands
                                                        Outlook: 2012




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

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Q              If a conversation takes place online and you
               are not there to hear it, did really happen?



© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
What sites are BRANDSusing to engage
   consumers?
     Social networking sites                                79%                                    18% 3%

         Media sharing sites                        55%                               37%                 8%

         Microblogging sites                      52%                                41%                    7%

                        Wikis                   48%                                 45%                     7%

               Blogging sites                  45%                                 45%                  10%

          Social review sites               36%                              52%                        12%
        Social bookmarking
                sites                    31%                               55%                       14%
                                0%    10%     20%     30%     40%    50%     60%     70%     80%    90%      100%

              Have a profile/presence           Do not have a profile/presence             Don't know

           Note: Numbers rounded to equal 100 percent.
           Source: IBM Institute for Business Value analysis. CRM Study 2011.


© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Poll Question
Why is your company using social media?
• Increase customer advocacy/word of mouth
• Protect brand reputation
• Improve customer research capabilities
• Increase product/brand awareness
• Increase customer loyalty
• Increase customers acquisition
How are BRANDSusing social media?
                                                     0%     5% 10% 15% 20% 25% 30% 35% 40%

   Increase customer advocacy/word of mouth                                                                   37%
                        Protect brand reputation                                                             35%
        Improve customer research capabilities                                                              33%
             Increase product/brand awareness                                                           32%
                        Increase customer loyalty                                                     31%
                  Increase customers acquisition                                          23%




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

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Best in class BRANDShave a plan for
   success

    Companies who have profited from social
       media aretwiceas likely to have a
                 FORMAL STRATEGY.




                                                                                  52%

                                               13%



© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
BRANDSactively participate in online
   conversations

          Establish a method for defining monitoring
                              benchmarks and goals                                    21%
         Define best practices for deriving actionable
                           insights from social media                                     24%
    Link monitoring results to increased revenue and
                            other financial outcomes                                                 32%
    Analyze customer insights to improve marketing
                            campaign effectiveness                                                                     44%
       Establish a method for engaging consumers in
                                online conversation                                                                    44%
                                                                                           Source: Aberdeen Group, October 2009




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Engaged Customers…
                                           Recommends product, service or
                                           brand” (58% of company
                                           respondents)

                                           Engaged customers are “more likely
                                           to convert more readily (44%)

                                           Engaged customers “purchase
                                           regularly” (36%)

                                           Engaged customers “less likely to
                                           switch supplier” (30%)

                              Source: E-consultancy Engagement Report 2009




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Best in class BRANDSintegrate social
   media into their communications plan




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

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How effective is social media in
   achieving business objectives?

     Reduce Customer Acquisiton Costs             18%                      50%                              32%

        Improve Search Engine Rankings                   35%                            52%                       13%




                                                                                                                           Source: Marketing Sherpa 2010
                 Increase Website Traffic                  41%                                54%                   5%

                Improve Public Relations                    43%                               52%                   5%

  Increase Brand or Product Reputation                      45%                                50%                  5%

  Increase Brand or Product Awareness                         49%                                47%                4%

                                             0%    10%     20%    30%    40%     50%    60%    70%     80%    90%   100%

            Very Effective            Somewhat Effective                  Not Effective




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Part II: First Things First
        Executive Buy-in and Key Tactics
        for Social Media Success
        View this webinar: http://www.customerinsightgroup.com/webinars




© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
Successful social media takes strategy, not luck.
        Being wishy-washy about social media is so 2010. Now it’s time to have a
        social media strategy that connects with your business goals and ultimately
        delivers results. Customer engagement, quality content and constant
        monitoring of your brand’s social media presence are all now a part of
        marketing’s daily vernacular. So, if you’re not sure where to start, or you
        need help fine-tuning your strategy, the experts at Customer Insight Group
        have got your back.

        We can help:
             • Monitor your social media presence.
             • Design a social media strategy.
             • Create an editorial content calendar.
             • Craft editorial content.
             • Schedule and manage updates, tweets, etc.


             Maybe it’s destiny that you found us. Call us
             today at 303.422.9758 and avoid leaving
             anything else up to fate.



© 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

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Social Media Outlook 2012

  • 1. Part I: Social Media Outlook 2012 © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 2. Sallie Burnett Strategist. Leader. Innovator. • President of Customer Insight Group, Inc., a leading strategic relationship-marketing firm – Customer insight Group is a leading strategic marketing firm that helps companies engage, retain and grow profitable customers relationships. We help companies assess and improve customer strategy to achieve measurable business objectives. We provide loyalty audits, social media customer engagement programs and innovative loyalty programs. • Digital marketing professor at prestigious Daniels College of Business • Contact Information – Email: sallie@customerinsightgroup.com – Website: www.customerinsightgroup.com – Twitter: @sallieburnett – LinkedIn Group: Customer Relationships — Engage.Keep.Grow. © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 3. The State of Social Media Today What’s Happening Right NOW Social Media is the fastest growing interactive marketing channel and is expected to reach 3.1 billion by 2014 At that point, social media will be a bigger marketing channel than both email and mobile, but still a fraction of the size of search ($31.6B) or display advertising ($16B). Some amazing numbers have emerged: •Facebook reached 800 million global active users •Twitter now has over 200 million users •LinkedIn recently surpassed 135 million • Google+ has quickly climbed to 150 million active users •50% of social networks users are connected to brands © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 4. Poll Question Who do you think is the most popular Internet Brand? Google Facebook YouTube MSN Disney Apple Yahoo © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1
  • 5. Most Popular Internet Brands US Internet users spend more time on Facebook than ANYother Web brand 17.2 53.5 Yahoo 9.5 4.5 AOL Media YouTube 4.3 Facebook Network EA 9.1 4.3 3.5 12.5 MSN/WindowsLi Ebay Apple Google ve Bing Top 9 US Web brands by total minutes in billions, home and work, May 2011 Source: Nielsen 2011 Q3 Social Media Report © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 6. Where did everyone go? You Customers © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 7. Search Goes Social With © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 8. Search Goes Social With © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 9. Overview Social Media’s popularity continues to grow, connecting people and the products they want to buy. Social Media and Consumers Social Media and Brands © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 10. Social Media & Consumers 2012 Outlook © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 11. What sites are CONSUMERSusing? 72% Social networking sites 79% 89% 33% Media sharing sites 42% 57% 24% Microblogging sites 37% 42% 12% Blogging sites 24% 30% 14% Wikis 22% 27% 10% Social review sites 16% 20% 7% Social bookmarking sites 12% 19% Global Study 20% No accounts 5% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Baby Boomers Gen X Gen Y Notes: 1) Sample size N=1056. 2) Generation Y: People born between 1975 and 1992 (18 to 35 year olds): Generation X: People born between 1965 to 1974 (36 to 45 year olds): Baby Boomers: People born in or before 1964 (46 year olds and older). Source: IBM Institute for Business Value analysis. CRM Study 2011. © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 12. How do CONSUMERSaccess social media? E-Reader 2% Internet TV 2% iPAD 3% Gaming console 3% Mobile phone 37% Computers 97% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Source: Nielson 2011 Q3 Social Media Report © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 13. When compared to the average adult internet user, active social networks are… 45% 53% 33% of all active social more likely to go on more likely to give their networkers follow a date option on TV programs brand 47% 75% 60% more likely to be heavy more likely to be heavy spenders on Create reviews of spenders on music clothing, shoes & products and services accessories 26% 19% 18% more likely to give their more likely to attend a more likely to work out opinion on politics and professional sporting at a gym or health club current events event Source: Nielson 2011 Q3 Social Media Report © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 14. Poll Question Where do you go for product information? • Wikis • Review Sites • Online News • Company Websites • Social Media © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 15. Successful brands meet the customer on their terms. Wikis 44% Review Sites 49% Online News 57% Company Websites 68% Social Media 70% 0% 10% 20% 30% 40% 50% 60% Source: Social Media and Online PR Report | http://ecly.co/OPR-sm 70% © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 16. Social Media & Brands Outlook: 2012 © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 17. Q If a conversation takes place online and you are not there to hear it, did really happen? © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 18. What sites are BRANDSusing to engage consumers? Social networking sites 79% 18% 3% Media sharing sites 55% 37% 8% Microblogging sites 52% 41% 7% Wikis 48% 45% 7% Blogging sites 45% 45% 10% Social review sites 36% 52% 12% Social bookmarking sites 31% 55% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Have a profile/presence Do not have a profile/presence Don't know Note: Numbers rounded to equal 100 percent. Source: IBM Institute for Business Value analysis. CRM Study 2011. © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 19. Poll Question Why is your company using social media? • Increase customer advocacy/word of mouth • Protect brand reputation • Improve customer research capabilities • Increase product/brand awareness • Increase customer loyalty • Increase customers acquisition
  • 20. How are BRANDSusing social media? 0% 5% 10% 15% 20% 25% 30% 35% 40% Increase customer advocacy/word of mouth 37% Protect brand reputation 35% Improve customer research capabilities 33% Increase product/brand awareness 32% Increase customer loyalty 31% Increase customers acquisition 23% © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 21. Best in class BRANDShave a plan for success Companies who have profited from social media aretwiceas likely to have a FORMAL STRATEGY. 52% 13% © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 22. BRANDSactively participate in online conversations Establish a method for defining monitoring benchmarks and goals 21% Define best practices for deriving actionable insights from social media 24% Link monitoring results to increased revenue and other financial outcomes 32% Analyze customer insights to improve marketing campaign effectiveness 44% Establish a method for engaging consumers in online conversation 44% Source: Aberdeen Group, October 2009 © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 23. Engaged Customers… Recommends product, service or brand” (58% of company respondents) Engaged customers are “more likely to convert more readily (44%) Engaged customers “purchase regularly” (36%) Engaged customers “less likely to switch supplier” (30%) Source: E-consultancy Engagement Report 2009 © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 24. Best in class BRANDSintegrate social media into their communications plan © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 25. How effective is social media in achieving business objectives? Reduce Customer Acquisiton Costs 18% 50% 32% Improve Search Engine Rankings 35% 52% 13% Source: Marketing Sherpa 2010 Increase Website Traffic 41% 54% 5% Improve Public Relations 43% 52% 5% Increase Brand or Product Reputation 45% 50% 5% Increase Brand or Product Awareness 49% 47% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Effective Somewhat Effective Not Effective © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 26. Part II: First Things First Executive Buy-in and Key Tactics for Social Media Success View this webinar: http://www.customerinsightgroup.com/webinars © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
  • 27. Successful social media takes strategy, not luck. Being wishy-washy about social media is so 2010. Now it’s time to have a social media strategy that connects with your business goals and ultimately delivers results. Customer engagement, quality content and constant monitoring of your brand’s social media presence are all now a part of marketing’s daily vernacular. So, if you’re not sure where to start, or you need help fine-tuning your strategy, the experts at Customer Insight Group have got your back. We can help: • Monitor your social media presence. • Design a social media strategy. • Create an editorial content calendar. • Craft editorial content. • Schedule and manage updates, tweets, etc. Maybe it’s destiny that you found us. Call us today at 303.422.9758 and avoid leaving anything else up to fate. © 2012 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758

Editor's Notes

  1. Note: As expected, Generation Y still accounts for the lion’s share of activity, but Generation X isn’t far behind and Baby Boomers are quickly catching up, particularly in the use of social networking sites, such as Facebook, LinkedIn, Orkut, and QQ. Baby Boomers have demonstrated the most growth interms of numbers using such sites. In 2009, 50 percent of Baby Boomers were using social networking sites.7 Based on oursurvey, that number had swelled to 72 percent by 2010.Gen Y born between 1975 and 1992 (18-35) Gen X 1965 – 1974 (36 – 45), Baby Boomers Born before 1964. IBM Study MethodologyIn October 2010, we conducted two online surveys:The first was completed by 1,056 consumers in the UnitedStates, Canada, the United Kingdom, France, Germany, India,China, Australia and Brazil. Participants represented adistribution of ages among Generation Y, Generation X andBaby Boomers, with annual household incomes fromUS$25,000 to more than US$100,000.6The second survey went to 351 business executives in thesame countries (except Canada). Executives representedcompanies from the following sectors: Distribution,Communications, Financial Services, Industrial and PublicSector/Healthcare. In addition, to capture qualitative datafrom executives responsible for social media programs, weconducted 17 interviews in the United States and the UnitedKingdom. In partnership with Oxford Economics, we alsoestablished a Social CRM blog to solicit feedback on SocialCRM topics from social media and CRM specialists andother interested individuals.
  2. Companies large and small are beginning to explore social media as a new marketing avenue,
  3. Source: Aberdeen Group, October 2009
  4. Source: Unica. “The State of Marketing 2010” conducted by Salloway & Associates. Gathered by eMarketer, March 10, 2010.
  5. http://www.marketingsherpa.com/1news/chartofweek-03-09-10-lp.htm