Social media is not delivering the desired result for the majority of enterprises worldwide, according to a global trend report published by Tata Consultancy Services.
Very few (10 percent) enterprises have actually benefited from investments in social media.
Consumers do use social media to interact with companies but findings of the report indicate that only 27 percent of research and development/product development and 37 percent of product management departments read social media comments from consumers on a regular basis.
Eighty-one percent of those who are benefiting from social media go beyond just having company pages on social networks and have corporate blogs.
Seventy-seven percent of these companies have mobile apps for consumers who use social media, and 61 percent have online video channels.
Findings of the report are based on a global survey of 655 enterprises with average revenues of US$15.6 billion. Forty-four percent of those surveyed never measured return on investment (ROI) for their companies.
Most insurance companies surveyed are still not familiar with social media while the media and entertainment industry has the maximum number of companies that have been using social media the longest to interact with consumers.
Companies that are very new to social media are more likely to centralise their social media activity as compared to organisations that are familiar with this way of engaging with consumers.
About two-thirds of the companies have at least one full-time equivalent (FTE) committed to social media but fail to achieve significant benefits as information does not reach the right functions.
“It is time enterprises took a multi-layered approach to social media and learnt to harness its power across the enterprise in critical revenue drivers such as new product design by incorporating feedback from social media in these important business functions,” said Satya Ramaswamy, vice president and global head of TCS Digital Enterprise at TCS.
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