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UV2973
July 27, 2009
USING SOCIAL MEDIA IN THE B2B CONTEXT
Social Networks
To varying degrees, our relationships influence how we function in society; our ties help
to define who we are professionally and personally. Research has indicated, moreover, that social
networks determine economic action, particularly where search and deliberation are important or
complex.1 To manage uncertainty, we form exchange relationships, the study of which typically
tracks information flow within a network to determine who interacts with whom and who sits at
key information nodes. Once we understand network theory, we can begin to exploit our own
linkages to our competitive advantage and, by identifying and rectifying gaps in the network,
turn social capital into financial capital for the benefit of the firm.2
How might such network analysis apply to B2B marketers? At the firm level, data
comprising the flow of materials or cash can indicate opinion leaders and lead users who affect
the adoption of an innovation. Although we do not know the extent to which a B2B marketer can
influence buyer behavior through the Web and social media, we can build on the social network
research tradition to better understand how B2B firms can effectively use social media to achieve
their goals.
Rise of Social Media in B2B
Since 2000, social media on the Internet has exploded. Frequently used by individuals to
share information and make personal connections, social media is also used by marketers seeking
alternative ways to reach their priority audiences. Companies are finding that social marketing
1
Mark Granovetter, “Economic Action and Social Structure: The Problem of Embeddedness,” American
Journal of Sociology 91:3 (November 1985), 481–510
2
Ian McCarthy et. al., “Exploiting the Business Opportunities in Bio-Tech Connections: The Power of Social
Networks,” Journal of Commercial Biotechnology, 13:4 (August 2007), 245–57.
This technical note was prepared by Eliane Dotson (Darden 2004) under the supervision of Robert E. Spekman,
Tayloe Murphy Professor of Administration. It was written as a basis for class discussion rather than to illustrate
effective or ineffective handling of an administrative situation. Copyright  2009 by the University of Virginia
Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to
sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system,
used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying,
recording, or otherwise—without the permission of the Darden School Foundation.
This document is authorized for use only in Prof. Keyoor Purani's Leadership Development Programme. at Indian Institute of Management - Kozhikode from Aug 2018 to Feb 2019.
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can deliver powerful benefits—some unintended. What began as a satirical video intended for
IBM’s 2006 Mainframe sales conference turned into a viral YouTube video that doubled visits to
IBM’s Mainframe site and increased sales demand for the Mainframe. The humorous two-
minute video had been created for internal use, but the group decided to post it on its blog, where
traffic increased tenfold.3 In the B2C world, where social media is a commonly utilized
component of the marketing mix, stories like this are widespread, but among B2B companies,
social media is just beginning to gain a foothold. Marketers are discovering how it can change
the dynamics of complicated sales cycles and customer relationships.
Two key phenomena prompted the use of social media by B2B companies. The first was
a change in demographics: Although social networking sites began as havens for teens and
college students, users over 35 are the fastest growing demographic group on Facebook.4 As of
January 2009, over 50% of Facebook users and 44% of MySpace users were over 35;5 the
majority of users on micro-blog site Twitter, on which users broadcast short messages to a group
of subscribers, are also over the age of 35.6
The second phenomenon was a shift in usage from strictly personal use to a mixture of
personal and professional use. A March 2007 study of business professionals by the Seattle-
based Institute for Corporate Productivity found that 65% used social networking sites, 47% “to
connect with potential clients and market their skills” and 55% “to share best practices with
colleagues.”7 According to a 2008 survey of telecom and hardware buyers, social media ranked
higher than e-mail, broadcast media, and direct mail as a resource for informing purchase
decisions.8 Clearly social media has not only become more main stream in the larger population,
but has also become a medium that serves the business community.
Many buyers—i.e., information seekers—perceive social media as a less biased, more

objective source of information. When searching for information, potential buyers tend to place
greater credence in social media because the social network component tends to link people with
similar predispositions and beliefs. The association with one’s affinity group appears to carry
with it an element of credibility, in the same way a company can initiate publicity, such as a
story in a trade journal, that appears to be more objective than paid advertising, which appears
3
Maggie Rauch, “Virtual Reality,” Sales & Marketing Management 159:1 (January 2007), 18–23.
4
“Women Over 55 Take Facebook by Storm,” Marketing Charts, February 2009, http://www.marketingcharts
.com/interactive/women-over-55-take-facebook-by-storm-7879/.
5
Michael Learmonth, “Marketers Adapt as Social Networks Attract Older Users,” Advertising Age 80:7
(February 23, 2009), 14.
6
“Younger US Demos 12% Less Likely to Tweet,” Marketing Charts, April 2009, http://www.marketingcharts
.com/interactive/younger-us-demos-12-less-likely-to-tweet-8679/.
7
Karen Schwartz, “SMBS Feed on Social Networking Input to Grow,” eWeek 25:3 (January 21, 2008), 43.
8
G. Oliver Young and Laura Ramos, B2B Digital Marketing: A Deep Dive Into IT Hardware Decision-Makers
(report), Cambridge, MA: Forrester Research, Inc., January 2009.
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more intended to persuade. Social media may accomplish the same objective, appearing more
intended to educate and inform than to influence one’s decision-making process.
As more success stories from B2C companies have come to light, B2B marketers have
come to realize that social media can play a role in their marketing plans as well. Still, even
though total U.S. B2B advertising spending for 2007 was $12.95 billion, less than 11% was
spent online;9 moreover, of the $1.41 billion B2B marketers spent online, only a fraction was
spent on social media (Figure 1). Although the B2B marketing investment in social media is still
small, expenditures are expected to increase. Companies recognize that now is the time to test
the waters and stake their online territory before their competitors beat them to it.
Figure 1: U.S. online ad spending, 2008.
Search engines
60%
Social networks 6%
Video 6%
Other 28%
Data source: Kate Maddox, “Video in play as ad vehicle,” B to B Online, March 24, 2008,
http://www.btobonline .com/apps/pbcs.dll/article?AID=/20080324/FREE/487728970.
Social Media Applied to B2B Marketing
As the internet has advanced from static HTML pages to the rich, interactive media
sometimes referred to as Web 2.010, social media options have continued to expand. B2B
9
Kate Maddox, “Top 100 b-to-b advertisers cut ad spending 1.9% in ’07,” B to B 93:12 (September 15, 2008),
31–7.
10
In the 1990s, this advance was so dramatic the term Web 2.0 was coined to contrast the Web’s relatively static
initial manifestation with its emergent interactive capabilities; the term is deemed misleading by some, including
Tim Berners-Lee, because such capabilities had been integral to the Web from its inception.
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companies can leverage social media in their marketing plans in many ways, some adapted
directly from the B2C world.
One successful B2B product launch took place in March 2008 for Cisco’s Aggregation
Services Router 1000. Using a combination of blogs, social networking on Facebook, YouTube,
and the virtual world Second Life, Cisco created buzz, educated prospects about the new router,
and drove viewers to an online launch event—for which over 7,000 people registered—giving
Cisco a database of qualified sales leads for the product. The campaign also drove traffic to the
Cisco site and garnered industry buzz through traditional media outlets. Overall, the router
launch was one of Cisco’s top five most successful launches, using social media tactics that were
largely free. Such efforts can result in the creation of a community of interest in which the
introduction of the new product is enhanced by early adopters who can help troubleshoot
problems and inspire new applications.
Companies are also using social media to assist in various stages of the sales cycle. In
addition to generating sales leads, as IBM Mainframe and Cisco did, some B2B companies are
creating internal social networks to assist in the sales process. Ingram Micro created their own
social network to use both internally and with channel partners. The site enables Ingram Micro to
collaborate with their partners and “share sales leads, pitch business together and troubleshoot
product problems.”11
IBM also experienced sales success with their launch of Service-Oriented Architecture
(SOA). For the SOA product launch, IBM created a 30-minute movie and posted it on their
website, then used social media to generate buzz and direct traffic to the site. IBM also invited
key clients and prospects to a “movie premiere” in several cities around the globe. The launch
“generated a 20% increase in the opt-in rate for e-mails about [their] products, and generated tens
of thousands of sales leads.”12
Both of these examples illustrate the role social media can play in the sales process for a
large sales organization, but even individual sales people can benefit from using online
applications. Such applications can complement the sales effort and move prospective buyers
faster through the sales “funnel,” thereby lowering the cost of the total sales effort. Marketers are
able to target buyers who appear to be more motivated to purchase, thereby effectively
shortening the sales cycle.
11
Ruth Stevens, “What’s Working, What’s Not,” Direct 20:3 (March 2008), 27–9.
12
Rauch.
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Table 1: Social media options available to marketers.
Advergaming Engaging online games designed to serve marketing functions.

Chat Instant messaging capabilities that permit immediate online text interaction; often used to
provide customer support.
Mash-up Multiple sources of data or functionality combined in a new application.
Microsite A Web site that provides content when an online ad is clicked.
Podcasting iPod + broadcasting: downloadable audio or video made available for use with mp3 players
or cell phones.
Rich media A catch-all term for dynamic content, including online video, Webinars, and podcasts.
RSS Really Simple Syndication: a user-selected subscription to a category of content that the
source tags as such by means of XML (Extensible Markup Language) then pushes, or sends
automatically upon update, to the user’s device of choice; often used for news feeds or other
information that is updated continuously.
Social networks A means of online interaction whereby users create structured personal profiles that allow
contacts to be managed on the basis of shared background, interest, or other determinant.
Tagging A central function of XML: the classification of a portion of content by means of “tags”
within code, allowing that content to be retrieved, sent, or otherwise recognized by software
applications as bearing that classification.
Viral marketing The deliberate introduction of word-of-mouth marketing to a social network, chat room, or
video-sharing Web site, a technique that exploits both the perceived authenticity of content
within such social media and the self-selecting dispersal patterns within a target audience.
Virtual worlds A simulated environment, depicted in three dimensions, in which users may function and
interact in the form of avatars, or animated personas.
Web widgets Self-contained applications that introduce functions such as interactivity or animation to
Web pages.
Blog Shortened form of Web log; a Web site created and updated by an individual as a means of
expression, often focused on a single topic of interest; also a verb indicating the active
maintenance of such a site.
Wiki An online publishing model whereby multiple writers collaborate on a living reference
document, often under the supervision of a designated moderator or editor. From a
Hawaiian word meaning “fast.”
Source: List of media terms from Laura Ramos, Using Social Media In B2B Marketing: Quick Fix Or
Quagmire? (report), Cambridge, MA: Forrester Research, Inc., January 2008; definitions by case writer.
Sales people can use both internal and external social networks to find out who knows
whom in the business community and identify key decision makers in prospect companies. Some
social networking sites—such as LinkedIn and Plaxo, each with around 40 million member
profiles—are geared towards business professionals and contain self-reported data, allowing
people to update their own work information and history, share it with others, and develop a
network of contacts. Other sites—such as Spoke and ZoomInfo, both of which claim over 40
million business profiles—were created by harvesting company and contact information from the
Internet. By subscribing to such sites, marketers and sales people can target specific companies
and find qualified sales leads; they can either create a list of potentially qualified buyers or build
a network of interested people who are linked socially and who can be reached through the
strength of their ties. Either approach can complement the use of sales automation tools like
salesforce.com to enrich the number of potential buyers who enter the sales process.
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One of the most promising uses of social media in B2B is to improve relationships with
existing customers. Gartner Research projects that “by 2010, more than 60% of Fortune 1000
companies will have some form of online community that can be used for customer relationship
purposes.”13 As more companies go global and technologies such as automated phone services
become more common, social media will enable B2B companies to reconnect with customers in
new and more personalized ways.
Companies are already using social networks and blogs to provide customer service,
enhance customer value, and get feedback on products and services. When done properly, these
types of interactions can build customer loyalty and “humanize” large corporations—as
Microsoft has seen with its online blogs. In an effort to get closer to customers, Chairman Bill
Gates asked employees to develop their own corporate blogs, on which few restrictions were
placed. Now with over 2,000 employee bloggers, Microsoft has facilitated personal connections
with thousands of customers—without social media, a formidable task—and in the process has
challenged its reputation for “being cold and impersonal.”14
The ability to establish relationships with one’s customer base is critical to building
loyalty and increasing the relationship’s “stickiness.” Further, if a manufacturer sells though a
third-party channel in which product guidelines and usage information is inadequate or
nonexistent, social media can add an element of transparency. Companies also can facilitate and
enhance innovation by giving customers direct input to the process.
Some companies are using social media to take customer service one step further by
creating feedback loops, open dialogues through which marketers can learn how best to serve
their customers, comments solicited from current customers through blogs and social networks.
Even monitoring industry blogs and social networks can yield positive and negative feedback.
Although companies may not always want to hear negative feedback from customers, industry
analyst Laura Ramos suggests B2B marketers launch “social feedback mechanisms to tap into
the online crowd’s wisdom and preempt complaints and issues before they hit the blogosphere or
go viral on the Internet.”15 Such proactive efforts can provide the seller valuable insights into
how to address customer needs directly and effectively. Over the long run, these networks
incorporate the voice of the customer better than any alternative.
Increasingly, companies are using social media to share information with others in their
industry or those with similar business issues. Steve King, a senior adviser for the independent
nonprofit research group Institute for the Future, explained that “social networking sites are a
13
“Gartner Says Companies Need to Pursue Four Steps to Harness Social Computing in CRM” (press release),
Gartner Research, February 19, 2009.
14
Paul Gillin, “Microsoft blogger finds job prospects, improves corporate image,” B to B 91:4 (April 3, 2006),
57.
15
Laura Ramos, Using Social Media In B2B Marketing: Quick Fix Or Quagmire? (report), Cambridge, MA:
Forrester Research, Inc., January 2008.
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particularly good fit for smaller businesses because they often don’t have a peer group nearby
with which to discuss relevant topics.”16 Since many forms of social media are free, they are a
way for small business owners to seek advice, develop partnerships, and share knowledge
without impacting their marketing budgets. Such linkages mirror the experience of entrepreneurs
who tend to rely more heavily on relationships with other firms to accomplish their objectives.
These partnerships are not as prevalent among managers of larger firms, which are more
focused on using social media to stay current on industry news and innovations or even to
position themselves as a leader in their industry. American Express Business Travel created the
website ConneXion to serve as an industry-wide social network, in the hopes that it would not
only position American Express as a thought leader but would also drive increased sales.17
Although only clients of American Express Business Travel are allowed access to the website,
the majority of the content on ConneXion is generated by industry experts and company clients.
Social media has given small and large businesses an alternative outlet to trade magazines and
conferences, making it quicker and easier for companies to connect with others in their industries
and share knowledge.
As the usage of social media by B2B companies is still in its infancy, marketers are still
testing the waters and discovering new applications. Yet many firms still are cautious and are
approaching social media with some trepidation; mostly it is fear of the unknown and lack of
imagination. More traditional managers are reluctant to use social media in their marketing plans
for fear that the risks outweigh the rewards, but willingness to experiment is critical to success. If
the media is used to try a new campaign or as a novel way to reach a priority segment, it makes
perfectly good sense to collect data regarding the results of the effort.
Through such experiments, marketers can both evaluate the efficacy of the campaign and
focus on performance measures that produce a more meaningful return on… calculation.
Experimentation is a good thing and holds great potential for B2B marketers who wish to test the
waters and use social media in a cautious, measured manner. By controlling for certain factors,
marketers can gain a better appreciation for the efficacy of certain tactics when used with certain
product categories as well as what tactics are more effective at reaching certain priority
segments.
Benefits of Using Social Media
Although social media makes many marketers uneasy, experts believe that it is still worth
investigating as part of a B2B marketing plan.18 Since only time will tell which types of
16
Schwartz.
17
Samuel Greengard, “Flying High with Social Networking,” Baseline (magazine), November 2008.
18
Ramos, Using Social Media.
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companies and applications are best suited for various social media tactics, marketers interested
in testing them must be aware of the risks and benefits.
One attractive aspect of social media is that many of the options—most social networking
sites, blogs, and wikis—are free, and the cost of using or creating other types of social media are
typically much lower than for traditional media.19 The economical nature of social media makes
it ideal for determining suitability of a given application. Nevertheless, the question of
effectiveness must be addressed: Can a B2B firm reach its target buyer through such networks?
The answer to this question will be different for every company, so before venturing into social
media, a company must have a good understanding of their audience and where they can be
found. Many B2B marketers who lack familiarity with such media are unwilling to experiment,
even at a lower cost.
One of the interesting benefits of online marketing is that a company can either make its
marketing efforts more targeted and customized, or broaden the reach to individuals outside of
its usual target audience. Online marketing is “more targetable, addressable, and measurable than
conventional approaches”20 such as trade shows, sponsorships and advertising. In addition, a
2008 Forrester Research study conducted with 189 B2B marketing decision-makers reported that
22% found that corporate blogging “create[d] inquiries from people whom their traditional
marketing programs don’t always reach.”21
Visa began using Facebook in 2008 to reach small business owners, a fragmented group
that can be difficult to target. Visa created a Facebook application called the Visa Business
Network, designed exclusively for small businesses where they can connect with other small
businesses and find online resources. Within a few short months, the network grew to more than
70,000 users,22 generating new prospects for Visa’s small business credit card services.
Especially in a tightening economy, businesses are discovering that social media not only
provides economical ways to connect with other businesses, but also provides tools to tailor their
searches to find specific customer groups. As an added bonus, many sites, such as Facebook,
allow companies to deliver customized messages to their audience based on their business
profiles.
After prospects have been identified, online social media can shorten the sales cycle.
When sales people use the Internet to connect with prospective clients, issues such as time zones,
geography, and busy schedules become less of a factor. And when customers can research
products and services on company blogs and get testimonials from current clients through their
19
David Court, “The Downturn’s New Rules for Marketers,” McKinsey Quarterly, March 2009.
20
Laura Ramos, Community Marketing Boosts B2B Marketing’s Value During Tough Economic Times (report),
Cambridge, MA: Forrester Research, Inc., February 2009.
21
Laura Ramos, How To Derive Value From B2B Blogging (report), Cambridge, MA: Forrester Research, Inc.,
June 2008.
22
Jacqueline Renfrow, “Small Business Owners Get Intimate With Visa’s New Network,” Response 17:3
(December 2008), 32–5.
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social networks, it makes the decision-making process run more smoothly and quickly. An
American Business Media survey of 273 decision makers found that 32% “said blogs are one of
the top three sources they rely on for on-the-job information,”23 because they believed blogs
offered “marketing-free, independent information and a diversity of opinions.”24 In another
survey, by TechTarget and the Chief Marketing Officer Council, about 10% of IT decision-
makers said that “blogs helped them shorten the time it took to make a business purchase.”25 As
more and more decision-makers use social media to seek information during the purchasing
process, marketers who provide relevant content can help shorten the sales cycle.
When marketers commit to uncensored, two-way communications via social media, they
can achieve increased customer trust and loyalty. Consumers are increasingly pessimistic and
skeptical about marketing messages, and marketers can find it difficult to maintain credibility.
Social media can play a role in improving customer loyalty: “tools that enable faster and more
personalized interactions between customer and vendor can enhance corporate credibility and
deepen relationships.”26 In fact, in a study conducted by the Software & Information Industry
Association in 2008, over 80% of respondents believed that one of the benefits of social
networking was that it increased user engagement and loyalty.27 Many companies find this also
to be true with corporate blogs, as Microsoft and others have experienced.
Another key benefit of open communication with customers is in receiving feedback that
can help a company improve its products and services. An open dialogue with customers can
give marketers valuable insight that may be difficult to attain elsewhere. Not only is the
information coming first-hand from customers, but it is often shared much more quickly than
through a typical customer survey or feedback loop. Companies who can use this data to make
rapid changes will further increase customer loyalty and engagement. Certainly, speed of
information is critical; if the buyer can better incorporate the voice of the customer into his
business one would expect a better, timelier solution to customers’ problems. Adaptability and
responsiveness are very desirable traits in a seller and can lead to a competitive advantage.
Overall, social media provides numerous benefits to B2B marketers. Various social marketing
tactics can achieve everything from reducing marketing costs, to enabling more targeted
marketing, to shortening the sales cycle and even increasing customer loyalty. However,
employing social media does not come without risks – some risks that marketers have difficulty
accepting.
Risks of Using Social Media
23
24
25
Lisa E. Phillips, B2B Marketing Online: Business Meets Social Media (report), New York: eMarketer, 2008.
26
Nancy Davis Kho, “B2B Gets Social Media,” EContent 31:3 (April 2008), 26–30.
27
Debra Williamson, B2B Marketing on Social Networks: Engaging the Business Audience (report), New York:
eMarketer, 2008.
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The most commonly cited—and most feared—risk of social media is its unpredictable
nature. Because many tactics allow both customers and critics to make comments, B2B
marketers fear that using social media: “will equate to airing dirty laundry in public, opening up
a Pandora’s box of negative feedback, much of which might be unfair or exaggerated.”28 Many
companies who participate in social networks and blogs do encounter complaints, and those that
attempt to prevent or delete negative comments experience an even bigger backlash. Since the
nature of social media is to band together like-minded people, it can end up banding together
dissidents, making other customers and potential prospects aware of the complaints. However,
allowing customers to “air dirty laundry” gives companies the opportunity to address the issues
quickly and make changes or amends. In the long run, being a fast responder to complaints can
earn the company trust and loyalty from dissatisfied customers who might have left the company
had their complaints not been heard.
While there is some debate regarding the effect of negative publicity, it seems that
attempts to curtail such activity are dangerous at best. At the very least it does make sense to
monitor negative comments from customers. No company can prevent people from making
complaints; in fact, there are websites created solely for the purpose of giving people a place to
make negative comments. And once these complaints become public over the Internet, news
travels quickly. Finding and monitoring all these sites can be difficult and time-consuming. One
could argue that giving consumers a dedicated, company-sponsored site for unleashing their
dissatisfaction would make it easier for a company to monitor and address such complaints.
Additionally, many customers likely prefer to complain directly to the company at fault in the
hopes that their issue may be resolved. Being open to criticism, therefore, may actually give
companies some control over the spread of negative feedback and the opportunity to change
customer perceptions.
B2B marketers also fear a paucity of reliable metrics to measure success in social media.
Since demonstrating the value of social marketing is not easy, many B2B marketers find it
difficult to justify allocating dollars to this new medium. According to a Forrester survey of 189
marketing professionals, 25% of respondents believed that although: “social networks and online
communities help to build brand awareness, they [couldn’t] connect these tactics to the sales
pipeline.”29 And while tactics such as Webinars and microsites were generating leads, over 20%
of the marketers in the survey felt it was “too early to tell” what value social networking, video
marketing and blogs would bring.30 Despite the challenges in measuring the impact of social
media, there are some metrics that can be useful. Visitor tallies or page views do not convey a
user’s engagement, a better indicator of performance. Metrics such as the length of time a visitor
28
Jessica Sebor, “Mercurial Marketing,” CRM Magazine 11:2 (February 2007), 34–7.
29
Laura Ramos, Making Social Media Work in B2B Marketing (report), Cambridge, MA: Forrester Research,
Inc., October 2008.
30
Ramos, Making Social Media Work.
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spends on a site31, or softer metrics such as the amount that a visitor interacts with the site32 can
help companies determine the effectiveness of their social media, although it is hard to know
whether to attribute lingering to interest or navigation difficulties. Much work is still needed
before metrics will reflect the effectiveness of a firm’s social media efforts.
Companies are also concerned that sharing information through social media may give
their competitors an edge. To engage customers and prospects and to encourage repeat visits,
blogs, wikis, and social networks require a steady stream of useful, interesting content.
Marketers must weigh the risks of sharing information, however, since anything posted on the
Internet is public, regardless of security measures. If there are not strict guidelines in place about
what can and cannot be shared online, companies whose employees blog on its behalf put
themselves at even more risk; the more clear the corporate communication guidelines, the more
such risk can be mitigated.
Because it is so different from traditional marketing, social media often requires that B2B
marketers acquire a new set of skills. Unlike traditional broadcast media, which demands little
engagement, social media requires that marketers develop a dialogue with their audience.
Gartner Research describes areas of expertise that marketers must develop:
These skills will need to cover social sciences, such as psychology, to learn how
customers interact, and how their changing needs can be met; anthropology, to
learn how cultures grow, develop and interact; and game design, to create
engaging virtual environments to manipulate ‘player’ behavior through rules,
rewards and outcomes.33
As a result, B2B marketers must devote time and energy into developing these new marketing
skills even before they begin their social marketing plans.
Although the risks of social media make some B2B marketers wary, there are ways to
mitigate the risks and still reap the rewards. Companies that spend time developing an effective
plan and adhering to some simple guidelines.
Including Social Media in a B2B Marketing Plan
In order to achieve success with social media, marketers developing a plan should follow
some basic steps. At the outset of the planning phase, marketers must first understand what their
31
Phillips.
32
Jeremiah K. Owyang, Social Media Playtime Is Over (report), Cambridge, MA: Forrester Research, Inc.,
March 2009.
33
Gartner Research.
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customers want and how to deliver it to them before deciding whether social media can play a
role. Marketers must assess for both prospective and current customers what type of information
they seek, what level of engagement they expect, and which tools and features they need. A key
element of this is in observing how and when customers and prospects currently use social media
for their businesses.34 Once marketers understand their audience, they can focus on the next step:
determining the marketing objective.
The problems that might surface converge on the fact that a number of B2B firms go to
market through third-party channels and might not have a direct linkage to or knowledge of the
end-use customers. To complicate matters, the third-party channel might not be willing to share
customer data for fear of disintermediation. This lack of direct access can make any social-
media-based campaign more challenging. It would seem that knowledge of customer must be
accompanied by a plan for gaining initial access to these priority prospects and customers. If the
firm and the channel work cooperatively, these problems become less of an issue, but many
channel relationships are fraught with potential conflict that can dampen the effectiveness of any
social media campaign.
The type of social media used depends upon both the customer needs and the marketing
objective. Regardless of how their customers use social media, marketers must also determine
the marketing objective before deciding whether social media can help accomplish the
company’s goals. B2B marketers can take a look at their sales funnel to decide which activities
are in need of more marketing investment (Figure 2). For companies launching a new product,
generating awareness and providing product information are key priorities. Alternatively,
companies with established customer relationships may focus more on account maintenance.
Once the objective has been established, marketers must decide which metrics will help them
measure results. B2B marketers need to understand how social media will change their
relationship with customers and prospects and then select metrics to measure the change. Every
company will develop a different social media strategy based on their audience, marketing
objective, and success metrics.
The final step in the planning process is to pick the technology that will fit the marketing
strategy. Not every social media tactic works in every situation, so marketers must carefully
choose the tactic that will best enable them to communicate with their customers and prospects
and develop a valuable relationship. Using the example of a company launching a new product,
social media can help generate awareness and interest through tactics that are more viral in
nature. For instance, posting a clever video on YouTube, launching an application on Second
Life, or “leaking” information on industry blogs can get a company attention from people outside
its typical marketing reach. On the other hand, providing account maintenance is better suited for
brand-based social networks or blogs. These types of sites can serve as “one-stop shops” for
customers looking for product information, customer service, or a place to give feedback.
34
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As with any communications strategy, effectiveness is a function of fit—whether the

message and customers’ information requirements are aligned and provide the answers that
enable the buyer (or potential buyer) to move further along the sales funnel towards purchase.
Given the interactive nature of social media, one’s ability to maximize the benefits of such
interaction may depend on the perceived appropriateness of the message and the tactic utilized to
reach the target audience.
Figure 2: The linkage between the sales funnel and different social media tactics.
Source: Created by case writer.
Regardless of which social media tactic is used, marketers should mitigate potential risk
by following these guidelines in executing their plans:
1. Allow two-way communication. As mentioned above, one of the benefits of social media
is increasing customer loyalty. This can be achieved in part by relinquishing some control
over content to customers. To take the customer relationship to the next level, customers
must believe that the company is interested in hearing what they have to say whether they
have a complaint or just want to share information.
2. Maintain a conversational writing style. Blogs and social networks require a less formal,
more conversational style than traditional marketing. Keeping a more relaxed
communication style and tone can help marketers strengthen their relationships with their
customers.
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3. Keep direct advertising to a minimum. As one author notes: “To gain customers’ trust it
is important that they do not feel censored or that the social networking site is merely a
sugar-coated advertisement to promote a purely positive image of the company.”35 The
key point here is that social media should not be used as blatant advertising. Customers
who feel that a blog or website is trying to sell something will quickly lose interest in the
site – and may not return.
4. Provide valuable content. Companies must also ensure that the content shared is of value
to its customers and prospects, whether the content is created internally or generated by a
third party.
5. Refresh content regularly. B2B marketers must continually seed blogs, social networks,
and wikis with new information to keep their audiences engaged and to attract new
members. Companies cannot simply set up a social network or blog and then leave it
alone in the hopes that it will flourish under community involvement. It must be
constantly monitored. Ideally, negative comments should be addressed quickly—not
deleted.
6. Create a customized environment to cater to different users. Marketers must be aware
that not all customers will participate in social media equally. Successful social media
marketers are able to create a “differentiated customer experience”36 so that customers are
motivated to participate regardless of their level of engagement.
7. Invest in social media for the long-term. Although most traditional marketing tactics are
one-way, one-time communication tactics, social media is about building relationships.
Because B2B relationships are more complex than B2C relationships, involving multiple
decision-makers and even channel partners, they require longer time horizons to develop.
As a result, B2B marketers may not realize the same early stage successes with social
media that are more common with B2C marketing.37 To fully reap the benefits, B2B
marketers should commit to multi-year social media plans rather than test them with one-
off events.
Social media may not work for every B2B company, so it is important that
marketers take the time and due diligence to assess whether social media can play a role.
By first examining who their audience is, how they use social media, and what their
needs are, marketers can help ensure they are using social media in the right situations.
However, it is also necessary to determine the marketing objective before selecting the
tactics to be used; otherwise a company may find itself wasting resources and alienating
customers. And by following the rules of social media etiquette, B2B marketers can reap
the benefits of a well-executed social media plan.
35
Sebor, “Mercurial Marketing.”
36
Laura Ramos, B2B Marketers Fail The Community Marketing Test (report), Cambridge, MA: Forrester
Research, Inc., May 2008.
37
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The Future of Social Media
Although social media is still in its infancy in the B2B world, companies should give it
serious consideration in their marketing plans. At present, less than one third do.38 This will
change quickly over the next few years, so B2B companies need to understand how social media
can help business and develop a plan—before their competitors do. Despite the risks and the
learning curve involved, the benefits are considerable.
As the demographics of social media continue to trend towards older users, marketers
will need to incorporate it into their marketing plans in order to survive. Increasingly, customers
recognize that the Internet allows them to get what they want, when they want it. One can easily
foresee customers expecting B2B companies to provide the same level of information, speed,
and efficiency they receive from Amazon.com.
As a result, B2B companies must begin to develop a reputation online and build trust
with their audience. Trust will continue to be an integral issue. Customers will seek out
companies that can be trusted for valuable, unbiased information and that support their products
with superior customer service. Social media provide companies a new way to gain this trust and
fulfill these needs. Some companies may consider appointing a director of social media within
their marketing teams to ensure that new online technologies are used appropriately and to their
best advantage.
The mainstream population continues to grow more comfortable with online resources,
and traditional advertising is increasingly cost-prohibitive, so social media is probably here for
the long haul. As people continue to expand their usage of social media into the professional
arena, seeking information and help for their businesses, companies must be prepared to offer the
necessary resources. B2B marketers should consider how social media can help build customer
relationships more cost effectively, as when creating a sales pipeline, assisting in product
development, and providing customer service.
In the long term, marketers will find even more uses for social media, such as market
research and crisis intervention, where quick, broad-based communication is required. They
should venture into these new technologies only when their audience is ready to receive them,
but they should note that the shift has begun.
38

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July 27, 2009

USING SOCIAL MEDIA IN THE B2B CONTEXT

Rise of Social Media in B2B

Many buyers—i.e., information seekers—perceive social media as a less biased, more

Figure 1: U.S. online ad spending, 2008.

Social Media Applied to B2B Marketing

Table 1: Social media options available to marketers.

Advergaming Engaging online games designed to serve marketing functions.

Benefits of Using Social Media

Risks of Using Social Media

Including Social Media in a B2B Marketing Plan

As with any communications strategy, effectiveness is a function of fit—whether the

Source: Created by case writer.

The Future of Social Media

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