Matrix: Risks and Rewards of Social Business

At a recent engagement, I was asked to list out the benefits and risks for companies to participate and not, as you know, from our research on how companies connect with customers, the Engagement DB research found there are four types of companies: Wallflowers, Butterflies, Selectives and Mavens –clearly not all are doing it.

The scope of this matrix “Social Business” is when a company and their employees engage with customers in the social web, where customers, competitors, and prospects are already talking. In 2010, it’s assumed the conversation in your market in the social web is already happening.

Risk/Reward Matrix: Social Business
Like all investments, there are risks and rewards, use this matrix to help decision makers understand the downsides and upsides by participating.

For more like this, see all my posts tagged ‘matrix’. Feel free to use this matrix in your work, kindly provide attribution.

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  • http://twitter.com/darrenculbreath Darren Culbreath

    I do like where you are going with this. I would suggest that you add a parameter on “who” is commenting. Sometimes, as you are fully aware, there are true influencers that you “need’ to respond to. The risk is also how it is said. I like this preso on GM: http://www.damniwish.com/2010/09/general-motors-video-case-study-using-social-media-to-avert-a-crisis-presented-by-joe-lamuraglia.html . It depicts that generic responses may hurt your and risk is decreased by being “real” — Thanks for the great topic. It is a well needed discussion point.

  • http://twitter.com/darrenculbreath Darren Culbreath

    I do like where you are going with this. I would suggest that you add a parameter on “who” is commenting. Sometimes, as you are fully aware, there are true influencers that you “need’ to respond to. The risk is also how it is said. I like this preso on GM: http://www.damniwish.com/2010/09/general-motors-video-case-study-using-social-media-to-avert-a-crisis-presented-by-joe-lamuraglia.html . It depicts that generic responses may hurt your and risk is decreased by being “real” — Thanks for the great topic. It is a well needed discussion point.

  • Janice

    j
    you need a new template
    the matrix thing is wearing thin

  • http://web-strategist.com/blog Jeremiah Owyang

    Janice

    Thanks for being engaged and for the feedback, I want to improve, constantly. What type of content format would you suggest? Do see my slides, webcasts, reports beyond just the matrix for other examples.

  • http://twitter.com/samflemming Sam Flemming

    IMHO, I find the 'matrix thing' to be good: simple and to the point. For the amount of content that Jeremiah produces within a very fast changing industry, I would rather focus on quality of content to keep the articles current/relevant than have them be slowed down by eye candy graphics.

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  • http://twitter.com/MartijnKlein Martijn Klein

    Jeremiah yet another one of your great tables on web strategies thanks

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  • http://www.juanmarketing.com/CVJUANMARKETING/ juanmarketing

    Hi Jeremiah, great matrix as always ;-)

    By the way, What do you think about including increasing sales on the benefit participating axis?


    STRATEGIC PLANNER AND SOCIAL MEDIA BUZZING CONSULTANT
    … Spreading social media and buzz marketing passion all over the world. NOW IN SINGAPORE!!

  • http://www.juanmarketing.com/CVJUANMARKETING/ juanmarketing

    Hi Jeremiah, great matrix as always ;-)

    By the way, What do you think about including increasing sales on the benefit participating axis?


    STRATEGIC PLANNER AND SOCIAL MEDIA BUZZING CONSULTANT
    … Spreading social media and buzz marketing passion all over the world. NOW IN SINGAPORE!!

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  • ianlyons

    Hi Jeremiah,

    I think adding a text indent to the bullet points would make the content much more readable – particularly when the lines wrap. Also, updating the colour pallet might make them pop a bit more.

    I really liked the short format of the last email – it meant that I read it instead of filing away for later.

    Cheers,
    Ian

  • http://web-strategist.com/blog Jeremiah Owyang

    Noted Ian, good feedback.

    Originally this was created for an in person presentation, but your suggestions apply both ways, keep em coming, Improving communications is a life-long practice.

  • http://www.whitevector.com Mikko Rummukainen

    Hi Jeremiah, and thanks for the nicely structured pros and cons on the question of 'what happens if we do / don't participate in social media outlets?'

    One thing I've always thought of being a huge risk, is when companies – either by themselves or by contracting agencies – participate in conversations under aliases, and get caught doing so.

    I've witnessed around a half-dozen instances where a suspiciously over-positive comment regarding a certain company or it's brands is found out to be a corporate, and not a consumer, post. Usually the outcome is that for that particular brand, any goodwill made will just about collapse. At least within those communities where the 'alias-trolling' happened.

    Of course, I do understand that the word 'participation' would probably refer companies participating openly, under their own banners. Yet, these bad examples do give thought to the quality of participation that companies show from time to time.

    For example, the weekly 'good morning!' or 'have a nice weekend!' tweets are still far from actual participation, even though some companies might think otherwise.

    Live and learn, I suppose. : )

  • http://www.prweb.com Stacey Acevero

    I enjoyed your matrix because it presents the information in a different way and I can easily jump to whichever result I wish to find, just by following it. Evaluating the risks and rewards of engaging in social media for business is important because while it is a fantastic outlet for communication, used incorrectly can ruin your brand. –Stacey Acevero @PRWeb http://www.prweb.com

  • http://www.prweb.com Stacey Acevero

    I enjoyed your matrix because it presents the information in a different way and I can easily jump to whichever result I wish to find, just by following it. Evaluating the risks and rewards of engaging in social media for business is important because while it is a fantastic outlet for communication, used incorrectly can ruin your brand. –Stacey Acevero @PRWeb http://www.prweb.com

  • http://www.facebook.com/people/Seiji-Kato/631878571 Seiji Kato

    A very nice article and very useful little table. Considering the day and age, social media is truly a big thing and a business not participating is likely to fall prey to those which are. As tempting as the benefits of not participating might be, people are more likely to go for a business they feel care about them.

  • http://web-strategist.com/blog Jeremiah Owyang

    Mikko, the appropriate way is transparent and authentic participation –don't do it otherwise.

  • http://www.slzzx.com/category-2.html 塑料托盘

    very good

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