Here’s the headline from a recent report by Peter Goldmacher, a Cowen investment analyst, regarding Salesforce.com’s latest financial results:
Moving Away from the Social Enterprise
I’ve repeatedly said Social Marketing isn’t the main way to increase leads for all businesses. See: 2 Dirty Secrets About Content Marketing and Social Media
But Salesforce.com’s promotion of Social in the last year seemed to suggest I missed something. So I confess to feeling some vindication to read this:
Despite making a big splash around Social at its user conference in October, conversations with the CRM ecosystem around weak “Social” pipeline conversion, a lack of customer traction around Social Marketing and accelerating declines in sales productivity lead us to believe that SFDC’s latest marketing gambit isn’t paying off.
Social Media Means B2C to Salesforce.com
Salesforce.com’s big social acquisitions were Radian6 and Buddy Media
Radian6 helps companies monitor and respond to what’s being said on social media.
Buddy Media helps companies manage their pro-active social media posts.
Notice the type of companies mentioned. Largely ones that have businesses that sell to consumers. Dell, GE, and HP all have businesses that sell to very small businesses through retail outlets. Most prototypical B2B organizations with salespeople using CRM software are selling to larger clients. It’s no surprise that Salesforce.com is seeing underwhelming enthusiasm from its customer base for social media services.
Some social marketing is so low cost, there’s no harm in investing in it. The danger comes when the wrong companies rely inappropriately on it. Social marketing is much more valuable to B2C companies. Businesses that sell to very small companies where 1 person makes the purchase decision act like B2C companies more than they do B2B companies.
If in doubt about the value of Social Marketing for your company, see:
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