4 Disturbing Social Media Statistics For Businesses

661 days ago by Willis Wee, in Business

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Is social media all that bad? Unless you’re a full fledged skeptic, you probably wouldn’t think so. Social media has proven over time that it is able to bring benefits to both giant corporations and small businesses.

Nonetheless, it isn’t a silver bullet and definitely isn’t always working great for businesses. Online backlashes and productivity losses are some of the things that highlight the ugly side of social media. We have dug out four interesting statistics below to show you what we mean.

4 Disturbing Statistics

#1. Employees Visit Facebook 7 Out Of 100 Times At Work

Network Box reported that 7 out of 100 URLs accessed by businesses were directed to Facebook and 10% of Internet bandwidth went to YouTube.

What it means: When your employees log on to the web, 7% of the time is to access social media for their personal use. Your entire workforce productivity is at risk.

#2. 1 In 5 Likely To Lash Out At Brands Online

A research by Euro RSCG Worldwide showed that people do not practice as much self control in their online behavior as they would offline. They are more likely to speak their mind and lash out about/at brands through online means – every 1 in 5 people are likely to do so.

What it means: Great customer service is increasingly important as social media gains in popularity. So, try not to play around with customers, especially those who are social media savvy. Evergreen Entertainment has already tasted “social media’s wrath”.

#3. Businesses: “Twitter Costs Us $1.4 Billion”

Staff who use Twitter and other social networking sites while at work are costing UK businesses £1.38bn every year.

What it means: Twitter, similar to Facebook and YouTube are time suckers. For companies that wish to maximize social media potential, and at the same time maintain work productivity, a social media usage policy might come in handy.

#4. Each Negative Social Media Comment Costs 30 Customers

A research by Convergys Corp. has shown that a negative customer review on YouTube, Twitter or Facebook can cost a company about 30 customers.

What it means: Poor service and lousy product cannot escape the eyes of potential consumers in today’s digital age. Google and social sites facilitate all sorts of reviews about your company.

Conclusion

Social media is a double edged sword and it is up to businesses to make full use of its potential. For example: a negative remark on social media equates to a loss of 30 potential customers, but it also means that a positive review could possibly help you gain 30 new customers.

Other negative impact like productivity loss can be countered if companies set proper corporate culture and guidelines. Zappos didn’t seem to have a problem with its high involvement in social media. Your business probably can do the same too.

Tags: Business, Social Media, Stats

About Willis Wee

Founder of Penn Olson who is also an entrepreneur since 2005. He has had experience in crafting social media strategies for organizations such as Marriott Vacation Club, James Cook University, Reach Singapore and Unilever. Contact him at willis[at]penn-olson[dot]com

View all posts by Willis Wee →

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smithsn

I agree that there has been a decline in workplace productivity due to the advent of social media sites, but employee productivity has always been an issue, even when the internet was not at common disposal.
Do you think that social media is making companies more accountable? If messages are spread faster than they ever have before, via social media sites, will this keep companies on their toes so to speak?

Steve
http://twitter.com/williswee Willis Wee

hi smith. I think social media improves the entire aspects of a company (cust service, internal culture etc). its really hard to control employees' social media actions. the only way to do it is to build a strong brand with rich culture, whereby everyone enjoys working in. if that level is met, bosses wouldn't need to worry much abt what are being shared on the social horizon. a sm policy, as far as i believe, is more for company's confidentiality protection and also to remind employees to consult superiors to solve problems internally rather than just babbling on social sites.
drewhawkins

There is a decrease in productivity. However I think if a workplace was to ban social media, workers will find other ways to access those sites and waste as much if not more time.

In regards to campaigns, if run effectively, the benefits outweigh the risks. If there weren't any risks to participate in something, the potential return probably isn't too great. I've talked to many who have had fears of negativity thrown at a brand. It's a legit concern. However, the negative comments a brand may receives gives that brand an opportunity to publicly address those comments or make themselves better as a result. It's a glass half full approach to social media.
http://www.codastar.com/blog/a-beginners-guide-to-social-media/ Beginner’s Guide to Social Media | Codastar

[...] by Convergys Corp. has shown that a negative customer review on YouTube, Twitter or Facebook can cost a company around [...]