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1. SENIOR EXECUTIVE
social networking survey

2. Executive message
We hear a steady drum of discussion about the impact of online social networking as a growing way for companies
to reach consumers. Well-known companies, such as Ford and Best Buy, use several online social networking services,
maintain large monitoring staffs and attract millions of followers.
But it’s not yet clear exactly how social networking will change business to business communications, so Margolis &
Company and Young Presidents’ Organization asked leaders and decision makers for their thoughts and plans
regarding online social networking in a business to business context. We created the Senior Executive Social Networking
Survey to shed light on the question.
From September to October 2009, we interviewed 100 CEOs and Senior Executives about their viewpoints and
investment plans for social networking in the B2B space, interviewing 85 YPO members and 15 other business leaders in
the Americas, Europe, Middle East, Africa and Asia/Pacific. YPO is an international education and networking organization
with members in more than 100 countries.
This is clearly a time of transition and explosive growth, and the contrasts between the “old era” and the “new era”
are striking. A recent story in The Wall Street Journal went so far as to say that email’s “run as king of communication
is over” and that social networking services will command a significant share of the new world.
Justin Kistner, Webtrends’ head of social media marketing, explains that social networking pieces still must adhere to
proper ethics, fact gathering and story telling, but that the distribution model in the new world removes the “middle
man.” The industrial media brands we have trusted are clearly under enormous pressure to remain a force, while their
star reporters individually brand themselves in the new social networking venues. Social networking levels the playing
field for growing small and medium-sized enterprises.
Most companies understand we’re experiencing a paradigm shift. This is the Wild West and the protocols are being
established by the week. Interestingly, one senior executive we interviewed from a FORTUNE 50 company who
enthused about the importance of social networking in his company’s customer management also revealed that most of
the same company’s networks blocked rank and file staffers’ access to social media.
The Senior Executive Social Networking Survey results reflect contrasts in policy and approach. More than eight
out of ten of the leaders responded that a traditional newspaper or magazine piece still was preferable to a piece
in a prominent blog. At the same time 80 percent of the companies plan to allocate more resources to develop
social networking strategies over the next two years. We believe that social networking will enhance speed and
augment relationships with customers and clients. However, online networking will never be a substitute for real
human interaction.
On behalf of YPO members and Margolis & Company, we hope that our readers find this survey useful for future
planning and discussion. We wish to thank all the leaders that participated and for TNS for validating and co-processing
the results. We look forward to hearing your perspective.
Dan Margolis Simon Preston
President & Managing Partner YPO-WPO International Chairman 2009-2010
Margolis & Company YPO Pennine and YPO Greater Europe Chapter
dan@margoliscompany.com press@ypo.org
Twitter@danmargolis www.ypo.org
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3. SENIOR EXECUTIVE
Personal attitudes survey
social networking
towards social networking

4. “ We monitor Twitter, Facebook,YouTube
and Google so anytime someone references
‘Boingo’ we review it in real time and respond
as appropriate.This is a fantastic way to
understand what people are saying about
the company and manage a poor customer
experience and turn it into a win. Customers
are blown away when they tweet and we
Q1 Continued
immediately respond to solve the issue.
”
— David Hagan, President and CEO, Boingo Wireless
Q1 Which social media services do you use for business purposes?
75%
62%
42%
37%
16%
3%
0% 20% 40% 60% 80%
Other None
4

5. Social media services used for business purposes by sector
Q1 Continued
Consumer Financial
67% 80%
73% 50%
43% 20%
50% 30%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Professional services Technology
94% 74%
56% 57%
56% 35%
39% 35%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
5

6. Social media services used for business purposes by sector
Q1 Continued
100%
80%
60%
40%
20%
0%
Other
Total Consumer = 30
Consumer Financial = 10
Financial Services Healthcare = 1
Professional Services
Industrial = 6
Technology
Other Professional Services = 18
Technology = 23
Other = 12
6

7. Number of social media services used for business purposes by sector
Q1 Continued
2.32
2.67
2.58
2.47
2.13
1.9
1.0 1.5 2.0 2.5 3.0
Total Consumer = 30
Professional Services Financial = 10
Other Healthcare = 1
Consumer
Industrial = 6
Technology
Financial Services Professional Services = 18
Technology = 23
Other = 12
7

8. “ Social media provides the opportunity
to reach consumers directly and at a more
individual level, versus mass advertising.
”
— Margaret Hardin, President & COO, Munchkin
Q2 Which is more valuable — a story written about your company in a prominent newspaper
or business magazine or a story about your company on a prominent blog?
2%
16%
Blog
Newspaper / magazine
N/A
82%
Consumer = 30
Financial = 10
Healthcare = 1
Industrial = 6
Professional Services = 18
Technology = 23
Other = 12
8

9. “ We are regulated by The Financial
Industry Regulatory Authority (FINRA)
and are very concerned that regulators
will penalize us for using social
networking sites.
”
— Douglas Rodgers, CEO, FOCUS,
Investment Bankers
Q3
Are you more likely to respond more quickly to a question or inquiry from a known
business contact you receive through social networking messaging (e.g Facebook, LinkedIn
or Twitter) versus your regular business email?
2%
20% I respond faster to known sources
From social networking messages
From regular business email
N/A
78%
Consumer = 30
Financial = 10
Healthcare = 1
Industrial = 6
Professional Services = 18
Technology = 23
Other = 12
9

10. Ways of using
social networks

11. “ Social media will impact all industries,
not just ours. Social networks are the
closest thing to ESP that CEOs can use to
determine what his or her customers are
saying about their company and/or brand.
I have a great deal of experience in social
media and feel that the transformation has
begun - those that don’t embrace it will
be left behind.
”
— Rajeev Kapur, Chairman and CEO, Greenwala
Q4 Should your company invest more resources (time, money or both) for social media
management in the next year or two?
4% More resources / 80%
19%
Much more resources
20% None or much less /
Somewhat less 4%
Same amount of resources
as current
More resources
Much more resources
None or much less
61% 0% Somewhat less
Consumer = 30
Financial = 10
Healthcare = 1
Industrial = 6
Professional Services = 18
Technology = 23
Other = 12
11

12. Future investment in social media management by sector
Q4 Continued
100%
_91%
_83% _13%
80% _80% _80%
_76% _17% _75%
_8%
_20%
_33%
60%
_19%
_67%
_78%
40%
_67%
_60%
_43%
20%
_61%
0%
Total Consumer Financial Professional Technology Other
Services Services
More resources Consumer = 30
Much more resources Financial = 10
Healthcare = 1
Industrial = 6
Professional Services = 18
Technology = 23
Other = 12
12

13. “ The phrase ‘social networks’ is much
more relevant than ‘social media.’ Social
media are simply tools which vastly improve
the functioning of pre-existing and new
social networks.
”
— Dave Maney, Chairman, Headwaters Incorporated
Q5 How hard is it to manage business correspondence that is sent through social media sites?
16% Very easy / Easy 21%
Very difficult / Difficult 37%
5%
42% 5% Easy
Very easy
Very difficult
Difficult
32% Manageable but occasionally difficult
13

14. “ We’ve been getting a lot of questions
about social networking.We are intrigued
how it may help our firm and our portfolio
of companies and how it can be used for
branding, marketing and greater awareness
of products and services.
”
— Michel Glouchevitch, Partner, Riordan, Lewis & Haden
Q6 How much has the use of authorized social media for business opportunities increased in your
company over the past year?
5%
20%
21% Use has dropped significantly
Use has dropped a little (1%)
Use is the same as a year ago
Use is increasing
Use is very much increasing
53%
14

15. Future investment in social media management by sector
Q6 Continued
100%
_95%
_17%
80%
_75%
_73%
_70% _70%
_78% _17%
_20% _63%
60% _20% _26%
_23%
_58%
40% _44%
_50%
_53% _40%
20%
0%
Total Consumer Financial Professional Technology Other
Services Services
Use is increasing
Use is very much increasing
15

16. “ Social media will improve relationships
with customers, the profiling and
knowledge of customers’ needs and trends,
help drive innovation and R&D for new
solutions, and improve customer care and
company reputation.
”
— Juan Carlos Fouz, CEO, IZO SYSTEM
Q7 Social networking plays an important role in deepening your business relationships with
colleagues, clients and potential clients. Please select the response most accurate for your
business and company.
10% Very strongly
66% 16% Strongly
Agree
40% Agree
28% Somewhat
34%
Disagree 6% Very strongly
0% 10% 20% 30% 40%
16

17. Deepening business relationships through social networking by sector
Q7 Continued
100%
_89%
_17%
80% _79%
_9%
_66% _66%
_10% _22% _8%
60%
_56% _26% _8%
_50%
_13%
_16%
_20%
40% _50%
_10%
_50%
_44%
_33%
_40% _30%
20%
0%
Total Consumer Financial Professional Technology Other
Services Services
Agree
Strongly agree
Very strongly agree
17

18. “ It’s like being at a cocktail party and
we just get to stand aside and listen.
Social media allows us to be more aware
of what people are saying to each other
about our company and address the issues
and concerns.
”
— Executive, FORTUNE 50 company
Q8 Do you expect social media to play a bigger role in next two years in deepening your business
relationships and increasing your access to new information?
10% 15%
Same as today
26% 11% 20% more
50% more
100% more
More than 100% compared to today
38%
18

19. “ We believe the largest single value is
creating a loyal following of peers who are
interested in our technical blogs we are
working to create. Our biggest challenge is
creating meaningful content.
”
— Scott Irwin, President, Aktion Associates
Q9 Do you have a social media strategy for your company? If yes, please rank the following in order
of importance, with “1” being most important and “5” being the least important.
46% 17% 8% 7% 12% 10%
Marketing
11% 27% 21% 14% 16% 11%
Email
8% 18% 21% 26% 16% 11%
Innovations
8% 15% 22% 21% 23% 11%
Customer
Support
9% 5% 15% 10% 47% 14%
Others
0% 20% 40% 60% 80% 100%
Most important 2 3 4 5 Least important N/A
19

20. “ Social media is an investment
of image so that fact and perception of fact
can coincide and thus reinforce the brand.
When East works with West, and South with
North, it will help understanding of cultural
norms and reduce pre-conceived notions
by further bringing people together.
”
— Robert Wong, Founding Partner and CEO,
Robert Wong Executive Consulting
Q10 How much do you use social media for communicating with friends, colleagues and business contacts
for purely social correspondence, versus how much for business related communication?
16%
28% 4% Only social
Mostly social
10% Equally social and business
Mostly business
Business only
42%
20

21. Accessibility and restrictions

22. “ Social media will increase customer
service awareness and consumer approval
of products, as well as highlight features
and benefits and/or shortcomings
and deficiencies.
”
— Allen Furrer, President, Ascend Wireless
Q11 Does your company limit employee access to social media services and sites while at work?
21% The organization strongly encourages employees to maintain
social networking accounts and usage during business hours
51% Most sites are permitted
with few limitations
9% Some sites are blocked and hours of use are somewhat limited
12% Most sites are blocked or use is limited to non-business hours only
7% Social media sites are blocked by network services
0% 10% 20% 30% 40% 50% 60%
22

23. Limitations on access to social media by sector
Q11 Continued
100%
_70% _50%
80% _70%
_51%
_47%
60%
_25%
40%
_39%
_21% _25%
_23%
20% _20%
_9%
0% _-10% _-6% _-25%
_-9% _-7% _-17%
_-7% _-6%
_-12% _-4%
-20% _-17%
_-7%
_-25%
-40%
-60%
Total Consumer Financial Professional Technology Other
Services Services
Social media sites are blocked by network services
Most sites are blocked or use is limited to non-business Consumer = 30
hours only Financial = 10
Some sites are blocked and hours of use are Healthcare = 1
somewhat limited Industrial = 6
Most sites are permitted and there are few limitations Professional Services = 18
Technology = 23
The organization strongly encourages employees to maintain
Other = 12
social networking accounts and usage during business hours
23

24. “ In the professional services space,
where there is not a single brand, but
two important brands — the company
brand and the individual brand of
the professional, the challenge or the
opportunity is to effectively manage
these brands together. And social media
enables this.
”
— Gray Hollett,VP of Marketing,
Boyden World Corporation
Q12 How often do social media and related topics surface in discussions with your executive team?
21%
29% Never
Occasionally
Sometimes
Often
26% 15% Very often
9%
24

25. Social media topics in discussions with executive teams by sector
Q12 Continued
60% _27%
50% _17%
_15%
_42%
40% _17%
_30%
_33% _33%
30% _29%
_22%
20%
10%
0%
Total Consumer Financial Professional Technology Other
Services Services
Often Consumer = 30
Very often Financial = 10
Healthcare = 1
Industrial = 6
Professional Services = 18
Technology = 23
Other = 12
25

26. Attitudinal segments

27. “ Social media helps us get the word out
on our new products... putting a human
face on our company.
”
— Chuck Tanner, Wholesale Interiors
Construction of attitudinal segments - Indicators (I)
Number of social media services used for business purposes
Personal attitude Q2 Which is more valuable – a story written about your company in a prominent newspaper or
towards social business magazine or a story about your company on a prominent blog?
networks
Q3 Are you more likely to respond more quickly to a question or inquiry from a known business
contact you receive through social networking messaging (e.g. Facebook, LinkedIn, Twitter) versus
your regular business email?
Q4 Should your company invest more resources for social media management in the next year
or two?
Q6 How much has the use of authorized social media for business opportunities increased in your
company over the past year?
Ways of using Q7 “Social networking plays an important role in deepening your business relationships with
social networks colleagues, clients and potential clients.” Please select the response most accurate for your
business and company.
Q8 Do you expect social media to play a bigger role in next two years in deepening your business
relationships and increasing your access to new information?
Q10 How much do you use social media for communicating with friends, colleagues and business
contacts for purely social correspondence, versus how much for business related communication?
Institutional Q11 Does your company limit employee access to social media services and sites while at work?
restrictions Q12 How often do social media and related topics surface in discussions with your executive team?
27

28. “ In Brazil, business is more personable.
It’s important to maintain eye contact.
Brazilians want to hear you, see you
and feel you, so social media is not a
substitute for that real connection, but
rather a complement to it.
— Robert Wong
”
Construction of attitudinal segments - Indicators (II)
• All indicators included in each attitudinal segment regarding three dimensions are recorded in scales
• The closer to change towards using social networks for business, the higher the scale
• Sum of all indicators in every attitudinal segment goes from “0” to “100”
• Scale is split into three categories:
Personal attitude Ways of using Institutional
towards social social networks restrictions
networks
0 - 40% Rejectors Leisure Restricted
41 - 70% Followers Let the business in Unrestricted
71 - 100% Leaders of change Market developers Encouraged
Construction of attitudinal segments - Indicators (III)
• After constructing three attitudinal segments (personal attitude towards social networks, ways of using
social networks and institutional restrictions) all of them are combined to define a final segmentation.
• The results of the three dimensions are converted into five categories:
Promoters
Believers
Led
Reticent
Resistant
28

29. Analysis by segment
Number of social media services used for business purposes
Personal attitude Institutional restrictions
towards social networks
15%
Leaders
of change
36%
40%
Unrestricted
55% Encouraged
Followers
30%
Rejectors
24%
Restricted
Social network uses
16%
Market
developers
26%
Leisure
58%
Let the business in
29

30. Analysis by segment: attitudinal segments
16%
22% Promoters — Making changes happen
Believers — Enthusiastic but not
proactive towards changes
Led — Fitting to expected
23% changes in the future
Reticent — Slower to change
from traditional habits
31% Resistant — Unlikely to adopt social
8%
networks as a tool for business
30

31. Number of social media services used for business purposes
100% _23% _13% _6% _6% _30% _25%
_50%
_50%
80% _8%
_8%
_17%
_31% _35%
_17%
60%
_23%
_33%
_17%
40% _30%
_22%
_17% _22%
_28%
20%
_17% _17%
_16%
_13%
_10%
0%
Total Consumer Financial Professional Technology Other
Services Services
Promoters
Believers
Led
Reticent
Resistant
31

32. Final thoughts
The data shows that while only 20 percent of the participating leaders use social networking primarily for
commercial purposes, most executives believe social media in a business to business context will achieve
significant growth in the next two years. The slight resistance executives expressed about social networking
derives more from old habits than any fundamental philosophical rejection of social networking or the new
media’s services.
We asked the participating leaders to respond in a business context, though a number of the respondents
based their projections on a consumer model. We conclude that this is because the business to business
model is so new.
The effectiveness of the “promoters” will be important to define the growth rate in the business sector. From
the survey, the professional services sector, and to some extent the consumer sector, are the most likely to
promote the use in commercial activity and business communication. Consumer sector executives already
show predisposition for social media, especially in their personal lives. Social media will only further merge our
business and personal lives, according to several top national business reporters we interviewed.
Social networking will also force marketers to become succinct and targeted in their communications to
elevate their brands. With increased consumer expectations that marketing messages will become briefer and
briefer, we must ensure we do not misread basic outcomes by minimizing necessary information too much. As
we accelerate down the social networking highway, we expect there will be a modest correction to again
further appreciate in-depth content.
One conclusion is certain: In the new world with tens of thousands of interesting choices, relevance and
relationships will remain crucial.
We welcome your input and we’re eager to continue the conversation.
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33. About the survey
For the survey preparation, Margolis & Company and YPO developed the questions and TNS validated the
methodology. The executive interviews were by invitation only and were conducted online and by telephone through
a structured questionnaire. Margolis & Company analyzed each interview and TNS co-processed the data.
Special thanks are due to Birgit Johnston, Lisa Spangenberg, Sheldon Renan and Steve Gumplo for their contributions to
the survey. We also wish to thank Urbana Creative for its perspective and support.
About Margolis & Company
Founded in 2005, Margolis & Company specializes in business to business public relations and thought leadership. The
firm, based in Santa Monica, California, focuses on national and international positioning in the professional/financial
services, entertainment/sports and government/non-profit sectors.
Margolis & Company’s track record is tied to more than 15 years of building deep relationships with thousands of
top-level national and international media contacts, corporate executives, government officials and community leaders.
Decision - makers know the firm is committed to client issues and services that make a difference and are worthy of
their attention. For more information, visit www.margoliscompany.com.
About YPO
YPO (Young Presidents’ Organization) is a not-for-profit, global network of young chief executives connected around
the shared mission of becoming Better Leaders Through Education and Idea Exchange TM. Founded in 1950,YPO today
provides 17,000 peers and their families in 100 countries with access to unique experiences, world-class resources,
alliances with top learning institutions, and specialized networks that help them enhance their business, community and
personal leadership. For more information, www.ypo.org.
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