Small and large businesses alike have launched into the social media world in order to grow business and increase communications. Plus, it’s free marketing, how can you pass that up? However, while sites such as Twitter and Facebook seem to be taking over the world, there is still one group that has been slow to adapt: the executives.
The boardroom has been a tougher crowd to win over in terms of the benefits of social media. Many C-level executives have been hesitant to take the leap, believing that social media is merely a distraction to employees, and not seeing the marketing and ultimate sales potential.
A new report from McKinsey Global Institute indicates that according to an analysis of 4,200 companies, social technologies have the ability to produce $900 billion to $1.3 trillion in value. Those boardroom members are listening now.
Two-thirds of the value is shown in savings from “improved communications and collaboration within and across enterprises” according to the report. Last year, the world’s largest software enterprises—Google, Microsoft, Salesforce, Adobe and Oracle—spent near $2.5 billion on social media tools to add to their enterprise suites. With statistics like this, it will be difficult for CEOs to ignore social media for much longer.