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Monday, April 28, 2008

Social media scares Indian corporates

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BANGALORE, INDIA: Blogging needs no introduction. From bedroom bloggers who write on personal topics to those blogs on specific subjects like technology, you have them all on the cyberspace.

Corporate blogging, however, is in a nascent stage in India.

Companies worldwide see blogging as a cost-effective medium to talk about its products and services or share insights among all shareholders.

Indian companies like Infosys, TCS, Rediff, Milagrow, HCL, Cleartrip, Gridstone, FrotoLay and Naukri and Indian arms of MNCs like Microsoft, IBM, Hindustan Lever are into corporate blogging.

Opening a new window

Companies like Tata and Infosys have realized the potential of blogging in many ways.

Tata's blog, Tata Interactive Systems (TIS), got off to a good start; members of its Instructional Design group were first off the mark in posting their thoughts and engaging others within the broader worldwide ID and eLearning community.

"We have received some very positive feedback for our photo albums capturing life@TIS, from people considering TIS as a potential employer. I think this is because from the outside an organization often appears impregnable and this is one of the boundaries that we have been successful in lowering," says Ankush Gupta, manager, corporate marketing group and blog evangelist.

Infosys was among the first in the Indian IT industry to start a theme-based corporate blog, Think Flat, launched in 2006 to promote its 'Win in the Flat World' campaign.

Today, it maintains more than ten corporate blogs, attracting a community of global readers interested in understanding and discussing various facets of business, technology and global sourcing.

"At Infosys, blogs are an important part of our thought leadership strategy. Blogs provide our subject experts with a suitable medium for sharing ideas and receiving feedback from target audiences. We have evolved a blogging policy that specifies the protocols and standards for communicating to an external audience," states Srinivas Uppaluri, vice president and global head of Marketing, Infosys.

He feels that companies can use blogs effectively as a marketing platform to share new ideas and create thought leadership.

Blogs, like other social media, offer feeds – a feature that allows readers to subscribe to and receive blog updates without having to visit the blog periodically.

"This shrinks the 'time-to-market' of information delivery," adds Uppaluri.

Is there a fear factor?

A close look at the number of complaints in social media like mouthshut.com and complaints.com on various customer service deficiencies points to the necessity for companies to have their own mechanism -- blogging -- to take care of customer grievances.

Normally companies don't visit these sites and respond to the complainants, reveals K. Srinivasan, a Chennai-based PR consultant and president of Prime Point Foundation.

"New generation companies are extremely good as long as everything goes smooth. If you have any difficulty, they'd just blink. They are bad in handling customer grievances. Social media will put them straight," adds Srinivasan, an ardent advocate of social media.

Experts are unanimous in their view that Indian companies are hesitant to tap the possibilities thrown up social media.

Is it because the Indian corporates are reluctant to shake off their stuffy corporate image that they are shying away from taking to corporate blogging?

Mumbai-based Tushar Panchal, vice president of Rediffusion/DYR, feels that not many corporate houses understand the true value the social media platforms offer them.

"Traditionally Indians are not very effective communicators. And corporates are even worst. It is indeed very effective tool to reach out to your stakeholders in one of the most cost effective and personalized manner. There is a space for every subject and for everyone – use it wisely and effectively and you never know, you might even don't need to invest anything in traditional advertising," says Panchal.

He feels that it is high time that Indian companies had Chief Bloggers or Chief Knowledge Officers.

Another aspect, feel experts, that pulls corporates away from taking to blogging is their unwillingness to tolerate any adverse outcomes they fear would be generated as a result of blogging.

Says Nidhi Dewan, manager, corporate communication, Webchutney: "More corporates often back off from the prospect of dealing with negative feedback and comments on a blog. They obsessively worry about user comments or criticism sullying a company's equity. Consequently, they shy away from incorporating the practice."

Using a blog to patronize one's consumers with bigger words and promises isn't the way to go. Instead, a corporate blog should single-mindedly focus on being honest and being always receptive to feedback, both positive and negative.

Negative feedback is a reality and one that any corporate should be ready to confront without going on the defensive.

"If you have made a mistake, be the first one to admit it on your blog. If you cracked that long due product update, post it in straight away on the blog. That's what it is for, to talk to the people who matter honestly and frankly," says Dewan.

Prime Point's Srinivasan agrees with her, adding that the Indian companies fear that employees and the customers may post negative comments about them.

According to New Delhi-based social media expert Palin Ningthoujam, many people are reluctant to the idea of talking business openly as they fear that they will share trade secrets in the process.

Corporates also feel that they might lose control of their key messages and might not be able to control negative feedback.

However, he is sanguine about the future of corporate blogging in India.

"As business blogging gets popular in India I am sure more Indian corporates will also come forward to benefit from blogging like many abroad have," says Ningthoujam.

Meanwhile Dewan feels the biggest roadblock to corporate blogging in India is a serious lack of understanding about what corporate blogging involves and the goals and objectives of the practice.

"Lack of time is often a CEO's biggest grouse when it comes to blogging actively. A blog is only useful if it is updated regularly and has something useful or interesting to say," she adds.

PR redefined?

Some believe that effective use of corporate blogging may redefine the way PR agencies function today.

Rediffusion's Panchal believes the PR model is set to change and it can happen much sooner than expected.

"So, if you are a PR agency which is relying heavily on media relations model and doing an effective job of post office, you are soon going to be out of business and I advice you to do it now voluntarily, before you are forced to do it," says Panchal.

But at the same time, experts warn that complete reliance on blogs for dissemination of company announcements will be disastrous.

Ningthoujam feels corporate blogging will become one of the most important methods to initiate a discussion with the target audience. This and other forms of social media outreach will play a significant role in the future and PR agencies can help their clients strategize and implement such outreaches.

"I think ours is a PR agency-driven culture and will continue to remain so for sometime to come. Companies are not sure how this direct line of communication effectively operates and hence they choose to take the PR agency route but corporate blogs are pretty much a permanent fixture of the internet startup ecosystem and that's a great sign of things to come," sums up Dewan.




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