CBI Product Factsheet: Social media services in France
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1 CBI Product Factsheet: Social media services in France Practical market insights into your product French consumers are not the most active social networkers in the European Union (EU). However, in absolute terms, France is a huge market. Also, the B2C market is a relatively large one, although still in an early development phase. Every year, more and more large and so far to a lesser extent small and medium-sized enterprises (SMEs) undertake social media activities. Outsourcing of social media services takes place, but only on a small scale. Large companies in particular make use of external service providers, as they have larger budgets and not sufficient in-house capabilities for their complex social media service requirements. Service providers from Francophone developing countries (DCs) are in the best position to become successful in the French market, as French language skills are very important. DC service providers could best target French social media service providers, as subcontracting is considered to be the best market entry strategy. Monitoring and analysis services are indicated by industry experts as offering the best potential for nearshoring/offshoring. Product Definition Social media refers to web-based (mobile) applications that enable interactive usergenerated content creation, sharing, discussion and exchange in virtual communities and networks. Social media introduces substantial and pervasive changes to communication between organisations, communities and individuals. Social media applications take on many different forms such as social networking sites (e.g. Facebook, LinkedIn), blogs and micro blogs (e.g. Twitter), multimedia communities (e.g. YouTube, Flickr), collaborative projects (e.g. wikis) and forums and review sites (Figure 1).
2 Figure 1: Conversation prism: visual representation of the expansiveness of social media Source: Brian Solis & JESS3 There are five main categories within social media services: Content management: writing content for social media platforms, for example, posting comments, photos or videos on a customer s company s Facebook account or sending Tweets to a customer s Twitter account and ensuring there is new content within an agreed period (daily/weekly/monthly). Monitoring and listening: monitoring what is said about a company on social media platforms, for example, scanning a range of social media platforms such as review sites, Internet forums and social networks on messages and comments regarding the customer s company, and filtering those messages and comments (positive and negative). Customer service: interaction with customers through social media before, during and after a purchase, for example, offering technical support through a company s Facebook page or handling customer complaints through a company s Twitter account. Analysis: researching and analysing data on social media, for example analysing for a company which of its products/services are rising in popularity, across which demographic groups and across which locations. This information can be used to develop a more targeted marketing campaign. Marketing: marketing through social media for lead generation, for example, offering special offers, discount coupons or competitions on different social media platforms. Social media services outsourcing Managing, monitoring and analysing content on social media is a time-consuming process. Many companies do not have the time to manage social media themselves and delegate social media services to external service providers (outsourcing). These service providers can be: Onshore: providers within the same country (onshoring). Nearshore: foreign providers within the region (nearshoring), for example, Central and Eastern European countries and North African countries for Western Europe, and Canada and Mexico for the United States. Offshore: foreign providers outside the region, typically overseas (offshoring), for example: Asian and Latin American countries for Western Europe, and Africa and Asia for the United States. Product Specifications The most important product specifications of social media services as required by French buyers are described below. Study websites of French social media service providers to gain insights into buyer requirements in the French social media market. Look, for example, which
3 Expertise. Outsourcing of social media services is mainly done by large companies. These companies have sufficient budget for their social media requirements and consider their requirements as too complex for their in-house social media employees. This means social media service providers have to be able to demonstrate their expertise. 24 x 7 x 365 availability. The main benefits of social media are speed, client interaction and engagement. Consumers have access to the web 24 hours a day, 365 days a year. At the same time, French consumers who approach companies via social media expect a quick answer. As this is the case especially in customer service related issues and brand or company image management, large companies in particular attach great value to 24/7 availability all year-round. French language skills. For social media services such as content management French language skills are very important, although in the case of large, multinational companies English language skills may be of similar importance. For social media monitoring and analysis services, the level of French language skills are considered to be less important. social media services they offer and for which platforms. This information can help you to adjust your service offering better to the French market. Provide customer references and case studies to prove your expertise in social media services. Make social media an integral part of your own company culture by actively using social media and keeping your social media activities up-to-date. By doing so, you will leave a good first impression on prospects. Offer 24/7 services. On Facebook, French companies usually respond within 2 working days. 24/7 availability could, therefore, offer your company a distinct competitive advantage. Time zone differences can also be an advantage as they can extend the social media business hours of your customer s company. Improve your chances in France by recruiting employees who speak the French language. Note that this might not be of particular necessity if you want to offer fewer language-sensitive services, such as social media monitoring. Obviously, if you are located in a Francophone country, this offers a competitive advantage. Consider offering multilingual services in order to add value and gain a competitive advantage. Legal requirements Personal data protection in electronic communications. Providers of technical services involving electronic communications to EU companies have to take into account the EU legislation on personal data protection (Directive 2002/58/EC and 95/46/EC). The requirements relate to the protection of the privacy of EU users of technical services, which also include social media services, and sets strict limits on the collection and use of personal data. As social media generally involves a great deal of personal data, the EU legislation on personal data protection is very important for social media service providers. Providers outside the EU can be held directly responsible for violations of EU data protection requirements. It is, therefore, important that you meet the EU legislation on personal data protection. For more information, refer to EU legislation: Personal data protection in electronic communications. Have a company security policy for personal data protection. Non-legal requirements There are some additional standards/certifications that are appreciated Consider applying for relevant standards/ certifications to gain trust and prove your
4 when you want to target the French social media services market. Quality requirements ISO The ISO 9001 standard represents requirements for the development and implementation of a quality management system in an organisation. esourcing Capability Model for Service Providers. This model helps sourcing organisations manage and reduce their risks and improve their capabilities across the entire sourcing life cycle. The Model's Practices can be seen as the best practices associated with successful sourcing relationships. Where most quality models only focus on delivery capabilities, esourcing also addresses critical issues associated with the initiation and completion of a contract. capabilities. However, they are not a legal requirement. ISO 9001 is the most well-known quality standard among French companies. Applying for ISO 9001 is, therefore, recommended. Refer to the website of ISO for more information. escmsp is less well-known than ISO9001. However, it might help in gaining trust and proving your capabilities. Refer to the website of ITSQC for more information about the model and its certification process. Security requirements ISO ISO is the standard governing information security and management. It provides the industry approved model for an Information Security Management System (ISMS) and addresses the confidentiality, integrity and availability of information within an organisation. ISO (and its ISO counterpart) has rapidly become the worldwide standard for information security, helping organisations achieve compliance with the Data Protection Act and Computer Misuse Act. Adopting the ISO standard is a must for service providers who deal with sensitive information about their customers. For more information on ISO and ISO standards, go to Trade and Macro-Economic Statistics Social media usage In absolute terms France is a large market. Adoption of social media is relatively low in France. The French are in fact less active social networkers than the average EU citizen (Figure 2). During the period , the percentage of French using social media platforms increased only slightly; in absolute terms the growth was considerable: about 1 million new users. Consider focussing on the French social media services market, as in absolute terms France is a large market.
5 Figure 2: People between who use social media, per EU country, 2012, in % Source: Eurostat Facebook most popular social media platform for French consumers. Facebook is the most popular social media platform in France, followed at a long distance by Skyrock, Twitter, LinkedIn and Viadeo (Figure 3). Skyrock is a French social networking platform; however, it has become less popular than it used to be 10 years ago. Trombi and Copains d Avant are also French platforms. Know the social media platforms that are most important in France and build up experience in these social media platforms. Figure 3: Use of social media platforms by French consumers, by social media platform, 2012, in millions of unique visitors per month Facebook Skyrock Twitter LinkedIn Viadeo Trombi Tumblr Copains d'avant Badoo Nomao Source: Translate Media Social media adoption among companies is relatively low. The use of social media among companies can be compared to that among consumers. Many French companies are still hesitant to spend substantial amounts of money on social media and, therefore, often limit themselves to simply creating a French customer expectations, especially those of the younger generation, are high: direct (e.g. chat) or semi-direct (FAQ or forum) dialogue opportunities are increasingly appreciated. Show French prospects the opportunities of meeting such demands, for example, by showing best practices of other French companies.
6 Facebook page without following a comprehensive strategy. The most prolific users of social media are large enterprises which consider social media as an important medium for establishing and maintaining a strong brand and corporate reputation. Another regularly mentioned reason for the use of social media is the customer service potential. For example, some large French companies answer questions on Facebook or Twitter within two hours. Social media strategy is still missing. Although the usage of social media has grown in recent years, French companies generally lack a strategic plan for their social media activities. For many companies, social media usage remains limited to keeping accounts predominantly on Twitter and Facebook. It is estimated that about 50% of large French companies have a Twitter account; while only one out of three is present on Facebook, according to Dutot. And even companies that do have accounts on Twitter and Facebook, show low social media activity. For example, the average large company with a Twitter account is estimated to tweet only less than once per day. Social networks most popular platforms among companies. Social networks are the leading social media platform types among French companies. Facebook is the most commonly used network, while Twitter is the most used micro blogging network. For recruiting new employees and related purposes, the professional network sites of Viadeo and LinkedIn are commonly used among French companies. Telecom and automotive companies most active users. The most active companies on social platforms are primarily telecom and automotive companies. Relative latecomers in the usage of social platforms are companies in the luxury goods industry. Social media outsourcing Outsourcing of social media services still in its infancy. The French market for outsourcing social media services is still in an early development phase. As a rough estimate, between 0.5-1% of all social media activities are outsourced to external providers. In large enterprises this share is probably a little higher (between 2-3%), while in small and medium-sized enterprises, this share is Besides offering social media content management, monitoring and/or analysing services, also consider offering consultancy services in the field of a social media strategy. Clarify in your marketing in which social media platforms you are an expert. Become a social media expert for a specific vertical market to lower your competition. Consider approaching end user companies of social media services directly, especially companies in a market in which you already have experience. In the case of a new sector, first try to build up experience in this sector in your own country before approaching companies in that sector in France. Make sure you understand the French market before approaching prospects so that you can better adjust your product, price, promotion and distribution strategy to French circumstances. Study, for example, which social media services are being offered and for which platforms and in which way customers on social media platforms are being addressed. Also, look at competitors in France as their service
7 less than 0.3%. Domestic providers dominate the market. Based on information available from other segments in the French and other BPO markets in Europe, it can be concluded that, if any, only a very small share (less than 0.1%) of all social media service activities in France are outsourced to a destination abroad. In the few cases where there is outsourcing to companies abroad, the providers are mainly in Francophone countries in Northern Africa (Tunisia, Morocco), as the French language skills and the closeness of these countries are important benefits. However, nearshoring and offshoring are expected to grow as soon as the French BPO market enters a mature stage. However, this is expected to take several years at least. Labour costs Labour costs lower in DCs. The main component of labour costs, salaries, forms a large share of the cost of social media services, as social media services are very labour intensive. As a point of reference, monthly salaries in France of marketing employees vary mainly between 3,000 and 4,000. As salary levels of social media specialists in DCs can be significantly lower, French companies could gain substantial cost savings by outsourcing social media services to DCs. designs, pricing, choice of trade channels and promotion strategies are based on market research carried out prior to yours. If you are considering a direct approach, focus on larger companies as they may offer the best prospects. It does not mean that smaller companies are not interesting. They could benefit enormously from the experience of an external partner. Explore the possibilities of partnering with French social media service providers. They have insight into the requirements of French end user companies of social media services and already have a network of existing customers. Ensure that you have good access to French speaking employees if you decide to target the French social media services market. Another option is to offer social media services where French language skills might be less important, for example, monitoring. Be prepared and make a calculation of the cost savings a French company can achieve when it outsources its social media services to you. For more information on statistics and macro-economic indicators in the EU+ EFTA BPO market in general, refer to CBI Trade watch for BPO. Market Trends Social market drivers Increased use of social media as a customer service channel. French consumers are increasingly using social media as a customer service channel. While the older generations rely mainly on (e)mail, the younger generations in France generally have higher expectations of companies customer service performance through social media. They expect companies to offer direct (e.g. chat) or semi-direct (such as FAQ or forum) dialogue opportunities, Explore the possibilities for including social media customer services in your service offering. For example, offer answering services for first line questions that come in through a company s Facebook page or Twitter account. Show companies the benefits of social customer relationship management, which include, for example, the enhancement of the collaboration process, co-creation, customer engagement or brand perception.
8 either through Twitter, Facebook and/or a company website support-form. As a result, French companies increasingly offer online customer service. Low level of social media skills. Social media usage is still in an early development phase in many companies. Therefore, many companies have a low level of social media skills among employees engaged in social media. Technology market drivers Technology has enabled the use of visual content. Technological advances in network bandwidth, storage and photo and video enabled devices have led to the widespread use of visual content. Just one example: in recent years, the growth of Smartphone users watching video or TV on their Smartphones was in the range of % per year, according to Mobilens. Each year, more - especially large - French companies follow this trend by using more visual content in their social media presence, for example, on YouTube or Viadeo. Emphasise the availability of qualified social media professionals within your company. Keep your social media skills up-to-date. Monitor, for example, new social media platforms and learn how to work with them. Keep up-to-date with developments in visual content technology and applications. Mobile devices stimulate social media use. The increased usage of mobile devices such as Smartphones results in an increased use of social media. 16% of French consumers aged over 15 accessed social media platforms from mobile devices (excluding tablets) in 2012, which places France in a median position, ranking twelfth and just above the EU average of 16%. For more information on market trends on the EU+EFTA BPO market in general, refer to CBI Trend Mapping for BPO. Market Channels and Segments Figure 4: Trade structure for social media services outsourcing in the French market Developing Country Trade in France Market segments in France Developing country provider of social media services Consultant/ matchmaker Sales/ marketing representative French social media service provider Local sales office End user of social media services Source: Peer group BPO and interviews with industry experts
9 The most relevant channels for entering the French social media services market are illustrated in Figure 4 and described below. As the Figure reveals by thickness of the arrows, the most realistic channel for entering the French social media services market is to become a subcontractor of French social media service providers. Subcontracting by French social media service providers. Industry experts identify subcontracting by French social media service providers as the most realistic market entry channel for DC social media service providers (Figure 4). French social media service providers have a good knowledge of the French market and already have their own network of customers. Furthermore, upfront capital investments in the case of subcontracting are low. Analyse your company and your target market in order to choose the most suitable entry channel. Target companies whose size is in line with your own capacity. Attend industry events to meet potential customers, as personal contact is very important in the French social media market. It will probably not generate business directly, but it is likely to generate new contacts and maybe even business leads. Furthermore, it will give you the opportunity to learn more about French business culture. Direct partnership with an end user of social media services. A direct partnership with an end user of social media services might also prove to be successful, as the threshold to direct outsourcing is generally lower for Internet related services than for classical outsourcing. This is because the Internet does not really know national borders. However, be prepared that French companies are less open to international partnerships than those in some other EU countries, such as the Netherlands and the Nordic countries. At least, you need to have a proven record, good knowledge of the French market, and you must be prepared for a long lead time. If you are considering approaching end user companies of social media services directly, target companies in a vertical market in which you already have experience. Demonstrate your track record and collect testimonials to prove your experience and expertise. Research how social media pioneer end users such as the French luxury fashion house Saint Laurent, or French Airline company Air France, use social media and learn from that research. Study French business culture. Go to Kwintessential for more information on how to do business in France. Intermediaries. Finding a suitable partner, either a French social media service provider or an end user of social media services, takes time. Furthermore, French companies like to work with a French contact person. Therefore, French intermediaries such as consultants/matchmakers or sales/marketing representatives can also be interesting market entry channels, especially when you are new in the French market. Intermediaries generally have a large network, a clear understanding of local markets and insights into buyer requirements. If you choose to work with an intermediary, look at: -The expertise of the intermediary. It should be in line with your services. -The size and value of the intermediary s network. Trade associations, trade events and databases can be good sources to help you find potential customers in France. Examples of such sources are: EOA France - ance.com - French outsourcing association. The association organises several networking events for BPO and ITO. International Outsourcing Forum event that helps senior executives from the outsourcing community to forge strong and lasting business relationships and to share best practice and knowledge about the very latest issues affecting the industry, held annually at different locations. The 2013 Forum is being held in October, in Reims, France.
10 Social Media conferences in France - One example of an upcoming event is Conference Media Aces - A simple method to search for social media service providers is to perform a keyword search with a search engine, e.g. Google. Use, for example, the keywords social media service site:.fr. Market Competitiveness Refer to CBI Market Competitiveness for BPO as competitiveness in the French social media services market does not differ significantly from the BPO market in general. Useful Sources Besides the sources mentioned in the section Market Channels and Segments other sources that can provide interesting insights into the French social media services market are: French Customer Relations Association slowly but gradually, French call centres increasingly use social media platforms. Therefore, the association sometimes pays special attention to this issue; in 2013, for example, they organised the meeting 24/7 availability. Journal du Net portal with news; one section is dedicated to social networks. Social Media Club France interesting news and articles about social media. RFI News Portal news related to social media in France. Dressler & Partner provides information about potential offshoring locations all over the world for the BPO, ITO, Shared Services and Call Centre Business. They have a large researching branch. Go to Global Research Institute and search their Database and Research & journal sections. This survey was compiled for CBI by Facts Figures Future in collaboration with CBI sector expert Harry van Geijn. Disclaimer CBI market information tools:
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