Annual Online Customer Engagement Survey Report 2008 Highlights Importance of Engagement

Annual Online Customer Engagement Survey

Report 2008

ANNUAL ONLINE CUSTOMER ENGAGEMENT REPORT 2008

E-consultancy is an online publisher of cScape, the research sponsor, is an award- informal online debates about engagement
best practice internet marketing reports, winning interactive agency and a certified and persuasive design.
research and how-to guides. E-consultancy, Microsoft Gold Partner. An emphasis on cScape was an early adopter of Microsoft
named Publisher of the Year at the 2006 customer engagement underpins cScape’s SharePoint Server 2007 (MOSS). We are at
AOP Awards, also publishes buyer’s guides integrated consultancy, creative design and the forefront of enhancing the capabilities of
and has a directory of 100,000+ third party technical development services. Microsoft technologies and of using dynamic
internet marketing white papers. The cScape Customer Engagement Unit tools like MOSS to facilitate engagement
Subscribers pay from £195 per year to (CEU), launched in November 2006, is a strategies.
access the exclusive and highly practical team of individuals with years of experience We have an exciting programme of
content. E-consultancy also organises regular in digital marketing and communications, events planned for 2008 and hope you
events, including roundtables and Supplier design and technology development. cScape will be able to come along. Please contact
Showcases, where six suppliers pitch to an combines in-depth research into the science Theresa Clifford, cScape’s Sales and
audience of pre-qualified buyers at a Central of persuasion with the development of Marketing Director, to find out more about
London venue. practical online strategies. Our priority is to cScape’s offering, and about future events.
E-consultancy has 58,000 registered users enable clients to align business goals with the (t.clifford@cscape.com)
and more than 145,000 unique user sessions needs and interest of their customers. cScape
per month (audited by ABC Electronic). works with a diverse range of organisations www.cscape.com
It is popular among internet professionals from the corporate, charity and government
because of its time-saving advice and sectors.
insight. Since the launch of the CEU and the
The company also provides a range of world’s first Annual Online Customer
public and in-house training programmes, Engagement Survey, cScape has continued to
such as seminars and workshops. be at the forefront of developing the concept
of engagement. The outcomes of recent high-
www.e-consultancy.com/about profile cScape events in 2007, including the
From User Experience to Customer Engage-
ment conference and The Role of Persuasion
in Online Customer Engagement seminar,
have filtered through to a wide range of
organisations. These thought leadership
events have also informed professional and

2

ANNUAL ONLINE CUSTOMER ENGAGEMENT SURVEY REPORT 2008

Annual Online Customer Engagement Survey 2008
Report contents

Introduction 4 Barriers to success 22
Barriers to a better Online Customer Engagement 22
The importance of engagement 5 Optimism about the future 22

Executive summary 6 Comments on the findings
Jim Sterne – Defining the terms of engagement 10
Findings Andy Beal – Social media must be added to the engagement mix 16
Importance and benefits of Customer Engagement 8 Pete Mortensen – The future of engagement is mobile 17
Importance of Online Customer Engagement 8 Avinash Kaushik – Engaging with the engagement metric 20
Benefits of Customer Engagement 11
Interest in Customer Engagement 11 Thoughts on Customer Engagement
Describing an engaged customer 12 Dr Dave Chaffey – Segmentation, segmentation, segmentation? 26
Responsibility for Online Customer Engagement 13 Clare O’Brien – Usefulness: the new language of brand 28
New Engagement Strategies 14 Theo Papadakis – What is engagement for? 30
Strategies for engaging with your audience online 14 Richard Sedley – The role of persuasion in Online Customer Engagement 32
Methods of increasing engagement 16 Lucy Conlan – What can you do when they disengage? 34
Importance of mobile channel 17
Achieving engagement through mobile channel 18
Measurement and Research 18
Customer data collection 18
Methods of gathering customer intelligence 18
Engagement metrics 21
Mapping customer touchpoints 21


Our ability to develop a ‘light-touch’ based upon a psychological
understanding of our customers will be an essential counter balance
to the bullish marketing practices that have shaped much of the
digital terrain in the last 10 years.

Introduction

The second Annual Online Customer or departments to taking ownership for The coming year will undoubtedly pose
Engagement Survey attracted over 1000 implementing and monitoring engagement new challenges as we all try to integrate
responses, making it the world’s largest strategies. This report aims to aid those customer engagement strategies and tactics
survey on the subject. looking to further develop their engagement I see the continuing with our business plans. Personally, I see
This report outlines how customer strategies. rise in social the continuing rise in social media and
engagement remains an imperative issue In the introduction to the 2007 report media and mobile mobile technology as potentially rich, yet
for organisations, and your answers to the I predicted that “the process of Customer technology as particularly challenging, arenas for customer
survey provide valuable insights into the Engagement will become one of, if not the, potentially rich, engagement. It is on these platforms that the
reasons why. The results indicate where the central focus for your digital activities in the yet particularly largest gap between engagement and mone-
focus for agencies and businesses will be in coming years”. This is certainly born out by challenging, arenas tisation is at the moment.
the next 12 months, how critical you think the 2008 survey results. Indeed, since the for customer I believe the ability to develop and
some of the recent developments in the publication of last year’s report, the term engagement. refine a ‘light-touch’ approach based upon
digital environment are and, perhaps most and concept of engagement has entered a deeper psychological understanding of our
importantly, why they will be significant for mainstream business consciousness. customers will be an essential counter balance
you in the near future. Last year I encouraged readers to to the more bullish marketing practices that
The survey also shows that there are still share their thoughts on the report and have shaped much of the digital terrain in
barriers to achieving effective online customer send us examples and stories of their own the last 10 years.
engagement. For instance, organisations experiences. In response to that feedback
do not always manage to assign individuals we have extended this year’s report with
thought pieces by some of cScape’s Customer
Engagement Unit consultants as well as
comments on the survey results by other key
figures in the digital industry.


Planet Web 2.0 has brought into sharp focus not only the risk of
customer disengagement but also the tremendous opportunities
available to those who listen and interact effectively.

The importance of engagement

Finally, I would like to thank all of those There is no universally accepted definition that interaction. The correlation between advertising for them, thereby reducing
who have invested their time, energy, of what customer engagement1 is or how it enhanced engagement and greater business the need for ad spend and increasing the
finances and intellect in this report. Thanks should be measured, but the importance of success has never been more instantly amount of money available for customer
to the contributors - Jim, Avinash, Andy, engaging customers effectively both online apparent. engagement initiatives spanning product
Pete, Clare and Steve - to Linus and Ashley and offline is now surely beyond question. Planet Web 2.0 and its omnipresent design, customer services and website
at E-consultancy, and to all my colleagues Advocates of the top-down approach to satellites (i.e. social networks, blogs and improvements. A virtuous circle if ever there
at cScape, in particular Rob, Theresa, Theo, marketing, versed in the old-school methods user-generated content) have brought into was one.
Lucy, Dave, Nathalie, Ed and Tom. of broadcast advertising and complacent sharp focus not only the risk of customer
We all hope you find the second Annual in their ability to drown out dissenting disengagement but also the tremendous Linus Gregoriadis,
Online Customer Engagement Survey voices, have been keeping a very low profile opportunities available to those who listen Head of Research, E-consultancy
Report interesting and useful and that you’ll recently. and interact effectively. We are now living in linus@e-consultancy.com
share your thoughts on its content. Conversely, those who have long been world of ‘word-of-mouth on steroids’2, which
talking about the need for a customer-centric means that organisations need to work much
Richard Sedley approach and integrated experience have harder to make sure that feedback, praise
cScape Customer Engagement Director come into the limelight because they are no and criticism from all-powerful consumers is
r.sedley@cscape.com longer seen as preaching something which being both heard and ‘actioned’. 1
The following, adapted from a definition by Ron
is somehow detached from ‘real’ business The most enlightened companies are not Shevlin, was suggested by Richard Sedley for the
first Annual Online Customer Engagement Survey
numbers containing pound or dollar signs. just paying lip-service to what consumers
report: “Repeated interactions that strengthen the
Although Online Customer Engagement are saying. They are facilitating interaction emotional, psychological or physical investment a
is very much part of a bigger, more integrated between their customers and also changing customer has in a brand.”
picture, it has emerged as a fascinating their organisational processes so that the
and, to an extent, discrete area of study voice of the customer is heard at the product 2
This phrase was used by Will McInnes of Nixon
because of the unprecedented scope the design stage. McInnes at an E-consultancy Social Media
roundtable: http://www.e-consultancy.com/publica-
digital environment allows to interact with When companies get things right, they
tions/social-media-briefing-2007/
customers repeatedly, and also to measure can rely on their customers to do their


More than 1,000 respondents there has been a significant improvement
participated in the E-consultancy in the number of organisations who are
/ cScape Customer Engagement either ‘very advanced’ or ‘quite advanced’
Unit second Annual Online Customer at mapping customer experiences in order
Engagement Survey. to identify different touch points.
It is clear from this research that more A consistent online and offline
organisations are embracing the concept of customer experience is rightly perceived to
customer engagement and recognising this be very important. However, ‘efficient and
as a key requirement for business success. accessible customer services’ are seen as
The overwhelming majority of company even more important strategies. For many
respondents (90%) say that online companies, customer engagement is still
customer engagement is either ‘essential’ more about getting the basics right than
or ‘important’ to their organisations, while adopting Web 2.0 tools and technologies.
three-quarters of respondents (77%) say That is not to say that Web 2.0 tools and
that its importance has increased in the last technologies are not playing an important
12 months. role in the customer engagement process.
The numerous benefits of customer On a tactical level, the most commonly
engagement explain why there is an used methods of engagement are blogging
increased focus on this subject. The most sites, video-sharing sites and social
frequently cited benefits for organisa- networking. Widgets are very much
tions implementing customer engagement on the radar, with more than a third of
initiatives over the last 12 months are organisations planning to use both web-
‘improved customer loyalty’ and ‘increased based and desktop-based widgets and
revenue’. applications.
Companies are getting better at realising Expectations are already building
that they need an integrated approach around the role of the mobile channel
which embraces all the channels used by as a tool for engaging customers in the
their customers. ‘A consistent online and near future, with two thirds of company

Executive Summary offline customer experience’ is seen as
‘essential’ or ‘very important’ by 86% of
respondents (64%) saying that this will
be ‘essential’ or ‘important’ for customer
organisations. engagement in the next three years.
There is also evidence that more The respondents, including 456
companies are actually taking steps to ‘in-house’ respondents and 438 agency
deliver a more integrated experience. Since respondents, completed an online survey
the first Annual Customer Engagement over a five-week period in September and
Report, published at the end of 2006, October 2007.


Methodology and Sample
Figure 1 Figure 2 Figure 3
What type of organisation do you work for? Company: Respondents by geography Agency: Respondents by geography

Part of an in-house team (client-side): UK: 70.82% (216) UK: 58.8% (157)
45.42% (456)
External agency: 43.63% (438) Europe (non-UK): 8.2% (25) Europe (non-UK): 13.48% (36)

Other: 10.96% (110) North America: 12.46% (38) North America: 13.86% (37)

Other: 8.52% (26) Other: 13.86% (37)
Automotive: 1.31% (4)

Charity: 5.88% (18)

Consultancy / Marketing Services: 3.27% (10)

Entertainment: 4.58% (14)

Financial Services (including insurance): 17.32% (53)

FMCG / CPG: 1.63% (5)

Gaming: 0.65% (2)
More than 1,000 respondents participated in the online survey over Figure 4
a five-week period in September and October 2007. E-consultancy Company: Respondents by business sector Healthcare: 1.63% (2)

and cScape would like to thank those who took the time to complete Pharmaceuticals: 0.98% (3)
the questionnaire. Information about the research, including the
survey link, was emailed to E-consultancy’s user base. Automotive: 1.31% (4) Property: 0.98% (3)

Charity: 5.88% (18) Public sector: 6.21% (19)
Respondent profiles
Consultancy / Marketing Services: 3.27% (10) Publishing: 8.17% (25)

The vast majority of survey respondents work either for in-house Entertainment: 4.58% (14) Retail: 11.76% (36)
teams (i.e. ‘client-side’ organisations), or for external agencies
(including consultants and technology suppliers). For the purposes Financial Services (including insurance): 17.32% (53) Telecoms / Mobile phones: 5.23% (16)

of this report, this distinction is abbreviated to companies FMCG / CPG: 1.63% (5) Travel: 6.86% (21)
(including not-for-profit organisations) and agencies.
In total, 456 company respondents took part in the survey, Gaming: 0.65% (2) Utilities Energy: 0.98% (3)

compared to 438 agency participants. Company respondents were Healthcare: 1.63% (2) Other manufacturing: 2.94% (9)
asked to comment in respect of their own organisations, while
agencies were mostly asked to comment in terms of a typical client. Pharmaceuticals: 0.98% (3) Other: 19.61% (60)

Property: 0.98% (3)

Public sector: 6.21% (19)


Importance and benefits of
Customer Engagement
Importance of Online Customer have’. Less than 1% of respondents say this
Engagement is ‘not important’.
From the perspective of agencies
Advocates of customer engagement will [Figure 8], the proportion of companies
be heartened to learn that organisations who regard this area as essential is closer
are typically taking the idea of customer to a third (38%). Agencies also report a
engagement more seriously than they were higher number of organisations treating
a year ago. More than three-quarters of this as a nice-to-have (16%). However, it
companies (77%) say that its importance is encouraging that agency responses also
has increased in the last 12 months [Figure 5]. point to a high level of significance being
A similar proportion of agencies (75%) attached to customer engagement, with
say that it has become more important for 82% saying that it is either essential or
their clients [Figure 6]. important to their clients (compared to
The evidence suggests that those 90% of companies).
championing customer engagement
within organisations are being listened
to. Just a handful of respondents say that
its importance has declined and only a The evidence suggests that
fifth of company respondents say that its those championing customer
importance has remained the same (18%).
engagement within organisations
Continuing with the theme of the increased are being listened to.
prominence of customer engagement within
organisations, half of company respondents

Findings (50%) now regard the online dimension of
this discipline as ‘essential’ to their organi-
sations, with a further 40% saying that it
is ‘important’ [Figure 7]. This again shows
how most organisations are taking steps to
address this area, although there are 8% of
companies treating this only as a ‘nice-to-

8


Figure 5 Figure 7
Company: Has the importance of online customer engagement Company: How important is online customer engagement for your
changed for your organisation over the last 12 months? organisation?

Increased: 76.54% (274) Essential: 49.72% (178) More than three-quarters
Remained the same: 18.44% (66) Important: 40.22% (144)
of companies (77%) say that
the importance of customer
Declined: 1.12% (4) Nice to have: 8.38% (30)
engagement has increased in the
last 12 months.
Don’t know / Not relevant: 3.91% (14) Not important: 0.84% (3)

Don’t know / Not relevant: 0.84% (3)

Figure 6 Figure 8
Agency: Has the importance of online customer engagement Agency: Typically, how important is online customer engagement for
typically changed for your clients over the last 12 months? your clients?

Increased: 75.45% (249) Essential: 37.76% (125)

Remained the same: 19.7% (65) Important: 43.81% (145)

Declined: 0.91% (3) Nice to have: 16.01% (53)

Don’t know / Not relevant: 3.94% (13) Not important: 1.81% (6)

Don’t know / Not relevant: 0.6% (2)

COMMENT

Jim Sterne Figure 9
Defining the terms of engagement Company: How has your organisation benefited from customer
engagement initiatives in the last 12 months?3

Improved customer loyalty: 43.22% (153)
The E-consultancy / cScape second Annual kicking around a definition and were finally in
Online Customer Engagement Report agreement that an engaged customer is one Increased revenue: 43.22% (153)
highlights a serious problem for marketing who participates and provides feedback.
Increased profits: 14.41% (51)
today; the lack of clarity in the way we define Quick conversion, repeat purchases and
basic terms. recommendations are indicators of customer Bigger market share: 15.82% (56)
In particular, the varying responses to the loyalty, and they are all desirable outcomes
Improved employee satisfaction: 9.04% (32)
survey question “Which best describes an of engagement. Engagement measurement
engaged customer for your organisation?” can and should involve taking into account Jim Sterne Enhanced public image: 28.25% (100)
gave an excellent - and disturbing - indication prospective customers as well as those who produces the
Reduced marketing costs: 23.73% (84)
of how little we agree on the terms. Different have already purchased. eMetrics Marketing
respondents identified “Recommends product, We have to ask ourselves questions Optimization Reduced customer service costs: 15.82% (56)
service or brand”, “Converts more readily” like “Is our advertising engaging?”; “Is our Summit and is the
Improved business predictability: 8.47% (30)
and “Purchases regularly” as their most website actively pulling people deeper Founding President
trustworthy guideposts to engagement. into a relationship with the brand so of the Web Analytics None / Not relevant: 17.51% (62)
that they might become customers?” We Association. He is Figure 10
Engagement measurement can should look at measuring and boosting an international Agency: How have your clients’ organisations benefited from
participation and feedback activities in order consultant customer engagement initiatives in the last 12 months?3
and should involve taking into
to boost conversion, repeat purchases and who focuses on
account prospective customers as recommendations. measuring the value Improved customer loyalty: 58.23% (191)
well as those who have already This rendition of the Annual Online of the web as a
Increased revenue: 52.13% (171)
purchased. Customer Engagement Survey brings to light medium for creating
that there is a great deal of education yet to and strengthening Increased profits: 29.27% (96)
For us web analysts, engagement is much be done, even among the cognoscenti. Why customer
Bigger market share: 17.07% (56)
more of an immediate metric: Are website am I so intent on nailing this “engagement” relationships. Jim has
visitors or mobile content consumers engaged term to the wall? Because tens of thousands written eight books Improved employee satisfaction: 11.59% (38)
at-the-moment? How do you determine and of pounds are being spent in pursuit of this on using the internet
Enhanced public image: 32.93% (108)
measure this sort of engagement in order to elusive objective. Soon this figure will run for marketing and
increase it? Such questions are imperative. into the millions, but agencies risk writing was named one Reduced marketing costs: 22.56% (74)
This became apparent at a recent panel proposals for clients to sign off without either of the 50 most
Reduced customer service costs: 15.85% (52)
discussion about engagement, which I and a side ever being sure what is actually being sold influential people in
number of other web analytics professionals or bought. It seems that defining the terms is digital marketing by Improved business predictability: 10.06% (33)
participated in. We spent a good deal of time more important than ever. Revolution magazine.
None / Not relevant: 7.01% (23)

3
Methodology note: respondents could check up to three options
10


Benefits of customer engagement It can be seen that ‘improved business Figure 11
predictability’ was the least reported benefit Company: Which of the following best describes your organisation’s
The growing importance of customer of customer engagement. While companies interest in online customer engagement?
engagement is perfectly understandable are recognising that customer loyalty is
when one considers the gains enjoyed by an important benefit, there is not yet a Strengthening emotional investment in your brand:
21.23% (76)
organisations as a result of initiatives in this significant realisation that companies can
Reducing acquisition costs and increasing conversions:
area. take important steps towards guaranteeing 31.56% (113)
There is not yet Survey respondents were asked to their future performance (i.e. improving Deepening and enriching your product or service offering:
32.68% (117)
a significant indicate three ways in which their companies business predictability) by achieving certain
Adjusting to the increased importance and power of
realisation that had benefited from customer engagement levels of customer engagement and loyalty. the customer: 14.53% (52)
companies can initiatives in the last 12 months. It can be
take important seen that ‘improved customer loyalty’ and From the agency viewpoint, the most widely
steps towards ‘increased revenue’ are the most widely seen benefit from customer engagement
guaranteeing their reaped benefits [Figures 9 and 10]. is improved customer loyalty, with 58%
future performance The prominence of these two benefits of respondents saying that this has been
by achieving certain shows how customer engagement is an important benefit for their clients.
levels of customer intrinsically linked with tangible business More than half of agencies (52%) say that
engagement. objectives for most companies, i.e. improved increased revenue is a top-three benefit.
customer acquisition and retention with
a view to increased income and profit. Interest in Customer Engagement
Improved customer loyalty means reduced Figure 12
loss of business through churn and increased All four of the attributes of customer Agency: Which of the following best describes your organisation’s
word-of-mouth marketing. engagement shown in Figure 11 resonate interest in online customer engagement?
It is very significant that improved with significant numbers of company
customer loyalty is a benefit as widely respondents, illustrating how customer Strengthening emotional investment in your brand:
acknowledged as increased revenue. This engagement has a positive impact across a 18.37% (61)
Reducing acquisition costs and increasing conversions:
shows that the traditional, almost exclusive wide range of areas. 31.33% (104)
focus on short-term revenue increases is Deepening and enriching your product or service offering:
beginning to be displaced by other priorities ‘Deepening and enriching your product or 32.23% (107)
Adjusting to the increased importance and power of
and a less blinkered approach. There is now service offering’ is the primary interest for a the customer: 18.07% (60)
much greater understanding that marketing third of company respondents (33%), very
initiatives can have targets that relate to prof- slightly ahead of ‘reducing acquisition costs
itability indirectly. For example, improving and increasing conversions’ (32%).
customer loyalty as a goal of implementing It is significant that those respondents
customer engagement will in turn have a who regard their company’s primary
positive impact on profits. interest in customer engagement to be

11


about the cost of acquisition and number Describing an engaged customer Figure 13
of conversions are outnumbered by those Company: Which of the following best describes an engaged customer for
who are interested primarily in enhancing Survey respondents were asked to give up to your organisation?4
the customer experience and deepening three descriptions of what best describes an
relationships. This shows that organisa- Engagement is more ‘engaged customer’. The most widely given Purchases regularly: 36.34% (129)

tions are learning to value other customer likely to be seen description was that this type of customer Provides feedback regularly: 26.76% (95)
behaviours and actions rather than just as an opportunity ‘recommends product, service or brand’.
looking at the purchase. to connect with Some 59% of company respondents and Recommends product, service or brand: 59.44% (211)

customers rather 62% of agency respondents said this was a Participates in innovation and design: 11.27% (40)
About a fifth of companies (21%) are than as a damage- top-three attribute [Figures 13 14].
primarily interested in ‘strengthening limitation tactic. A customer’s propensity to recommend Participates in online communities or support groups:
32.39% (115)
emotional investment in [their] brand’, a product, service or brand is an excellent Is less focused on price: 23.38% (83)
while 15% say that customer engagement metric for organisations to measure
is most importantly about ‘adjusting to because it shows the level of goodwill a Is more tolerant of mistakes: 6.76% (24)
the increased importance and power of the customer exhibits towards a brand, and can Converts more readily: 44.51% (158)
customer’ [Figure 11]. be more closely correlated with business
It is encouraging that customer performance than their ‘satisfaction’. Satis- Other: 6.48% (23)

engagement is seen by less than a sixth of faction is an inferior metric because it
responding organisations in the rather more doesn’t give a very good indication as to Figure 14
negative context of having to adjust to the whether a customer will exhibit the right Agency: Which of the following best describes an engaged customer?4
increased power of the customer. Customer behaviours. For example, someone may
engagement is more likely to be seen as an be satisfied but that may not stop them Purchases regularly: 28.27% (93)
opportunity to connect with customers defecting to a competitor.
Provides feedback regularly: 31% (102)
rather than as a damage-limitation tactic. Companies are increasingly recognising
It is striking how closely the agency that they need their customers to become Recommends product, service or brand: 62.92% (207)
responses match the company responses advocates of their brand in an age where the
Participates in innovation and design: 22.49% (74)
in terms of the percentages for each voice of a happy or disgruntled customer can
description. Agencies are slightly more be amplified like never before. Participates in online communities or support groups:
likely than companies to single out Surprisingly, only a quarter of company 31.31% (103)
Is less focused on price: 29.18% (96)
‘adjusting to the increased importance and respondents (27%) say that ‘providing
power of the customer’ and slightly less feedback regularly’ is among the top- Is more tolerant of mistakes: 9.12% (30)
likely to highlight ‘strengthening emotional three best descriptions. Some of the most
Converts more readily: 44.68% (147)
investment in a brand’. enlightened organisations are systemati-
cally using customer feedback to inform Other: 4.56% (15)
their strategy around the design of products
and services.

4
Methodology note: respondents could check up to three options
12

Sales: 16.76% (60)

Marketing: 70.95% (254)

Communications: 21.23% (76)

Web / Digital team: 58.66% (210)

Similarly, there are still too many Figure 15 Customer service: 20.11% (72)
companies taking a top-down approach of Company: Who is directly responsible for improving online customer engagement in your organisation?5
Operations: 7.82% (28)
building something without due consid-
eration as to what customers actually want. Sales: 16.76% (60) IT: 16.48% (59)
Only 11% of respondents cite ‘participa- Successful
Marketing: 70.95% (254) Senior management: 24.86% (89)
tion in innovation and design’ as a key engagement
attribute, a figure which does not do justice involves Communications: 21.23% (76) No specific department / individual responsible for
to the size of the opportunity. co-operation this: 4.19% (15)
Web / Digital team: 58.66% (210) No-one is responsible: 1.12% (4)
and integration
Responsibility for Online between a range Customer service: 20.11% (72) Other: 6.15% (22)
of departments
Customer Engagement Operations: 7.82% (28)
and disciplines.
Figures 15 16 clearly show that the IT: 16.48% (59) Sales: 22.49% (74)
marketing department is the part of the
Senior management: 24.86% (89) Marketing: 75.38% (248)
business most likely to be directly responsible
for online customer engagement, closely No specific department / individual responsible for
Communications: 26.75% (88)
this: 4.19% (15)
followed by the web / digital team. Only
No-one is responsible: 1.12% (4) Web / Digital team: 47.72% (157)
a quarter of respondents say that senior
management is directly responsible. Figure 16 Other: 6.15% (22) Customer service: 23.4% (77)
Generally speaking, successful customer Agency: Who is typically directly responsible for improving online customer engagement in your clients’ organisations?5
engagement involves co-operation and
integration between a range of departments Sales: 22.49% (74) IT: 14.29% (47)
and disciplines. Senior managers may
Marketing: 75.38% (248) Senior management: 29.79% (98)
not have to be directly responsible for
the ‘online’ part of the equation but it is Communications: 26.75% (88) No specific department / individual responsible for
certainly crucial that they buy into the this: 6.69% (22)
Web / Digital team: 47.72% (157) No-one is responsible: 1.82% (6)
concept and give their full backing to any
initiatives which are in place. Customer service: 23.4% (77) Other: 2.74% (9)


IT: 14.29% (47)

Senior management: 29.79% (98)

No specific department / individual responsible for
this: 6.69% (22)
No-one is responsible: 1.82% (6)

Other: 2.74% (9)
5
Methodology note: respondents could check multiple items
1


New Engagement Strategies

Strategies for engaging with your The concept of building a sense of Figure 17
community is perhaps the only one of these Company: Which of the following do you feel are central to engaging with your audience online?
audience online
four top strategies which can be deemed
Figure 17 shows a range of strategies or to be a pure-blooded Web 2.0 form of
approaches for achieving online customer engagement.
engagement and how they are related The majority of respondents believe 100
by company respondents in terms of that ‘soliciting user-generated content’ and
importance. ‘participation on social networking sites’ 80
‘Efficient and accessible customer are only a ‘nice-to-have’ or ‘not important’.
services’ are seen as essential by 45% of Some 43% of respondents say that UGC on
respondents, and as very important by a their websites is essential or very important 60
further 41%. Amid all the talk in recent but that figure drops to only 21% for
months about the use of Web 2.0 and rich participation on networking sites.
media to deepen customer relationships, it It is surprising that less than half of 40
100

is a bump back down to earth in light of company respondents view UGC as
80
reliable customer services still being seen as essential, given the well documented
20
the most important strategy for customer advantages of features such as ratings 60
engagement. and reviews on a website. It is something
The next most essential strategy is a of a paradox that advocacy is the most 40 0
‘consistent online and offline customer widely perceived behavioural trait of an A B C D E F G H I J
20
experience’ – something which 39% of engaged customer, and yet the majority of
companies see as essential and 47% see companies have not prioritised the solicita- Essential Very
0
A B C D E F G H I J important
as very important. There is an increased tion of UGC.
recognition of the need for an integrated Participation in social networking is A Consistent online and offline Customer Experience Very
38.80% (123)
Not
47.00% (149) 10.4
Essential Nice to have important Don't know
approach across different channels. We well down on the priority list even though B Frank and open communications on products / services important 27.90% (89) 49.84% (159) 19.7
A Consistent online and offline Customer Experience 38.80% (123) 47.00% (149) 10.41% (33) 3.15% (10) 0.63% (2)
will see later in the report that companies the importance of building a sense of B C Soliciting user-generated content
Frank and open communications on products / services 27.90% (89) 49.84% (159) 12.54%
19.75% (63) (40) (8) 30.41% (0)
2.51% 0.00% (97) 38.5
C Soliciting user-generated content
are getting more proficient at mapping community is widely acknowledged. At the D Participation on social networking sites,
networking sites, 12.54% (40) 30.41% (97)
D Participation on social e.g Facebook LinkedIn e.g Facebook LinkedIn
4.09% (13) 17.30% (55)
38.56% (123)
4.09%
36.79% (117)
(13) (56)17.30% (3)
17.55%
39.62% (126)
0.94%
2.20%
(55)
(7)
36.7
customer experiences in order to identify moment, many organisations are wondering E EPersonalised experiences experiences
Personalised 21.14% (67) 37.54% (119) 21.14%
34.38% (109) (67) (21)37.54% (1)
6.62% 0.32% (119) 34.3
F Communicating corporate social responsibility 9.12% (29) 30.50% (97) 41.19% (131) 17.61% (56) 1.57% (5)
different touch points. what to do with social networks, whether G FBuilding a sense of communitycorporate social responsibility (111) 34.28% (109)
Communicating around products / services / brand 34.91% 9.12%
24.84% (79) (29) (18)30.50% (1)
5.66% 0.31% (97) 41.1
The joint-third most important strategies they should get involved and, if this is H G Building fears of using thecommunity around products / services / brand
Allaying audience a sense of digital channels 18.67% (59) 41.77% (132) 34.91%
19.94% (63) (111) (54)34.28% (8)
17.09% 2.53% (109) 24.8
I Efficient and accessible customer services 45.45% (145) 41.07% (131) 10.97% (35) 2.19% (7) 0.31% (1)
for engaging with an audience online appropriate, how they should make their H Allayingpersuasive copy fears of using the digital channels 51.88% (166)
J Compelling and audience 34.69% (111) 18.67%
11.25% (36) (59) (2) 41.77% (5)
0.63% 1.56% (132) 19.9
are deemed to be ‘building a sense of presence felt. Companies are still adjusting I Efficient and accessible customer services 45.45% (145) 41.07% (131) 10.9
community around product / services / to the idea that a web presence is not just J Compelling and persuasive copy 34.69% (111) 51.88% (166) 11.2
brand’ and ‘compelling and persuasive about having a destination website, but
copy’, both judged as essential by 35% of also a presence on third party websites, for
respondents. example social networks.

1


Figure 18 Figure 19
Company: Which of the following does your organisation use to Agency: Typically, which of the following do your clients use to increase
increase online customer engagement? online customer engagement?

100 100

80 80

60 60

100 100
40 40
80 80

20 20
60 60

40 40
0 0
A B C D E F G H I A B C D E F G H I
20 20

No plans to Don't know
0
A B C D E F G H I
Currently use Plan to use 0use
A B C D /not relevant H I
E F G
Currently use Plan to use
A Social networks (e.g. Facebook) 19.03% plans to
No
(59) 31.94%
Don't know
(99) 38.06%Social networks (e.g. Facebook)
A (118) 10.97% (34) 30.07% plans to
No
(83) 35.87% (99)
Don't know
Currently use Plan to use use /not relevant Currently use Plan to use use /not relevant
B Video-sharing websites (e.g. YouTube) 21.29% (66) 28.71% (89) 37.42%Video-sharing websites (e.g. YouTube)
B (116) 12.58% (39) 32.61% (90) 29.71% (82)
A Social networks (e.g. Facebook) 19.03% (59) 31.94% (99) 38.06% (118) 10.97% (34) A Social networks (e.g. Facebook) 30.07% (83) 35.87% (99) 25.36% (70) 8.70% (24)
BC Video-sharing websites (e.g. YouTube) (e.g. iTunes)
Audio-sharing websites 21.29% (66) 28.71% (89) 13.77% (116)
37.42% (42) 16.39%
12.58% (39) (50) 53.77%Audio-sharing websites (e.g. iTunes)
B CVideo-sharing websites 16.07%
(164) (e.g. YouTube) (49) 32.61% (90) 29.71% (82) 14.44% (80)
28.99% (39) 8.70% 24.07% (65)
(24)
Image-sharing websites (e.g. Flickr)
CDAudio-sharing websites (e.g. iTunes) 13.77% (42) 16.39% (50) 13.86% (164)
53.77% (42) 18.15%
16.07% (49) (55) 54.13%Image-sharing websites (e.g. Flickr)
C DAudio-sharing websites 13.86%
(164) (e.g. iTunes) (42) 14.44% (39) 24.07% (65) 22.71% (122)
45.19% (62) 16.30% (44)
22.71% (62)
D Image-sharing websites (e.g. Flickr) 13.86% (42) 18.15% (55) 54.13% (164) 13.86% (42) D Image-sharing websites (e.g. Flickr) 22.71% (62) 22.71% (62) 42.49% (116) 12.09% (33)
E E Social news sites / bookmarkingbookmarking (e.g. Digg)
Social news sites / (e.g. Digg) 16.17% (49) 31.68% (96) 16.17% (116)
38.28% (49) 31.68%
13.86% (42) (96) 38.28%Socialsites / bookmarking bookmarking (e.g. Digg)
E E Social news news sites / (e.g. Digg)
(116) 13.86% (42) 20.15% (55) 30.40% (83) 20.15% (95)
34.80% (55) 14.65% (40)
30.40% (83)
F F Blogging sites (e.g. Blogger, My Telegraph) My Telegraph)
Blogging sites (e.g. Blogger, 21.47% (67) 35.58% (111) 21.47% (98)
31.41% (67) 35.58%
11.54% (36) (111) 31.41%Blogging sites (e.g.Telegraph) My Telegraph)
F F Blogging(98)(e.g. Blogger, My Blogger,
sites 11.54% (36) 41.16% (114) 29.96% (83) 41.16% (64)
23.10% (114) 5.78% 29.96% (83)
(16)
G Social knowledge sharing (e.g. Wikipedia, Yahoo Answers) 16.56% (51) 31.49% (97) 38.64% (119) 13.31% (41) G Social knowledge sharing (e.g. Wikipedia, Yahoo Answers) 23.38% (65) 28.42% (79) 36.69% (102) 11.51% (32)
HGDesktop based applications / widgets / gadgets Wikipedia,14.61% (45)
Social knowledge sharing (e.g. Yahoo Answers) 34.74% (107) 16.56% (117)
37.99% (51) 31.49%
12.66% (39) (97) 38.64%Social knowledgewidgets / gadgets Wikipedia, Yahoo (61) 34.30% (95) 23.38% (88) 11.91% (33)
based applications / sharing (e.g.
H GDesktop (119) 13.31% (41) 22.02% Answers) 31.77% (65) 28.42% (79)
Desktop based applications / widgets / gadgets (55) 38.98% (122)14.61% (95)
I HWeb-based widgets / badges / gadgets 17.57% 30.35% (45) 34.74%
13.10% (41) (107) 37.99%Desktop based applications / widgets / gadgets (71) 36.73% (101)22.02% (75) 10.18% (28)
I HWeb-based widgets / badges / gadgets (39)
(117) 12.66% 25.82% 27.27% (61) 34.30% (95)
I Web-based widgets / badges / gadgets 17.57% (55) 38.98% (122) 30.35%Web-based widgets / badges / gadgets
I (95) 13.10% (41) 25.82% (71) 36.73% (101)

1

COMMENT

Andy Beal Methods of increasing
Social media must be added to the engagement
engagement mix
The second Annual Online Customer having a complete picture of the different This section looks more specifically at Web Figure 20
Engagement Survey demonstrates just how touch points with their customers, the 2.0-type tactics and technologies which are Company: How important do you think the mobile channel will be
important online customer engagement is majority of companies would be wise to increasingly being used by organisations. for customer engagement in the next three years?
going to be over the next 12 months. With 90% invest time in researching further exactly The extent to which a variety of methods
of businesses indicating that online customer where their customer interaction takes are being used to increase online customer Essential: 19.57% (63)

engagement is important—if not essential— place. They may well find that blogs, social engagement is shown in Figures 18 19. Important: 44.41% (143)
to their marketing efforts, and 77% planning to networks and other social media make Blogging and video-sharing sites are the
increase their focus on customer engagement, up an important part of their customer methods most frequently used, with 21% Nice to have: 23.29% (75)

2008 is shaping up to be the year we start engagement for 2008. of company respondents using each of Not important: 8.7% (28)
truly to listen to our customers. these tactics.
Having said that, companies are yet to The tactic most likely to be on the Don’t know / Not relevant: 4.04%
(13)
embrace the importance of social media as Companies would do well to radar is the use of web-based widgets, with
platforms for improving online customer just under 40% of companies saying they
understand that customer
engagement. The study reveals that far too are planning this [Figure 18]. Desktop-
many businesses believe that customer
engagement can’t be controlled based applications or widgets are also
engagement is simply a product of customer within their own websites. being planned by more than a third of
experience (38%) or is a role for customer companies. Widgets are increasingly Figure 21
service (46%). Only 12% of businesses consider popular vehicles for engagement because Agency: How important do you think the mobile channel will be for
user-generated content essential to improve they can give visibility to brands, products customer engagement in the next three years?
customer engagement and less than 5% think and services in an increasingly fragmented
the same of social networking sites such as online world. In the future, people will be Essential: 31.25% (90)

Facebook. In fact, at least a third of those less likely to proactively visit websites but Important: 47.57% (137)
polled have no plans to use social media at more likely to customise their home pages
all in their customer engagement initiatives to pull in relevant information (contained Nice to have: 17.71% (51)

and only a quarter of companies feel that in feeds and widgets). Not important: 2.78% (8)
monitoring social networks is important. The figures show that social networking
Companies would do well to understand sites are being used or considered by half Don’t know / Not relevant: 0.69%
(2)
that customer engagement cannot be Andy Beal is an online marketing expert. of company respondents, a finding which
controlled within their own websites and that He is editor of MarketingPilgrim.com, is surprising because it was seen in the
they should look to improve their customer received a nomination for the 2006 previous section that the vast majority of
interactions outside of their own web “Fast 50” and was named in the Triangle respondents regard a strategy of participa-
properties. With less than 50% of businesses Business Journal’s “40 Under 40”. tion on social network sites as either not

1

Annual Online Customer Engagement Survey Report 2008 Highlights Importance of Engagement

Annual Online Customer Engagement Survey Report 2008 Highlights Importance of Engagement

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