Growing influence of Web 2.0 and social networks
Social networks and other manifestations of the online applications and platforms collectively described as ‘Web 2.0’ are playing an increasing role in the lives of consumers.
Consumers are not only spending more time using Web 2.0 applications like Facebook to socialise and stay connected with friends and family; they are also using them to become more informed about a broad range of issues and topics – ranging from potential holiday destinations and career plans to world events.
Importantly, they are using their new found social connections and research power to make purchasing decisions, by making enquiries about other consumers’ usage of specific products and services and experiences in dealing with vendors.
Web 2.0 is having a dramatic impact on the way companies like yours interact with customers, and in particular how they use the online channel as a customer acquisition, customer service and customer retention environment.
If your company sells directly to consumers, then it is very likely that dozens of current and potential customers are researching your company’s brand and product or service quality reputation while you’re reading this.
Hyro has identified four key trends that you should factor into your plans for customer engagement via your company’s digital channel:
Consumer preferences
Customer preferences for brands, products and services are no longer based exclusively on information communicated via traditional media or even company websites. In fact, consumers increasingly report that they consider traditional marketing an unreliable source of information, reflecting mass media’s diminishing effect.
Customers’ preferences, decisions and perceptions of your brand, products and services are increasingly influenced by information communicated via channels beyond your direct control, such as peer reviews and recommendations (or “positive word-of-mouth”).
Consumer decision-making process
As these uncontrollable factors influence consumer behaviour, the traditional customer purchase process is evolving. Influencing customer behaviour by traditional marketing media and practices is becoming less and less effective, and new approaches to influencing the consumer decision-making process must be adopted.
Customer advocacy
In this new environment, a greater emphasis must be placed on enhancing the customer experience of your company and its brand, products or services. This includes meeting customers’ information needs prior to purchase, and satisfying their customer service expectations during and after purchase. Meeting and exceeding customers’ expectations is the key to generating positive word-of-mouth.
One-to-one marketing
Consumers are increasingly expecting organisations to respond to this rise in consumer empowerment and individualism by providing personalised products, services and product/service experiences. Whereas this is quite difficult in traditional offline customer service contexts (such as call centres and retail outlets), it is comparatively easier and cost effective to achieve in the online channel.
The role of your company’s website, and other customer engagement activities conducted via online channels should be reviewed in this changed context, with a view to identifying opportunities for achieving meaningful customer interaction and communication that not only drives customer acquisition and loyalty but also positive referrals and recommendations.























