According to a Forrester Consulting “thought leadership paper” commissioned by SAP, companies are trying to better leverage customer data to gain a richer understanding of their
prospective customers. This study finds that marketers’ primary focus in leveraging customer data is to improve segmentation and targeting, and to help create more personalized offers. A brief
summary, in the words of the study report, follows.
The study found that approximately 50% of companies are struggling to reach the right buyers and understand their customers because they
don’t have the right data or don’t know how to use it properly. Key challenges include:
- Lack of information about new buyers prior to making a purchase
- Inability
to utilize customer data effectively
- Inability to reach the right buyers
- Inability to reach buyers in appropriate channels
When asked what types of content
businesses considered to be most valuable in supporting online purchases, user generated content (including buyer ratings and reviews and Q&A discussions thread) topped the list, says the report.
Businesses recognize the impact that the peer-generated content can have in supporting purchase decisions yet user-generated content is what businesses have the hardest time connecting prospects
to.
Nearly two-thirds of marketers report the greatest dropout of online prospects occurs during the product discovery, exploration, and buy phases of the buyer journey. These pre-purchase
phases are the critical moments for marketers to deliver relevant messages and content that will drive purchases, says the report.
Primary Challenges In Supporting Prospects Online Purchasing Journeys |
Challenge | % of Respondents |
Inability to reach buyers in appropriate channels | 45% |
Inability to reach the
right buyers | 48% |
Inability to utilize customer data effectively | 55% |
Lack of information about new buyers prior to making a purchase | 59% |
Source: Forrester Consulting on behalf of SAP, August 2016 |
Marketers believe that online communities can offer a viable solution to deal with the many challenges they face, says the report, in having the right information about consumers,
reaching them at the right time, and providing access to user-generated content:
- 59% of companies believe that customers are using community-generated content when making
purchases.
- 77% of marketers agree that community-generated content accelerates buying decisions
- 71% agree that individuals who utilize community-generated content are more likely
to make a purchase those than those who don’t
Businesses recognize the value that communities can play in supporting prospects on their buyer journey. The study found businesses
are prioritizing these activities as they plan to improve online engagement with prospects to support better online purchasing experiences, says the report.
Communities Play A Key Role In Improving Online Engagement (% of Respondents) |
Activity | Already doing this / in process of doing this | Planning
to do this |
Increase awareness of branded community and social channels | 49% | 41% |
Investing in technology to better connect the exploration and purchasing phases of the buyer journey. | 49 | 39 |
Tighter integration of content between communities, product
catalogs, and commerce sites | 48 | 42 |
Enable easier
filtering and searching of product-related content on community and commerce sites | 46 | 39 |
Deepen the level of engagement with your buyers via communities | 44 | 42 |
Increasing activity on branded communities to stimulate a higher volume of buyer discussions | 38 | 48 |
Source: Forrester Consulting on behalf of SAP, August 2016 |
Marketers need a deeper understanding of their customers and prospects in order to achieve greater marketing success and improve online customer experiences,
concludes the report. Online communities are one specific way businesses can better understand and support current and new customers. However, just having an online community is not sufficient to
accomplish these goals. To fully realize the value that online communities can offer, marketing teams must first:
- Understand what data your business needs to support your marketing
goals and align your services to capture that data
- Leverage communities to capture greater customer insight and for driving user-generated content creation
- Make communities more
than just a single stop in the buyer journey
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