Adobe and the Economist Intelligence Unit (EIU) recently ran a global survey that identified customer engagement - "establishing a deep connection with the customer that endures over time - as an increasingly important business mandate." The survey findings were released on March 31st in conjunction with Adobe’s annual financial analyst meeting, in a report titled "Beyond Loyalty: Meeting the Challenge of Customer Engagement."
“Executives are increasingly finding that the winning differentiator is no longer product or price, but the level of customer engagement relative to the competition,” said Rama Ramaswami, senior editor of the EIU. “Companies see there is a competitive advantage in going beyond traditional customer loyalty programs to create engaged customers.”
“The secret to success isn’t just about gathering or churning data, it’s about how you connect with customers through the medium of their choice,” said Adobe CEO Bruce Chizen. “Customers now demand information and interaction anytime, anywhere and through any medium."
- More than 8 in 10 executives believe their companies lose sales each year because of failure to create engaged customers
- 1 in 10 estimates insufficient engagement accounts for 50 to 75 percent of lost sales.
- Nearly 90 % of respondents say that customer relationships are either very or extremely important to the success of their business.
- More customer engagement, executives believe, would translate into improved customer loyalty (80 %), increased revenue (76 %) and increased profits (75 %).
- 79% percent of executives surveyed say that engaged customers are very important because they recommend products and services to others;
- 64 % say they are frequent purchasers;
- 61% say they provide frequent feedback on products and services;
- 55 % believe they are less price-sensitive.
- Just 13 % of respondents believe their customers are very committed to their company’s products
- 44 % believe their customers are only somewhat committed.
- 49% of respondents estimate that insufficient customer engagement accounts for up to 25% percent of lost sales each year
- 26 % believe that insufficient customer engagement costs them between 25% and 50%.
- 11% place the contribution to lost sales somewhere between 50 % and 75 %
- 47% say that the difficulty of measuring customer engagement is the biggest barrier to achieving greater levels of engagement.