Social media key to increasing customer engagement

Social media key to increasing customer engagement and loyalty

Media Release Friday 5 February 2010
Communication Agencies Association of New Zealand

A Communication Agencies Association of New Zealand (CAANZ) Digital Leadership Group (DLG) survey has revealed that more than two thirds of New Zealand businesses believe social media is a key tool in increasing customer engagement and loyalty.

The survey also found that 70% of respondents believed social media allowed businesses to develop more meaningful one on one relationships with customers, which in turn allows agencies and marketers to gain a greater insight into customer thinking.

DLG Chair Tony Gardner said the survey provided a very useful snapshot of where New Zealand businesses are at regarding the use of social media.

“What was perhaps most telling was that 84% of businesses surveyed planned to allocate less than 5% of the organisation’s marketing budget on social media activities in 2010, at a time when social media is becoming the communication channel of choice for an increasing number of consumers.”

“You only have to look at the significant growth in internet engagement compared with
other media. According to Nielsen Media Research on channel usage, the percentage of time spent on the internet is now 20.5% compared with radio 31.6% and television 47.8%.”

Survey results revealed that limited organisational understanding of social media and a shortage of qualified staff were the main barriers to the increased use of social media for marketing purposes.

The survey confirmed the DLG’s view that social media will normalise in 2010 and will become a fundamental part of the marketing communication mix, concluded Mr Gardner.

The CAANZ Digital Leadership Group is holding a forum on Social Media in Business in Auckland on March 11. The survey results confirmed the need for a greater focus on social media and the conference will feature local and international speakers sharing their insights on harnessing the commercial power of social media. Further details can be found at www.caanz.co.nz.

The online survey of New Zealand businesses across a wide range of industries was conducted by The Nielsen Company in December 2009 with an overall sample of 166 New Zealand marketing professionals.

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