Social Media and Customer Engagement

Topics: Facebook, Social network service, MySpace Pages: 9 (3024 words) Published: September 24, 2012
1. Introduction
From 2004, when Web 2.0, such as blogs, wikis, and collaborative projects, was first used, the online social networking applications developed rapidly. Such as Facebook, in 2011, the registered people have already been 833 million. It is about one tenth of the population around the world. In the past ten years, social media really change the ways of marketers to promote their new products. Social media is a platform that allows people around the world to present their opinion. Otherwise, more and more companies focus on the influences of social media. Formerly, customer’s comment of product can only be spread by mouth and it is also hard for organizations to collect the comments from customers. The innovation of social media really changes these kinds of situation. The customers can easily present their comment on the Internet. Customer feedbacks about products only affected a few people in domestic because there is no effective communication channel between customers to customers. However, in recent year, it becomes worldwide influence that organizations’ reputation is spread faster than before and internationally. It is related to the profit of organizations because customers can easily get product information from the Internet and compared the differences between different brands. Social media is also the access that people get the latest information, such as sales, of their For companies, social media can be double-edged sword. In the advantage aspect, the organizations can collect customers’ feedbacks, such as personal data and questionnaires, easily and reply the comment. Most importantly, it gives the direction of improving. On the other hand, the organization can’t control customer to post their opinion through the social media. Some of them may damage the reputation of the organizations. The purpose of this study is to relate customer engagement and social media. In the first part of this essay, the definitions of customer engagement and the Process of customer engagement are discussed. In the second section, the concept and framework of social media are demonstrated. Then, how social media influences customer engagement in marketing, nowadays, compared with traditional models, demonstrates in the second part. Finally, the case, Officeworks, the largest stationery supply store in Australia, will be analyzed the how they use to enhance customer engagement.

2. Customer Engagement
“Customer engagement” defined as a psychological state that occurs by virtue of interactive, co-creative customer experiences with a particular brand was first appeared in marketing academic articles in 2005 even though the issue of engagement has been researched for a long time. Why it is important, because in 2009, Bowden stated customer engagement as a psychological process driving customers loyalty which the organizations really want to build with their customers.

2-1. The Four Components of Engagement
There are four components of engagement, involvement, interaction, intimacy, and influence. (Haven, 2007)

2-1-1. Involvement
Involvement is the basic measurable factor that reflects individual’s relationship with brands, such as recognize brands through the websites. This is the step that customers build connection with the brands and then relate to other components.

2-1-2. Interaction
This component is to strength the lack of involvement. Interaction includes that customer’s content contribution, purchasing, ask for more information, and contacts from customers.

2-1-3. Intimacy
This factor measures the effect that an individual hold for brands including their opinion, perspective, and experience. It gives organizations the chance to correct problems.

2-1-4. Influence
It is the possibility that customers encourage other customers to buy products. This is based on brand awareness, and loyalty, including repeated buying. This is the most important part in customer engagement because it...
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