Customer engagement is all about engaging your customers with your company or brand and it can lead to increased order values, customer loyalty and word of mouth recommendation.

Given that a recession is around the corner or already upon us, keeping customers is something that any well minded company should be focusing a lot of attention on.

Yet, in a survey reported in Brand Republic last week it was revealed that just 51% of companies have placed greater emphasis on customer engagement as a result of the economic crisis. 

The survey uncovered that those planning investment in new customer engagement strategies planned to spend their organisations’ money on a range of techniques, including many so called ‘Web 2.0’ areas such as blogging, user generated content and feedback and review systems to name a few. 

These services offer great ways to engage your customers. Blogs give you the opportunity to share wisdom or advice with your audience. User generated content allows your customers to create value with your organisation. And feedback / reviews offer that word of mouth recommendation to your goods or services.

Implementing these types of strategies can vary in cost and other resources; however, the investment can be more than worth it if it results in better relationships with your customers.  

So where do you start?

Have a look around at what the competition are doing. Start with the market leaders and work your way down to your own level (presuming you’re not one of the market leaders). What do you see as innovative? What would your customers react well to? How can you see their ideas working for you? 

Once you have the basic research sit down and brainstorm some of your own ideas. Put it all together and look at the resources you have to hand; money, time, personnel and skills. 

Perform a basic cost to return analysis – run each customer engagement idea through this process, determining whether the benefits to be had, match or exceed the investment required. 

This may sound difficult to ascertain when looking at customer engagement but there are ways to get a basic idea. Here are some questions you should ask yourself when evaluating any potential changes:

What is the average order value? – Can you make changes that will lead to greater order values? How much greater would you expect order values to be after making any change?

How long do you usually retain a client for? How valuable is the average client over that period? If you retain a customer what value would you be retaining in the business? 

How many customers do you normally lose? What target would you set on retaining customers after any changes? How much value would the retained clients bring you?

What does it cost to gain each new client in the first place? How much is your marketing, advertising and PR spend compared to the number of customers acquired? What would the value of keeping clients be over acquiring new ones?

Armed with the information you can make informed choices on the customer engagement strategy that is best for your business. However, remember this is an evolutionary process and should not stop there. Record your progress and ensure that you tweak your strategy regularly to ensure the best results. 

If you would like help or advice on preparing your customer engagement strategy or implementing and integrating blogging, user content or feedback systems please call and speak to Aren on 01872 555933 or send an email using the contact form provided.

No one can argue that the outlook is a little bleak in some quarters; however, as we hope to show you, there are still some positive rays of hope out there getting lost amongst all the talk of economic downturn and recession.

1. The Myth of Record Debt

Michael Blastland published a great report on the BBC Magazine this week which showed that all this talk of ‘Record Debt’ isn’t all it’s cracked up to be.

Looking at the figures, Michael puts across a convincing argument (complete with statistics and graphs) which shows that although national debt (here and in the US) is bad, it is not nearly as bad as we might think from the media.

Read the full article here

2. Holiday Ecommerce Spending to be Only 12% Up on Last Year

US sites are already highlighting figures from leading researchers, Forrester, which show that ecommerce sales are likely to increase by just 12% this year! Yes, that’s an increase of 12%. However, this is still reported as a negative against previous sales increases of 20% year on year. Let’s face it though, an increase is an increase – and far better than a fall. (Bad luck – high street)

Read the full article here

3. Savvy Companies still making Profits.

In the past two weeks we have seen a couple of companies posting recession busting profits.

J Sainsburys were first to report their 13.3% hike in half-year profits mid last week.

This week has seen Mothercare reporting a 94% rise in their pre-tax profits – now standing at £9.6m for the six months to October. The group says that international expansion and online sales have helped drive profits.

4. Retails Sales Fall by Less than Expected 0.1% During October

Just in case you failed to catch this story during the week we’d like to highlight that despite all the talk of cash strapped consumers, retail sales fell by just 0.1% during October – much less than the expected 0.9%

Read full story here.

If you’re still left feeling down after these four items we can only suggest that you continue down to our last positive piece for today.

5. Monthy Python Launch You Tube Channel

This week saw the launch of the Monty Python You Tube channel. Packed with all their best clips, this new channel can’t fail to raise your spirits.

Just in case you need proof we have embedded a clip of the memorable song,  ‘Always look on the Bright Side of Life’,  to remind you just how you should be looking at things.

The virtual event which took place on Tuesday (2nd September) featured a keynote speech from respected economist, and former Finance Cornwall Chief Executive, Lord Robin Teverson.

Guests at the event included a range of local business owners as well as Stephen Bohane, Head of Business Development in Cornwall and the Isles of Scilly within The South West Regional Development Agency (SWRDA) and Terrye Teverson, Liberal Democrat Prospective Parliamentary Candidate for Truro and Falmouth.

Talking about the Cornish economy Lord Teverson said,

“We’ve had the accepted mantra that when the rest of the UK plunges into recession, Cornwall is hit even harder – certainly in terms of unemployment – and we then come out of recession later than the rest of the country. But over the last decade, since the last recession in the early 1990s, Cornwall has arguably become more confident and resilient.”

“It’s received a lot of European funding which has meant that new investment in people, infrastructure, and businesses has taken place. Distance has become less important because of information technologies, and Cornwall has had a high take up of broadband. “

“A number of SMEs will fall by the wayside – but by managing costs very carefully, keeping the sales and marketing going, and avoiding bad debts they can survive and be even stronger on the other side when things get better.”

“SMEs need to make sure they keep close not just to their customers but also their staff and suppliers.  Loyalty and trust gets to be pretty important during difficult times.” He continued.

Discussion and questions followed the main presentation with topics discussed including; the continuing improvements to the ICT infrastructure in Cornwall, bad weather and the tourism sector, manufacturing, business cash flow and budgets, the government’s announcement on Stamp Duty and the rise of Eastern Economies such as China and India.

Overall the mood was optimistic with many businesses not yet feeling the effects of any downturn. A direct question from Stephen Bohane on how individual businesses were fairing prompted responses of ‘never busier’ and ‘we are forging ahead with our growth’ from the assembled business owners.

The virtual event entitled ‘Insight:Recession’ is the first part of a series of events planned by UKNetWeb to help businesses in Cornwall and further afield gain insight into a particular subject of relevance to an SME operating within the county.

Commenting on the first session Toby Parkins, UKNetWeb Managing Director said,

“Given the amount of discussion and media coverage presently surrounding fears that the UK is falling into a recession we felt is was time to help businesses in Cornwall improve their understanding of them and their potential effect on our local economy.

“Lord Teverson has a lot of knowledge on the economy in general; however, his deep insight into the local economy made him an ideal candidate to explain how a recession might play out within the region.

“We were very pleased with the turnout and believe that everybody was able to take something useful away from the experience.”

A full transcript of Lord Teverson’s speech and the following discussion is available to download from http://www.uknetweb.com/docs/insight-recession.pdf. For information on future events please contact Aren Grimshaw at UKNetWeb on 01872 555933 or email info@uknetweb.com.

Cornwall based web developers, UKNetWeb, are to host a virtual mini-conference on the growing fears of a recession and there potential effect on the large number of small to medium enterprises (SMEs) operating in the south west.

The event, planned as part of an ongoing series of events, follows on from a successful virtual launch event hosted by the company early last month. Referred to as the UKNetWeb ‘Insight Sessions’, each new session will focus on a particular issue of importance to businesses operating within the county.
With talk of a recession forming a major concern for SMEs at this time the first session will focus on the economy, with respected economist and former chief executive of Finance Cornwall, Lord Robin Teverson taking the key note speech.

Lord Teverson will attempt to address the concerns of the small to medium enterprise, dealing with questions such as; what defines a recession, how long a recession would be likely to last and what affect a recession might have on the local economy?

UKNetWeb Managing Director, Toby Parkins says,

“After the success of our virtual launch event we saw an opportunity to use the platform to engage with businesses across the region that may not have the time or inclination to attend traditional conferences or networking events.”

“By providing a virtual space and structure for events of this type we believe we can extend our reach whilst providing businesses with access to information that would otherwise be difficult to obtain.”

The event will take place on the 2nd of September at 12.30pm. Anyone wishing to attend can log into the event by going to www.uknetweb.com anytime after 12noon on the day and following the on-screen instructions displayed.

Ends

Editors Notes:

1. Insight: Recession is the first of a series of virtual online meetings aimed at business people from any part of the world, especially Cornwall.
2. Lord Robin Teverson lives near Tregony in Cornwall and was for a time the economist of a major UK freight company.  He worked in the freight and transport industry for a number of years before becoming MEP for Cornwall and Plymouth from  1994 – 1999.  He was Chief Executive of Finance Cornwall, based in Truro, between 2002 and 2006.  He is now the Lib Dem spokesman on the environment and climate change in the House of Lords.
3. Further information can be obtained from Aren Grimshaw (aren@uknetweb.com) / Toby Parkins (toby@uknetweb.com) or by calling 01872 555933.

The innovative party was planned by the company to demonstrate how businesses can use emerging technology to cut business running costs while adding new and exciting ways of promoting their businesses.

The party began at 12.30 on Tuesday (29th July) when a link was published on the old UKNetWeb site. Guests were told to go to the company website, UKNetWeb.com and follow the on-screen instructions to enter a virtual room.

On entering the room, guests could select their own music from a selection of preloaded tracks and carry out conversations with other attendees via on screen text based chat. At 1.00pm Managing Director, Toby Parkins, made a speech to the room where he introduced the new site and recession guide.

All guests were given an opportunity to introduce themselves to the room, following a similar structure to conventional face to face networking events. Guests came from all over Cornwall and further afield, with at least one international guest signing in from an Icelandic advertising agency.

The launch of the new site and recession guide was well received with over 300 people accessing the site and over 150 downloads of the recession guide within the 24 hour period after the launch.

Toby Parkins, MD, UKNetWeb

Managing Director, Toby Parkins said, “The possibilities opened up by emerging technology offers exciting prospects for businesses that want to cut costs and attract new sales. This launch party demonstrated that there are alternatives to travel and we hope that businesses will adopt some of the ideas within the guide to help them through more difficult times.”

“Since the event we have been inundated with interest in similar events. It seems everyone who attended has been telling their friends about it and now there is a real buzz for more virtual events to be organised.” Toby continued.

The new website can be found at www.uknetweb.com with the recession guide available for download at www.uknetweb.com/recession-guide.

The whole guide can be viewed or downloaded here in pdf format which can be printed as required.

To ensure that our guide is available to the maximum number of people we have copied the content to this blog where it can be easily navigated through use of categories, tags and cross referencing links.

In this guide we have tried to look at a range of issues of relevance to businesses of all sizes; where possible suggesting routes to utilise technology in dealing with them. In each case we have tried to provide links to further information, research or tools that might be useful to you or your business.

At UKNetWeb we specialise in the technical and strategic aspects of working with the internet.

During the planning stages of website builds we have become accustomed to identifying technological routes to improve business efficiency, drive sales and improve marketing. Areas that are extremely important to the bottom line of any business.

With fears of a recession growing and a never ending deluge of stories about rising prices, the credit crunch and low consumer confidence we decided that we should share some of our in-house knowledge; identifying routes for businesses to use technology as a means to drive profitability.

If you would like direct assistance in following any of the advice given within this presentation we can provide consultancy or support in setting up, managing or integration of any of the services listed.
Our unparalleled knowledge of technical programming and emerging digital media means that we are well positioned to maximise your return from these activities.

Our guide is a working document and we envisage that you and other businesses will have your own tips and ideas on how to beat the crunch. If you think we have missed something please leave a comment or contact us directly through the contact form here.

Thank you for reading, we hope you find this guide helpful.

Even if you haven’t noticed any effect on your business just yet, it is clear that all the talk is having an affect on consumer confidence and eventually the results will be felt by many businesses.

Now is the time to take stock of your business and implement changes to your processes that will lead to increased revenue and higher profitability. After all, the worst that can happen from taking action now will be better profits at the end of the year.

So, assuming that we are heading into rockier times, who will be the first businesses to feel the effects?

Go to the next page to find out some of the areas that can expect a downturn.

It isn’t just the estate agents feeling the pinch. There are a number of trades which rely on house sales and each is beginning to feel the problem already. Trades suffering include: Removals, Conveyancing Departments, Property Developers, Building and Construction companies and even garden centres. Take a look at ‘House Drop Should Be Alarm Call’ for Cornish accountancy firm ‘Bishop Fleming’s’ view on it.

High Street Retail

Although May saw record sales growth in the retail sector there is no getting away from the fact that high inflation will eventually drive consumers to cut their spending on non-essential items such as impulse buys, retail therapy purchases, gadgets and beauty treatments. Industries likely to feel the hit include: phone shops, electrical retailers, independent beauty product retailers, clothing stores and accessory stores. Check out this report from the BBC to find out more: ‘Sales Remain Flat on High Street’.

Nights Out and Nights In

In a survey conducted by leading financial gurus, Motley Fool, they found that 89% people were looking at making cutbacks on ‘non-essential items’ with 67% of those people listing ‘Nights Out and Takeaways’ as the top thing on their list of non-essentials. Bad news for businesses in the pub or food trade including takeaways, night clubs, restaurants, cinemas and coffee shops . Check out the Motley Fool guide to ‘Cracking the Credit Crunch’ for more information on how consumers are dealing with the credit crunch.

Holidays and Travel

Although the big travel companies are telling us everything is all right in the travel industry, key analysts are already saying that the big impact won’t be felt until 2009. Whatever side you’re on you can’t fail to ignore that in the same Motley Fool survey we quoted for ‘Nights Out and Nights In’ 49% of those looking to cut back on their non-essential spend included ‘Cheaper or Fewer Holidays’ on their list coming in at number 4 overall. To read one business analyst’s view on this check out – ‘Is Holiday Travel Recession-Proof?’ .

The first stage in solving this imbalance is to sit down and evaluate your internal processes, time spent on various areas and the income generated from each activity. Once you have undertaken these evaluations of your efficiency, consider some of the following as means to further improve efficiency

• Have a Plan
• Automate Processes
• Stock Management
• Time Management

Take time to sit down and evaluate where you are, where you want to get to and what you are going to do to get there. During the process try and establish firm goals for your business such as; increase customer base by 10% or cut costs by 20%.

By having a plan you can ensure that you are on track at any stage of the process. You can set down at the beginning exactly what you are going to do and then ensure that you stick to it, making minor tweaks as appropriate.