The survey found more than three quarters of companies monitor online conversations and respond to customer feedback through social media.
Most of the companies surveyed said they planned to increase their social media investments, and 73 percent plan to add employees focused on listening and engagement initiatives in the coming year.
“Listening and responding to customers is so basic and fundamental,” said Karen Quintos, senior vice president and chief marketing officer at Dell. “The emergence of social media elevates how companies can act on the feedback they get from customers.”
The study found 31 percent of companies see enhanced sales when offering customers incentive programs for customers who engage online. About 64 percent of respondents in the survey incorporate customer feedback to products or services.
But while some of the companies surveyed, some businesses are still far behind their customers when it comes to using social media. About half of the companies said their social media efforts were serious, but not a core function. Only 6 percent of businesses said their companies listening and engagement initiatives were very integrated.
Forrester surveyed 200 medium and large U.S. based firms across three industries, including high tech, entertainment/media, utility and banking services.