Businesses Fail To Harness Full Potential Of Online CommunitiesBusinesses Fail To Harness Full Potential Of Online Communities

Businesses have begun to effectively use social media tools and online communities to promote interaction with customers and between employees, but they haven't realized the full potential of online communities, according to recent research.

A Deloitte survey of companies sponsoring online communities found they use them to generate ideas, discover products, and discuss brands, but many fail to draw a critical mass. Deloitte's "2008 Tribalization of Business Survey," found that most communities have less than 500 active members. Half the respondents said their biggest obstacle is to get people engaged.

More than 140 companies that maintain online communities responded to the survey, conducted with help from Beeline Labs and the Society for New Communications Research. Respondents include leading computer manufacturers, software, insurance, online auction, media companies, hotel chains, and start-ups. Their communities range in size up to 10,000 members.

The survey found that 35% of enterprises supporting online communities have increase word-of-mouth for their brands and 28% have seen an increase in brand awareness. Twenty-four percent of the respondents said online communities help increase customer loyalty and bring new outside ideas in. Sixty percent of respondents said their online communities are open to public feedback.

"Communities can extend the edge of the corporation in truly transformative ways -- tapping into new talent, helping design products and services, providing customer support and, most importantly, building the brand with the customer," Ed Moran, director of product innovation at Deloitte Services, said in a statement. "The survey data points to some growing pains, but companies are starting to see that online communities should be nurtured and leveraged for real business gain."

Respondents said the most important features for effectiveness are the ability of community members to link to like-minded people, the ability to help others, and group focus on hot topics.

Challenges include: finding time to manage communities and finding quality community managers.

Thirty-nine percent of the companies surveyed reported idea generation as the reason they created online communities and 19% percent cited new product development as their main goal.

However, the survey found that while many companies seek brand awareness and increased word-of-mouth, they measure success through visitor numbers and page views. So, companies face difficulty identifying how online communities help achieve their goals, according to the survey. Deloitte said managers should rethink how to draw business value from sponsored communities.

"The survey reveals that there are several disparities between companies' goals, how to measure success, and appropriate investment," said Francois Gossieaux, partner at Beeline Labs. "The companies that commit the dedicated talent and resources to driving customer centric communities will be the winners."