Unearthing the True Value of Web Seminars and On-line Events
Applications & Results from the Customer’s Perspective
Unearthing the True Value of Web Seminars and On-line Events
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Unearthing the True Value of Web Seminars and On-line Events
Applications & Results from the Customer’s Perspective
Andy Nilssen & Andrew Davis Wainhouse Research
September 2005
Unearthing the True Value of Web Seminars and On-line Events
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Contents
Executive Summary ...................................................................................................................... 1 Methodology and Survey Sample ................................................................................................. 2 I. Web Seminars replace in-person events & perform new tasks ................................................. 3 II. The #1 use of Web Seminars is to generate leads … .............................................................. 4 III. Reasons Cited: Wider Reach and Lower Costs....................................................................... 5 IV. Ease of Use is most important capability................................................................................. 6 V. Other Findings .......................................................................................................................... 7 Closing Thoughts .......................................................................................................................... 8 Appendix: Survey Demographics.................................................................................................. 9 About the Authors ....................................................................................................................... 10 About Wainhouse Research ....................................................................................................... 10 About WebEx Communications .................................................................................................. 10
Unearthing the True Value of Web Seminars and On-line Events Copyright © 2005 Wainhouse Research. All rights reserved.
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Copyright © 2005 Wainhouse Research, LLC
Executive Summary
The use of web seminars and on-line events has experienced tremendous growth over the past few years. Since WebEx is a leader in on-line events services, Wainhouse Research conducted an independent web survey to a portion of the WebEx Event Center customer base with the goal of finding out what applications customers are using web seminars for and understanding the results that they are achieving. We received 116 valid responses. Highlights from the survey results, which include some surprises, follow in this WebEx-sponsored white paper. The survey reveals that web seminars are being used by businesses not only as a replacement for traditional in-person events (by 61% of respondents), but also for new applications that capitalize on the technology’s inherently unique characteristics (by 87% of respondents). The survey data indicates that using web seminars to generate sales leads is the #1 application for on-line events, followed by the need to train customers / students outside of the organization. The foremost reasons for using web events is the ability to reach geographically-dispersed participants (anyone, anywhere, anytime), followed by the ability to produce events at a lower cost. Web events have some unique “virtual” characteristics that make them a natural fit for lead generation including the creation of a low pressure sales environment, the use of registration data to qualify leads, the ability to involve presenters from a number of locations, and a low cost profile. Additional survey results show that the most important features to look for in a web event solution is ease of use and transparent downloads – being able to connect participants quickly and easily. The most important factors to look for in an event services supplier is reliability and reputation. The customers we surveyed are satisfied. Virtually all respondents (99%) believe the results they have achieved from web seminars lived up to their expectations. The vast majority of respondents (88%) also say their financial expectations have been achieved. For those respondents that identified WebEx as their primary vendor, over 95% were satisfied with WebEx’s services. This is the first in a series of Wainhouse Research survey-based white papers that WebEx plans to sponsor on web seminars. The next survey will focus on the overall web seminar industry.
Unearthing the True Value of Web Seminars and On-line Events
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Introduction: On-Line Events Come of Age
In less than half a decade, live web seminars and on-line events have evolved from a technical novelty to a powerful alternative for delivering information to the masses. The technology has matured to become scalable and reliable, attributes that when combined with the growth of the Internet, now enable users to connect to virtually anyone, anywhere, anytime. Feature upgrades and user interface refinements have increased both the amount of interactivity between the presenter and the audience as well as the ease of participating in an event. Advances in voice and video over IP offer a new, lower cost, single-network option for connecting with participants. Service providers such as WebEx (the sponsor of this white paper) combine web seminar technology, infrastructure, and event support personnel to offer customers a complete turnkey solution. The bottom line: the effectiveness and economics of web events not only offer a serious challenge to traditional in-person events for many applications – but also deliver unique advantages that are possible only using a virtual medium. While the applications and benefits of web seminars appear to be numerous and the economic incentives obvious, with the growing market acceptance, Wainhouse Research conducted this targeted on-line survey to find out what on-line events are being used for and what users think about the results they have achieved. Highlights from the survey results, including some surprises, follow in this executive white paper.
Methodology and Survey Sample
The survey was conducted online by Wainhouse Research between August 30 and September 8, 2005. 116 valid survey responses were received from an invitation sent to WebEx Event Center users. The responses used in the analysis represents a cross section of on-line event internal production staff, facilitators, presenters, and purchasers – respondents that were strictly attendees were not used in the analysis. Further analysis revealed that the average survey respondent was involved in the production of 6 to 7 web events per month, with an average event lasting 62 minutes.
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I. Web Seminars replace in-person events & perform new tasks
How do web seminars relate to your past business practices? (check all that apply) We use web seminars to replace events and programs that we conducted in other ways in the past We use web seminars to accomplish new tasks that we did not do before
100% 87.1% 90% 80% 70% 61.2% 60% 50% 40% 30% 20% 10% 0% Replace Events New Tasks
On-line web seminars have clearly gained acceptance as a replacement for traditional in-person events – 61.2% of respondents stated that they use web seminars to replace events and programs that were conducted in other ways in the past. Replacing existing physical events with web seminars is typically justified by the “traditional” benefits of reducing of travel costs and increased productivity by eliminating the down time due to travel. What is perhaps more surprising is that the overwhelming majority of respondents – 87.1% – use web seminars for new tasks that were not being done before. This leads us to believe that some of the unique benefits that cannot be realized using traditional methods hold significant value – including the ability to reach anyone / anywhere and the ability to establish events on demand as needed. Web events enable presenters to reach attendees without requiring the attendee to leave the comfort of his office. Further analysis reveals that nearly half of the respondents (49%) do both – use web events as a replacement for traditional events as well as new tasks.
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Copyright © 2005 Wainhouse Research, LLC
II. The #1 use of Web Seminars is to generate leads …
How do you use web seminars in your business? Generate Leads – Prospect web seminars, building awareness, etc Sales Training – Internal or channel External Training – Customer or student education Internal Training – Internal staff (not sales related) External events – Product announcements, Customer and partner communications, earnings announcements, etc Respondents were asked to indicate heavy use, medium use, light use, and don’t use; the weighted results are presented below.
2
1.5
1
0.5
0 Generate Leads External Training Sales Training Internal Training External Events
The #1 use of web seminars is to generate leads, followed closely by using the technology to train customers and/or students outside of the organization. Sales training – both for sales personnel as well as sales channels – was third, followed by internal staff training and holding external events such as product announcements, customer and partner communications, and earnings calls. Web event presenters are clearly promoting events as seminars and thought leadership sessions in order to draw in prospects. The value here is clear, since a single presentation can be given to multiple prospects without incurring airfare or hotel costs, conference room costs, and more importantly, time away from the office. The time efficiency applies to presenters and audience members equally. Similar reasoning applies to training sessions of all types.
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III. Reasons Cited: Wider Reach and Lower Costs
Why do you use web seminars for Lead Generation? Generates more leads than other forms of marketing Reach potential customers spread over a wider geography Lower-cost alternative to other forms of marketing Creates a low-pressure environment for buyers Secure speakers that don’t want to or can’t travel Quickly qualify leads based on registration information Respondents were asked to indicate very important reason, important reason, minor reason or not a reason; the weighted results are presented below.
3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Wide Geographic Reach Low er Cost More Leads Low Pressure Quickly Qualify Leads Secure Speakers
The two leading reasons given for using Web Seminars is to reach potential customers spread over a wide geography closely followed by lowering cost. Wide geographic reach has become a strong motivator due to the challenges presented by a world economy, compounded by the fact that business can no longer afford to maintain a local sales presence in every potential market. Since prospects can attend from virtually anywhere where there is an Internet connection, on-line events present a unique solution to this rising problem. The ability to generate leads at a lower cost is the second factor. Other reasons cited included the potential to generate more leads (related to wider geographic reach, and lower cost, which enables higher frequency or a given budget), the ability for web seminars to attract participants using an inherently low pressure sales environment, and the ability to quickly qualify leads based on participant registration data. Further analysis revealed that respondents who used web seminars for purposes other than lead generation also stated the ability to reach a larger audience is a primary motivator, followed by the ability to disseminate information quicker and at a lower cost than traditional methods.
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Copyright © 2005 Wainhouse Research, LLC
IV. Ease of Use is most important capability
How important are the following capabilities for your web seminars? Easy to use – the technology doesn’t get in the way Has features to engage the audience – Rich media support (video, Flash), slide builds and animations, Live Polling, Q&A, and Annotation Minimal and/or transparent software downloads or plug-ins Record web seminars and offer on-demand playback Registration process: list management, invitation, follow-up email Outlook integration Voice over the Internet (VoIP) Support multiple presenters and/or panelists Worldwide coverage Foreign language support On-screen audio controls to control the attendee experience Cross platform support (Windows, Mac, Linux, Unix, Firefox) Co-branding, event schedule page for my organization Respondents were asked to indicate very important, somewhat important, nice to have, or not important; the weighted results are presented below.
3.0 2.5 2.0 1.5 1.0 0.5 0.0 Easy to use Transparent Downloads Record & Playback Registration Process Multiple Presenters Features to Engage Co-branding Cross Platform Audio Controls Worldwide coverage Outlook integration VoIP Foreign Language
Far and away the #1 requirement for web seminar technology was ease of use. Transparent software downloads, the ability record events for on-demand playback, the registration process, the ability to involve multiple presenters, and having features to engage the audience also scored as features that are important to have. Ease-of-use is particularly important when presenting to prospects or external contacts where the presenter cannot guarantee that the end
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user is familiar with the web events tool. Ease-of-use helps ensure that the audience will not be distracted from the message by the apparent complexity of the messenger.
V. Other Findings
Additional facts revealed by the analysis of the survey results: On average, those surveyed (that gave an amount) indicated that they generated 32% more leads using web events vs. using traditional methods. 88% of the respondents indicated that their use of web seminars met their ROI expectations. Of these, 38% said their ROI was above expectations. Over 99% of respondents indicated that the overall results achieved from web seminars lived up to their expectations. Of these, 55% indicated said results were above their expectations. A vendor’s reliability and reputation was judged to be the most important factor in choosing an online event services supplier. For those respondents that identified WebEx as their primary vendor, over 95% were satisfied with WebEx as their on-line services provider. Of these, 60% said WebEx’s services were very good, while 16% said they were extremely satisfied. In addition, the respondents volunteered these notable quotes: “There is no comparison. Face to face events [are] losing popularity [and are] too expensive” “[Web events are] Much lower in cost and provide a reduction in time and required resources to deliver content” “One sale more than covers the costs [of a web seminar] and represents significant savings over traditional direct sales costs”
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Copyright © 2005 Wainhouse Research, LLC
Closing Thoughts
This survey concludes that the growth in the use of web seminars is being fueled by customers using the technology not only as a replacement for traditional in-person events, but also for new applications that capitalize on the technology’s inherently unique characteristics. This indicates that customers are well on the way to not only accepting the technology, but also figuring out new ways to apply it to solve business needs. The growth in applications is led by the use of web seminars to generate sales leads, followed by training customers / students outside of the organization. The foremost reasons for using web events are the ability to reach geographically-dispersed participants (anyone, anywhere, anytime), followed by the ability to produce events at a lower cost. On the results side, virtually all respondents (99%) believe their results achieved from web seminars lived up to their expectations. The vast majority of respondents (88%) also say their financial expectations have been achieved. For those respondents that identified WebEx as their primary vendor, over 95% were satisfied with WebEx’s services. This is the first in a series of Wainhouse Research survey-based white papers that WebEx plans to sponsor on web seminars. The next survey will focus on the overall web seminar industry.
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Appendix: Survey Demographics
Which category best describes your organization (worldwide)?
Corporation with over 10,000 employees Corporation with 1,000 to 10,000 employees Corporation with 50 to 1,000 employees Corporation with 1 to 49 employees Educational Institution Government or Military Other Total Percent 8.3% 22.0% 43.9% 20.5% 1.5% 0.8% 3.0% 100.0%
Which best describes your involvement with web seminars? (Select all that apply) I purchase on-line event products & services I am on our internal staff for producing and/or managing web seminars I am a facilitator, moderator, or session chairperson for web seminars I am a presenter at web seminars I am an attendee of web seminars
70% 60% 50% 40% 65.9% 30% 50.8% 20% 10% 0% Purchase Staff Facilitator Presenter 42.4% 25.0%
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Copyright © 2005 Wainhouse Research, LLC
About the Authors
Andy Nilssen is a Senior Analyst & Partner at Wainhouse Research, where he is a consultant to rich media conferencing vendors, network infrastructure vendors, end users, government agencies, end users, and venture capitalists. Andy is a co-author of WR's annual three volume series Rich Media Conferencing, the firm’s thorough analysis of the conferencing industry. Earlier in his career, Andy managed the planning and launching of PictureTel's Venue and Concorde group videoconferencing systems. Andy has 25 years of experience in hightechnology product marketing and market research, earned his MBA and BSEE degrees from the University of New Hampshire, and holds two ease-of-use related patents. He can be reached at andyn@wainhouse.com Andrew W. Davis, Senior Analyst and Managing Partner, specializes in videoconferencing, rich media communications, strategy consulting, and new business development for Wainhouse Research. He has more than ten years experience as a successful technology consultant and industry analyst, during which he has published over 250 trade journal articles and opinion columns on multimedia communications, image and signal processing, videoconferencing, and corporate strategies. Andrew has also published numerous market research reports and is the principal editor of the conferencing industry's leading newsletter, The Wainhouse Research Bulletin. He holds B.S. and M.S. degrees in engineering from Cornell University and MBA from Harvard University. He can be reached at andrewwd@wainhouse.com
About Wainhouse Research
Wainhouse Research, www.wainhouse.com, is an independent market research firm that focuses on critical issues in rich media communications, videoconferencing, teleconferencing, and streaming media. The company conducts multi-client and custom research studies, consults with end users on key implementation issues, publishes white papers and market statistics, and delivers public and private seminars as well as speaker presentations at industry group meetings. Wainhouse Research publishes a variety of reports that cover the all aspects of rich media conferencing, and the free newsletter, The Wainhouse Research Bulletin.
About WebEx Communications
WebEx Communications, Inc. is the world's leading provider of collaborative web meeting applications. WebEx applications improve collaboration and increase productivity in sales, support, training, marketing, engineering and product design. WebEx delivers its suite of web meeting applications over the global WebEx MediaTone Network, a network specifically designed for secure web collaboration. WebEx Communications is based in Santa Clara, California and has regional headquarters in Europe, Asia and Australia. Please call toll free 877509-3239 or visit www.webex.com for more information.
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