Your Complete Guide to Customer Engagement

Olivia Jones

What is customer engagement?

It is in simple terms the relationship that a firm manages with its customers after the purchase of its products or services. It involves framing your business management, teams, technology, and operations in a manner that can create and manage a continuous feedback loop with your customers.

The whole steps and procedures involved in customer engagement are intentional and are aimed to collect data from your customers with each interaction about your product or service while making sure that customers remain loyal to your business.

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Customer engagement strategies

There are so many types of businesses that are running throughout the globe and with each passing day somewhere or the other, a new business idea is budding. Having similar strategies for all kinds of businesses will not be efficient. Hence there are different types of strategies for different business purposes. Below mentioned are a few customer engagement strategies that are common across all kinds and sizes of businesses.

Sell emotions to the customers rather than selling your products or services. Share your company’s story, your company’s vision, and the mission with which you have started it. The more customers feel attached to your business, the more likely it is that they will engage with your business and if happy with your product or service can turn into loyal customers as well!
Though the technology and AI are budding but when it comes to customer engagement and interactions, these do not prove to be very effective. Rather than a robotic or technological interaction for your customers, have a team or customer support set up in a manner that creates a more personalized experience for the customers, every time a customer interacts with your product or service in any manner.
One of the most effective strategies for effective customer engagement is to be patient and an active listener. This is so because the more you will know about your customer the better you will be able to respond to their needs and demands.
Once a customer buys your business product or service, make sure to collect customer feedback surveys and try to cover every aspect of your product and service making sure that the survey is not very long for the customers to fill out as this will lead to a fall in survey completion rate.
The time frame between one purchase and the other for your product or service by a customer can be long and in that time it becomes very important to engage with your customers. One of the best ways to do it is by being active on multiple social media channels where you can give an update to your customer about your product or service or business in general.
On the same lines of engaging with your customers on social media, one can also conduct various events and workshops in which customers can participate with your business, indirectly if not directly.
One of the many crucial aspects of customer engagement and interactions is by making the customers feel valuable and rewarding them for being loyal to your product or service by offering them various gift vouchers or discounts and many other things like them from time to time.
All customers are equally important for the business, but businesses need to take care of customers that are likely to drift away from your product or service, and engaging and interacting with those customers is very important for multiple reasons which you can read further in customer churn.

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Importance of efficient customer engagement strategies

The main goal and objective of any business is to generate more revenue and grow. Let’s look at some of the reasons why it is important for any business to have efficient customer engagement strategies.

Having an efficient customer engagement strategy ensures that a customer remains loyal to your business’s product or service which leads to customer retention.
It improves your customer retention which helps your business in cost control as retaining existing customers is less costly than acquiring new customers.
Customer engagement and loyal customer bases help you uncover many up-sell opportunities as promoting a new product or introducing a new feature for your product are easily adopted by existing customers rather than selling it to new customers.
An efficient customer engagement strategy improves your relationship with customers which directly impacts your brand image.
These strategies keep you connected with your customers and help you keep your customers happy which in turn leads to an increased customer base as happy and satisfied customers use word of mouth which is one of the most trusted ways of marketing which indirectly comes from your customer base.

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How to measure customer engagement?

Customer engagement is highly subjective which makes it extremely tricky to measure. There are many debates and discussions that happen on measuring customer engagement but even after all of it, there are no set metrics to measure for a business. However, measuring this is very important for businesses as we saw in the above section. Therefore, many businesses use different sets of metrics to measure customer engagement. Below mentioned are some of the widely used metrics that businesses look at while trying to measure customer retention.

Return on Investment (ROI) is one of the most obvious metrics related to customer engagement as a positive impact of customer engagement will directly reflect upon the revenue of the business.
An increase in customer base is also a good metric to look at in order to measure customer engagement.
An increased traffic on your website or app or on any particular link or feature in your app indicates customer engagement with your business.
The performance of your virtual assets on social media in terms of getting likes, comments, and shares also indicates customer engagement for your business.
Many social media apps provide an analytics system of their own and having integration with them and looking at that analytical reports also tells you about customer engagements.
An increase in the click-through rates (CTR) in your campaigns, especially email campaigns is also associated with increased customer engagement.

FAQs

What is online customer engagement?

Online customer engagement is a method in which you can engage with your customer but not necessarily in a physical presence. There are many ways to engage with your customers online.