Customers who are fully engaged with a business represent 23% more revenue than a customer who is not engaged. There is a direct correlation between profitability and customer engagement. If you don’t have a customer engagement strategy in place, you are missing opportunities to interact with your customers!
For those who may be unsure what customer engagement is, it’s the connection between a customer and a brand. Durable customer engagement is contextual. Engaged customers spend more, promote more and demonstrate loyalty. There are many definitions of customer engagement but, majority of them focus on developing customer loyalty as a result of effective engagement. Investing time in promoting customer loyalty is an integral part of a business strategy, as it’s valuable to any business.
Customer loyalty can increase the lifetime value of a customer and retain them as loyal customer in a competitive landscape. Customers that have engaged with a business have a 306% higher lifetime value than customers who don’t engage with a business. Loyalty is a process which takes time, a long-term customer engagement strategy is required to consistently engage customers and achieve customer loyalty.
Engaged and loyal customers will also become advocates for your business. As engaged customers they will begin to influence other’s decisions in favour of your business, by attracting new potential customers. However, you must first understand your customers. Businesses must think innovatively to develop their customer relationships through a comprehensive understanding. Once this is the case effective customer engagement will soon be followed!
The results for investing time into an effective customer engagement strategy are evident. Here are some tips for achieving customer engagement;
• Team work – customer engagement is an aim which stretches across all departments from marketing to customer services. Working collaboratively is essential in order to implement the strategy.
• Tell your story – by giving customers an insight into ‘behind-the-scenes’ of your business it helps the customer to connect to your business.
• Express your brand personality – this makes customers feel like they are communicating with a human allowing for interactions on an emotional level, in turn promoting engagement.
• Direct communication – when customers have the opportunity to communicate directly with a business, it makes it easier for them to engage. This will increase your engagement rate.
• Use social media – these platforms will act as tools to connect with people. They are especially useful for providing content that will answer customer questions.