Skyrocket Sales and Loyalty: Mastering Customer Engagement in a Digital Era

Safalta Expert Published by: Om Soni Updated Mon, 25 Dec 2023 07:52 PM IST

Highlights

Engaged customers can generate 51% more revenue and sales than disengaged customers. Fully engaged customers spend 23% more over their lifetime than the average customer. Customers who engage spend 60% more per transaction.

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Customer engagement is the ongoing cultivation of a relationship between the company and the consumer that goes far beyond the transaction. It's an intentional, consistent approach by a company that provides value at every customer interaction, thus increasing loyalty. Successful customer engagement goes beyond a customer's initial transaction. The goal is to deliver relevant content through marketing and engagement campaigns that encourage repeat customer interactions.
 

What is Customer Engagement?

Customer engagement is the way a company creates a relationship with its customer base to brand loyalty and awareness. This can be accomplished via marketing campaigns and web content as well as outreach using social media, mobile devices, and desktops.

Customer engagement is sometimes confused with customer satisfaction and experience, and there is some confusion, but each is derived. We'll discuss these concepts in much detail later, but for now, you need to understand that customer experience is what consumers form based on everything they see, hear, or learn about your company.

Source: safalta

Need for Customer Engagement Strategy

A customer engagement strategy is necessary. Every engagement or customer interaction provides the chance to develop customer loyalty, But it also allows you to collect customer insights. Without those insights, you're more likely to have missed chances for the business, like making more informed marketing decisions, your sales process, or reinvesting in the brand. 

Dimensions of Customer Engagement

Longevity: The length of time over which interactions are spread.

Cautions: Whether a customer engages with a brand of their own accord, without prompting.

Repetition and frequency: Whether the interactions are frequent similar, and varied.

Context: The situation where interactions happen, for example, post-purchase, during consideration, only when there’s a promotion happening, etc.

Volume: How much interaction takes place over the whole customer event. 

Engaged customers can generate 51% more revenue and sales than disengaged customers. Fully engaged customers spend 23% more over their lifetime than the average customer. Customers who engage spend 60% more per transaction.

  
Customer Experience (CX ) vs Customer Engagement (CE )

Customer Experience describes everything that happens for a customer about a brand, from seeing its ads visiting to the store. Working on CX is about putting yourself in the customer’s mind and considering how to provide the best possible experience across all possibilities.
Customer engagement brings in the customer’s agency and choice, not just what the brand presents to them. In CE, the customer is seen as an active user rather than a user of an experience. CE explores how they react and respond, how they reach out to you, and whether they interact or drop. 
 

Customer Satisfaction vs Customer Engagement

A satisfied customer might not ever become engaged. They could be permanent at your brand but never take part in a customer loyalty program, follow the brand on social media, or make a complaint. Likewise, an engaged customer might make few purchases from a brand store, but spend hours chatting on a brand-owned forum or interacting with the company’s posts on social media. So, customer engagement isn’t the same as customer satisfaction. But customer satisfaction can be an outcome of customer engagement, and it can be a pioneer for it too.

Channels of Customer Engagement

Campaigns, Events, Content, Email, Loyalty programs, In-person, Marketing campaigns, Web content, Social media, Mobile devices, etc. 

Examples of Customer Engagement

  • Welcome email messages
  • Customer feedback surveys
  • Social media
  • Milestone messages
  • Customer support interactions.

Stages of Customer Engagement

Discovery: In this stage, Customers search for your brand on various search engine platforms or social media.
Considering: After searching, the Customer considers that there is some brand of which they need something so they consider your brand.
Buying: Once they consider your brand’s product, They decide to buy a product of your brand to see your services, features, etc. 
Loyalty: After buying your products, you want the customer to be loyal to you buy products from your brand, and be loyal to your brand always. So, the Company has to give services and benefits like return, exchange, refund, home delivery, and customer support.so, customer trusts you and get loyal to your brand.
Justification: After a customer becomes loyal to your brand, it gives you a permanent customer and also more from them by their justification.

Strategies for Customer Engagement
  • Personalized service
  • Chatbots
  • Conversational marketing
  • Active listening
  • Social media marketing
  • Useful content
  • Feedback
  • Customer loyalty programs.

Customer Engagement is very different from any successful business strategy. By actively involving customers in your brand, you not only build a loyal customer base but also create advocates who are likely to spread positive word-of-mouth. we've explored various strategies to enhance customer engagement, including leveraging social media, providing personalized experiences, and utilizing customer feedback.

What is customer engagement?

Customer engagement refers to the ongoing interaction and relationship-building between a business and its customers. 

Why is customer engagement important?

Customer engagement is crucial for several reasons. It helps build brand loyalty, increases customer retention, and encourages positive word-of-mouth marketing.

How can I enhance customer engagement on social media?

To boost customer engagement on social media, focus on creating valuable and shareable content, and actively responding to comments and messages.

What are some common challenges in customer engagement?

Common challenges are consistency across channels, keeping up with evolving customer expectations, and effectively utilizing customer data without compromising privacy.

Is there a difference between customer engagement and customer satisfaction?

Yes, there is a difference.


 

What are the 4 P's of customer engagement?

Product, Process, Policy, and People.

What is the goal of customer engagement?

To encourage loyalty and promote business through word-of-mouth marketing. 

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