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How Customer Engagement Improves Your Business's Long-Term Success

Posted by Sarah Gamache on Wed, Aug 03, 2022 @ 10:15 AM

Did you know you can guide customers through the sales funnel and create a positive brand experience through customer engagement?Depositphotos_165238240_L Here’s how customer engagement improves your business’s long-term success.

Why is Customer Engagement Important?

Customer engagement is important for your brand because having sufficient engagement can boost sales success and create healthier customer relationships. Improving customer engagement has shown superior customer retention and increased brand loyalty. Research has shown that increasing customer retention rates by 5% increases profits by 25% to 95%, according to Bain & Company. Customer engagement is important for any successful business as it can increase brand loyalty, shorten the purchase cycle, enhance customer service, promote opportunities to cross sell, and develop a distinguishable brand identity.

How Do I Measure Customer Engagement?

To measure customer engagement, you must consider factors like your customer’s social media interaction and their direct feedback. Here are some other factors that will determine your customer’s overall engagement:

  • Average time spent on website/webpage
  • Open and click through rates
  • Social media interaction
  • Number of form fills
  • Customer referrals
  • Repeat purchase/renewal
  • Repeat visit frequency
  • Direct user feedback

How to Improve Customer Engagement

There are many ways to improve your brand’s customer engagement, one of the most popular ways is to first improve the customer experience. You should aim to make your customer love your company, whether that be with a great customer service team or with a superior shipping and handling policy. A positive experience with a brand will promote customer engagement in the long term. If you want your brand to be more like-able, focus on humanizing your company by adding a face or personality to your brand. Customers are more likely to engage with a brand that connects with them on a personal level. Customers want to know who is behind the service or product they are enjoying. Social media is a great chance to show your brand’s personality and interact with your customers. Improving customer engagement starts on social media. You should aim to create content that will generate emotional responses in people; avoid boring generic posts that act as filler.

Five Strategies to Increase Customer Engagement

Need some more tips to improve customer engagement? Here’s 5 strategies to get you started:

  1. Define an ideal customer journey on your website and app
  2. Track and analyze customer behavior on your digital properties across all channels
  3. Clearly define goals and the corresponding KPIs
  4. Segment your customer base to target all communications
  5. Create a definitive roadmap to improve customer engagement

Increasing customer engagement requires analyzing multiple metrics and clearly defining your customer’s journey. You should aim to guide customers through the sales funnel with increased velocity while creating a positive brand experience with a customer engagement strategy.

How to Leverage Customer Engagement to Create a Marketing Strategy

There are several ways to leverage customer engagement in your marketing strategy. Businesses will often create customer incentives in their content to promote engagement with their brand. You need to make sure your content is extremely consumer-centric so that you only post valuable material your customers can benefit from. You can choose to create contests or incorporate fun, interactive games on social media to boost engagement. In your marketing strategy, you can leverage chatbots, email feedback, web push notifications, and SMS alerts.

Looking at the company Spotify, they promote Spotify Wrapped for their listeners. This gives users an annual report of what they listened to and how often they listened to it. The fun, personalized statistics about a listener’s music style is an amusing way to engage customers with little to no overhead. This low-cost customer engagement strategy has proven very successful in retaining listeners and gaining the company popularity on social media. Pinpoint the strengths in your content strategy and build upon these to create more customer engagement.

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