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Customer Engagement refers to a process under which an organization interacts and connects with customers and subsequently develops a relationship with them.
Customer Engagement creates an emotional connection between the organization and the customer and results in customer loyalty.
Importance of Customer Engagement
1. Customer engagement increases brand experience
2. Keeps the brand at the top in the customer’s mind
3. Improves customer experience
4. Results in trust and customer loyalty
5. Offers valuable insight and customer feedback
6. Increases sales volume
7. Increases profits to a great extent
8. It is less expensive to retain customers
9. Customer engagement leads to free mouth publicity
How to Engage Customers?
Introducing points system
Organizations often introduce a points system for every purchase so that the customers visit their stores repeatedly and are rewarded for the repeat purchases and customer loyalty.
Connecting on social media
Customers are encouraged to follow the brand on social media and share the page with their friends and family.
Customers engaging with other customers
The shared brand content encourages the customers to connect and engage with each other
Sharing the brand with referrals
Customers share their brand with referrals and increase brand awareness
Example –
1. Sephora beauty talk
2. Uber referral program
User-generated content
Customers are encouraged to create their content with the product
Example – GoPro Million Dollar Challenge
Community development
Customer engagement is possible by creating communities
Example – Harley Owners Group
Customer self-service
Blogs, FAQs, and wikis can be used to answer basic questions
Example – Official Apple Support Community
Product co-development
Ensuring user connect with the product development team through blogs
Example – LEGO ideas
Highlight brand reviews
Saving and storing positive reviews
Feedback segments
Giving the customer a chance to express themselves in the feedback segment
Customer Engagement Metrics
1. Guest check-out rates
2. Purchase Frequency
3. Average Order Value
4. Repeat Purchase Rate
5. Duration of Visit
6. Frequency of Visit
7. Depth of Visit
8. Click-through Rate
9. Sales
10. Lifetime Value
11. Inquiries
12. Downloads
13. Customer Reviews
14. Comments
Customer Engagement Examples
1. Lego Ideas
2. Digital customer engagement pays off for Starbucks
3. Coco-Cola Campaign #ShareaCoke
This video is on Customer Engagement and it has the following sub-topics.
Time Stamps
0:00 Introduction to Customer Engagement
00:22 What is Customer Engagement?
00:52 Importance of Customer Engagement
01:20 How to Engage Customers?
03:41 Customer Engagement Metrics
01:44 Customer Engagement Examples
04:48 Example 1: Lego Ideas
05:07 Example 2: Digital customer engagement pays off for Starbucks
06:09 Example 3: Coco-Cola [Campaign #ShareaCoke]
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