Should you really care about customer engagement? For as long as the customer has a good buying experience should that not be enough to get them to become repeat clients. Isn’t that the goal? While some businesses have survived long enough without any notable customer engagement strategy, the tides are beginning to change.
According to one study by McKinsey & Company, many C-level business executives identify customer engagement as the most important strategic priority for every business. And the studies prove them right. Highly engaged customers demonstrate more brand loyalty. They buy more and promote more.
Another research by Gallup indicates a boost in revenue by 23% when customers are fully engaged. And Twitter’s 2016 survey on their platform revealed that a customer whose tweets about a brand is replied will be willing to spend up to 20% more in purchases from the brand. While about thirty percent of replied customers are very likely to recommend the brand.
A successful customer engagement strategy ultimately reduces customer churn rate – that is the rate at which customers switch allegiance from your brand. By reducing churn rate, boosting up-sell and cross-sell revenue, and increasing order sizes, this marketing strategy is critical to your business’ profitability. You would agree, after all, that a customer who is interested in what you are doing will be more likely to purchase your products or services.
Customer loyalty refers to the strength of the bond between you and your customers. How likely are your customers going to stick with you regardless of the competition that may spring up? The more engaged they are with your brand, the more they’ll want to stick with you. This is because they do not only appreciate your products or services, they also enjoy a more personal connection with your brand.
Customers who feel good about the brand, who like what and how the brand makes them feel, display that behavior in different ways. Not only do they feel more confident spending their money, they also have no qualms sharing your brand news on social media or referring others through word of mouth. By strengthening your bond with customers like this, you improve your chances of success and growth.