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Customer Engagement


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What is customer engagement?

Team Storyly
March 16, 2023
min read

What is Customer Engagement?

Customer engagement refers to the level of interaction and involvement that customers have with a brand, product, or service. It encompasses all the ways in which customers interact with a business, including online and offline channels.

What are examples of customer engagement?

Some common examples of customer engagement include:

  • Responding to surveys or voting in online polls
  • Subscribing to an email list
  • Reading a company’s newsletter 
  • Interacting with in-app Stories
  • Text chats or phone calls with customer service 
  • Using referral codes to recommend the brand to friends and family
  • Reacting to a brand’s social media posts or posting about the brand on individual accounts
  • Leaving product reviews
  • App usage 

Why is Customer Engagement important?

Customer engagement is important because it can lead to increased customer loyalty, repeat business, and positive word-of-mouth marketing. Here are some key reasons why customer engagement matters:

Brand loyalty: Engaged customers are more likely to feel connected to a brand and to make repeat purchases. This can help build brand loyalty over time and result in a steady stream of revenue for the business.

Customer retention: Engaged customers are less likely to churn or switch to a competitor. By keeping customers engaged, businesses can improve customer retention rates and reduce customer acquisition costs.

Word-of-mouth marketing: Engaged customers are more likely to recommend a brand to others, either through social media or word-of-mouth. This can lead to new customers and increased revenue.

Customer feedback: Engaged customers are more likely to provide feedback and suggestions to a business. This can help the business improve its products or services and stay competitive in the market.

Competitive advantage: By engaging with customers in meaningful ways, businesses can differentiate themselves from competitors and build a competitive advantage.

The Benefits of High Customer Engagement

High customer engagement is beneficial to a brand because engaged customers tend to stay with a company longer, make more purchases, and recommend the brand to friends and family. If a company’s customer base has high engagement overall, it is likely that that company has done a good job connecting with their audience and creating a reliably positive customer experience, both strong indicators of growth and success. 

How do you measure customer engagement?

Customer engagement can be measured by a variety of metrics. Some of the more popular ones include:

  • Net Promoter Score: 1-10 measurement indicating how likely a company’s customer base is to recommend the brand to others.
  • Social Media Interactions: How many posts are liked, commented on, or shared. 
  • Churn Rate or Attrition Rate: Measurement of how quickly or slowly a company is losing customers.
  • Retention Rate: Percentage of customers who remain with the brand over time.
  • Stickiness: Measurement of how many customers are “regulars” to a brand. 

How a loyalty program can help you increase customer engagement

Implementing a loyalty program is an excellent strategy for increasing customer engagement and deepening brand investment. As many successful companies have discovered, it is almost always less expensive to maintain and develop relationships with existing clients than it is to acquire new customers. 

Loyalty programs are a way to reward your best customers for deepening their investment in your brand and ultimately, cultivating a higher lifetime customer value. By encouraging continued conversion and consistently offering a positive customer experience, not only will members of a loyalty program make more purchases and make more recommendations, but they also create an emotional connection with the brand, leading to long-term engagement.


Team Storyly

Group of experts from Storyly's team who writes about their proficiency.


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