Customer Engagement

What is Customer Engagement?

Customer engagement is the emotional connection between a brand and its customer base that develops through touchpoints and interaction. 

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 deepens brand investment and can be a strong predictor of customer loyalty. When an audience is engaged with a brand, not only are they interacting with the brand’s messaging and products, but they’re also creating an emotional connection with the brand and are more likely to become high-value customers that help the brand grow and succeed. 

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.