Your Guide to Customer Engagement in 2020
When it comes to measuring a brand’s success, profit only tells half the story. Customer engagement is a way to see how big a part you play in your customers’ lives, and in turn how likely they are to stay loyal, spend more money with you and help your brand grow.
Here is everything you need to know.
What Is Customer Engagement?
Customer engagement refers to interactions between your brand and its customers. The frequency, type and level of these interactions will vary depending on your customers, the type of service or product that you offer, and your aims as a business.
For example, say you have two customers, Mark who follows your brand on social media and Jamie who subscribes to your service and recommends it to all his friends. These are both types of interaction with your brand, so both count as client engagement. However, Jamie’s level of engagement is much deeper and better for your brand than Mark’s.
Hence customer engagement is about quality and quantity of interactions. Gaining a lot of followers on social media is great for your brand, but only if some of them convert into purchases!
Successful user engagement relies on you sending the right messages to the right people at the right time. In order to do so, you need to know your customers intimately.
Why Is Customer Engagement Important?
Increasing customer engagement is a way to engender brand loyalty among your customers. If you can find a way to not only sell to your customers, but also to engage with them between purchases, you will strengthen their emotional connection to your brand. The result? Your brand plays a bigger, more important part in their life, and you are more likely to retain them as customers.
In the crowded marketplace of modern e-commerce, clicks, conversions and acquisitions are no longer enough to sustain a business. Want proof? There is a direct correlation between customer engagement marketing and profits. According to a recent study, brands in Asia Pacific that invest in customer experience (involving having a well thought out customer engagement strategy) achieve an average revenue growth rate of 23 percent, compared to 13 percent for other companies surveyed.
Another study by Constellation Research found that improving customer engagement can increase cross-sell by 22 percent, boost up-sell revenue from 13 percent to 51 percent and increase order size from 5 percent to 85 percent.
As well as spending more money with your company and being easier to retain, highly engaged customers share their positive retail experience through word of mouth, be it in person or online through social media.
How to Measure Customer Engagement
To increase customer engagement, you first need to know how to calculate it.
For starters, you could analyze the number of customers who buy from your website without creating an account (for example, they check out as guests). Buyers who create an account are more likely to return as customers, so a high guest checkout rate indicates a low level of consumer engagement.
Purchase frequency refers to how frequently customers buy from you. It is calculated by dividing the number of orders over the last year by the number of unique customers over the same period. When you know how long the average customer takes to make another purchase, you will get an idea of how engaged they are.
How much customers spend when they make a purchase is also a good indicator of how engaged they are. Divide your total revenue over the last year by the total number of orders over the same period to get your average order value. Repeat customers generally spend more than newcomers. For instance, one study pointed out that the average repeat customer who bought apparel spent 67 percent more.
Lastly, repeat customer rate is the percentage of customers who have made more than one purchase from you during a set time frame. This gives you a clear idea of the efficacy of your retention strategy.
Best Practices to Nail Customer Engagement
There are some simple steps you can take to nail customer engagement.
1. Personalize customer engagement at every touchpoint throughout the customer journey. Leverage data and customer engagement platforms driven by artificial intelligence to learn more about your customers, such as when and how they interact with their devices, and what they are interested in not only on your website, but on other websites too. By having a holistic view of your customers, you can create more personalized content, and engage them more effectively.
2. Give your brand a personality on social media. Make sure you have a clear voice and value on your social channels. Encourage your customers to follow your brand and share their experiences with you. Share posts that aligns with your voice and personality.
3. Create content that offers real value to your customers. Provide information or insights on things that your customers care about. If you sell beauty products, sharing a makeup tutorial video or a blog post about “5 Gel Eyeliner Makeup Tips for Beginners” would draw your customers’ attention and drive more interactions with your brand.
4. Reward engaged customers. Whether a customer has made a purchase or gets in touch, offer small bonuses if you see they regularly interact with your brand. This could be a personalized ‘thank you’ email, a discount for their next purchase or extra points for your loyalty program.
Want to learn more about how you can leverage data and AI to create personalized customer engagement and drive ROI? Download our latest white paper “Stay Ahead of Evolving Asian Consumers: Secure Customer Engagement in E-Commerce With AI” for more in-depth insights, or get in touch with our experts today!
WE ARE HERE TO HELP
YOU MIGHT ALSO LIKE
Author | Dr. Min Sun, Chief AI Scientist, Appier The concept of digital transformation is not new, and businesses of all types and sizes have been under pressure to keep up with the pace of technological change for the past several years. However, the global pandemic of 2020 has caused many organizations to speed up their plans and shift quickly with regard to digital-first operations. Retail is one industry that has had to make significant changes to how it meets the needs of consumers in light of the pandemic, but the transformation in the industry was already well underway. Retail has seen several phases of transformation over the past 70 years or so, from the rise of the department store to the rise of the supermarket, and then into mass production which led to the introduction of chain stores such as 7-11. We’re now in the fourth retail revolution, driven by e-commerce led by companies such as Amazon and Alibaba. A major element of this phase has been the use of technology not just to better meet and anticipate the needs of consumers, but also to make all parts of the retail supply chain more efficient. We are seeing an
You may have heard the term ‘predictive analytics’ being often used when talking about digital marketing or data science. So, what does it mean, how will your business benefit from it, and how does it work exactly? Read on for everything you need to know. What Is Predictive Analytics? Put simply, it is a way of analyzing historical data in order to predict future events. Typically, companies will utilize historical data to build a mathematical model. Given data and the model, the computer can make a prediction of the future. These trends can refer to the immediate future, just seconds, minutes, hours or days ahead, or can look much further into the future. This model can then predict what will happen next, or suggest steps a business can take in order to best meet its goals. Predictive analytics is a subset of data analytics, and within data analytics, there is also descriptive analytics, which is to leverage historical data to better understand what has happened in a business, meaning paint the picture of the past. Predictive analytics uses a wide range of technologies like big data, data mining, statistical modeling and machine learning to crunch data in order to
A business website is marketers’ most used distribution channel, but generating enough traffic and leads continues to be the top marketing challenge worldwide. It is no wonder that generating leads is marketers’ top priority in 2020. COVID-19 has only made it more challenging for marketers as more companies have accelerated their digital transformation and shift to e-commerce. Brick-and-mortar retailers that previously relied on in-store sales are now forced to go digital for survival. According to IBM’s US Retail Index, the pandemic has accelerated the transition from physical stores to e-commerce by approximately five years, while e-commerce is estimated to grow by almost 20 percent in 2020. So, how can brands optimize their marketing strategies to drive website traffic and leads for higher ROI? Here are eight powerful techniques to help you achieve that. 1. Improve Your Website’s UX Design The latest figures from Statista show that more than 88 percent of online shopping orders worldwide were abandoned in March 2020, suggesting significant lost opportunities. One of the key factors in higher website traffic and conversions is how easily visitors can navigate your site, find the relevant content or product information, and complete checkout. Great user experience (UX) design involves