Why is customer engagement important?
Successful customer engagement strategies offer numerous advantages to businesses and various organizations.
- Customer acquisition costs. The cost of acquiring new customers can run much higher than the cost of customer retention. Customer engagement strategies extend the customer journey beyond the initial interaction or purchase, curbing churn rates. Engaged customers often become repeat customers.
- Brand awareness. Customer engagement is important for e-commerce businesses that must use the internet effectively to reach potential customers. Successful marketing and social media campaigns as well as responsive customer support on social media can increase the reach of a company's brand. For instance, customers that get responses to questions or problems through social media might shop more with those organizations in the future. Customers might also be more likely to recommend engaging brands to their colleagues and friends.
- Loyal customers. Customer and brand loyalty is often increased through customer engagement that fosters emotional bonds. Loyal customers can also become promoters and brand ambassadors for companies.
- Strong customer experience. Customer engagement that extends the customer journey beyond one transaction can increase customer satisfaction and get customers to buy more. Strong customer experiences involve optimizing every point of contact between a customer and an organization. They includes websites with strong user experience (UX), the sharing of engaging content and quick customer service interactions.Customer experience marketing is the marketing arm that deals with this.
- Anticipation of customer needs. Customer engagement that deploys strong, proactive customer service and actively monitors customer feedback deepens a company's insight into customer behavior, needs and preferences. This insight can lead to new products and services that better meet customers' needs.