Customer engagement – what is it and how do you make it grow?

Nowadays, it is not enough to create good products – you also need to ensure the highest possible customer engagement. It is they and their interactions that build your brand and its market success.

From this article you will learn:

• What is customer engagement?
• What is the relationship between engagement and customer satisfaction?
• How are customer engagement and customer experience similar and different?
• How does customer engagement manifest itself?
• What can be gained from high customer engagement?
• How can customer engagement be improved?
• How to measure the level of customer engagement?

Customer engagement – definition

Customer engagement refers to the extent to which customers are emotionally attached to a brand, product or service. It is also a measure of their loyalty, which can influence their willingness to purchase again or recommend your brand to others. There are many factors that influence customer engagement. These include:

• the quality of your products or services,
• customer experience,
• customer service satisfaction (account management),
• personalisation of the offer,
• brand value,
• trust and emotional connection with the brand.

The pursuit of high levels of customer engagement is important for businesses as it can lead to greater loyalty, increased customer lifetime value, increased sales and, in the long term, success in the marketplace.

Customer engagement is a state of emotional and behavioural involvement in which customers show positive feelings, bonding and activity towards a brand, product or service. It means that customers are not only interested in a brand, but also engage with it through interactions, purchases and actions.

Definition of customer engagement

Customer engagement versus customer satisfaction

Customer engagement and customer satisfaction are two different, but related, concepts in the context of the customer-brand relationship. Customer satisfaction refers to an assessment of whether the customer is satisfied with the product purchased or service received. Engagement, on the other hand, focuses on positive feelings, emotional connection and active participation of the customer in interactions with the brand.

Customer satisfaction is often the result of a one-off purchase experience or use of a service. Engagement is a more enduring state, the development of which requires a long-term bond and repeated interactions between the customer and the brand. You measure it by conducting a customer satisfaction survey.

Customer satisfaction can be measured by surveys, repeat purchase rates or feedback analysis. Customer engagement is more complex and is most often measured by indicators such as customer activity in loyalty programmes, number of interactions with the brand or product recommendations to others.

It is also worth noting that customer engagement is a stronger driver of loyalty. A highly engaged customer tends to be more likely to make repeat purchases, recommend the brand and is more resistant to the actions of competitors.

Customer engagement versus customer experience

Customer experience refers to the sensations and feelings a customer has when interacting with a brand, product or service. Engagement, in turn, reflects the customer’s emotional attitude towards the interaction. It can influence the customer’s experience by intensifying emotions and bonds with the brand.

Both engagement and experience (customer experience) influence customer loyalty. Positive experiences throughout the customer journey, often lead to greater engagement, and strong engagement leads to repeat and positive experiences. These two elements reinforce each other and can lead to greater customer loyalty. However, they require continuous improvement and care on the part of the brand.

Manifestations of customer engagement

The manifestations of customer engagement can vary depending on the industry, product and market specifics. It is important for a brand to be aware of manifestations and to strive to build and maintain strong customer engagement through appropriate marketing strategies, customer service and the delivery of valuable experiences. Here are some of the main manifestations of customer engagement:

• Repeat purchases,
• Positive recommendations,
• Participation in loyalty programmes,
• Social activity,
• Openness to interacting with the brand,
• Emotional engagement,
• Willingness to pay a higher price.

Benefits of customer engagement

Engaged customers are more loyal to the brand. They often prefer the brand over competing options and are less likely to switch to other brands. Increased customer loyalty translates into repeat purchases, greater lifetime customer value and revenue stability for the company. They are also more likely to recommend the brand to others.

Strong customer engagement often leads to increased sales. Engaged customers make more purchases, experiment with other products or services offered by your brand and are more likely to reach out for new products. They also tend to stay with your brand more, even in the face of attempts to interest them in other offers. This translates into greater brand stability and competitiveness in the marketplace.

Strong customer engagement contributes to building a positive brand image. Engaged customers often share their positive experiences, which influences the perception of the brand as valuable and trustworthy and attracts new customers.

It is also worth noting that engaged customers, due to their repeat purchases, greater propensity to make additional purchases and recommendations, contribute to greater revenue and profitability for the brand. This translates into greater customer lifetime value for the company.

Methods to improve customer engagement

There are many methods that can be used to improve customer engagement. Here are some effective strategies:

Create value for customers

In order to effectively deliver value to customers, it is first and foremost important to have a good understanding of their needs and expectations. Conducting market research, analysing customer data and listening to their feedback helps you identify areas where your brand can work.

Then develop products or services that meet your customers’ needs. In this case, focus on the differentiating features of your products or services. Remember that customer value is often subjective and varies depending on the target audience.

Explain to customers how your products or services provide value and solve their problems. Focus on the benefits they have achieved and maintain an ongoing dialogue with them. Respond to feedback and make improvements based on their suggestions.

Personalise the customer experience

Tailoring your offer and communication to individual customer preferences and needs is key to increasing customer engagement. To achieve this goal, there are several effective strategies.

Firstly, collect and analyse customer data such as preferences, purchase history and interactions with the brand. This will allow you to identify patterns and segment your customers for a more personalised approach.

Secondly, provide personalised recommendations. For this, you can use recommendation algorithms that analyse previous purchases or customer preferences. This will allow customers to discover new products.

Thirdly, offer your customers special offers, exclusive discounts, discount codes or birthday deals. This will make them feel special and make them more likely to engage further with your brand. And don’t forget to monitor and personalise messages based on changing customer preferences and needs.

Improve customer service

To provide excellent customer service and increase engagement, be available to customers across a variety of communication channels, such as phone, email, live chat and social media. Respond quickly to customer queries, questions and problems so that you do not leave customers with unmet needs.

Pay attention to customers’ needs and show empathy towards their problems. Listen carefully and ask questions to better understand their situation. Give them the feeling that they are being listened to and appreciated. This allows you to tailor your service to their individual preferences and needs. Collect information about them in your CRM system to get a fuller picture of their history, preferences and previous interactions and use it to offer personalised solutions.

Identify and resolve problems quickly, striving to exceed customer expectations. Remember that treating customer problems as an opportunity to build relationships and trust can have long-term benefits. Create exceptional experiences at all stages of interaction. Focus on every customer interaction, from the first touch to purchase to after-sales service. Take care of ease of use, intuitive processes, aesthetics and overall customer satisfaction.

Create interactive and engaging experiences

Creating interactive elements around your brand is an effective way to increase customer engagement. Interactive games, quizzes, competitions or challenges related to your brand or products are engaging forms of interaction that capture customers’ attention and allow them to spend time around your brand.

Motivate customers to participate in interactive elements through a reward system. Offer prizes, discounts, special offers or loyalty points for participating in games, quizzes, competitions or challenges. Use social media as a platform to build dialogue and interaction with customers. Respond to customer comments, questions and suggestions. Encourage the sharing of opinions, stories or photos related to your brand.

Organise hashtag campaigns on social media platforms, encouraging customers to share content related to your brand. Ask them to tag their posts with a relevant hashtag or to tell stories related to your product or service. Also organise webinars or live broadcasts in which experts from your brand share knowledge, tips or present new products. This allows you to communicate directly with your customers.

Build a community around your brand

Creating spaces where customers can connect and share their experiences is an important part of building engagement. Create a dedicated group on a social media platform, such as Facebook, LinkedIn or Slack, where customers can meet, chat and share their experiences with your brand.

Organise workshops or webinars where customers can meet in person or online. This creates an opportunity for face-to-face contact, sharing ideas and establishing relationships. Also facilitate communication between customers. This encourages mutual help, sharing of tips and relationship building.

Open up communication channels

Providing a variety of communication channels gives customers the opportunity to choose their preferred method of contact, resulting in greater convenience and satisfaction. It also builds an impression of accessibility and customer care, which influences their engagement and brand loyalty.

Make live chat available on your website so customers can instantly contact a representative of your company. It allows you to quickly answer questions and resolve issues in real time. You can also make use of chatbots. They can help answer frequently asked questions or guide them through processes such as placing an order. They also provide fast and 24-hour support.

Provide an email address where customers can send messages with questions, information or suggestions. Make sure answers are provided in a timely manner so that the customer feels valued and noticed. Also provide a telephone helpline number – this allows for a more personal and direct contact.

Include contact forms on your website that allow customers to send a message or query directly to your business. Make sure they are easy to use and that responses are sent in the shortest possible time. Make it easy for customers to solve problems themselves by providing self-service platforms such as a knowledge base, FAQs or tutorials.

Reward loyalty

Loyalty programmes are an effective tool to increase customer engagement by rewarding customer loyalty and activity related to your brand. Award customers points for every purchase they make. The more purchases they make, the more points they collect and can later redeem them for discounts, free products or other rewards. Reward customers for recommending your brand to their friends and family. Award them bonuses or extra points for every new customer who makes a purchase through a recommendation.

A customer loyalty level system is also a good option, where customers can advance to higher levels based on their activity. Each level can offer additional benefits. VIP programmes for the most loyal and active customers are an interesting tool. Offer them additional benefits such as free delivery, personal advice or early access to new products.

Listen to customers and respond to their feedback

Actively listening to customer feedback and opinions gives you the opportunity to continuously improve your offer and adapt it to the real expectations of your customers. It also builds a relationship and shows that your company cares about customers’ opinions and involves them in decision-making processes. To achieve this, introduce a system for collecting customer feedback. This should include as many channels as possible.

Regularly analyse the feedback and opinions collected from customers. Identify patterns, areas for improvement and key areas to focus on. Use this information to take specific actions to improve your offering, products or services. Inform customers about changes, improvements or new features you are making. This shows that their voice is important and that the company acts on their feedback.

Once changes have been implemented, monitor their effectiveness and efficiency. Analyse whether they have contributed to increased customer satisfaction and engagement. Regularly review whether you are achieving your goals and whether further adjustments are needed.

Ways to measure customer engagement

Measuring customer engagement is important for understanding the effectiveness of your customer engagement strategy and identifying areas for further improvement. It should be systematic and cover different aspects of the customer’s relationship with the brand. Here are some ways to measure customer engagement:

• Surveys and satisfaction surveys – questions can address customer experience, preferences, expectations and satisfaction levels.
• Analysis of business metrics – such as purchase frequency, order value, average duration of the customer’s relationship with the brand or retention rate indicates the level of customer engagement and its impact on the company’s bottom line.
• Tracking online interactions and activity – monitor website traffic, time spent or participation in activities (e.g. sharing, comments) can provide insight into how active and engaged customers are in interacting with your brand.
• Customer loyalty surveys – can be checked by asking for NPS (Net Promoter Score) or asking questions about intent to recommend the brand.
• Feedback and review monitoring – track customer feedback and reviews and analyse their content to identify positive and negative patterns.
• Analyse loyalty programme activity – if you run a loyalty programme, analyse the number of points earned, rewards used, frequency of use and participation in loyalty activities. This will help you assess the level of customer engagement with the programme and determine the effectiveness of your loyalty strategy.