Decoding Customer Engagement Marketing

by Natasha Ambavle |

Decoding Customer Engagement Marketing

What happens when a brand ‘talks’ to you through various channels or keeps you engaged and entertained with its content? 

”The brand becomes a household name that you trust, connect with, and eventually associate with,” is probably your answer.

This is precisely the strongest factor behind the success of well-known brands like Netflix, Uber, and Nike, among others. These brands communicate with their audience not just to sell products, but to create a rapport and build a strong community that delivers loyal customers and a strong brand following. Customer engagement marketing helps a brand to continually engage its clientele and build a relationship that is more than just a monetary transaction.

Customer Engagement Marketing

Customer Engagement Marketing is a series of strategies through which a brand connects with its customers for long-term gains. Consistent and continual stimulation of the customer base, and demographics you wish to grab, keeps the brand relevant foremost, but also sensitive to customer needs; it helps in building brand credibility, brand value, and eventually aids in brand lifting also.

A customer engagement marketing strategy is aimed at encouraging a two-way dialogue with the brand. Two-way communication ensures effective engagement, where customer participation is equally important. Currently, the average customer is exposed to a million brands and receives multiple promotional emails and messages throughout the day,  significantly dropping the brand recall rate. Effective customer engagement strategy will urge the customer to participate in the conversation, thereby substantially improving brand recall, whilst building a strong and lasting bond with the customer.

Importance of Customer Engagement Marketing

  • Helps To Build a Distinct Brand Identity – As we discussed earlier, the market is saturated with a zillion brands and products. One-way communication has a low to negligible impact on the audience. Customer engagement ensures your brand stays relevant by encouraging two-way communication. It helps in creating a distinct brand identity and gives the brand a competitive edge.
  • Stronger Retention – An engaged customer is a retained customer. Customer retention is an important criterion for business growth and there is no better way to retain your customer than through customer engagement marketing A good customer engagement strategy will help to reduce customer churn and aid in keeping retained customers interested in the brand for a long time.
  • Shorter Purchase Cycle – One of the major benefits of investing in a customer engagement strategy is that it considerably reduces the purchase cycle. An effective customer engagement marketing strategy will improve brand recall value, making the brand a household name. This significantly impacts customer trust and loyalty and reduces the purchase cycle.
  • Enhances Customer Experience – 86% of buyers are willing to pay more for a great customer experience. Customer engagement is an integral part of that experience. If a customer feels disengaged with the brand or is uninformed about the latest offerings, it hampers the overall customer experience. If you keep your customers engaged, you can do more than just enhance their experience. Consistent engagement with customers makes them more forgiving of one-time errors and minor inconveniences don’t hamper the brand and customer’s equation as much.
  • Improves Brand Loyalty – Having a set of diligent and loyal customers is an asset to any brand. With consistent customer engagement, along with an effective loyalty program, you can turn customers into brand advocates and loyalists. Connecting with the customers by engaging them through relevant and informative content or simply entertaining them can go a long way in building a strong customer base. For dynamic loyalty programs to improve engagement, connect with Annex Cloud.

Types of Customer Engagement

  • Engagement of Convenience – In this type, customers generally engage or associate with the brand only because it is convenient to them. Although it is not a very beneficial type of engagement, brands can still use this, building on it to connect with the audience on more than just a superficial level.
  • Cognizant Engagement – Cognizant or contextual engagement refers to the customer engagement marketing strategy that identifies the needs, preferences, and requirements of the audience and engages them accordingly. Timing, content, and suitable channel for engagement are extremely important criteria for this type of engagement.
  • Emotional Engagement – Emotional connection is an extremely vital parameter for optimal engagement. These kinds of engagements help in connecting with customers on an emotional level and influence buying decisions, as well as brand loyalty.
  • Social Engagement – Social engagement refers to the magnitude of a customer’s engagement on social media platforms. This kind of engagement can be highly advantageous for the brand since it enables market penetration and provides considerable exposure to brands on social media platforms.

How to Calculate Customer Engagement Score

Calculating the customer engagement score is extremely important to gauge the effectiveness of the customer engagement marketing strategy as well as to identify potential customers and study their purchase patterns. It gives you a good idea of customers that are close to attrition, potential brand loyalists, and those that are more open to upselling and cross-selling.

To calculate the customer engagement score, you will need the approximate weight of the given campaign as well as the approximate number of times you ran the campaign.

w = Weight of the campaign

n = Number of times you ran the campaign

(w1*n1) + (w2 * n2) + … + (w# + n#) = Customer Engagement Score

Examples of Successful Customer Engagement Marketing Tactics and Campaigns

  • Duolingo – Duolingo is a language learning application with simple tutorials and lessons. It uses the element of gamification and has adopted an excellent strategy to keep users engaged. It sends personalized messages and notifications from time to time to remind users to take the ‘daily’ lesson. The app notifies you of your status on the scoreboard and gives small pep talks to keep the members working hard to learn. The app consistently engages its customers, irrespective of whether they are currently using it or not.
  • Netflix – The online streaming platform is well-known for its engagement strategies. Netflix users are one of the most highly engaged consumer bases and reverently loyal to the brand. Netflix notifies users about the latest shows and movies currently available, builds micro-campaigns to promote shows on its social media accounts and connects with its users through these posts. The in-app notifications also keep track of your favorite genres and recommend shows accordingly.
  • Instagram – One of the most engaging strategies in today’s world is born from Instagram. The photo and video-sharing app has a high engagement rate, thanks to the management of data analytics and an ever-changing (though at times, controversial, even detested) algorithm which shows specially curated and relevant content to each user.
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