In today’s competitive market, quality products and excellent service do not guarantee a good customer conversion rate. Customer retention is based on many factors such as customer engagement and customer experience. However, the former has a much larger impact and can even positively impact customer experience. Customer engagement programs are the cornerstone of brand-building activities that offer long-term advantages.
This article will highlight the strategic advantages of customer engagement and share important techniques and strategies to engage customers in 2021-22.
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Customer Engagement can be defined as a continual dialogue between a brand and its customer throughout the customer’s journey. This series of interactions a brand has periodically with its customers to keep them engaged, informed, and entertained also serves as an opportunity to constantly reiterate the brand’s agenda, whether that is an advertisement, customer retention, or other communication.
The true meaning of customer engagement solutions, in general, is entirely subjective. Customer engagement strategies may differ from industry to industry as well as company to company. The structure and nature of customer engagement programs are designed based on the kind of service and products the company has to offer, its target group, communication channels, and other factors.
Why Do You Need Customer Engagement Solutions in General?
Investing in customer engagement strategies can prove highly lucrative for both B2B, as well as B2C, businesses. A significant improvement can be observed in the following factors by focusing on customer engagement programs.
- Customer Experience – 86% of the buyers are willing to pay more for a better customer experience. Customer experience is obviously an important factor for business growth. A study by Walker conducted in 2020 states, “Customer experience will overtake price and product as the key brand differentiator.” Customer engagement programs can remarkably improve patrons’ experience by continually interacting with them and working on the feedback they provide.
- Reduction in Customer Churn – 65% of a company’s revenue comes from its existing customers. Retained customers are a valuable asset to any organization, but retaining customers requires focus and effective customer engagement programs. Companies that regularly engage with their buyers have a higher customer retention rate, whereas customer attrition is the result of those consumers disengaging, often from negligent customer service. Improvement in engagement strategies can help reduce customer churn considerably.
- Brand Loyalty – Consistent engagement with customers helps to improve the customer-brand relationship. In due time, a strategic customer engagement strategy can help instill feelings of trust, positive association, and even sometimes nostalgia, in customers towards the brand, thereby fostering brand loyalty. Brand loyalty is essential for business growth and with the help of a dynamic platform such as Annex Cloud you can instill loyalty among your customers. A loyal customer can support, nurture, and even represent the brand, aiding in building a positive brand image and brand credibility.
- Purchase Cycle – Customer engagement programs can also have a significant impact on sales. As more customers are made aware of your products and services on a regular basis, your brand gets embedded in the subconscious memory of the customers. This positively affects sales and reduces the purchase cycle. Customers are also more likely to trust and repurchase from a brand that puts in efforts to connect with them, showing they value their feedback and opinions. Hence, consistent engagement activities can help in reducing the sales cycle of customers and offer better customer lifetime value.
- Organic Brand Endorsement – A loyal and highly engaged customer is more likely to become a strong brand advocate. Word-of-mouth publicity is the most influential medium of marketing. Today, word-of-mouth marketing includes social media marketing as well. User-generated content has been shown to have a higher conversion rate. Value-added customer engagement strategies are bound to create brand evangelists that not only represent your brand but also help the brand to gain traction.
Important Techniques to Improve Customer Engagement
- Studying your Target Group – The first step towards building an engagement program is identifying, analyzing, and studying your target audience. Understanding your target group – their needs, preferences, and expectations – will help you to create effective customer engagement programs. It will also assist you in developing relevant and engaging content that has a high conversion rate.
- Identifying and Segmenting– Target group assessment can help you identify and group like-minded customers into segments. Some customers might prefer continual engagement, while others may prefer only to be notified about important announcements. In the same vein, some customers might be interested in a specific range of products, but another group may prefer to be immediately notified about sales and offers. Based on their preference, you can segment consumers, which will help you to effectively automate your customer engagement strategies.
- Managing Data and Analytics -Data and analytics can give valuable insights into a customer’s preferences and purchase patterns; analyzing data is an essential factor in ensuring the customer engagement program runs smoothly. Annex Cloud can help you with data management and analytics with bespoke customer engagement solutions tailored to best suit your business.
Powerful Customer Engagement Strategies for 2021-22
- Personalization – 58% of companies pursue personalization strategies for customer retention. Designing engagement solutions that are tailored according to your customer’s preference is one of the most effective strategies. 80% of customers are more likely to purchase from a brand that provides a personalized experience. Customized services combined with real-time and relevant information are shown to have a higher engagement rate. Authentic and simple, yet relevant engagement tactics add great value to the overall customer experience.
- Omnichannel Engagement – Omnichannel engagement refers to the multi-channel approach of communicating with the customer. It is a fully integrated process that is aimed at providing a full, satisfying customer experience. Digital dependence has created a need for omnichannel customer engagement, which is preferred by almost 78% of the customers.
- Gamification – Gamification refers to the implementation of gaming elements to marketing strategies and customer engagement programs. It is the next big thing in the marketing arena, including having shown that it’s highly effective in improving customer engagement. Gamification adds a little bit of thrill and excitement, plus encouraging more active participation. You can combine gamification with incentivized activities to take customer engagement to the next level.
- Loyalty Programs – Loyalty programs are an excellent way to keep customers engaged with the brand for a while, as they incentivize customers for their repeat purchases and association with the brand. Rewarding customers for engaging with the brand is a catalyst for business growth and aids in building a strong relationship with customers. To know more about omnichannel loyalty solutions and how it can help you boost your customer loyalty, connect with Annex Cloud.