What is customer engagement?
Customer engagement is the cornerstone of a brand's interaction with its customers across all touchpoints throughout their lifecycle. It goes beyond sales and services, focusing on building lasting relationships, loyalty, and business growth by anticipating and meeting customer needs.
Importance of customer engagement
Implementing an effective customer engagement strategy can have numerous benefits for businesses. It helps build strong customer relationships, increase customer loyalty, reduce churn, create cross-selling opportunities, enhance audience reach, improve conversion rates, and establish a distinguishable brand identity.
Eight metrics to measure customer engagement
Several key metrics can help estimate engagement levels, including retention rate, churn rate, customer lifetime value, time spent on the platform, click-through rate, social media engagement, direct user feedback (NPS/CSAT scores), and online reviews. Engaged customers are more likely to stay loyal, refer others, and make repeat purchases.
Types of customer engagement
In the modern age, customer engagement has evolved beyond just transactions. Brands now focus on emotional engagement, behavioral engagement, cognitive engagement, and social engagement. These methods help companies understand how customers interact with their brand on a deeper level.