Customer Engagement is an important marketing term that is widely used today across marketing communities. This is largely because of the competitive, internet-driven nature of the market where there are numerous businesses vying for the attention of individual customers to rein them in to focusing on their brand alone.
As more and more companies try to gain the customers’ trust and build long-lasting relationships with them, the key is to keep the latter engaged. There are numerous benefits of keeping your customers satisfied and engaged, and this in turn, tends to have a significant impact on your revenues.
In this article, we will delve on some ways that engagement can impact your business’s bottom line substantially.
Engagement helps minimize your sales cycle
Marketing automation has made it easy for today’s marketers to shorten the sales cycle considerably. Omni-channel outreach by marketers and multi-channel access by users have expedited the decision making and transactional process.
Ever since the inception and application of legacy CRMs to the modern ones which combine marketing, sales & helpdesk automation and then to the even more recent ones which enable unprecedentedly high levels of customer personalization, engagement has grown in leaps and bounds.
With these modern CRMs, marketers can immediately identify at what stage the customer is at in the buying process and what action needs to be taken to close the sale.
But what really is changing the game in recent times is high personalization software that is increasingly offering disruptive 1:1 personalization capabilities by combining Marketing Automation and Big Data Analytics. This uses your complete customer data and integrates it with Big Data to help you arrive at highly actionable insights that jet-propels high quality engagement and increases the possibility of a successful sale, manifold.
This is a clear winner.
Boost Customer Loyalty, Retention and consequently Sales
Research shows that customers who are engaged with their favourite brands tend to do more business with them than those who aren’t. When businesses run loyalty programs and offer discounts and other goodies to their loyal and engaged customers, the customers are more than happy to spend more with them.
According to Gartner, ‘The cost of acquiring a new customer costs five to ten times more than retaining an existing one. Not only that, but repeat customers spend, on average, 67% more.’
Below are some samples of how engaged customers behave across different industry verticals:
Consumer electronics: Customers who are engaged, visit their preferred retailers 44% more often and spend an average of $84 more per visit than those who are not.
Retail banking: Engaged customers provide 37% more annual revenue to their primary bank. They have more banking products and a higher deposit balance.
Casual dining: Engaged customers visit their favourite spots 56% more often.
Hotels: Engaged guests spend an average of 46% more per year than disengaged ones.
Insurance: Engaged policyholders buy 22% more products than disengaged ones.
Engaged customers are your Brand Ambassadors
It is a highly connected world today and everyone has access to more information today than they did last evening, and moreover, whether it is a new taco restaurant or a spa experience, people are increasingly sharing their opinions with everyone, on everything, at all times. Review sites such as Glassdoor, TripAdvisor, Yelp, and many others are flooded with reviews and actual purchase, employment and other important and related decisions are being made based on these reviews. Peer recommendations, both in the B2B and B2C environment, are the new adverts.
In fact, according to a survey, 20% of B2B customers say they consider peer recommendations as a top resource when gathering information about potential new vendors.
Customers who are highly engaged voluntarily assume the role of being your brand ambassador, both offline and online. Whenever someone in their network or in their area of exposure needs the kind of services that your business happens to provide, be assured that this happy and engaged customers would be your most vociferous brand evangelist.
This really means that those customers who are engaged with your brand and interact with you online will mention you in their social-media feeds and praise you in various relevant forums as well.
If this isn’t good enough for your business, what else is?
There can be volumes written about the returns for your business via customer engagement but let’s just take it up another day. It is possibly the single most invaluable, proven and sure-fire way for your business to blow the competition out of the water and be the brand everyone loves.