What is customer engagement?
Customer engagement is more than just converting a business’s audience into paying customers.
It is what strengthens the psychological, physical, and emotional investment that customers have in a brand.
This leads to customers becoming “true believers” of the company’s products, which then drives long-term profits and customer loyalty to the business.
Why is it important?
Because it costs about 4-to-10 times more to acquire new customers than to keep existing ones, customer engagement has become one of the top priorities of most business owners.
Not only does it help a business grow its bottom line without them having to spend exorbitant amounts on new customer acquisition strategies, but the role that customer engagement plays when it comes to a business’ longevity is also at a foundational level.
Benefits of Consumer Engagement
The benefits detailed below will give us a better understanding of why customer engagement is crucial for any business.
It encourages word-of-mouth (WOM) marketing. Word-of-mouth marketing
is a potent tool that businesses use to drive more sales and brand recognition.
In fact, several studies revealed that B2B purchasers were influenced to make their buying decisions
because of WOM marketing.
Because customer engagement takes the relationship between the businesses and their customers to a deeper level, the connection between both parties become even more meaningful.
This kind of meaningful relationship is what compels the customers to share to their circle of connections (proactively) how amazing the brand is.
Collecting customer feedback becomes easy.
The customers’ feedback can be the starting point of all sorts of game-changing opportunities for any business.
It allows the companies to formulate the best solutions to the problems that their customers are facing, it helps them find gaps that are causing their leads/customers to leak out of their sales funnels, and it helps them identify the pain points that their customers are struggling with (among other things).
Because customer engagement strengthens the relationship between the businesses and their customers
, it encourages the latter to become open about their sentiments about the product, making it easier for the companies to gather customer feedback
- It helps increase your sales.
Winning the customers’ trust plays such a crucial role in the buying process, so much so that it becomes almost impossible for any business to influence their customers to buy without it.
Since it can establish the business’ trustworthiness in the eyes of their customers, it can increase their eCommerce conversion rate
since they no longer have to deal with the trust barrier between them and their customers.
Having an effective customer engagement strategy can give any business an advantage over their competitors.
Not only will they be able to retain their existing customers, but they can easily win over their competitors’ customers as well.