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Home » Articles » Why should you care about your customer engagement?

Why should you care about your customer engagement?

Businesses have their own ways of interacting with customers. But when it comes to your brand, how do you engage with your own clientele? How do you make an impression with your target leads?

More so, how do you make conversations with your customers? Or do you think your customer engagement matters as you work on achieving your business goals? 

Customer engagement in a nutshell

Ultimately, your customers play a major role in your overall business success. Along with it, your customer engagement is your ticket to nurturing your customers as well as keeping them happy and loyal.

It helps you create value out of every interaction and establish lasting relationships with your customers.

Organizations may have various definitions regarding this buzzword. However, customer engagement is basically all about the ways you conversate with your customers both online and offline.

Your customer engagement across all communication channels will also give you a clearer picture of your overall customers’ lifecycle

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Customer engagement in today’s tech-driven world is no longer in particular to sales, support, or customer services. Organizations these days are able to foresee their customers’ needs through constant interaction with them on various communication platforms. 

As you can see, your customer engagement should also be included in your marketing efforts. This can be properly executed through several touchpoints like email, online reactions, social media, feedback, and more.

Good customer engagement, if done correctly, will not only promote a loyal customer base but also enhance your sales growth. 

Customer engagement in a nutshell

How your customer engagement impacts your business performance

There are endless benefits to having to work on your customer engagement, for one, it helps you achieve customer satisfaction

Given our modern day’s technology and the accessibility of the world wide web, entrepreneurs  are given wider options for customer engagement. Thus, giving you more opportunities to fulfill your business goals.

In addition to that, here are other great perks of customer engagement to your overall business performance: 

Healthier customer relationships and a loyal customer base

As modernization continuously shifts all business landscapes, a lot of organizations have also moved past the traditional way of doing business offline. 

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As a business owner, you have to be relevant online, and this should always come with establishing a good relationship with your customers. Having consistent interaction with your patrons online helps you connect more with them. This will also encourage them to do more business with your brand and stay loyal. 

And of course, in keeping in touch with your customers, you should always take into account their needs, motivations, and priorities. It gives them the impression that you care about them. 

Therefore, there will be a bigger chance that they won’t be thinking about other brands as they decide to make a certain purchase.  

Improve customer retention

Well-engaged customers result in customer retention, and this helps in significantly scaling your business revenue. The secret here is to actively engage with your customers on a regular basis and continuously nurture a good relationship with them. 

Reduce customer churn

Keeping a systematic approach to your customer engagement allows you to know and understand your customers better.

On top of that, it is also a perfect chance for you to introduce more of your products and services. 

More opportunities for cross-sell & up-sell

Engaging with your customers can help you determine their behavioral attitude. Consequently, it will be easier for you to customize your interactions, specifically on what products or services to recommend to them.

It will also help you to identify the right products or services to cross-sell and up-sell. 

Establish brand identity

Customer engagement is perhaps one of the most authentic and effective ways of helping you establish a strong brand identity. Keeping in touch with your clientele in various touch points and communication channels will help foster your brand identity.

Remember that whether it is a social media post or a blog piece, you should always be able to speak directly to your customers.

How your customer engagement impacts your business performance

3 ways to measure your customer engagement

It is also essential to track and measure your customer engagement. By doing this, it will help you have a deeper understanding about your customers. Adjust, adapt, and optimize your engagement accordingly to help you have greater results. 

And while businesses have their varied methods of measuring engagement, here are four essential metrics you can use: 

Purchase Frequency (PF)

This refers to how often your customers make purchases. You may do this by identifying your total number of orders in the last 365 days and divide it by the number of your unique customers in the last 365 days. This will help you determine how engaged your customers are.

Average Order Value (AOV)

This enables you to know how much your customers spend on every purchase. Repeat customers generally spend 7x more on their repeat purchases. You may measure this by your total revenue over the last 365 days divided by total number of orders in the last 365 days. 

Repeat Purchase Rate (RPR)

Your repeat purchase rate tells you how engaged your customers are that they are willing to make more purchases during a certain period of time.

To measure this, divide your total number of customers that purchased once by your total number of customers. 

Your customer engagement matters because…

Customer engagement is not only a vital part of customer service and support. Rather, your customer engagement should also be an essential element of your marketing strategies

Keeping your customers well-engaged has greater benefits beyond your overall customer service experience. It also helps with your brand, sales, customer base, and more. 

To ensure that customers remain loyal and engaged, it’s best to hire professionals who will be fully responsible in creating the best customer experience. Outsourcing providers like Six Eleven BPO can definitely help your business in this arena.

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