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If customer engagement isn’t a primary focus for your company, you need to change that right away. Customer engagement is changing the way businesses and ecommerce operate.

It’s important to remember to engage the customer even when the customer isn’t right in front of you. When it comes to stores on an online platform, we can easily forget this cardinal rule.

In this article, we’ll break down what exactly customer engagement means and seven reasons why it is so valuable to a business.

Keep reading to find out more.

  1. Your Customer’s Success Is Your Success

Your company or brand’s success depends on your ability to focus on and nurture the growth of your customers. This will make them choose to continue the relationship. First, learn and understand your customers. Next, use that knowledge and take action. Deliver value throughout your customer’s journey with your business.

Fostering this type of mutual growth requires a deep understanding of your customers. This also involves keeping their goals in mind and tailoring your communication to their situation.

Be sure you are aware of their business goals. You want to provide relevant and targeted customer segments centered around their objectives.

  1. Customer Engagement Encourages Impulse Purchases

Have you ever entered a shop or gone on a website to only look around with no real intention to buy anything? Yet you somehow end up with a shopping cart full of stuff?

This is what is referred to as an impulse purchase. While there is a lot of psychology behind its explanation, one thing is for sure, engagement plays a significant role.

49% of customers who purchased something they had no intention of buying did so because of a personalized recommendation they received from the company selling it.

A perfect example would be the handmade cosmetics company Lush. From the moment you walk in their stores, you are greeted with big smiles and information about their latest deals and products.

Throughout your shopping or window shopping experience, employees offer to let you test their products. Sometimes, they go all out and bring out tubs of water to show you how bubbly and aromatic their bubble bars are, tapping into all your senses.

Because of their engagement strategy, they now have a reputation for having amazing customer service. Lush now has plenty of loyal customers and a massive cult following. As well as many potential customers hoping to experience that same level of top-tier customer engagement.

Websites like Amazon do something similar. They bombard you with tailored recommendations the minute you hit their homepage. They know and study their customer, so they have the data to understand what each customer wants and place it right in front of them.

  1. Better Customer Engagement Means Fewer Returns

Another bonus to better customer engagement is that not only will it lead to more sales; it also means fewer returns as well. If you are concerned about these impulse purchases leading to massive returns from customers with buyer’s remorse, there is no need to worry.

Only around 5% of impulse purchases are returned, and 85% of those customers reported being very happy and satisfied with their purchase.

A customer’s impulse buy is not the same as trying to give them the hard or pushy sell so there is no need to feel guilty. Purchase recommendations from positive customer engagement experience make that product more relevant to that person.

  1. Proactive and Personalized Communication

Personalized communication and interaction are highly valued in today’s market. Personalized and intelligent interactions are preferred over plain old generic and periodic check-ins.

By showing your commitment to improving your customer’s day to day experience, you make customers feel valued, thus boosting loyalty.

  1. Customer Engagement Boosts Revenues

This one should come at no surprise. When businesses invest in better customer engagement and prioritize building engagement in general, their ecommerce websites also produce higher revenues.

40% of consumers have reported spending more because of a positive shopping experience that engaged them on a personal level.

Sometimes businesses and companies forget that not only are they selling a product or a service, but also an experience.

  1. Sharing Customer Data Across Teams

If a customer feels like they are being heard and understood, they are more likely to feel valued. Especially during cases of escalation. A company-wide customer understanding allows for personalized interaction about how the issue is being handled and what the following steps are in finding a solution.

Customer data is relevant to every team of your business, and getting rid of any roadblocks to accessing and sharing customer data creates informed customer interactions at every level.

This allows everyone across all teams to contribute to the overall betterment of the customer experience.

  1. Brand Loyalty Improves with Better Engagement

With very few things left to leverage as competitive differentiators, many companies have resulted in finding ways they can keep the customers they already have. Statistics show that one way to build brand loyalty is by better engaging your customers.

44% of customers who received a personalized and engaging customer experience reported willing to return to that same company to buy more in the future.

You would probably sleep a lot easier if you knew that over 40% of the customers who purchased from you today would be willing to purchase from you again? What if we told you that 86% of buyers are willing to pay more for great customer experience.

We sure would sleep a whole lot easier knowing stats like those!

Customer Engagement Means Customer Growth

Effective customer engagement and interaction strengthens the relationship with the customer and develops trust. It is the way you desire to help with their path to success and the way you demonstrate your attention to their day-to-day reality.

When you have the right engagement strategy in place, you are able to create long-lasting and mutually beneficial relationships with all your customers.

We hope you found this article helpful. If you did, be sure to check out more from our marketing and ecommerce pages!

Allena Dominus

Started the career as a Product Manager, I now reveal the ins and outs of the digital world, online privacy, IoTs, and the trends shaping the technology industry and much more.

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