Customer engagement marketing has transformed over the years as brands continually seek innovative ways to attract and retain their customers. Those who provide a seamless and engaging experience are more likely to outpace their competitors, boost sales, and ultimately cultivate a loyal customer base.
Customer engagement encompasses a wide range of interactions. In marketing terms, it refers to the ongoing relationship between a brand and its audience, going beyond simple transactions to include the entire customer journey. It focuses on building relationships, utilizing brand voice, encouraging loyalty, and ensuring an outstanding experience at every point of contact.
Customers who are engaged tend to spend more, remain loyal, and support your brand, all of which contribute to long-term growth. This is why customer engagement is the cornerstone of effective marketing campaigns.
So, what does it take to develop a successful customer engagement marketing campaign? Today we will dive into customer engagement marketing, exploring strategies, examples, and current trends in detail.
Customer Engagement Explained
Customer engagement is the process through which companies build strong relationships with their customers and nurture loyalty. It begins with the first transaction and continues through targeted marketing efforts designed to retain that customer. The goal is to lengthen the customer lifecycle by turning one-time purchasers into repeat buyers.
Successful customer engagement enables businesses to retain clients and increase long-term sales. Companies that overlook engagement marketing risk falling behind their competitors.
A Guide on How to Define the Customer Engagement Strategy
Customer engagement works well when multiple marketing channels are used: social media, email, search engines, display ads, word of mouth, etc. Customer engagement strategies can be of two types:
- Local — focuses on targeted ad campaigns only
- Global — includes customer service, loyalty programs, and discounts for better retention
Your engagement strategy within an advertising campaign should encompass all your communication channels and address the following questions:
- What product are you offering?
- Who is your target audience for this product or service?
- What is your unique selling proposition (USP)?
It’s essential to consider these questions when creating your ad creatives, promotional articles, and landing pages. Consider using Business Model Canvas to figure out all the pros and cons of your product and develop your engagement strategy accordingly.
Via: Strategyzer
Reasons to Consider Customer Engagement Strategies
Customer engagement strategies help in a myriad of ways, let’s go through some of the most obvious ones.
Fosters loyalty: engaging with customers helps businesses build long-term loyalty, encouraging them to continue using their products or services. Repeat purchases lead to increased sales with minimal effort.
Valuable feedback: businesses can gain insightful feedback that can enhance their products or services and attract more customers. Engaged customers are often willing to share honest and positive opinions.
Advertising guidance: a well-defined customer engagement strategy helps in selecting the right targeting tactics for your advertising. It provides a clear framework for choosing the appropriate bidding strategies and setting an advertising budget to meet your objectives.
Brand boost: interacting with customers through social media and other channels enhances a company’s brand presence. Customer engagement is an effective way to increase brand value and recognition.
Revenue growth: most importantly, effective customer engagement strategies help companies retain clients, which in turn drives long-term revenue growth with relatively little effort.
Customer Engagement vs. Customer Experience vs. CRM
Now that we know about Customer Engagement it is important to know about Customer Experience (CX) and Customer Relationship Management (CRM) as these concepts are interconnected and can sometimes be mixed up.
Customer Engagement vs. Customer Experience
Customer experience (CX) refers to a customer’s overall perception shaped by their interactions with a brand, ranging from viewing a sponsored advertisement to receiving their package in the mail. A positive CX involves providing consistent and favorable interactions throughout every stage of the customer journey.
Contrary, customer engagement focuses on the emotional bond between a customer and a brand. It aims to create meaningful experiences that foster greater loyalty and advocacy.
Customer Engagement vs. CRM
CRM, or Customer Relationship Management, refers to tools that enable businesses to manage their interactions, data, and relationships with customers. It involves utilizing software to track customer information, communications, and sales activities.
The primary objective of a CRM system is to enhance operational efficiency and strengthen customer relationships. An effective CRM solution can centralize customer data, providing organizations with a comprehensive view of their tasks and processes. Additionally, it offers valuable insights into customer behavior, enabling businesses to make informed, data-driven decisions.
In contrast, customer engagement emphasizes building loyalty through meaningful interactions. While CRM focuses on data management, analysis, and optimization to improve business operations, customer engagement is centered on creating personalized experiences.
Planning Customer Engagement Strategies
Now that we know the theory, it is time to get to the practice! Here are some strategies that are time-proven and will definitely benefit your business.
The first key point to remember is to share your company’s vision and mission statement.
Communicate clearly your brand mission and values to win over the loyalty of the most relevant customer segments.
A prime example of a company with a compelling vision and mission statement is Google:
- Vision Statement: to access the world’s information with a single click.
- Mission Statement: to organize the world’s information and make it universally accessible and useful.
At a glance, the user knows that Google is determined to make information easily accessible to everyone.
Personalized Advertisements
Personalization helps to resonate better with your target audience, hook them up, and nudge them toward conversion.
Either rely on native ads to preserve the user experience (UX) or incorporate dynamic elements like a person’s name, location, or shopping preferences into your ad texts. Your strategy may vary depending on your goals.
For instance, a news organization can send tailored email newsletters to encourage recipients to explore more content. Similarly, an eCommerce store can provide personalized product recommendations based on customers’ browsing and purchasing histories.
Creating more personalized interactions demonstrates your understanding and care for your customers’ needs, ultimately fostering greater retention over time. Most importantly, this approach helps differentiate your brand in a competitive marketplace.
Regular User Engagement Through an Omnichannel Approach
Multiple marketing channels help to engage users better and establish more points of contact with your brand. It is important to keep the user in the loop so that you can follow up with various giveaways and special offers.
Ideally, reserve various pieces of content for different platforms, so that each marketing channel offers something unique. Otherwise, the users will follow just one platform, knowing that the other channels have the same info anyway.
Make Use of Social Media
Speaking of social media, it’s a great channel to engage all kinds of audiences. Just make sure you know your audience segments exactly.
More than 80% of every generation relies on social media, making it an excellent marketing channel for building emotional connections.
Teenagers tend to spend their time on Instagram, YouTube, and TikTok. As for the older generation, Facebook is the way to go.
Get to know the specifics of every platform to make your content better suited for your particular audience segment, e.g., lengthy videos are out of fashion on TikTok.
In addition to basic engagement, there are numerous tactics to connect with consumers on social media. Consider organizing contests or giveaways to boost participation, or conducting polls and surveys to gather valuable feedback from your audience.
Real-Time Engagement Through Live Chat
Live chat is one of the most effective strategies for customer engagement. Customers appreciate the ability to reach your business through live chat and receive prompt responses to their questions.
This tool enables you to quickly address customer issues and turn inquiries into sales. Additionally, it allows your support team to manage multiple queries at once, enhancing productivity while keeping costs low.
Keep in mind that you don’t have to answer queries manually — harness the power of AI or chatbots. They can work 24/7 and deal with simple and frequently asked questions without overextending your team.
Customer Feedback for Ongoing Improvement
Customer feedback is an essential element of the engagement experience. It’s important to allow users to share their thoughts on your product or service, regardless of whether their experience was positive or negative. This feedback helps you gain insights into your audience and refine your offerings, fostering repeat business. Customers are likely to feel valued when they see a company actively seeking and responding to their input.
However, use your own judgment and discretion, as customers might not understand the specifics of the product and ask for controversial and counterproductive things that can make the user experience (UX) worse, which can lead to a loss of loyal buyers.
Consistent Communication
Every business should establish a regular communication channel to enhance customer engagement. For example, you can gather email addresses and send out periodic newsletters to keep your audience informed about your brand. Additionally, consider hosting workshops and seminars for your customers and offering discounts when launching new products.
Frequent communication ensures that your brand remains prominent in customers’ minds. Even if a potential customer doesn’t make a purchase on their first visit, consistent outreach can turn them into a loyal buyer over time.
Establish a Distinct Brand Voice
A distinct brand voice enables your business to forge a memorable identity that connects with your target audience.
To begin, define your brand persona by identifying the traits, tone, and language that best reflect your brand. Are you formal or casual? Playful or serious? Understanding your brand’s personality will guide your campaigns and promotions.
A great example of a company with a strong brand voice is Nike, which employs motivational messaging to inspire individuals to push their limits, overcome obstacles, and “Just Do It.”
Customer Loyalty Programs
Implementing loyalty programs is an effective way to reward customers who remain loyal to your brand over the long term. For instance, you could offer additional discounts to those who spend above a specific threshold on your products. Additionally, consider giving freebies and gifts to your most valued customers.
Loyalty programs serve as an excellent means of engaging with customers. By using the well-known loyalty pyramid, you can gain deeper insights into customer behavior and design loyalty initiatives tailored to your findings. Each customer fits into a specific category within the loyalty pyramid, and those at various stages will need distinct approaches to loyalty programs.
Via: Element Three
A great example of a customer loyalty program is Starbucks Rewards. This points-based system enables customers to earn stars with every purchase, with the number of stars awarded based on the total amount spent.
Free Trials
Offering free trials to potential leads is a powerful strategy. These trials enable prospective customers to experience your product for a limited period before committing to a purchase.
Freebies aren’t limited to software; you can also provide product samples, bonuses, promo codes, and more to engage potential clients.
By offering freebies, you create a strong first impression and showcase the advantages of your product. If participants have a positive experience during the trial, they are more likely to become long-term customers.
Main Customer Engagement Metrics
After you implement customer engagement strategies into your ad campaign, you may want to know how much you succeeded and how profitable your business became. Here are some metrics to keep in mind.
Customer Satisfaction (CSAT)
CSAT evaluates how pleased customers are with a particular interaction, product, or service. It is typically assessed using Net Promoter Score (NPS) surveys or CSAT surveys, which ask customers, “How satisfied are you with this product or service?”
Social Media Metrics
How engaged is your audience on social media platforms? The answer can be found in metrics such as likes, shares, reach, engagement rate, and follower growth rate.
Sales and Repeat Purchases
Sales and repeat purchases are clear indicators that your brand resonates with customers. A higher number of repeat customers signifies strong engagement and loyalty. While sales reflect customer engagement, it’s important to look at other metrics as well. If your business sees many first-time customers but only a handful of loyal ones, it may be a sign that your engagement strategies need improvement.
Feedback and Reviews
Feedback and online reviews provide valuable insights into how people perceive your brand. Even negative comments indicate that customers are invested in your brand’s growth and improvement. Their engagement reflects a desire to suggest ways your brand can enhance its offerings.
Subscriber Count
A high subscriber count naturally signifies a wider reach. Unlike casual visitors, subscribers are eager to build a long-term relationship with the brand, opting in to receive content and updates over time. However, it’s essential to look beyond just the subscriber numbers; analyzing other engagement metrics is crucial because the quality of that engagement is equally important.
Customer Effort Score (CES)
CES evaluates how easy it is for customers to engage with a particular interaction, product, or service. It measures the effort required for customers to accomplish their goals.
How difficult is it for customers to resolve their issues or obtain answers from your brand? CES is usually assessed by asking, “On a scale of 1 to 7, how much effort did you put in to get support agents to assist you with your request?”
Customer Loyalty
Loyal customers not only make repeat purchases but also advocate for your brand within their circles. Increased customer engagement often leads to stronger loyalty. When customers interact meaningfully with a brand, they tend to build an emotional bond, fostering a deeper commitment to the brand.
Implementing a Customer Engagement Strategy
Now that you know the key metrics of customer engagement, it’s time to develop your own strategy. Let’s go step-by-step.
Set Goals
The initial step is to clarify your objectives for the strategy. Are you aiming to boost sales, grow your social media following, or enhance overall brand awareness? Your goals should adhere to the SMART criteria: Specific, Measurable, Achievable, Relevant, and Time-Bound.
Encourage Teams to Collaborate
Customer engagement extends beyond the marketing team; other departments also contribute to creating an outstanding customer experience. Identify which teams are responsible for various aspects and share your strategy with them. Solicit their insights and feedback to enhance your approach. For example, you might consult the customer service team about the potential implementation of a live chat support system.
Identify Engagement Channels
Investigate the digital marketing channels you plan to use. Which ad network will you select? Which social media platforms will facilitate customer interactions? What live chat system and email newsletter platform will you implement? These are essential factors to consider before launching your campaign.
Establish Core Metrics and Monitor Them
Determine the specific metrics you will use to evaluate the success of your strategy. This could include percentage increases in sales, new signups, order quantities, page views, and more.
Additionally, decide on the methods for accurately tracking these metrics. Numerous third-party tools, such as Google Analytics for monitoring page views, can simplify this process, so explore options that best fit your needs.
Execute the Plan
Now it’s time to put your customer engagement plan into action, aligned with your goals and selected engagement channels. Begin advertising to clients, launching customer loyalty programs, offering free trials, and sending out email newsletters, among other initiatives.
Effective engagement requires gathering customer feedback to refine your campaign. Regularly track your progress and maintain clear communication with your customers. Keep an eye on your goal metrics, and don’t hesitate to adjust your strategy as necessary.
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Customer Engagement Examples
We all know that starting anything from scratch is a very hard task. It is always nice to have some inspiration from others who have already succeeded, serving as a great example for beginners. So here are some great customer engagement illustrations.
LEGO
LEGO connects with its customers by promoting user-generated content and community participation. Through the LEGO Ideas platform, users can submit their own designs for new LEGO sets. If a submission garners sufficient support, it has the chance to become an official LEGO product. This collaborative approach not only sparks creativity but also nurtures a strong sense of community among fans.
Coca-Cola #ShareACoke
In 2014, Coca-Cola, the renowned beverage company, launched a groundbreaking customer engagement strategy with its #ShareACoke campaign. This initiative encouraged people to share Coke drinks with friends, family, and colleagues.
The campaign featured Coke bottles labeled “Share A Coke With [Insert Name Here],” showcasing a variety of popular names from the Western world. Customers enjoyed purchasing bottles that matched their friends’ names, leading to a surge in social media sharing of these moments. Through this campaign, Coca-Cola enhanced customer relationships by providing a fun and interactive experience.
Airbnb
Airbnb focuses on delivering personalized recommendations and fostering online communities. Through its app, the brand tailors travel destination suggestions to users, taking into account their preferences and previous bookings.
To maintain host engagement, Airbnb operates 600 Facebook groups that function as online communities for its Host Club program. In these groups, members can receive feedback on their listings and seek advice from more experienced hosts regarding cleaning services and local regulations.
Whole Foods Recipe Chatbot
Whole Foods, a well-known grocery chain in the U.S., has developed a Facebook Messenger chatbot that provides personalized recipes using emojis. For instance, when a user sends a chicken emoji, the chatbot responds with recipe suggestions that feature chicken. This innovative approach has enhanced customer engagement and motivated shoppers to purchase ingredients from Whole Foods.
GoPro
GoPro actively encourages customers to share user-generated content online. This initiative inspires content creators to post exciting action videos and photos, while the company showcases standout contributions across its digital platforms. This strategy cultivates a vibrant community and enhances brand loyalty among sports enthusiasts.
For the Conclusion
Customer engagement strategies help to retain users instead of acquiring them anew, which tends to be more affordable. Use tools like Business Model Canvas to better understand your audience’s desires.
Once you get a grasp of your audience, you can start tailoring your product and ads to them for maximum engagement. From LEGO to GoPro — there are tons of companies utilizing this algorithm to improve their customer LTV.
Contact HilltopAds if you need any assistance with your campaigns or want a consultation on how to engage your leads better.
