Customer Engagement: Definition, Goals, and How to Measure It!

Customer engagement is a key to the success of a business.

It's not just about selling products or services, companies will also be successful when they know how to build meaningful relationships with each customer.

In this article, we will discuss various strategies and the importance of strategies for building good relationships with customers and building a strong reputation for every company!

Definition of Customer Engagement

Customer engagement is how companies interact with customers to build strong and mutually beneficial relationships.

In this context, companies strive to create positive experiences that make customers want to continue to interact and be loyal to a particular brand.

This interaction can occur through various channels such as social media, email, mobile applications, and customer service.

By implementing good customer engagement, companies can increase customer satisfaction, build loyalty, and ultimately drive sustainable business growth.

The Purpose of Customer Engagement

If you are running a business, its success does not only depend on the quality of the products or services offered.

One important factor that is often overlooked is customer engagement. Here are some reasons why this strategy is so important for businesses:

1. Customer Loyalty

Customer engagement plays a very important role in building and maintaining customer loyalty.

A simple example, imagine a store, where the owner always greets you in a friendly manner and remembers what you like.

On a larger scale, this is what companies do through customer engagement. Companies try to create a positive and personal experience for each customer.

When customers feel cared for and appreciated, they tend to keep coming back.

2. Increase Turnover

Customers who have an emotional bond with a business tend to shop more often and buy more. They are also more receptive to new products or services offered by the brand.

For example, if you have a clothing store and customers are satisfied with your service. They may not only buy clothes, but also accessories or shoes that you sell.

Therefore, implementing good customer engagement can definitely increase sales without the need for large marketing costs.

3. Customer Retention

Did you know that finding new customers can be much more expensive than retaining existing customers?

Therefore, you need to focus on customer engagement to save on acquisition costs.

This is because old customers tend to continue buying and are more likely to try new products or services because they already trust a business.

4. Understand Customer Desires

Frequently interacting with customers will provide important information about what they like and dislike about a product or service.

This information is very useful for developing products and improving services.

For example, if you have a restaurant and many customers complain that the portions are too large, of course you can offer a half-portion option.

That way, you stay relevant and can meet customer needs well.

5. Stand Out from the Competition

Interacting with customers can be an important factor in tight market competition.

Products can be copied by competitors, but the relationship you build with customers is something unique and not easily imitated.

For example, if you have a bookstore and always greet customers by their names, or remember the books they like.

Thus, they will prefer your store over a large bookstore that may have a more complete collection but impersonal service.

6. Improve Reputation

Customers who are satisfied with your business are more likely to share their positive experiences with others.

In this digital era, online reviews and social media posts greatly influence a business's reputation.

One positive review can be seen by hundreds or even thousands of potential new customers. Therefore, recommendations from satisfied customers are considered more credible than regular advertising.

As a result, you get very effective word-of-mouth promotion at no additional cost.

7. Save Marketing Costs

When customers have a strong attachment to a business, of course the marketing budget can be minimized.

Even just by communicating via email or social media, they will tend to make transactions again. Loyal customers are also more responsive to the offers and promotions offered.

8. Customer Feedback

Customers who frequently interact with your business generally provide more honest and open opinions. For example, they will convey the advantages and disadvantages they feel.

The information you get will later be very useful for improving services and developing new products.

9. Ready to Face Market Changes

Loyal customers can be a source of up-to-date information about market changes. They often tell you about interesting competitor products or new trends that are developing.

This helps you to stay relevant and responsive to market needs.

10. Guarantee of Long-Lasting Business

Building good relationships with customers is an investment.

When economic conditions are less favorable or competition increases, loyal customers will usually continue to support your business.

They may still make purchases even though on a smaller scale, or even help promote our business to their contacts.

How to Measure Customer Engagement

So, how do you measure customer engagement? Here are some ways that can be done, namely:

• Social media activity: Number of comments, shares, and likes on social media platforms.
• Application usage: Number of downloads and frequency of application use.
• Bounce rate: Percentage of visitors who leave the site after viewing one page.
• Number of event participation: Number of registrations for events held.
• Time spent on site: Average duration of visitors on the website.
• Frequency of returning users: How often customers return to the site or store.
• Pages per session: Average number of pages viewed in one visit.
• Monthly active users: Number of customers who actively use the service each month.

How to Implement Customer Engagement

If you want to implement customer engagement into your business, there are several strategies you can do. Here are some effective ways:

1. B2C

• Use social media platforms like TikTok, Instagram, Facebook, Twitter, YouTube, and more.
• Use chatbots to engage with customers on your website.
• Create self-service options.
• Use personal messaging.
• Collect and analyze customer feedback.
• Implement an omnichannel strategy

2. B2B

• Collect feedback to predict customer behavior.
• Show testimonials.
• Build a community.
• Include a call to action (CTA) on your website landing pages.
• Personalize your customer support.

Building customer engagement is not a quick or instant process. It is a long-term commitment that requires patience and consistency.

Start small and build gradually. Over time, you will see how customer engagement can turn casual customers into loyal supporters of your business.

As mentioned earlier, building customer engagement is an important step in strengthening customer relationships.

If you want to learn more about strategies to increase customer satisfaction and loyalty, you can join the Customer Satisfaction & Relationship Program from Prasmul-Eli. Through this program, you will learn the essence of customer satisfaction and loyalty, the relationship between customer satisfaction and company profits, and more.