Customer engagement is the ongoing interaction and relationship-building between a business and its customers, characterized by personalized communication, exceptional service, and efforts to provide value beyond transactions.
Brands that place importance on the shopping experience of their customers will almost always see high levels of customer engagement.
In this blog post, our market research company dives into what customer engagement is, how to measure it, and the importance of improving it.
What is customer engagement vs customer experience?
These two terms are directly related but have different functions.
Customer engagement tackles the frequency of customer interactions with a business. While, customer experience is more broad, as it focuses on the overall shopping journey from start to finish.
Engagement levels depend on how businesses cater to customers, which is part of the overall experience. Meaning, that the more offerings they have that benefit the customer, the more engaged the customer will be.
Customer engagement also represents the customer's attachment to a brand and its offerings.
Customers who frequently interact with a business (online or in person) do so because they are personally connected to that brand.
Customer engagement metrics examples
There are many ways to measure customer engagement levels with market research.
Each customer satisfaction metric below has a specific function, with the end goal of amplifying the customer's interaction with a business.
1. Net Promoter Score (NPS)
NPS measures the total satisfaction a customer has with a business, ultimately measuring the loyalty to a brand.
Using a scale from 0 to 10, NPS asks how likely a customer is to recommend a brand based on their experiences. Zero is not likely to recommend, while 11 is very likely to recommend.
For a more in-depth overview, I recommend reading our post, What is Net Promoter Score? [Benefits + Example].
2. Customer Satisfaction (CSAT)
Measuring a customer's satisfaction with a business is important for improving engagement levels.
Obtaining customer satisfaction levels is completed through a survey, which includes questions about all areas of the customer journey.
Our customer satisfaction survey company finds that if a customer is not happy with a brand, they likely aren't going to engage with it in the future.
This is why CSAT is an especially important metric to measure when considering customer engagement.
3. Customer Effort Score (CES)
Effort scores are closely connected with customer engagement levels.
CES measures how easy/difficult it is for customers to complete certain actions. This is often done via a 1 to 5 scale. The lower the number, the easier it is to complete said task.
Again, CES is important when measuring engagement levels as it targets the difficulty level of certain actions.
Why customer engagement might be important for your business
Measuring customer engagement is important for businesses because it's linked to high satisfaction and overall experience levels.
When customer engagement is high, businesses see more customer loyalty and retention as a result.
Businesses that emphasize engagement will also find communication easier with their customers. This is a result of the customer feeling connected with a brand, along with increased visits to the business.
Prioritizing engagement also ensures customers will feel more trusting towards a brand. Businesses that are known to emphasize customer outreach are generally more trusted than those that don't.
Ideas to better your customer engagement
Thankfully, there are many ways businesses can prove their customer engagement levels. Here are a few ideas we find most useful.
1. Customer engagement surveys
Surveys are the best way to increase customer engagement.
Customer satisfaction surveys are highly customizable, allowing businesses to target key pain points of their shoppers. Typically run online, a market research team will work with the business to create a set of questions specific to the needs of their base.
The surveys will be sent out to verified customers, who will then complete the survey. These surveys are typically not long, to encourage higher response rates.
This ensures they will only receive feedback relevant to their customers, which will help with decision-making.
With the survey feedback, businesses can improve their customer engagement levels with verified, actionable data.
2. Personalized communication
Personalization is a key driver of customer engagement. This can be done by tailoring your communication to individual preferences and behaviors that make customers feel valued and understood.
For instance, if you run an e-commerce site, you can send personalized product recommendations based on a customer's browsing and purchase history.
Additionally, addressing customers by their names in emails or during interactions adds a personal touch. Moreover, you can implement automated tools like chatbots that use AI to understand and respond to customer inquiries in a personalized manner.
3. Provide exceptional customer service
Outstanding customer service is a cornerstone of customer engagement. Therefore, it is important to ensure that your customer support team is knowledgeable, empathetic, and readily available.
Also, it can be helpful to offer multiple channels for customer support, such as live chat, email, phone, and social media, to cater to various preferences.
It is also critical to take proactive steps to resolve customer issues promptly. For example, if a customer reports a problem, provide regular updates on the progress of the resolution. This demonstrates your commitment to their satisfaction.
In conclusion, customer engagement is the lifeblood of any successful business. It's the art of building genuine connections with your audience, understanding their needs, and providing value beyond the transaction.
By personalizing communication, offering exceptional customer service, and leveraging customer engagement surveys, you can create a dynamic relationship that goes far beyond a one-time sale.
Remember, engaged customers become advocates, spreading the word about your brand and ultimately driving sustainable growth. So, invest in meaningful interactions, and watch your business thrive through the power of engaged customers.
Drive Research is a national market research company located in New York. Our customized customer engagement surveys provide the affordable and actionable insights you need.
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As a Content Marketing Specialist, Lark has a strong background and passion for creative, professional, and journalistic writing. She is also a self-proclaimed music freak and 90s enthusiast.
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