What is customer engagement?

Customer engagement refers to the interactions and connections between a customer and a brand or organization across various channels, both online and offline. It encompasses the cognitive, emotional, and behavioral investments that customers make in their interactions with a company. Customer involves creating meaningful experiences that resonate with customers, encouraging them to actively participate in dialogues, share feedback, and become advocates for the brand.

A great product or service is essential to attracting customers, but is it enough to retain them? Data shows that companies are no longer competing solely on products or services. Now, they’re competing on customer engagement and experiences too. According to Salesforce, “80% of customers say the experiences provided by a company are as important to them as its products and services.” Customer engagement goes far beyond a transaction. “It's an intentional, consistent approach by a company that provides value at every customer interaction, thus increasing loyalty,” according to Outreach. The question is, how do you increase customer engagement?

In the digital age, customer engagement has evolved to include a wide range of touchpoints, from social media interactions to personalized email communications and immersive in-store experiences. The goal is to create a deep, lasting connection that drives purchase decisions, ongoing interactions, and customer participation over time.

How important is customer engagement?

Customer engagement is critically important for organizations in both the private and public sectors. In the business world, effective customer engagement can lead to increased customer loyalty, higher retention rates, and improved revenue growth. Engaged customers are more likely to make repeat purchases, recommend the brand to others, and provide valuable feedback for product or service improvements.

What factors influence customer engagement?

Several key factors influence customer engagement:

• Brand experience: As previously noted, the overall experience a customer has with your brand significantly impacts engagement levels. Positive brand experiences can lead to stronger emotional connections and increased engagement.
• Service quality: How customers perceive your company’s quality of service plays a crucial role in their engagement. Exceptional service can enhance trust, satisfaction, and a customer's willingness to maintain a long-term relationship with your brand.
• Social identity and interaction: Customers' sense of belonging to a brand community and the social interactions they have within it can greatly influence their engagement. 
• Trust and perceived enjoyment: The level of trust a customer has in a brand and the enjoyment they derive from their interactions are significant factors in determining engagement. Trust builds the foundation for long-term relationships, while enjoyable experiences encourage continued interaction.
• Technological factors: In the digital age, your online platforms’ ease-of-use and personalization capabilities, as well as the overall online experience your company provides, can significantly impact customer engagement levels.

3 Ways to Increase Customer Engagement

Here are three ways you can engage your customers and earn their loyalty.

1. Build a Community

Customers need a place to engage. By using social platforms like Twitter and LinkedIn, you can bring your customers together. Invite them to follow your company’s social profiles for updates and announcements, or to join an organized LinkedIn group. You can incentivize customers to engage in these groups through social contests or rewards for social shares.

A step further would be implementing a hub or active community like Influitive, which can help increase conversation on a platform where customers are encouraged to engage with the brand, company, and each other. Creating communities like these also provides user-generated content that you can share on social media or your website.‍

2. Deliver Engaging Content

Today, customers don’t just want high-quality content, they expect it. According to HubSpot, “Content marketing is important because it answers your audience’s questions and helps you build trust, develop relationships, improve conversions, and generate leads.” The content you create doesn’t have to be complex. Consider creating simple, useful content like a blog post that answers frequently asked questions or an infographic that highlights how to use your product. Content tailored to consumers’ interests, preferences, and favorite services or products can help keep them engaged with your brand.‍

3. Provide Rewards and Incentives

Simply providing the space for engagement may not be enough. Rewards and incentives can help drive customer behavior while compensating customers for their time. Providing small digital incentives for social shares, customer referrals, testimonials, and reviews can help increase engagement while simultaneously expanding your customer base.

Curious how you can deliver incentives? Most of our customers use Reward Link^®—the fastest, easiest way to email recipients a choice of digital gift cards. Reward Link also provides customization and tracking, so you never have to worry about keeping track of physical gift cards.

Are you interested in exploring the power of digital rewards to increase customer engagement?  Request a demo to learn more.

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