Customer engagement refers to the level of customer engagement with the company or individual brand. The concept and practice of using customer engagement allows companies to respond to fundamental changes in consumer behavior by signals coming from the Internet.
The key question this indicator helps answer is how successfully do we engage our customers online?
Customer engagement addresses several related aspects.Customer engagement is a social phenomenon provided by the widespread use of online mechanisms. The Customer Success newsletter determines such engagement levels.
The behavior of customers involved in online communities discussing, directly or indirectly, product categories and other consumer topics. An analysis of this behavior refines the process leading to a positive attitude of consumers towards the company or its offers. In addition, behaviors associated with varying degrees of customer engagement are examined.
Marketing practices aimed at creating, stimulating or influencing customer engagementdespite the fact that marketing activities should be carried out both online and offline, the Internet is the basis for marketing customer engagement.
- Indicators for evaluating the effectiveness of marketing activities to create, stimulate or influence customer engagement.
- The degree of customer involvement in relation to the company lies in a plane that reflects the customer’s contribution to this company. Positive experience of interaction with the company strengthens such a contribution and the degree of customer involvement.
- Repeatable interaction that enhances the client’s emotional, psychological, or physical contribution to the brand.
Customer engagement is an important indicator for company executives (and marketers), because in a rapidly growing and highly competitive market, customer engagement is probably the most reliable indicator of customer loyalty and therefore financial success.
High engagement customers:
- More loyal. Increasing target customer engagement increases customer retention;
- More suitable for free (for a company), credible (for other consumers) verbal advertising. This can be an incentive to attract new customers and have the effect of a “viral disease”;
- They are less likely to share their dissatisfaction with other existing or potential customers, instead they address their claims directly to the company regularly give valuable recommendations to improve the quality of company offers.
Information Collection Method
Online data collection revolves around a quantitative analysis of customer “engagement” in relation to company websites (pageview and bounce rates, search query ranking and click-through rate), and a qualitative assessment of the content of points of view and the exchange of information between existing and potential customers in blogs, forums and etc.
Collecting data on customer relationships with the site and other online channels of the organization is relatively inexpensive. A qualitative analysis of the relationship of customers (existing and potential) to the company (for example, what they say about the company and / or its brands) is more costly, as it requires a quality interpretation in the performance of an external consulting organization.
Since this KPI is new, comparative data on customers is under development. However, consulting companies and enterprises are developing their own targets.