Why Customer Engagement Matters to CFOs

Image via Flickr by Seattle Municipal Archives

Customer engagement has been coming to the forefront of business strategy for quite some time. Executives are coming up with new and interesting ways to engage customers using social media, loyalty programs and even science. In fact, the motivation to interact with a brand is becoming less about products and more about the actual brand. Let’s take a look at the power of an engaged customer.Customer Engagement – The Facts

Statistics indicate that nearly 2.5 billion brand-related conversations occur each day in the United States. Each of these conversations has the potential to create conversions for a brand regardless of size. So, how are companies making the most of these conversations? They’re “giving them something to talk about,” so to speak. Here are three ways brands are keeping the conversation going.

  • Personalization. When focusing on increasing customer engagement, brands are increasingly looking to personalize each and every interaction. This personalization leads to customers feeling more aligned with a brand and enhances their overall perception of a brand’s value. It is this perceived value that drives ongoing customer conversions which gives companies a competitive edge. 
  • Experience. In addition to personalizing interactions, companies are focused on creating a memorable and enjoyable customer experience. As more customers are interacting with brands through various platforms, a challenge to create a great customer experience, regardless of platform, has emerged.
  • Brand advocacy. Brands are placing increased value – understandably – on the brand advocates. Gamification techniques are being implemented by many top brands to encourage customers to become brand advocates, increase brand awareness and generate leads. Since nearly 60% of customers would change brands to gain better customer service, the power of referrals continues to increase.

Ongoing Customer Engagement Equals Company Growth

Customer engagement levels are playing a significant role in whether brands will earn their business. According to a recent article, over half of consumers made brand recommendations based on their view of the company itself, not the product. Though this seems like a problem left to sales and marketing departments, implementation of solid customer engagement techniques will affect a company’s ability to sustain long-term growth and stability.

What steps does your company take to engage customers?