Not sure if you’re connecting with your customers? Measure customer engagement.

Today’s companies are not only looking for sales but also for total customer loyalty. To achieve this, having the best products or services is not enough; you need to connect with customers on a deeper level. The degree of commitment to a brand is measured by customer engagement, a metric that is becoming increasingly important.

Understanding it is essential in order to know the real impact of marketing campaigns and the ability to retain customers. Today, we’ll teach you more about this concept, its importance, and how to measure it effectively with our tools.

What is Customer Engagement?

It is a metric that indicates the emotional connection between customers and the company. This is understood by observing how customers interact with the company through various platforms and touchpoints, such as social media, phone calls, apps, reviews, and also physical interactions, including events or in-store visits.

In short, it measures loyalty and commitment between the customer and the brand. The higher the engagement, the greater the loyalty, better opinions, and a better future outlook. In fact, if engagement is very high, consumers themselves will become brand advocates.

Why is This Metric Important?

Being able to measure customer engagement is crucial. According to some studies, nurturing it will increase customer retention rates. It is said that strong engagement can help retain up to 90% of customers, while weak engagement will result in only about 30% retention.

Knowing this metric allows you to design various marketing strategies to improve it. For example, you can offer personalized content, tailor communication to each customer, improve their experience, provide better customer service support, increase your social media presence, create loyalty programs, or offer value-added content, among others.

Since you are continuously measuring customer engagement, you’ll know whether your strategies are yielding results or if you are wasting time. If they are not working, you will have the opportunity to redesign your strategies to achieve your goals. As you can see, implementing advanced analytics strategies helps enhance your business in various ways.

How Can I Measure Customer Engagement?

To effectively measure and calculate customer engagement, consider the following metrics:

• Customer Retention Rate: Measures the percentage of customers who make repeat purchases after their first one.
• NPS (Net Promoter Score): Indicates customers’ willingness to recommend your company to others, whether through social media or in person.
• Conversion Rate: Refers to the number of customers taking a specific action compared to visitors. This action could be a purchase, downloading in exchange for an email, clicking a button, etc.
• Purchase Rate: Unlike the previous metric, this refers specifically to the number of sales made.
• Open Rate: The number of messages, emails, or instant messages opened compared to those sent.
• Time on Website: Refers to the amount of time customers spend on your website. It’s not just about the time spent, but also the journey they take on the site, clicking links and consuming the content.
• Social Media Interactions: Refers to how and how much customers interact on social media. How many comments are there? Do you get a lot of likes? Is it shared? Are you mentioned? Is the feedback positive? Ask yourself these questions, and you’ll know.

With the Customer Journey platform from indigitall, you can measure it more effectively, as it detects trends and patterns in browsing history and even customer location. Our tool is omnichannel, so you can calculate it all in one place without relying on external apps.

Benefits of Managing Customer Engagement

If you become an expert in engagement and succeed in increasing it, you will gain the following benefits:

• More Loyalty: Customer lifetime value (CLV) will increase, as they spend more over time. They will return for repeat sales, providing stable, regular income.
• Word-of-Mouth Marketing: When engagement is very high, customers will promote your brand and recommend it to others, as well as share it on social media. This leads to free advertising.
• Feedback: With strong customer engagement, customers will provide more frequent and comprehensive feedback. This helps you understand what you’re doing well and where you need to improve.
• More Cross-Selling: Users won’t just make repeat purchases, but they will also become familiar with all your products and services, leading to more sales and deeper integration into your ecosystem. They may also upgrade to higher-value products and services.
• Greater Profits: All of the above will result in more profits and stability, as well as lower long-term costs (though it may be expensive in the short term). With loyal customers, you won’t need to spend as much on advertising, allowing you to allocate funds to other areas.