Customer engagement is a significant concern for a lot of industry. If you spend any time on social business platforms or attend conferences, you probably already deduced this but in case you have not, a 2014 study by McKinsey & Company can confirm it. This study, titled “The Digital Tipping Point,” affirmed that C-level business executive’s rate customer engagement as the highest strategic priority for all firm initiatives.
Based on their findings, we can see that customer engagement is a priority for decision-makers in an organization, but why? While a link between a customer’s satisfaction and profit has existed for quite some time, the hard data around customer engagement is still in the works.
The final piece of the customer engagement is what exactly to do with it. Being able to define, and understand why it’s essential, and calculate it means nothing if we can’t apply it.
With that in mind, I’ve come up with six practical recommendations for how you can incorporate this critical metric into your day-to-day business strategy:
- Determine which forms of customer engagement you have data for at the moment: Depending on your business, part of the engagement styles might not apply. Critically assess your business and choose the methods that affect your business.
- Construct your own, custom metric-based engagement formula similarly to how Eric Peterson describes his calculation. Remember, you don’t need to use all of the metrics listed to successfully calculate your engagement rate.
- Include your customer engagement rating on the list of other key performance indicators you presently report on: This will help incorporate it into your daily data analytics and help inform the rest of your data.
- Relate your customer engagement to your business income using regression and cohort analysis: Regularly compare the two metrics until you can discover a correlation, even if this correlation is delayed. Cohort analysis is very essential to this process, so make sure you have a grasp of how each of your customer groups is interacting with your brand!
- Continue to iterate and fine-tune your metric until it is reasonably correlated to profit: This process is what will give you the best idea of how your brand’s customer engagement informs your overall benefit.
- Use your results to justify investing in customer engagement: When you can view how involvement is directly correlated to your business profit, you’ll be better equipped to build happy, dependable, engaged customers who are productive.
I hope by now, you have a better idea of what customer engagement is and the significant influence it can have on your business. With this information at your disposal, you’re equipped to define a business strategy that will bring you and your long-term store success and an improvement in customer engagement.