Crowd funding for Marketing – Interview with Ulinka Wagner5. March 2019
Customer Centricity – master the digitalization with it15. March 2019
We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.
Has it ever happened that your customers recommend your company and service to other people? Did you gain some enthusiastic advocates among your customers who would defend your product or service against any negative feedback? Then you might have mastered big progress in customer engagement.
In this article, we will talk about how consumers engage with companies and brands because it is a matter of importance for them. I will also gladly share a few hacks that will help you to achieve a growing customer engagement in certain traction channels.
Customer Engagement: what it is about
From the very first contact to the actual closed sale your customer goes through a number of stages. It all starts with a person just researching some information about your product or service using a search engine or coming across your website and browsing your pages. When the information they found appeals to them, has something catchy or seems relevant to their needs, they go further and want to know more about your newsletter, for instance, your product and price range, some demos on your website.
So, throughout this path, you should develop understanding and consistently be aware that people are interested in something and this something maybe your product or service, and anything related to them, and you are the one who accompanies them on this path. Often entrepreneurs forget about this and just dismiss all the issues under the name „User issues“.
A few interesting facts about customer engagement
It takes 12 positive experiences to make up for one unsatisfied appeal, unresolved issue, or unfortunate experience.
A typical company hears only about 4% of their frustrated customers
Sources of both graphs: Understanding Customers by Ruby Newell-Legner
Customer Engagement metrics you should understand
Actually, customer engagement can be taken better control of than you might think. You go about it applying a holistic approach to your client base or look closely at every single customer (depending on the size of your customer base and specifics of your business). Below you will find some of the key performance indicators in this regard and their interpretation.
It is a proportion of your customers or subscribers who leave you during a given time period as compared to the total number of your customers. There is probably no more straightforward metrics in a company customer satisfaction than the churn rate.
Here we measure the most important interactions of clients, which are unique for a particular product or service. It can also include, how often and how long your customers are logged in your software.
This is the range of features or mode of the product or service that your customer uses. The range at which customers use your features at a given point in time is a serious indicator of your customer engagement with your product or service.
Net Promoter Score (NPS)
The Net Promoter Score is calculated based on responses to a simple question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale, where 0 is unlikely) and 10 (highly probably).
It shows how likely your customers enjoyed their customer experience with your brand. Being your devoted promoters your customers would most likely give scores 9 or 10, while if being detractors they would award between 0 and 6. Customers that answer with 7 or 8 belong to the „indifferent“ group. To calculate the Net Promoter Score, the percentage of detractors is simply subtracted from the percentage of promoters:
NPS = Promoters [%] – detractors [%]
Here we are speaking about a higher sales volume, in particular, when a customer upgrades his or her package or contract and eventually starts paying your more. The upgrade is often accompanied by additional product features and improvements.
7 tips to engage your customers and win their loyalty
There are a few simple tips for your engagement strategy that will boost your brand's customer experience.
1. Appreciation and recognition
You, me, your clients, my clients — all of us love experiencing high points in self-esteem and feel other peoples’ appreciation. Appreciation and gratitude can be expressed as simply as by saying „thank you". Or some personalized address or an appraisal for a task that has been successfully completed. Communicating your appreciation is the key. Here your creative potential comes into question because automated messages starting with “Dear Sir/Madam” are no longer cool.
2. React to complaints
Never ignore the messages that express some concern or an utter complaint. Do not leave your client to their own devices, all alone with the problem they faced. The more sympathetic and faster your reaction will be the more constructively you’ll be able to engage and settle any situation, to the sheer delight of your grateful customer.
3. Offering real value added
Always remember about your customers, especially it concerns the existing ones: introduce reward and bonus system; offer some added value, a discount to show how much you appreciate their loyalty to your company. It has to be something special, something that people do not get after only one transaction or anywhere else at your competitors.
Try to always stay in contact with the customers who have proven their consistency with you. Staying in contact with your regulars can help you generate valuable content for them. A newsletter could be a great example where you would address the needs and desires of your target group, and it would surely enable you to consistently stay in the picture...
5. The total Support
Your whole team has to be integrated into the client support. This allows not only keeping every member of the staff well informed of what's going a ton, but also learning more about customers, which, in its turn, allows a consistent growth in the quality of your service. This is all about customer care; this is something people respect your brand for and recommend you to their friends and relatives. This is something you should truly value.
6. Make it simple for your customer to tell their story
Use software, organize regular meetups and other sorts of events, where your customers could reflect on their relationship with your company, and voice their opinions and share some wishes of how you can improve your service. The more openness your customers feel the more engaged they become with your company.
7. Organize webinars
Collect all the questions, problems and discussion topics which bother or worry your customers. And it would be a great idea to launch a seminar wherein the very beginning you would answer all the questions and address all the issues. This way you will let your customers feel that their concerns are important and that you try to pay attention to all of the questions. This enhances your image as a company that customers can rely on because the company truly cares about customers.
There are various options to engage with your customers and win their loyalty. Exactly the fact that it is always more difficult to win new customers than retain the existing ones makes the topic of Customer Engagement a truly critical one which you should give maximum attention to.
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