To drive a better return on investment from better customer engagement means you will need to turn Brand “Meh” into Brand Love. Customer Engagement matters, as research from Gallup shows. Indifference to your brand costs. Customer satisfaction is not enough. Focusing on getting your customers to love your brand will drive customer engagement and ROI.
Customer Engagement Matters
Research from Gallup revealed that brands who successfully engage their customers go on to see 63% lower customer attrition, 55% higher share of wallet, and 50% higher productivity. Gallup also found that actively disengaged customers present a 13% discount in those same measures.
There’s no denying the fact that effective customer engagement has a positive impact on a brand’s bottom line. Customers that like your brand will shop with you more often, buy more from you, tell others about your brand and will be less price-sensitive. In contrast, customers who do not like your brand will stop coming to you, and are more likely to share negative feedback that puts others off.
Simply put, when customers believe they are getting more out of a brand, they give more to it, so much so that Gallup go on to say that customer engagement is the definitive predictor of business growth.
Gallup Customer Engagement Score (CES)
To see which companies are reaping the rewards of customer engagement and why, Gallup has devised the Gallup Customer Engagement Score (CES) – a simple survey that categorises customers into the following three distinct groups: ‘fully engaged’, ‘indifferent’ and ‘actively disengaged’.
Gallup’s research found brands who are ‘fully engaged’ with their customers perform better with ‘a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth over the average customer.’
Brands with customers that are ‘fully engaged’ enjoy greater ROI across all industries:
- Retail banking customers who are ‘fully engaged’ bring 37% more annual revenue to their primary bank than actively ‘disengaged customers’.
- Consumer electronics shoppers who are ‘fully engaged’ spend 29% more per shopping trip than actively ‘disengaged customers’.
- Hotel guests who are ‘fully engaged’ spend 46% more per year than ‘actively disengaged’ guests.
Brand Love or Brand “Meh”?
According to Gallup, customer purchasing decisions are based more on emotional connections with the brand than on rational thinking. Campaigns and promotions work well to get customers through the door but it is the emotional connections between your brand and customer that will keep them coming back time and time again.
At Thunderhead we define customer engagement as an ongoing, value-driven relationship between a customer and a business, which is consciously motivated according to the customer’s reasons and choices. The result is happy customers who love your brand.
So what can brands do to fully engage customers?
- Focus on the customer journey as a whole instead of isolated separate points where customers come into contact with your brand.
- Don’t force your customers along pre-defined paths. Support them on their journey, it’s their journey, not yours
- Use real-time customer journey insight to inform each interaction and ensure every conversation is based on the context, preferences and choices of the individual customer
- Emphasise consistency across all your brand touchpoints. Speak with one voice. Connect all your customer facing technology.
- Learn from each interaction to improve the choices you offer and guide the flows of interactions with customers
- Develop a strong brand promise – and deliver on it.
- Choose the metrics that matter and measure Brand Love – simply satisfying customers is not enough, you need to measure their emotional attachment which is directly tied to purchasing behaviour.
- Invest in the right employee selection and development – as engaged employees go the extra mile for customers
- Invest in the right engagement solutions.
If you are trying to create or restore affection for your brand then make customer engagement a top strategic priority to create brand love and better ROI for your marketing budget.
Engagement 3.0: Research Report
The Book On Customer EngagementFREE DOWNLOAD