Tips and Tricks

How to Measure Customer Engagement and What You Should Do with That Data

Customer Engagement

Evidence provided by Gallup shows that customers are more willing to spend their money when they feel emotionally connected to the business. Companies that create a meaningful connection to customers and make them feel psychologically and emotionally connected and engaged are more likely to succeed and remain competitive. Connection, in this case, implies ongoing communication and feedback, which enrich company-customer relationships and help create a loyal customer base. This article defines customer engagement as an essential aspect of communication and explains how engagement can be measured to benefit both consumers and businesses.

What Is Customer Engagement?

 

Simply speaking, customer engagement is the relationship between the company and its clients, which occurs both online and offline. For example, customer engagement happens online when customers provide their product reviews on a company’s website or comment on its Instagram posts. It is essential to understand that engagement goes beyond one-time communication. Instead, it refers to ongoing consumer involvement in co-creation and their participation in active dialogue and interactions with the company’s representatives. Customer engagement from a broader perspective may also mean a psychological state of attachment that customers develop as they interact with the company.

It is generally believed that customer engagement is crucial for any company irrespectively of the industry. Here are some of its benefits:

  • Enhances brand experience
  • Increases customer trust and loyalty
  • Improves customer experience
  • Facilitates the collection of valuable feedback
  • Increases sales

The latter benefit is significant because studies show that engaged customers generate 23% more revenue than those not feeling the connection. I bet you are intrigued and want to learn whether your customers are engaged. Let’s discuss how customer engagement can be measured.

How to Measure Customer Engagement?

Online customer engagement is easy to measure because people leave traces of their online activity that companies can analyze. For example, social media activity is one of the essential parameters that should be measured. By looking at how much clients post, comment, and like on social media platforms, companies can measure whether they like the products and are genuinely interested. Getting many positive comments online is one of the examples of a desirable customer engagement that any company strives for.

Another area that can tell much about customer engagement includes conversion rates. These can be measured by looking at how many people performed a particular activity (e.g., downloaded an article, registered for a free trial, signed up for a newsletter, clicked on an ad, etc.).

It is also helpful to measure how much time users spend on the company’s website and how many pages they visit. This information will tell you much about their interests and the website’s structure, internal links, the quality of content, and other characteristics. You can also measure return users to understand whether people that purchased your products returned for more. If not, it may signify that they are not satisfied with the products or not engaged with the brand enough to become loyal customers.

As for offline engagement, you can measure things like event participation. By counting the number of people attending the events, you can understand whether people are interested and willing to spend their time learning more about your company.

How Should I Use The Customer Engagement Data?

Customer engagement data can help develop relevant customer engagement solutions. For example, if you notice that people are not engaged enough on social media, it is a sign that you are doing something wrong. You can also determine how your website and marketing campaigns could be improved to resonate with your customers. The key to success is to pivot when the customer engagement metrics say that you do something wrong. Changes are inevitable, so feel free to take risks and try new techniques to stand out from competitors and win people’s hearts.