1HQ

How to measure customer engagement

Written by
img title

A survey conducted by global services company Accenture found that 91 per cent[1] of customers are more likely to spend money on a brand that offers communications and recommendations that are relevant to them, as well as brands that recognise and remember them.

Naturally, all brands want to catch the attention of their audience, but while this can be an obstacle in itself, it can be even more difficult to engage with customers on an emotional level that will resonate with them. However, by developing strong customer engagement, a brand can benefit from an audience that is fully engrossed in the service or product they provide, remain loyal and return for future purchases, and potentially bring in more customers through speaking positively about the brand to their friends and family. But as the effectiveness of customer

[1] https://www.accenture.com/_acnmedia/PDF-77/Accenture-Pulse-Survey.pdf

engagement can be measured in a number of ways, it can be difficult to know where to start when it comes to understanding the effectiveness of a brand’s impact on its intended audience.

Why customer engagement matters

Workplace engagement experts Gallup stress the importance of customer engagement, claiming that successful engagement will make companies 63 per cent[2] less likely to lose customers. They also claim that successful customer engagement positively impacts the way existing customers behave, with the amount of money an average customer is likely to spend increasing by 55 per cent[3] and the frequency of buying from the same company increasing by 50 per cent[4]. As such, engaging customers correctly can lead to loyalty and not only more money being spent on the company’s products and services, but also potentially significant amounts over multiple periods. 

Finding loyalty in customers is also a valuable factor, with content marketing platform Yotpo claiming that 60 per cent[5] of loyal customers will share their favoured brands with friends and family members, widening exposure and potentially growing the audience to new customers. Likewise, not engaging with customers or simply not having enough of an impact can be detrimental to a business’ success and reduce its effect on potential customers. For instance, technology company Sweor claims that even digital assets could play a role in engaging with customers but that they could either entice or deter potential customers from buying into a brand. In a study, they claimed that 57 per cent[6] of those questioned said they wouldn’t recommend a business if they had a poorly designed website or one that didn’t work effectively on mobile devices.

[2] https://www.gallup.com/services/169331/customer-engagement.aspx

[3] https://www.gallup.com/services/169331/customer-engagement.aspx

[4] https://www.gallup.com/services/169331/customer-engagement.aspx

[5] https://www.yotpo.com/blog/customer-loyalty-survey-data/

[6] https://www.sweor.com/firstimpressions

How do you measure customer engagement?

Many different metrics can be used to measure the level of engagement between a brand and its customers. Below, we’ve listed some of these metrics and explained how they can be useful in identifying the effectiveness of a brand’s impact on its audience:

Application statistics -

The use of applications on mobile and electronic devices has become a popular method of putting a product or service in the hands of its customers. Analysis around an application can offer key insights such as the number of downloads and statistics that indicate usage and behaviour.

You can also speak with each app user directly through the use of push notifications. By issuing ongoing communications, you can then remain active in their minds and provide reasons to return to the app such as promotions and updates.

Events -

For larger brands with the necessary budget available, planning events for launching new products or simply increasing brand visibility can help with tapping into the minds of the target audience and widening the number of followers. 

Another benefit is that it can be used to measure customer engagement through counting the amount of people that signed up to the event. Then, if you haven’t had many people signing up or feel that it’s not been received in the way you expected, you can identify changes that could increase engagement such as altering the invite, including an offer or promotion or investing in paid advertising.

Social media -

In modern marketing, social media plays a significant role in engaging directly with a brand’s audience.

Choosing the correct social media platform is key as the types of audiences on LinkedIn, Facebook, Twitter, Snapchat or Instagram may or may not be appropriate depending on the nature of the brand. Once the correct platform(s) are selected, a brand can send out posts, blogs and even communicate directly with customers. The results of these communications can then be monitored, with likes, comments and shares being an indication of impact. 

Website analysis -

One of many benefits to a company website is that the behaviour of visitors can be recorded, monitored and tracked. Not only that, but there are several metrics that can be used effectively to gauge different behaviours. These include:

Bounce rate: an indication of how much time each visitor spends on your website, the bounce rate can be used to determine how capable it is of keeping customers engaged.

Monthly active users: a broader statistic, monthly active users indicates how many users a website has, as well as a real-time figure of how many users are currently on the website. Through using this metric, brands can understand how many people usually access the website, and, assuming all other areas are covered but a website isn’t having many visitors, the brand can work out why it isn’t working as it should be.

Pages per session: a metric based on the average number of pages on your website a visitor will view, the amount of pages per session will reflect whether visitors are staying and if other pages on the website are engaging in the eyes of the target audience.

Returning user frequency: a statistic that determines how many visitors have been on your website before, the returning user frequency can identify how loyal your customers are.

Time on site: although similar to bounce rate, time on site is a more defined average session time that indicates how long visitors will typically spend on your website. It can then be used to work out how effective a website is at keeping the target audience engaged.

How to increase customer engagement

Even if you’ve done all the necessary steps to engage your audience, it’s not guaranteed that it will work. However, there are changes you can make that could potentially increase customer engagement. For example, you could consider:

  • Delving into other forms of media such as video, graphic design or blogs
  • Focusing on retaining customers and developing an understanding of why existing customers are engaged
  • Identifying methods of creating genuine customer experiences
  • Increasing activity on social media platforms
  • Initiating a unique social media campaign to capture the attention of potential customers
  • Putting more of an emphasis on giving the brand relatability and meaning
  • Sparking genuine conversations with customers using human responders and chat bots.

Another effective way of increasing customer engagement is through stripping down a brand as much as possible to understand what its purpose is and how it would naturally engage with its target audience. If a brand has existed for a long period of time, for example, it can develop into something different than when it started or decisions can be made that alter a brand entirely.

Due to this, it’s important to assess exactly what the brand is, what it stands for and who it’s meant to appeal to. You could even consider creating an outline of the typical audience member of the brand with their likely age, gender, style and likes and dislikes all determined to understand the most effective way of engaging with this type of person.