Customer Engagement, Customer Experience

The Importance of Customer Engagement and The Customer Experience

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Outbrain defines customer engagement as encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a strong customer engagement strategy will foster brand growth and loyalty. And TechTarget defines it as the means by which a company creates a relationship with its customer base to foster brand loyalty and awareness. While fostering brand loyalty and sharing experiences are valuable outcomes of customer engagement, a vital–and often overlooked–component for businesses is customer service.

Thorough, tailored, and consistent customer service can make or break a brand’s retention or an individual’s customer experience. Customer experience is everything a consumer faces from brand awareness and purchase to interaction with the company.

It is important that businesses focus on the single view of customers to create personalized experiences that drive conversion rates. Artificial intelligence and cloud computing have given way to rapid data aggregation which allows brands to personalize consumer communication; customers now expect a highly personalized experience with every brand they encounter. One study found that 49% of customers bought items they did not intend to buy due to personalized recommendation from a brand.

The importance of a positive customer experience is more important than ever: Accenture found that the cost of customers switching service providers due to poor customer service is $1.6 trillion. The same study also found that 83% of U.S consumers prefer human interaction to digital channels to solve customer service issues.

Building a strategy around the customer experience can increase retention, customer satisfaction, and even bottom line revenue. A study by White House Office of Consumer Affairs found that consumers would pay up to 80% more for a product or service if it ensured a positive customer experience. Customers want to be treated as an individual and expect businesses to know who they are, what they’ve purchased, and what they are looking for. So long as technology and automation are used to extract and apply customer data rather than replace one-on-one customer care, customers will remain engaged and the customer experience will thrive.