What Is Customer Engagement Marketing

customer engagement marketing
Anahid Akkam

Anahid Akkam is a content writer and journalist who has been writing for almost a decade. She has written extensively on a wide range of topics, ranging from cloud communication and literature to lifestyle and marketing.

Jan 23, 2023

Table of Contents

What Is Customer Engagement 

Why Is Customer Engagement Important?

How To Increase Customer Engagement Using 6 Easy Methods

What Is An Engagement Strategy?

How To Create Foolproof Marketing Engagement Strategies

Top Customer Engagement Marketing Examples

Customer Engagement is Key in B2B

The Future of Customer Engagement in Digital Marketing

Customer Engagement Solutions Market Forecast

Customer engagement marketing is a hot buzzword nowadays. In recent years, this has become increasingly important in marketing. With the rise of social media and the popularity of online review sites, customers are now more empowered than ever before. They can easily share their experiences with a company with their friends and followers, and they can also research a company before they even consider doing business with them.

Marketers must remember that successful customer engagement is not a one-time thing. Instead, it should be an ongoing effort that you constantly work on. 

What Is Customer Engagement 

Customer engagement marketing is a term that is used to describe a strategic approach to marketing that is focused on creating strong, long-lasting relationships with customers. This type of marketing is designed to promote customer loyalty and encourage customer retention through business text messaging. It goes beyond the traditional one-way marketing approach and instead focuses on two-way communication to build a rapport with customers. 

To understand what customer engagement marketing is, you need to know its purpose. The goal of customer engagement marketing is to keep them coming back by providing them with an engaging and satisfying AI customer experience. You can do this through a variety of channels, such as social media, email, phone, text marketing, and more.

In order to have high engagement rates, customers must feel like they are being heard and that their business is valued. Here, personalization is your fuel. 

There are many different elements that can be included in a customer engagement strategy, but some common tactics include providing excellent customer service, developing targeted marketing campaigns, and creating personalized experiences. By creating strong relationships with existing and potential customers, businesses can encourage repeat business and brand loyalty.

While the concept of customer engagement marketing is still fairly new, the roots of this approach can be traced back to the principles of relationship marketing. This began to emerge in the 1970s and 1980s and was based on the idea that it was more important to focus on maintaining existing customer relationships than on acquiring new ones.

With the advent of new digital technologies, customer engagement marketing has become even more important. Not only does it allow brands to connect with customers in real time, but it also builds long-term relationships, improving customer feedback and loyalty as a result. As the customer engagement landscape continues to evolve, we can expect to see even more innovative and effective engagement strategies emerge.

Why Is Customer Engagement Important?

1. Increased Customer Loyalty

Loyal customers are more likely to make repeat purchases. When customers feel connected to a brand, they are less likely to switch to a competitor.

2. Improved Customer Experience

Customers who are actively engaged with a brand are more likely to have positive interactions with the brand, resulting in favorable reviews and recommendations to others.

3. Higher Revenue

Those who are actively engaged with a brand are likely to spend more money on that brand over an extended period of time, resulting in a boost in revenue.

4. Better Feedback

Your customers are more likely to provide feedback and suggestions, and this can help your company improve its products and services.

5. Brand Advocacy

Customers who are actively involved with a brand are more inclined to become advocates for the brand and encourage others to try it, which can result in gaining new customers and boosting brand visibility.

How To Increase Customer Engagement Using 6 Easy Methods

1. Provide Excellent Customer Service

Ensure that your customer service is top-notch by promptly responding to customer inquiries and concerns, providing personalized experiences, and going above and beyond to meet their needs.

2. Offer Loyalty Programs And Incentives 

Encourage customer engagement and repeat purchases by providing loyalty SMS programs and incentives such as discounts, exclusive offers, text-to-win contests, and more.

3. Create Engaging Content

Develop and share engaging content such as blog posts, social media updates, videos, and newsletters that provide value to customers and encourage them to interact with your brand.

4. Use Social Media To Connect With Customers

Leverage social media platforms to engage with customers, answer their questions, and create a sense of community around your brand.

5. Implement User-Generated Content

Encourage customers to share their experiences with your brand through user-generated content such as reviews, testimonials, and social media posts.

6. Personalize Communication

Use customer data to personalize communication and customize your messaging to specific customer needs and interests.

What Is An Engagement Strategy?

An engagement strategy is a plan that a business or organization develops to encourage and strengthen interactions between themselves and their customers or audience. It outlines how the business will engage with its target audience across various channels and touchpoints to build a positive and long-lasting relationship.

The goal of an engagement strategy is to create a loyal and active customer base that is invested in the brand and will advocate for it to others. By building strong relationships with their customers, businesses can increase customer satisfaction and loyalty and ultimately drive business growth.

How To Create Foolproof Marketing Engagement Strategies

First and foremost, businesses need to focus on creating a system that involves all aspects of the customer journey. This means understanding who the customer is, what they want and need, and how they want to engage with your brand and product.

The first step is to create buyer personas. These are semi-fictional representations of your ideal customers based on market research and real data about your current customers.

After you have a good understanding of your buyer persona, you can start to create engagement strategies that speak to them directly. What kind of content will they find valuable? What kind of tone should you use when engaging with them? Where are they hanging out online?

Once you have a plan in place, it's important to track and measure your results. Are your engagement strategies working? What kind of ROI are you seeing? Make sure to adjust your strategy if you're not seeing the results you want.

As Joshua B. Lee stated, customer engagement marketing is basically a two-way street. It’s the process of getting your target audience to pay attention to your brand and then taking action to maintain that attention.

Establish Your Voice

No matter the channel, your audience expects a consistent experience when they interact with your brand. Achieving this might be difficult when you have a large staff and outside agencies working on cross-channel campaigns. Create a guide for your brand's tone of voice and make sure it is accessible to everyone joining your company. 

Keep it Fresh

Your target audience will quickly become disengaged if they see the same old thing from you all the time. Keep things fresh by regularly creating new content, offering new deals and discounts, and finding new ways to interact with your audience.

Be Engaging

It’s not enough to just put out great content—you also need to be engaging. Be active on social media, respond to comments and questions, and give your audience a reason to come back to your brand again and again.

Create a Community

People are more likely to engage with brands that they feel a connection to. Create a community around your brand by hosting events, offering exclusive deals and discounts to members, and promoting a sense of belonging.

Make it Easy

Don’t make your target audience work too hard to engage with your brand. Make things easy by having a clear call to action, using simple language, and providing multiple ways to engage with your brand.

Top Customer Engagement Marketing Examples

One common customer engagement marketing example is providing customer support or training through social media channels. This can create a positive feedback loop where customers feel more supported and connected to the company and are more likely to make a purchase and recommend them to others.

Another engagement marketing example is co-creating content with customers, such as through user-generated content campaigns. This helps customers feel like they are involved in the brand, and more likely to continue interacting with the company.

Netflix

Netflix is perhaps the most obvious customer engagement campaign example. The entertainment industry leader uses AI marketing and machine learning to offer a personalized selection of movies and shows. The more customers engage, the better Netflix's algorithm suggests personalized content.

Spotify

Spotify also employs a similar customer engagement marketing strategy. Once users open the app, they are shown personalized mixes and emails with the subject line "Only You." To emphasize personalization, the phrase "Made for [user name]" is added to each of the mixes.

Coca-Cola

Who can forget Coca-Cola’s #ShareACoke? This customer engagement marketing strategy was all the rage in the early 2010s. 250 of the most popular American names were used in place of the company's logo on 20-ounce bottles.

The result? You bought one yourself.

Customer Engagement is Key in B2B

To inspire a purchase while selling directly to a customer, you must speak to their emotions. That being said, the target market for customer engagement in B2B businesses is very different. Businesses put a lot of effort into streamlining their operations and procedures to reduce costs, increase revenue, and drive expansion.

Therefore, the majority of spending decisions are logical. You are usually selling to decision-makers who are extremely busy and may not have a lot of time to engage with a sales representative.

Most B2B businesses fail to express their appreciation to their clients in favor of concentrating on sales. But a company's commitment to providing personalized customer service shows how much it appreciates them. 

Your B2B customer engagement marketing strategy can include simple details like adding a live chat function to your website and having a member of your customer service team respond to inquiries in real time. 

Even though your business is B2B, you are at the end of the day selling to people. Therefore, you'll need to build relationships with the decision-makers by developing a narrative for your brand. Selling stories is the core of your B2B customer engagement strategy because that’s what people want—a good story to tell. 

It is important for B2B businesses to focus on creating meaningful and relevant content that will help their target customers make informed decisions about their product or service.

The Future of Customer Engagement in Digital Marketing

The future of customer engagement in digital marketing will be shaped by how companies embrace and utilize new technology. The possibilities are endless, but a few things are certain: customer engagement will become more personalized, more automated, and more data-driven.

As artificial intelligence and machine learning become more sophisticated, digital marketing will become increasingly personalized. This means that instead of blanket campaigns that target everyone, companies will be able to create targeted campaigns that speak to individuals based on their specific needs and interests.

In addition, digital marketing customer engagement will become more automated. This will free up marketers to focus on strategy and creativity while the technical aspects of campaigns are handled by software. Automation will also allow companies to scale their marketing efforts more easily, reaching more people with less effort.

Finally, digital marketing engagement strategies will become more data-driven. Marketers will have access to an ever-growing pool of data that they can use to track the success of their campaigns and fine-tune their strategies. With the right data, marketers will be able to deliver highly personalized and effective campaigns that engage customers on a deeper level.

Customer Engagement Solutions Market Forecast

The global customer engagement solutions market is growing rapidly due to the increasing demand for effective customer engagement and the need for better customer retention. There are a number of driving forces behind the market's growth:

  • An increase in the use of customer engagement strategies to lower churn rates

  • Rise of eCommerce and mobile commerce platforms

  • Prioritized and improved omnichannel customer engagement

  • Shift towards customized virtual experiences post-pandemic