Modern companies, to remain on the market and increase their revenue, should involve customers into their development. Everyone has to remember that 20% of customers generate 80% of the company’s income. That’s why companies should focus on this 20% and encourage them to recommend specific products and services to others. That is why their commitment is so crucial.
But what exactly “customers engagement” is?
Customers engagement is an innovation in the field of marketing. In other words: it is simply the intensity of the participation of the current or potential consumer in offer and activities of a company. It is related to the activities which are initiated by the company or a customer himself. The whole process consists of cognitive, emotional behavioral and social elements. The total scope of customer engagement consists of two spheres: the frequency of purchases made by the customer and acquiring new clients thanks to loyal customers recommendation. Customers engagement can be initiated by the company, but not necessarily, because it can be a result of the initiative of returning, loyal customers.
Why is customer engagement so important?
The contemporary market requires the physical involvement of a client in the company’s development because this way is generated the biggest income. At the time, when a client feels really involved in the development of a company, he is no longer interested in the opponent’s products. The more customer feels, that he can do a lot for the company, the more will he identify with the brand. He will feel like he’s an important part of the company. In this way, he becomes loyal and is willing to recommend company’s services to others. Building customer engagement is crucial because it translates to ‘’automatic’’ acquiring new customers and maximizing sales and profits.
Is customer engagement possible to measure?
Yes, it is possible to measure. One of the tools to measure the degree of customers loyalty is Net Promoter Score. It serves as an alternative to traditional customer satisfaction research and claims to be correlated with revenue growth. Net Promoter Score (NPS) measures the loyalty that exists between a provider and a consumer. The provider can be a company, employer or any other entity. The provider is the entity that is asking the questions on the NPS survey. The consumer is the customer, employee, or respondent to an NPS survey.1
Net Promoter score can be measured by asking one question: “How likely is it that you would recommend brand/company/product X to a friend or colleague? Rate this probability on a scale 1-10’’.
Brands whose level of Promoters is at least 70% are the most valuable ones.