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6 Ways To Build Customer Engagement In 2023

Updated on:
July 31, 2023

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Customer engagement refers to the process of building and maintaining a relationship between a business and its customers, in which customers are actively involved in the brand and its offerings. Customer engagement is all about creating a two-way interaction with customers that goes beyond just transactions.

Small businesses should spend a considerable amount of time building and cultivating customer engagement, which is the act of businesses and customers staying in active contact outside of simple transactions. Customer engagement is a crucial element for small businesses to survive and thrive in a competitive market. Business owners put so much effort into raising capital, sales, and efficiency, but many ignore the most important part of any business: its customers. By building strong relationships with customers, small businesses can improve customer loyalty, drive more sales, and increase brand awareness.

1. Understand Your Audience

Defining a target audience is an important first step for any small business to effectively market its products or services. Going into business without understanding your existing customers is a great way to make sure you won’t find any new customers. By identifying and analyzing your loyal customers and why they use your product, you can leverage your knowledge into future success.

Conduct Market Research

Conducting market research can help businesses gain insights into their potential customers. Research can include surveys, online research, focus groups, and analyzing competitors. Are there companies doing your thing better than you? What makes them better? What can your customers tell you directly?

Analyze Customer Data

Look at the demographic information of current customers to gain insights about their age, gender, location, interests, and behaviors. Are your best customers concentrated in a particular demographic? That can be a blessing and a curse as you decide whether you want to strengthen existing customer relationships or explore how you can expand your business to capture additional demographics.

Analyzing customer data also applies online. Monitor engagement and interactions on social media to determine who is interested in your products or services and what types of content they engage with most.

Create Buyer Personas

Create a profile of your ideal customer by defining their characteristics, such as age, gender, occupation, education level, income, values, interests, and purchasing behaviors. You should also know where they stand in the customer journey. Buyer personas allow you to better understand customer expectations and therefore tailor your marketing and products to suit their needs.

Consider Your Unique Selling Proposition

Identify what sets your business apart from competitors and determine who would be most interested in those unique features or benefits. Why you?

Successful customer engagement means using a combination of these methods to understand who buys your products and why they choose you over the other guy. That customer-centric understanding lets small businesses better define their target audience and create more effective marketing campaigns that build trust with their ideal customers.

2. Build a Strong Online Presence

Building a strong online presence is essential for any small business to attract and engage potential customers. Gone are the days of hanging a sign over a door and hoping that people walking down Main Street will empower your success. Nowadays a shirt-printing shop in Portland, Oregon can have loyal customers in Portland, Maine. Here are some steps that small businesses can take to build a strong online presence:

  1. Build a Professional Website: Create a website that is visually appealing, user-friendly, and optimized for search engines. Use high-quality images and content that showcase your products or services.

  2. Use Social Media: Create social media accounts on platforms that your target audience frequents. Use social media to engage with customers, promote products, and share valuable content. Part of great social media marketing is understanding which customers are on which platforms (and you understand your customers, right?). Are you best served spending time on Facebook or TikTok? Is your company best represented by words or images?

  3. Content Marketing: Create blog posts, videos, infographics, or other types of content that provide value to your target audience. Share this content on your website and social media platforms.

  4. Implement Search Engine Optimization (SEO): Making sure your company pops up first (or close to first) in search engines is an essential part of any marketing strategy. Use SEO best practices to optimize your website and content for search engines. This includes using keywords, meta descriptions, and alt tags for images.

  5. Utilize Email Marketing: Collect email addresses from customers and use email marketing to stay in touch with them. Send newsletters, promotions, and other types of valuable content.

  6. Engage with Customers: Respond to customer inquiries and reviews promptly and professionally. Use chatbots or live chat options on your website to provide quick and helpful support.

By implementing these strategies, small businesses can build a strong online presence that attracts and engages potential customers. This can help increase brand awareness, improve brand loyalty, and ultimately, drive more sales.

3. Foster Customer Loyalty

Sending regular email marketing messages isn’t enough. Small businesses also need to make sure they’re doing what they can to keep customers coming back. There are plenty of ways to go about making sure your customers come back again and again.

Provide Excellent Customer Service

Provide customers with a positive experience by offering excellent customer service. Respond to inquiries promptly and professionally, and go above and beyond to resolve issues. Offer a friendly and welcoming atmosphere that makes customers feel valued and appreciated.

That goes for encounters in-store and online. Assuming you operate an e-commerce company, you want to do whatever you can to make sure customers get the same experience no matter where they contact you.

Offer Loyalty Programs

Offer customers a loyalty program that rewards them for their repeat business. This can include discounts, points systems, and exclusive offers. Loyalty programs can incentivize customers to continue doing business with your company. You can also use a referral program to help find new customers.

Personalize the Customer Experience

Personalize the customer experience by tailoring your products or services to each customer’s individual needs. This can include providing personalized recommendations or special promotions. Use customer data and insights to create personalized experiences that make customers feel special and appreciated.

4. Engage with Customers in Real Time

Omnichannel customer service means making sure your customers get the same great treatment online and in-store. You wouldn’t wait hours to deal with an unsatisfied customer in a store, would you?

Engaging with customers in real-time is essential for small businesses to build stronger relationships with customers and improve customer satisfaction. Here are some ways small businesses can engage with customers in real time:

  1. Live Chat: Implement a live chat feature on your website that allows customers to chat with a representative. This can help answer questions, provide support, and address concerns promptly. Automation drives many live chat features, though some companies use human customer service associates to ensure excellent customer interactions when they experience issues.

  2. Social Media: Use social media platforms to engage with customers in real time. Respond to comments and messages promptly, and engage with customers through contests and promotions.

  3. SMS Messaging: This can include sending appointment reminders, order updates, or promotional messages, right through the most commonly-used feature of any smartphone.

Engaging with customers in real time is a key aspect of any customer engagement strategy. Quick answers to questions help small businesses improve customer satisfaction, address concerns promptly, and build stronger relationships with customers.

5. Harness the Power of User-Generated Content

User-generated content (UGC) is any content created by customers or users of a product or service. It’s a powerful tool in digital marketing. The best copywriter on earth can’t come up with a testimonial or story more effective than one that comes from a thrilled customer.

  • Social Media: Encourage customers to share photos or videos of your product or service on social media. Use a branded hashtag to track UGC and share it on your own social media channels.

  • Reviews and Testimonials: Encourage customers to leave reviews and testimonials on your website or third-party review sites. Share positive reviews and testimonials on your website and social media channels.

  • Contests and Giveaways: Use contests and giveaways to incentivize customers to create UGC. Encourage customers to submit photos or videos that show how they use your product or service.

  • User-Generated Content Campaigns: Launch a UGC campaign that encourages customers to create and share content related to your brand. Provide guidelines and prompts to help customers create content that aligns with your brand’s values and messaging.

6. Measure and Analyze Your Results

Without understanding your customer engagement metrics, you don’t know where to focus your engagement initiatives. There are a few simple ways to measure and analyze your customer engagement:

Website Analytics

Use website analytics tools, such as Google Analytics, to track website traffic and user behavior. Analyze metrics such as page views, bounce rates, and session duration to understand how customers are interacting with your website.

Social Media Analytics

Use social media analytics tools to track engagement metrics such as likes, comments, and shares. Use this data to understand which types of content are resonating with your audience and to identify areas for improvement.

Customer Surveys

Use customer surveys to gather feedback on customer satisfaction, loyalty, and overall experience. Use the data gathered from surveys to make improvements to your products, services, and customer support.

Sales Metrics

Analyze sales metrics such as customer retention rate, conversion rates, repeat purchase rate, and average order value to understand how engaged your customers are with your brand. After all, even if your customers are repeatedly engaging with your touchpoints, it’s not worth it unless purchases are occurring.

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