What is the business case of customer engagement

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    • Customer Engagement ROI

    We have discussed the power of employee engagement for your brand. And we have explained the true meaning and ROI of a working organizational culture (a culture that starts at the top). Now, it’s time to examine the business case of customer engagement. This includes the powerful brand image and brand loyalty engaged customers generate. Remember, loyalty drives repeat purchases, higher revenues and more engaged customers.
     
    An engaged customer requires investment in ongoing conversation. The “conversation” dollars go to social media campaigns and  closed-loop systems for customer feedback. Among other customer experience levers, it also includes a responsive loyalty customer service.

    Invest in people as much as product

    On one occasion, I received a complaint from a JetBlue customer. In order to keep the conversation with him going, I had to relay information to the teams that were accountable for his experience. I had to reply to him with comprehensive, empathetic feedback about his experience. CX professionals call this close loop. But close loop is a policy. Making the effort to connect with people across the organization and CARING about getting answers is employee engagement on my part. Corporate culture generates engagement like that.
     
    Culture like this maintains customer engagement and, as a result, creates an ancillary purchase in the future. Often, people and service are more important than the product of an organization.  People and service build an organization’s brand image when customers interact with that brand. Customer experience relies more on human interactions with the brand than on the technology that enables those interactions.
     

    Empathy and Innovation

    Magazine Luiza is great example of impacting ancillary sales and generating 35% ROI as a result of deliberate investment in empathy and innovation.  The Brazilian virtual store offers products on credit to under-served customers in rural areas. Customers can see pictures of their desired products. Then, they can go home and wait for delivery within 48 hours.
     
    To achieve loyalty and repeat business, Magazine Luiza also functions as community centers that offer free internet, literacy, cooking and basic banking classes. This investment contributed to the build out of a strong emotional connection between the brand and its audience. It transformed Magazine Luiza into a powerful lifestyle brand for its customers. Even customers apprehensive about taking credit visit a place where a friendly face walks them through the experience of borrowing money while their child learns how to write for free.
     
    The brand image of growth and development that come from the education components the company provides is, in a way, transferred to the “product” of buying on credit.  Once customers are empowered to buy on credit initially, they return to buy more things. Each of those purchases makes them feel economically empowered.
     

    Engaged customers are the blood of every business

    Without engaged customers, business cannot grow. Engaged customers provide steady cashflow and free cashflow that allows a business to invest in products and customer acquisition. The ROI of engaged customers lies in the growth of the organization and the incremental revenue that follows. Depending on the growth stage of a particular organization, that ROI also can mean an organization’s survival.

    What is the Business Case of Customer Engagement for Your Brand?

    Learn how to make the business case for customer engagement and customer experience for your brand. And connect customer experience to ROU. Become a Member of The Petrova Experience.

    Liliana Petrova

    Published on 01/29/2018

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