Customer Engagement is a bit like beauty. You can tell when someone or something has it, but it is still very difficult to describe, and almost impossible to measure. But this is business, and Customer Engagement is an important business drive, so try we must.
One way of defining it is to say that Customer engagesmart is that relationship a company has with its customers that transcends the sales transaction. It’s an emotional bond whereby the customer demonstrates a real concerned to see the company do well in preference to others, and is prepared to assist in that process.
Let’s start by looking at what it is not.
It is not ‘Customer Satisfaction’. When a customer is satisfied then you know your company has done its job – but you know nothing more. What was promised was delivered, job done. But no relationship has been built.
It is not ‘Customer Delight’. With ‘Delight’ your company has delivered greater value than was expected so exceeding expectations. ‘Delight’, whist not ‘Engagement’ in its full sense, can be seen as a contributory factor.
It is not even ‘Customer Loyalty’. As normally measured loyalty is defined in terms of repeat purchase patterns. Again, the relationship element can be missing, or poorly developed.
No, Customer Engagement is a subtle blend of many aspects of the emotional bond that is developed between members of the company and the individual customer. People like their voices to be hear and react negatively if not allowed to; just recall the cult 60’s TV programme ‘The Prisoner’ and its cry of “I am not a number, I am a free man!”? Beware the tyranny of the CRM (Customer Records Management) system.
Why do you say that Customer Engagement is vital?
It’s all down to the behaviour shown by engaged customers.
# They will recommend your company to friends and colleagues # They purchase from you almost exclusively # They offer feedback about your performance # They know how you operate and so are less expensive to service.
In short – if you have good Customer Engagement then you have a loyal band of customers who cost you less to service and who will go in to bat for you so helping to assure your company’s future.
How can I measure my Customers’ Engagement?
Measuring Customer Engagement has traditionally proved very difficult. Traditional customer surveys don’t cut it. They can measure individual transaction feedback, or some attitides to brands or other marketing issues, but they do not get to the heart of the real relationship.
Focus groups get a long way. But focus groups are costly, and can only cover select groups of your customers.
Also, a simple measurement by itself is not enough. What use is a single number? It can tell you where you stand, and even measure progress (or decline) from one period to another, but you need information that tells you what you are doing well (so you can reinforce it) and what you are doing badly (so you can stop doing it or improve it).
Characteristics of a good Customer Engagement measurement system
When seeking a means of measuring your Customer Engagement there are several characteristics you should look out for.
1. Have a good ‘reach’ across your customer base. You don’t only want to hear from the good ones, because you can learn some serious lessons from the poor customers too.
2. Be ‘light touch’, that is it should be easy to run, impinge little on day to day activities, divert relatively little of your daily activity from delivering good customer service.
3. A company and system that recognises that any changes will be driven from the top. The method you choose must appeal immediately to your Top Team – in that way you will know the results will provoke a move to action, and the necessary resources will be forthcoming.
4. Good supporting analysis delivered in a clear fashion. Complex graphs lead to finger pointing and ‘I reckon’ at the debrief. Clear analysis and well identified action points lead to consensus round the table and positive change.
5. Offers you the chance to improve your Customer Engagement. When you provide feedback to the customer participants then you are developing your whole engagement strategy.
