The value of an engaged customer

by Sarah O'Sullivan | CRO Situ Live

Apr 26, 2021

How engaged is your customer? It’s a million-dollar question (literally) and should warrant a deep focus from any brand with high growth ambition. 

Why? Because every keen marketer will tell you that highly engaged customers buy and subscribe more and will often advocate to others. They also demonstrate greater loyalty, so are far less likely to be swayed by competitors – even at a lower price point.

Every business knows the importance of attracting new customers and will spend a lot of money chasing this goal. Yet when it’s six to seven times more expensive to attract a new customer than to retain an existing one, you quickly see that improving customer engagement from the outset is an absolute must.

In today’s marketplace where the consumer has more options than ever – both online and instore, customer loyalty is key to long-term growth. So it is essential to deliver brand-aligned, valuable content throughout the entire customer lifecycle.

What is definition of customer engagement?

Customer engagement refers to how strong a customer’s relationship is with a brand, defined by every interaction in the customer journey. In a nutshell, it is the emotional or psychological connection between a customer and a brand or product.

By going beyond transactional relationships and engaging customers consistently through a variety of channels, you can build and enhance the ‘human-to-human’ connection.

Why is customer engagement so valuable?

A successful customer engagement strategy benefits the consumer and brand alike with greater levels of customer satisfaction leading to improved brand trust and sales velocity. In fact, regularity and depth of communication is closely corelated to level of customer engagement. Ensure you are continuously providing them with value and not spam.

Plus by keeping customers engaged through the entire journey you can collect valuable data which will inform your content strategy going forward.

Measuring your customer engagement

Yes, customer engagement is based in emotions, but that doesn’t mean you can’t measure it. By analysing a few key metrics, you can improve your engagement and retention strategy and watch your company grow. Here are a few good indicators of engagement:

  • High product usage
  • High referral rates
  • Low churn rate
  • High social media rates
  • High customer lifetime value (CLV)
Boost your CLV through customer satisfaction

By focusing on customer satisfaction and engagement you can boost your customer lifetime value (CLV), which is the measurement of how valuable a customer is to your company. This is critical when research has shown that even a satisfaction increase as small as 5% can lead to profit growth as high as 95%.

Every interaction a customer has with your brand has the potential to improve customer engagement, be it subscribing to a newsletter, participating in a loyalty program, or speaking directly to a staff member. Always aim to provide value at every opportunity.

You should be looking to exceed customer needs and expectations, providing useful, brand-aligned messaging to move people through the sales funnel at their own pace.

Sales and marketing interactions should support customers as they consider and narrow their options. They should be proactive, perceptive, and always centred around helping the customer achieve their goals.

Strategies to engage your customers

Prioritise personalisation

To win and retain buyers it is more important than ever for businesses to provide a differentiated retail experience. Bespoke loyalty schemes that gather data on individual shopping behaviours can secure long-term brand allegiance by revealing invaluable trends and insights that help stores provide tempting, targeted recommendations and offers.

Consistent, relevant content

Try implementing real-time behavioural data to trigger relevant marketing offers. The aim is to create a consistent, cross-channel content strategy which is both intriguing and educational. The more content touchpoints you provide to your customer the opportunity they have to build brand love.

People power

Engaging customers online is becoming harder and more costly, due to a competitive digital retail landscape and shrinking attention spans. Consumers are craving human interaction, so this is a great opportunity to dip your toe into experiential retail. Passionate retail staff can grab the attention of the consumer, hooking the listener with a tale that resonates and humanises the brand.

At Situ Live we believe the holy grail for customer acquisition and retention should read something like this:  

  • Obtain a new customer through an exceptional first engagement
  • Build brand love with consumers through memorable experience
  • Continue to nurture, excite and delight your customer with great content
  • Invite feedback, and continue to evolve, innovate and inspire
  • Keep the conversation alive

So how can Situ Live help you?

Physical retail spaces have a significant role to play in influencing consumer awareness and consideration. Did you know trying out items instore is 3 times more influential than any other purchase factor?

Situ Live is launching a new model for experiential retail, where consumers are immersed in a brand’s products and knowledgeable retail staff create meaningful connections. All companies are featured on an extensive digital directory, creating a seamless path-to-purchase for consumers as they use QR codes to purchase direct from the brand's DTC store.

For brands this means they keep 100% of margins and web traffic.

If you'd like to experience the future of retail first-hand please contact us on: and we'll show you how we can best deliver for your brand.