Does your company believe in customer engagement?
Of course, they do.
But do they really?
Would you say that customer engagement is a primary focus?
If not, you need to change that right away.
As you’re about to see, customer engagement is changing the way ecommerce works. Those who don’t adjust may soon find it’s too late.
4 Facts About Customer Engagement That Prove Its Importance
With so many options for improving your ecommerce company, it can often be tough to take on a new initiative. If your company isn’t currently investing in a better customer engagement approach, it might be easy to stay the current course and convince yourself you’ll give it a look next quarter, next year, etc.
That’s why you should consider the following four facts about customer engagement. They prove that this is too important a potential advantage to not merit your company’s attention.
1. Customer Engagement Influences Impulse Purchases
Have you ever entered a store or gone on an ecommerce website with no real intention to buy anything only to do exactly that?
This is known as an impulse purchase and while there is a lot of science to explain it, engagement plays a major role.
A major role.
49% of customers who purchased something they hadn’t intended to did so because of a personalised recommendation they received from the company selling it.
Sites like Amazon have turned this into a major portion of their business plan. The moment you enter their homepage, you’re bombarded with tailored recommendations.
When you look at an individual product, there are even more recommendations waiting.
The secret to Amazon’s recommendations have less to do with traditional product-sales goals and everything to do with customer engagement. They know what each individual customer wants and they’re happy to put it right in front of them.
2. Better Customer Engagement Means Fewer Returns
It gets even better, though, because not only will better customer engagement lead to more sales, it will mean fewer returns, as well.
So, if you were worried that impulse purchases would mean massive returns for your ecommerce website, put that panic to rest. Only 5% of those purchases were returned.
And if you felt guilty about the idea of winning sales through impulsive actions, 85% of those customers reported being very happy with their purchase.
Once again, it’s not hard to understand why.
Recommendations made based on a customer’s past actions make them more relevant to that person. You’re not trying to give them the hard sell.
The “impulsive” decision to buy probably has a lot less to do with emotion and more to do with the fact that the customer realizes it’s something they truly want – hence the high rates of satisfaction.
3. Customer Engagement Boosts Revenues
Given the last two statistics, this next one should come as no surprise.
Customers don’t just make purchases they weren’t planning on or purchase more, in general.
When companies invest in better customer engagement, their ecommerce websites also produce higher revenues.
Again, the difference was not a small one.
40% of consumers report having spent more because of a shopping experience that engaged them personally.
4. Brand Loyalty Improves with Better Engagement
Finally, a lot has made of customer loyalty in recent years as competition between companies becomes progressively tighter. With so few things left to leverage as differentiators, many businesses are looking for ways they can simply keep the customers they already have.
The facts show that one way to do this is by better engaging them.
44% of customers who receive a personalised experience report that they will be returning to that same company to buy more in the future.
Would you sleep easier if you knew that more than 40% of the customers who bought from you today would be back again?
Think of the ROI that you’d receive from every 100 new customers you earn.
The Most Important Form of Customer Engagement
By now, it should be clear that customer engagement will play a huge role in whether or not your ecommerce business succeeds.
However, with so many different ways to engage your customers, it can be tough to know where to start.
While you shouldn’t limit yourself, if you have to begin with only one tool, start with personalisation. Your company absolutely must provide consumers with top-notch service. Otherwise, they’re only a few clicks away from visiting one of your competitors instead.
The best customer service utilizes ecommerce personalisation.
That’s because ecommerce personalisation actually improves a visitor’s experience of your website while it’s happening based on information it’s already collected.
They visit your site because websites are largely effortless. There should be very few hurdles between them and the products they want.
Ecommerce personalisation ensures a minimal number of obstacles.
Your customers can even receive the information they need before they would have otherwise realised they needed it.
The last thing a customer wants is to actually call you for help. By using ecommerce personalisation on your ecommerce website, they should never need to.
Time Is Running Out
There’s one more customer engagement fact that we thought important to point out: customers already expect personalised experiences.
So, while many of the facts listed above or the concept of personalisation may seem new, a number of companies have known about – and used them – for years. Some of them may even be your competitors.
While there is still time to enjoy a competitive advantage, that window is definitely closing.
Turning Customer Engagement into a Priority
Hopefully, the figures we just covered about customer engagement are enough to get you excited about its potential.
The facts are clear: the better you engage your customers, the more they’ll reward you.
Of course, knowing that and actually acting on it are two completely different things.
The good news is that customer engagement technology – including the kind aimed at personalisation – is easier and more affordable to implement than ever before. You don’t need to worry that his newfound advantage will mean turning your entire business plan upside down.
Instead, start small.
Once you witness the power of improved customer engagement firsthand, it will be much easier to justify a greater investment of time and money.