Imagine increasing your company’s profits by 95 percent. Even a conservative 25 percent boost would be great. According to research by Frederick Reichheld of Bain & Company, a 5 percent increase in customer retention rates can lead to significant profit growth. This highlights the importance of nurturing existing customers for business success.
Customer engagement lies at the core of this nurturing process. When customers identify with a brand and actively engage with it, positive outcomes follow. To achieve the profit increases predicted by Reichheld, consider using these five tactics to enhance your customer engagement.
Tactic #1: Create a Slack Channel for Your Community
Whether your business is based in Silicon Valley or has Millennial employees, Slack has likely become a crucial tool for collaboration and communications. Beyond internal use, it can also be leveraged to create community and engage with customers. Companies like Buffer have successfully established public Slack channels to engage with their customers, and other businesses, such as Crispy Mountain, are doing the same.
Tactic #2: Nurture Customers Instead of Selling Them
Traditional sales-driven approaches to customer engagement have become less effective. Instead, focus on building strong customer relationships by consistently offering value. Engage with your audience by sharing interesting and useful content, rather than just pushing your brand. Gary Vaynerchuk’s book “Jab, Jab, Jab, Right Hook” emphasizes the importance of providing value to customers before making a sales pitch.
Tactic #3: Implement Live Chat
While initial perceptions of live chat may be negative, modern live chat services, such as LiveAgent, have transformed this tool into a valuable resource for customer engagement. It provides customers with a quick and efficient way to interact with a brand when they have questions or need assistance.
Tactic #4: Make Customer Stories Easy to Tell
Featuring customer testimonials and stories on your website can strengthen customer engagement and build social proof. Encourage customers to share their experiences with your brand by providing a platform for them to submit their stories easily. Additionally, asking for customer stories on your company’s social media pages can be an effective way to engage with your audience.
Tactic #5: Run Collaboration Contests
Engage customers by hosting collaborative contests that encourage them to participate and share their ideas. Reward participants with special offers or rewards, subtly encouraging further engagement and purchases. An example of this is Domino’s Pizza Mogul campaign, which saw tremendous customer engagement and participation.
When planning your sales and marketing strategy, remember to prioritize existing customers and focus on nurturing their engagement. While acquiring new customers may seem more glamorous, fostering strong customer engagement is essential for sustainable business growth.
