Customer Engagement Stats for 2016
What is customer engagement? We take a look at some of the most compelling customer engagement statistics for 2016 that prove just how important it is.
Right now, we’re hearing a lot of talk about customer engagement.
Acquiring data. Onboarding brand advocates. Boosting relevancy through social media. Entertaining and educating customers. Doing all of these different things to make customers take notice.
But what does it really mean? What is customer engagement?
According to Gallup, it’s an emotional and psychological attachment to a brand, product, or company. Marketo polled marketers about what ‘engagement’ meant to them, and they found:
- 63% of marketers view engagement as customer renewals, repeat purchases, and retention.
- 78% of respondents think engagement occurs in the middle or end stages of the marketing funnel.
Essentially: Customer engagement strives to make an emotional connection with customers to drive loyalty, to retain the existing customer base, and to boost customer satisfaction for an overall improved customer experience.
In this post, we’re going to look at some of the most compelling customer engagement statistics for 2016 that prove just how important it is. Let’s get started.
Customer Engagement Stats
- Customers who are fully engaged represent 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer. -Gallup
- 58% of executives reported not having a formal customer engagement program in place, and 60% didn’t know how many customers they’d lost over the past year. -Convero
- Companies with the strongest omni-channel customer engagement strategies retain an average of 89% of their customers, as compared to 33% for companies with weak omni-channel strategies. -Aberdeen
- 70% of buying experiences are based on how the customer feels they are being treated. -McKinsey
- 52% of customers are less likely to engage with the company because of bad mobile experience. – Think with Google
- 71% of in-store shoppers who use smartphones for research say their device has become more important to their in-store experience. -Google
- 52% of companies say Facebook is the most effective social channel for customer engagement, service and support.. -Social Media Today
- Customer retention is 14% higher among companies applying big data and analytics to deal velocity. -Aberdeen
- Engaged customers spend more, according to Gallup data:
- Consumer electronics: Fully engaged shoppers make 44% more visits per year to their preferred retailer than do actively disengaged shoppers. On average, they spend $373 per shopping trip, while actively disengaged customers spend $289 per trip.
- Retail banking industry: Customers who are fully engaged bring 37% more annual revenue to their primary bank than do customers who are actively disengaged.
- Restaurant — casual dining: Fully engaged customers make 56% more visits per month than actively disengaged customers do.
- Restaurant — fast food: Fully engaged customers make 28% more visits per month than actively disengaged customers do.
- Hospitality: Fully engaged hotel guests spend 46% more per year than actively disengaged guests spend.
- Insurance: Fully engaged policy owners purchase 22% more types of insurance products than actively disengaged policy owners do.
- 3 out of 4 companies say they plan on spending more on customer engagement over the next 12 months, which includes 80% of companies that already have formal customer engagement programs in place. -Convero
- Only 25% of Millennials are fully engaged customers, and their engagement is highly dependent on technology. In order to attain their attention brands much achieve excellence in every channel. -Gallup
- 73% of marketers view customer centricity as critical to the success of their business and role at the company. -CMO Council
- According to a CEI Survey, 86% of buyers will pay more for a better customer experience. Forbes
- A 2% increase in customer retention has the same effect as decreasing costs by 10%. -Leading on the Edge of Chaos
Focus on Customer Engagement, Retain More Customers
As you can see from the numbers here, the engaged customer not only spends more, but they’re overall less expensive, they are more satisfied with their customer experience (and tell their friends and family), and they feel more loyal to your brand.
By putting a focus on increased engagement in 2016, you can help your business maintain high-quality relationships with customers who help your business flourish.
Need some ideas for getting started? Check out this post on strategies that fuel brand loyalty through customer engagement.