Why is Customer Engagement Important and Valuable?

No matter big or small, customer engagement is a vital factor for all businesses. When we talk about customer engagement, CX is an important factor as your customers’ perception of you as a brand drives their loyalty. If they like you they will be associated with your business and recommend you to the others.

84% of companies that work to improve their customer experience report an increase in their revenue.

customer service

You can not overlook the importance of engaged and satisfied customers. Customer engagement is very important for businesses to prosper as it develops chances to strengthen the bond between business and customers that encourages long-term loyalty based on mutual growth.

Here are five key reasons that show having effective customer engagement strategies is a potential advantage to your business.

1. Boost sales conversions

When businesses invest in better customer engagement strategies, it greatly impacts revenue. By using live chat software, you can deliver real time sales and support assistance to customers that boost customer satisfaction finally leads to higher revenue.

According to PWC, businesses using digital outreach methods forecast higher revenue growth, and Bain & Company found that engaged customers spend between 20% and 40% more than other customers.

By using live engagement tools like co-browsing and video chat you can collaborate with customers in real time and make engagement interactive and deliver a virtual in person experience.

2. Increase customer loyalty

Businesses can improve loyalty by engaging customers by delivering excellent customer service. Customers who receive a personalized experience will return to their favorite brand to buy more in the future than disengaged customers.

Loyal customers will purchase more with you over time. Harvard Business School says, 5% increase in customer retention rate can increase profit by 25% to 95%

Loyal customers are more resistant to competitors’ marketing and more likely to purchase again, have higher average order value, and become brand advocates. By increasing loyalty, businesses activate their customers to market their products more credibly for little or no additional cost. 

3. Enhance brand awareness 

Customer engagement improves creates an extensive brand awareness of the different service solutions offered by your business among your customer base. As you keep customers more engaged and informed through support conversations and visual interactions, you can also improve awareness of the variety of solutions such as product add-ons, updates that your brand offers. 

You can also enrich your FAQ page and online community with valuable content about the solutions to common issues, product videos, features to engage your customers. When customers are able to get easily what and when they want, they will be linked with your brand. They will also recommend your brand with positive word of mouth.

4. Gives your business a competitive edge 

Implementing an effective customer engagement model is the foundation of every organization. Without that, it wouldn’t be possible for brands to not just grow but even survive in a competitive market.

A well-planned customer engagement strategy allows delivering a consistent customer experience that helps create business differentiation and attract even more customers. When you develop an instant connection with customers with live chat, chatbots, and visual tools, their satisfaction level increases.

And happy customers mean more sales and loyalty.  When customers are heard, they will share a positive experience with the brand, building long term relationships.

5. Better engagement reduces the number of returns

Effective customer engagement means more conversion and less number of returns. You can engage your customers in their buying journey and based on their previous purchase history and other insights (interests & needs) you can recommend them.

Relevant recommendations made based on a customer’s past actions help them in making quick decisions. You engage customers by referring to things that match their interests and something they want – hence the high rates of satisfaction.


Along with the customer engagement strategies, businesses should focus on adopting latest trends to avail the benefits that come from engaging customers. Engaged customers lead to improved satisfaction and retention, as well as increased sales to existing customers through advocacy, high-spend transactions, and brand recognition. When taking these benefits into account it becomes even more important to focus on customer engagement and building lasting relationships with customers.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.

Speak Your Mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.