Customer engagement is the most popular trend these days – every business is investing in campaigns to engage and interact with its customers on the mobile, social media and web platforms. Customer engagement is all about interaction with customers to know and understand what they want or expect from the brand. Measuring the return on the investment from customer engagement is as important as it is to develop an efficient customer engagement strategy. In fact, measuring the ROI is necessary if you want to know the investment is worth it or not. So here are five ways in which you can do that.
Data is what you need to be able to measure the returns on your investment. Therefore the primary component needed for measuring ROI on customer engagement is a data repository, where you store all the data you can possibly collect from customer interaction and engagement. The repository should also have the customer demographics, details about customer behavior and also their channel preferences, alongside the feedback they provide about your brand.
Real time analytics
Collecting data today, for analysis in the future is not going to help your business. Every action and interaction of the customer can give you insights about customer behavior and preferences, which will directly affect your business. So real time analysis of customer interaction must be done so that you can make the necessary changes quickly enough to keep the customer happy and loyal to your brand.
Identifying customer lifecycle
So far, companies have limited their understanding and knowledge of customer lifecycle only to the awareness and acquisition stages. This keeps the focus only on managing the marketing campaign, rather than on customer engagement. The organization should try and map the customers’ journey right from the beginning to align with their perspective and also the decision making process if it wants to build a relationship that lasts a lifetime.
Lifetime value of customers
Not all customers are equal, which is why treating them all the same is not going to help. Another way to measure the ROI from customer engagement is to calculate the lifetime value of each customer. This should include finding out the total revenue that a customer generates for you through purchases, the cost of resources used to acquire the customer and also the revenue generated through customer referrals.
Point of contact
There are many channels through which the customers reach out to you – social media, phone, print media and direct contact. Regardless of what the touch point is, your customers can either negatively or positively influence your brand. The organization, therefore, should determine which point of contact is important for the customer and for the company to create value.