On some level, everyone knows that customer engagement is a great idea. Building meaningful, deeper, and lasting customer relationships also brings value by creating a group of dedicated and lasting loyalty customers that is much more likely to come back again and again.
So, of course, customer engagement is important. But just how important can be a topic of debate. But thanks to HelloWorld, marketers are getting closer to a definitive answer.
HelloWorld, a loyalty and CRM technology firm that offers brands an array of holistic customer engagement solutions, recently revealed the results of a study that overwhelmingly validates the link between customer engagement and purchase behavior. After surveying more than 5,000 people, HelloWorld found that consumers with higher levels of customer engagement purchased more products from their favorite brands.
Surprisingly, this measurement held true regarding customer loyalty. Among customers who already demonstrated a high level of customer loyalty, increased engagement was a significant factor in positively influencing these same customers to spend even more.
“Engagement has been, and will continue to be, a hot topic among marketers who want to build stronger relationships with their consumers,” said Matt Kates, HelloWorld VP of Strategic Services at HelloWorld. “But up until now, it’s been difficult to quantify the impact of engagement on purchase. Our research confirms the critical role that engagement plays in consumer purchase behavior. Even the most loyal consumers purchase more of their favorite brands when better engaged.”
HelloWorld’s research found that as customer engagement increases, shopping visits also increase by 21%. Also, the study found that an astounding 96% of shoppers consume goods or services from their favorite brands after they are engaged through a CPG loyalty program.
This further signifies the connection between membership in a loyalty program and buying behavior, and emphasizes the importance of ensuring that loyal customers are officially enrolled. It is obviously ideal when a high level of customer engagement and membership in a loyalty program converges, but the study also shows that even when customer engagement scores are low, participation in a loyalty program can increase engagement levels by nearly 20%.
“Highly engaged consumers are incredibly valuable to brands on multiple levels, driving increased share of requirements and providing a receptive audience for loyalty initiatives,” said Michela Baxter, Sr. Loyalty Director at HelloWorld. “The Engagement Score study shows just how important increasing consumer engagement and converting brand loyalists to loyalty program members is to a brand’s bottom line.”