“If people believe they share values with a company, they will stay loyal to the brand”, Howard Schultz.
There is no very exact translation to precisely define engagementbut the closest thing is that the engagement it is the level of commitment that customers have with a brand. Not the best definition; the English word has more power without translation.
What is the difference between loyalty and engagement? Is there a correlation between the two? Today, customer loyalty is not just about points, miles and rewards; it is how technology, processes, ideas and interactions engage customers with brands. The only way to create loyalty is through developing a deep commitment to customers.
Y engagement are the repeated interactions that strengthen the emotional, psychological, and physical bonds between customers, brands, and companies in the online world and offline. The above according to the publication made by National Business Research Institute.
The type of interactions a customer has with the brand can indicate whether the customer is loyal or engaged. An example of the above is if a customer frequently buys a product from a brand, it could be said that he is loyal; but this same client does not open emails or read communications that the brand sends him. In this case it is a client who is not committed.
When a customer makes comments about the brand, writes reviews, recommendations of a certain product, it can be said that he is a committed customer. It is very similar to having customer ambassadors. His actions become more emotional than rational. These customers are natural promoters and generally do a good NPS assessment.
Another case is when customers spend a good amount of time on the brand’s website or app; but in the end, to consider that there is engagement, the customer has to make a purchase. If he doesn’t, he is considered unengaged.
The service and customer service model can be considered as an enabler to develop committed customers or not. If the brand genuinely cares about responding to the notes, comments and observations that customers make, assigns them the appropriate channels for them to express themselves and offers them personalized responses, not generalized ones, then they can become engaged customers.
The publication of “The wise marketer” recommends developing a score to measure the level of commitment of a client. This will allow customers to be segmented according to their rating. The score it should include metrics associated with customer interaction with the brand, not just transactional purchase data. Participation in social networks, reviews, customer interaction with the brand.
In another sense, today we know that customer loyalty can no longer be measured solely transactionally as it was before. In the past, brands rewarded customers for transactions, amount spent, customer value over time, etc. Today, that scheme is obsolete; today, brands must worry about building this emotional commitment. If customers share values with the brand, they will be loyal and engaged customers.
Therefore, loyalty based on emotional bonds and trust generates greater relevance with customers in a world where it is increasingly challenging to achieve consumers who remain over time.