The value of customer engagement in retail
Many of today’s retailers are grappling with a large increase in digital customers as a result of new shopping habits brought on by the pandemic. This is creating challenges but also huge opportunities for retailers to rethink their digital customer engagement strategies.
In this new climate, retailers need adapt their ways of working to deliver personalized interactions that lead to sticky, lasting relationships with these more digitally focused customers.
And while there are other factors that influence loyalty, a differentiated customer engagement strategy will be critical for retailers to maintain brand relevance and cultivate stronger allegiance with these new customers, through 2021 and beyond.
Today’s consumers increasingly define value as a personal connection between themselves and a retailer or brand, often founded in shared purpose or values and nurtured by reliability, service and trust.
When many retailers think about customer retention, it’s generally in the form of one-size-fits-all communications and promotions. This is distinctly different from the experience customers receive in a best-practice digital channel.
Retailers that don’t specifically engage with their new digital customers are blowing a golden opportunity to retain these new customers by turning insights into action and providing an experience that recognizes their value.
Three waves of retail customer engagement
In our experience, retailers are spread across the customer engagement maturity curve, which has three distinct waves.
Retailers move from customer retention to value
One big change all retailers need to make is reorienting their business to deliver what today’s consumers now value: personalized service, tailored recommendations, and seamless experiences at scale.
Here are five steps to set retailers on the path to wave three:
The transformation required to sustain customer loyalty is substantial. But retailers that master individually personalized interactions at scale will be best positioned to capture the hearts and minds of consumers for sustained growth.