Customer engagement is crucial for the growth of any successful business.

An engaged customer not only makes purchases from you but also recommends your products to others and tends to have a higher average order value. There are numerous benefits to having an active and engaged customer base, but how can you achieve this?

The key lies in gaining a deep understanding of who your customers are and the problems they are looking to solve. Here are some proven strategies to enhance customer engagement and, subsequently, increase customer lifetime value.

Segment contacts

One of the most important steps you can take to boost customer engagement is to segment your leads and customers. Different types of market segmentation exist, so it’s essential to identify which ones are relevant to your business.

Determining the segmentation criteria that matter in your business and grouping your customers accordingly is crucial. For instance, if you sell hardware, the gender of your customer may not be significant. However, if you sell clothing, gender could be a crucial segmentation factor.

Two types of segmentation, behavioral and psychographic segmentation, can have a significant impact on customer engagement. Here’s what you need to know:

Also Read: The only customer engagement strategy businesses need during a crisis

Behavioral segmentation

Behavioral segmentation takes into account the actions of your customers to enhance engagement. This includes factors such as:

• What they signed up for?
• The purchases they’ve made?
• How often they purchase?
• The pages and categories they visit on your website?
• What they click on in emails?

There are various data points you can utilize, but it’s essential to determine which ones are relevant in your situation. For example, if someone signs up for a lead magnet related to shoe care, it indicates an interest in high-quality shoes. Tailor your emails accordingly and observe how they engage with them.

You can further enhance this by combining behavioral data with demographic information. By aligning behavior and demographics, you can create highly targeted campaigns that yield even better results.

For example, if a customer purchases a belt once but then buys multiple bracelets, their behavior indicates a preference for bracelets. Tailor your content and offers to cater to this preference.

Consider the specific page a customer is browsing, and use this information to personalize their experience. Implementing tools like chatbots to assist customers based on their browsing behavior, as seen on Drift’s case studies page, can significantly boost engagement.

Also Read: Customer is not always the king, says Tokopedia’s customer engagement expert

Another effective strategy is to give customers explicit choices, especially in email marketing campaigns. Allow customers to indicate their interests with a simple click, empowering them to engage with content that aligns with their preferences.

Psychographic segmentation

Psychographic segmentation focuses on customers’ attitudes, beliefs, values, and more. Although challenging to get right, successfully leveraging psychographic segmentation allows you to connect with customers on a deeper level by aligning with their individual motivations.

Companies like Frank Body have excelled in this approach by targeting a female demographic and tapping into their inner desires. By developing a brand persona that resonates with customers on a personal level, you can drive higher engagement.

Utilize diverse content formats

Following segmentation, creating content in various formats is a powerful way to boost customer engagement. By offering content in different forms, you can appeal to a wider audience that may have varied preferences.

Before scaling up content creation efforts, conduct small experiments to identify the content formats that resonate best with your audience. Focus on the top three performing formats to maximize engagement.

Blog posts or written content

Written content remains a cornerstone of online communication. While video content has gained popularity, written content is still effective for building your brand and engaging customers through education.

To make written content work for you, focus on delivering value in a conversational and easy-to-understand manner. Avoid generic content and strive to provide valuable insights to your customers.

Also Read: F&B customer engagement startup Mobikon snags US$12.5M funding led by Flipkart co-founder, to transform into data exchange platform

Audio content

Podcasting has experienced rapid growth in recent years. With a loyal and expanding listener base, podcasts offer a cost-effective way to engage with your audience by delivering compelling and informative content.

Ensure your podcast has a clear premise and delivers interesting content to attract and retain listeners. By providing value through your audio content, you can cultivate an engaged audience.

Infographics

Infographics were once challenging to create, but advancements in tools like Venngage and Canva have made it easier to produce visually appealing content. Look at successful content in your niche and create infographics that offer a unique perspective or enhanced information, encouraging engagement and sharing.

Prioritize video content

Video content is projected to dominate internet traffic by 2022, making it a crucial component of a comprehensive content strategy. To effectively leverage video, analyze the competitive landscape, identify gaps in content offerings, and create engaging videos that resonate with your target audience.

By taking a strategic approach to video content creation, you can differentiate your brand and attract a dedicated audience, similar to how Mr. Beast achieved remarkable success on YouTube.

Also Read: Beyond consumer targeting, here are 3 ways blockchain fosters customer engagement and loyalty

Regardless of the content format you choose, it’s essential to follow best practices for content promotion to maximize engagement.

Engage on social media

Social media platforms offer vast reach and significant influence. While maintaining an active presence on social media is essential, it’s crucial to carefully select the platforms that align with your target audience and business goals.

Platforms often limit organic reach, necessitating paid promotion to extend your content’s visibility. Prioritize platforms where your current and potential customers are active, and explore alternative engagement opportunities beyond organic posts, such as Facebook groups.

Test different formats and posting frequencies to determine the optimal strategy for engaging with your audience on social media. Consider factors like post shelf life and customer interaction patterns to refine your social media engagement strategy.

Also Read: Mobikon, a customer engagement platform for restaurants, raises US$7M Series B to expand to UK, Australia

Focus on VIP customers

Not all customers are equal in value and loyalty to your brand. VIP customers, who trust your brand, consistently make purchases, and refer others, are highly valuable and deserve special attention.

Identify different types of VIP customers, such as high spenders, prolific referrers, or a combination of both, and prioritize their satisfaction. By providing exceptional support, tailoring content to their preferences, and exceeding expectations, you can cultivate stronger relationships with VIP customers.

Also Read: Knowlarity acquires Delhi-based customer engagement platform Smartwards

Conclusion

Enhancing customer engagement offers numerous benefits, and the strategies outlined in this post can help you achieve that goal. Instead of implementing all strategies at once, focus on one with the highest potential for impact on your business, and gradually incorporate additional strategies to drive increased engagement and customer lifetime value.

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Image Credit: Valeriy Khan on Unsplash

This article was originally published on December 29, 2020

The post How startups can improve customer engagement and grow LTV ratio appeared first on e27.