Consumer engagement: How to tell if you’re actually connecting
Welcome to the new era of consumer engagement. Thanks to new advances in technology, it’s now easier than ever for shoppers to access and consume more information from a broader range of mobile devices. TechCrunch reported that more than 6.1 billion smartphones are expected to be in circulation globally by 2020, and all growth in digital media time is now coming from mobile use, according to Marketing Land. The implications are clear: Going forward, mobile devices will only become more important to consumers and a larger part of the cultural landscape, making it vitally important that tomorrow’s enterprise understand customer usage habits and patterns.
Thankfully, just by considering a few key factors and metrics, you can more effectively understand how successfully products, services and solutions are connecting — and design or retool them to match.
Daily, weekly or monthly active users
Among the simplest metrics for measuring consumer engagement, these basic statistics show how many users are actively engaging with your solutions. However, it’s important to note that organizations have different definitions for “active” — this designator may refer to frequency of login, how many users have taken specific actions, which have spent a certain minimum amount of time getting hands-on with your company’s offerings and more.
Customer acquisition cost
This identifies how much your business is spending to acquire customers by totaling the costs of all or individual marketing activities and dividing it by the number of new customers gained during the period these promotional activities took place. Finding ways to lower these costs and business expenses is key. A growing range of analytics tools and solutions can help.
Revenue per customer
Revenue per customer measures how much your business makes per customer and which customer segments are most lucrative, as well as general buying habits. Insights from these statistics can help you better allocate resources, determine how to market and promote your offerings and more effectively manage your enterprise overall.
Customer lifetime value
Any given customer’s business is worth a certain amount to your enterprise over the life of your relationship. Understanding these numbers can help you right-size efforts and expenditures, gaining deeper insight into where it may make sense to offer specific discounts, specials and value trade-offs.
Social media, marketing and advertising campaign metrics
Are you wondering how well your communications and consumer engagement efforts are helping? The amount of clicks, shares, conversions, web traffic and leads you are able to generate from them can help you tell what’s resonating, to what extent and with which audiences. Note that effective use of these insights can help you update and refine campaigns to perform better over time.
Equally important as purchases or conversions is understanding how happy customers are with your business or brand and the solutions you provide. A key element of successful mobile consumer engagement, insights gained here can teach you which features or needs customers prioritize and how these needs change over time. The most successful businesses use ongoing sources of feedback and measurements of customer satisfaction to create and continually update their strategic roadmaps and solutions to be better attuned to market demands.
How many leads are converting to paid customers? How are even simple changes in messaging, visuals, pricing or content affecting how many consumers choose to do business with you? Using these metrics, you can see how well end users are responding to everything from ad copy to website design — and adapt solutions to be more effective in time.
In addition to acquiring customers, it’s also important to inspire their loyalty and retain them. It’s vital to understand your churn rate — or the rate of customer loss or attrition — as well as when they drop out of orbit and how much time they spend with your solutions.
Clearly, the number of data points your business can now collect and monitor, and the amount of insights it can track in terms of customer behavior and purchasing patterns, have increased exponentially. Enterprises looking to play in the digital and mobile spaces would do well to take these and other key metrics into account as they move forward. Armed with these pieces of information, you can not only create an effective business strategy, but you can update it, refine it and increase its odds of success with each passing day.