Despite the benefits that businesses can receive, few companies reward customers for their engagement. Most businesses opt for loyalty rewards that are based on how much the customer spends. By limiting rewards in this manner, businesses are missing opportunities to build and nurture customer relationships during the customer's purchase journey.
Not too many years ago, customers had limited options for interacting with your company. They could write you a letter, call you on the phone or send you an email. Then the number of available channels increased. Now there are mobile apps, forums, consumer rating services, social media sites, in-store kiosks, wearable tech and a host of connected devices in their homes in addition to the traditional channels.
Engaged customers are interacting with your company in various manners. They may be writing an online review of your products or services, liking your Facebook posts, opting-in to receive emails or texts from you regarding special promotions, downloading your online coupons, signing up for a gift registry online or from a kiosk or clicking on the links you include in your marketing emails. In other words, these people are already engaging with you — even if they have yet to make a purchase — and they deserve to be rewarded in some manner.
Customer engagement is a mutually beneficial process when it is handled correctly. Your customers want something in return for whatever actions they are taking that could help your business. If they give you their email address, they expect to receive access to an informative download, discount coupons or advance notice of sales. If they "like" your Facebook page, they might enjoy having their name appear on their friends' pages as someone who likes your company. If you ask for their feedback, they want to feel that you value their opinion.
From the company's point of view, customer engagement can provide a number of benefits.
Monetary incentives are almost always appreciated, whether they are in the form of discount coupons, rebates or free items. However, there are many ways that you can show engaged customers how much you appreciate them.
Customer loyalty programs have their place in your marketing efforts. However, they are often "too little, too late." Rewarding your most engaged customers can help you forge long-term relationships that can provide tangible benefits for your company.