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Glossary > Customer engagement

Customer engagement

Customer engagement refers to the ongoing interaction between a business and its customers to strengthen relationships, increase loyalty retention, and ultimately drive higher sales. It typically involves encouraging customers to actively participate in communication, make purchases, provide feedback, and interact with the business’ content.

Customer engagement metrics are crucial for businesses as they represent a key indicator for evaluating the offering’s effectiveness and the level of connection with the audience. Also, they provide valuable insights into user behavior and preferences, helping to shape future marketing campaigns and offers to increase customer loyalty, repeat sales, and profit.

Related terms
Cross-channel marketing Customer loyalty Customer retention Customer lifetime value (CLV)
Frequently asked questions
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Why is customer engagement important? Nowadays, with consumers having more choices and access to information, businesses must actively engage with customers to build strong relationships and stand out from competitors. Engaged customers drive loyalty, satisfaction, word-of-mouth marketing, and positive online reviews, all of which remain the most powerful tools for influencing potential customers.
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How do you measure customer engagement? Businesses track various metrics, including website analytics like page views and time on site, social media engagement such as likes and shares, and email metrics like open and click-through rates to measure customer engagement. Additional indicators include customer retention rates, purchase frequency, CLV, and similar.
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How do you increase customer engagement? To increase customer engagement, focus on delivering personalized and relevant content across multiple channels, including push notifications, SMS, email, and others, depending on the marketing strategy. Also, use customer engagement tools such as HoodEngage, which offers cross-channel marketing options, 100+ web & mobile analytics metrics, detailed performance insights, and much more.

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