What Is Customer Engagement?

You can't hide from your customers.

I don't know about you, but I've noticed a recent trend evolving whereby the term "customer engagement" is becoming increasingly prolific in online businesses.

There's been a lot of comment on the subject throughout the net, and if you want to get the definition, context and background, you'd do worse than read the Wikipedia entry on the subject.

If I was to explain what it is to my Mum, I'd most likely say something like...

"Well, until recently, companies had all the power when it came to communicating with their customers. They controlled their message through advertising and traditional marketing. In recent years, thanks to the rise of the internet, consumers increasingly have a voice, whether it be through blogs (Mum says: "What's a blog?"), posting product reviews, creating fan clubs around a product or indeed, the opposite: groups of disgruntled customers. Communication has become two-way. As such companies or organisations that embrace this and invite comment and involvement from their customers are more likely to be successful in the long term. The loyalty of their customers will increase and they will reduce the risk of being seen negatively if something goes wrong. Conversely if they bury their heads in the sand and ignore connecting with their customers they risk it back-firing in their face when all their competitors get it right".

I welcome this trend. It makes sense that companies are held accountable for the quality of their service and product. It ensures that competition does not just depend on price alone.

Just as "conversion" and "usability" are now well understood by many (and equally misunderstood by a surprisingly large number of companies), "customer engagement" will develop a following, experts will emerge, books and research will published and it won't be long before the majority of large E-commerce companies have a "customer engagement strategist" in their marketing team. We'll start to see standard vocabluary (i.e. jargon), measurement systems and sub-disciplines.

This week I was talking to a friend who had been at a management meeting of a small off-line company. They were talking about "the internet", what they could do to attract more business through their website etc. One person suggested adding a blog, allowing the company to post news and allow clients to comment. The immediate reaction was that this was too "risky", "what might be posted? - it could damage our reputation!".

Yes, it's true, you might get the odd negative comment, but these days disgruntled customers are able to get this out to an audience whether you let them or not. It's better to show you're interested and get a relationship with your customers. Better still, deliver a service that means that your customers will always be postive about their experience.

Until companies can take that leap of faith, they will still sit in the 20th centuary. There really is no option now for companies, especially online ones, to hide from their customers.