The Difference Between Customer Engagement vs Customer Experience
25/01/2023Charles Kergaravat
Table of contents
In today’s highly competitive business environment, companies are constantly searching for ways to differentiate themselves from their rivals. One key area where businesses can set themselves apart is in the way they connect with and retain their customers. Two concepts that are often discussed in this context are customer engagement and customer experience. While these terms are often used interchangeably, they actually refer to two distinct aspects of a customer’s relationship with a company. Understanding the difference between the two, and how they work together, is essential for any business looking to improve customer satisfaction and drive sales.
In this article we’ll look at the differences between customer engagement vs customer experience.
What is customer engagement?
Customer engagement refers to the level of interaction and involvement a customer has with a company or brand. It can include activities such as visiting a website, participating in social media, or responding to marketing campaigns.
In the age of digital, customer engagement has become an increasingly important metric for businesses to track, as it provides insight into how customers are interacting with the brand and what strategies are working to draw them in. Businesses who embraced digital customer engagement fared better than those that didn’t, with an average top-linerevenue growth of 70%.
How to measure customer engagement?
There are a variety of ways to measure customer engagement, depending on the type of business and the channels through which customers interact with the company.
Some common methods include:
Website traffic: This includes metrics such as page views, bounce rate, and time on site. These metrics can provide insight into how many customers are visiting the website, how long they are staying, and which pages are most popular.
Social media engagement: This includes metrics such as likes, shares, comments, and followers. These metrics can provide insight into how customers are interacting with the company on social media platforms and how well the company’s social media content is resonating with customers.
Email engagement: This includes metrics such as open rate, click-through rate, and unsubscribe rate. These metrics can provide insight into how customers are engaging with the company’s email campaigns and how well the company’s email content is resonating with customers.
Repeat Purchases: This measures the number of times a customer returns to make a purchase. It can be a good indicator of how well a company is delivering a positive customer experience.
Online reviews: This method entails monitoring customer reviews of a company’s products or services on various platforms such as G2, Google, and Capterra, and analyzing the data to identify patterns and trends.
What is customer experience?
On the other hand, customer experience is a broader term that encompasses all aspects of a customer’s interactions with a company. It encompasses all touchpoints a customer has with a company, including engagement, but also includes factors such as product or service quality and customer service.
The overall perception a customer has of a company or brand, based on their interactions and experiences, is what defines customer experience. A better customer experience will persuade86% of customers to pay more. After a satisfying experience, these customers are prepared to pay a price premium of up to 16%.
How to measure customer experience?
Measuring customer experience can be challenging, as it is a multifaceted concept that encompasses all aspects of a customer journey with a company.
Here are a few methods businesses can use to measure customer experience:
Surveys: Surveys are one of the most common methods used to measure customer experience. They can be used to gather feedback from customers on various aspects of their experience, such as product or service quality, customer service, and overall satisfaction.
Net Promoter Score (NPS): NPS is a metric that measures customer loyalty and their willingness to recommend a company to others. It’s a number between -100 and 100 that represents how likely a customer is to recommend a company to others.
Customer Effort Score (CES): CES is a metric that measures how easy or difficult it is for customers to do business with a company. It can be a good indicator of how well a company is delivering a positive customer experience.
Customer Retention Rate: This measures the number of customers who stay with a company over a certain period of time. It can be a good indicator of how well a company is delivering a positive customer experience.
Voice of the Customer (VoC) Programs: These programs provide a systematic way to gather customer feedback, analyze it and act on it.
A/B testing: This method can be used to test different variations of a product or service, and track customer behavior to determine which version is more preferred by customers.
The difference customer engagement vs customer experience
The main difference between customer engagement vs customer experience is that customer engagement refers to the level of interaction and involvement a customer has with a company or brand, while customer experience refers to the overall perception a customer has of a company or brand, based on their interactions and experiences.
Customer engagement is a measure of how actively and deeply customers are involved with a company or brand. It can be measured by tracking metrics such as website visits, social media interactions, email campaigns, in-store events, customer service interactions, and product reviews.
Customer experience, on the other hand, is a holistic measurement of a customer’s interactions with a company or brand. It encompasses all aspects of a customer’s journey, from initial awareness to post-purchase evaluation. It can be measured by tracking metrics such as customer satisfaction, Net Promoter Score (NPS), Customer Effort Score (CES) and Customer Retention Rate.
In summary, customer engagement is a specific metric that measures how customers interact with a company, while customer experience is a broader concept that measures the overall perception customers have of a company based on their interactions and experiences. Understanding both will help companies transformation experiences in the future.74% of customers use multiple channelsto initiate and finalize a transaction, therefore having a cohesive and consistent messaging across all channels is crucial for a successful customer strategy.
How to use customer engagement and customer experience to improve business outcomes
Once you start measuring customer engagement and experience, you’ll be able to drive greater impact to your business. One of the most crucial ways businesses can use customer engagement and customer experience to enhance business outcomes is by increasing customer retention. Companies may determine which strategies and approaches are effective in attracting and retaining customers by measuring customer engagement and customer experience. Companies may boost client retention and encourage repeat business by putting a strong emphasis on improving engagement and experience.
Another way companies can use customer engagement and customer experience to improve business outcomes is by increasing customer loyalty. By delivering a positive customer experience, companies can build stronger, more loyal relationships with their customers. Measuring customer experience can help companies identify areas where they can improve, and make changes to increase customer loyalty. This can lead to increased sales and customer loyalty, which is an important metric for any business.
Driving sales is another important way companies can use customer engagement and customer experience to improve business outcomes. By engaging customers and delivering a positive experience, companies can increase the likelihood that customers will make a purchase. Measuring engagement and experience can help companies identify which strategies are most effective at driving sales, and make adjustments as needed. By understanding what works and what doesn’t, companies can make informed decisions that can increase sales.
Companies can also use customer engagement and customer experience to improve product and service quality. By measuring customer experience, companies can identify areas where their products or services are falling short.
Conclusion
Customer engagement and customer experience are two crucial elements for any business looking to succeed in today’s competitive market. By measuring and analyzing customer engagement and customer experience, companies can gain valuable insights into customer behavior, preferences, and pain points. Personalization and self-service interactions are becoming increasingly important in today’s digital age, where customers expect a seamless, personalized experience.
Companies that can personalize their interactions and provide self-service options will be better equipped to meet customer needs and improve engagement and experience. By leveraging the power of personalization and self-service interactions, companies can build stronger relationships with their customers, increase customer retention, and drive repeat business. It is important to remember that customer engagement and customer experience are ongoing processes that require continuous monitoring and improvement. To stay ahead, companies should regularly measure and analyze customer engagement and customer experience data, and use this information to make informed business decisions.
By understanding the difference between customer engagement and customer experience, and how they work together, businesses can develop a more holistic approach to connecting with and retaining customers. Consider using Apizee’s video communication software to kick off yourcustomer experience transformationinitiatives.
