What is customer engagement marketing and why does It matter?

You might be surprised how familiar you already are with customer engagement marketing. Think about all those targeted ads, Netflix recommendations that hit just the right spot, and social media shopping experiences you encounter daily.

According to Salesforce’s State of Connected Customer report, a whopping 80% of customers don't just care about what you sell, they care about the entire experience you provide. 

That means great products are just the table stakes—what sets you apart is how you make customers feel. 

Simply put, when customers feel connected to a brand, they're more likely to stick around and make repeat purchases.

Here’s a detailed explainer on what is customer engagement marketing, why your business needs it, a few examples from top brands crushing it, and the top tools you need to implement it well. 

Customer engagement marketing definition

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Customer engagement marketing is an approach that prioritizes ongoing interaction and connection with customers across all touchpoints. It aims to foster customer loyalty and long-term consumer engagement rather than just focusing on immediate sales.

Instead of bombarding customers with ads, companies use channels like social media, emails, or in-person events to interact directly with customers. They want to build a relationship and make customers feel valued.

Now, why are more companies focusing on client engagement strategies? It’s because engaged customers are happier customers. When people feel like a company cares about them, they’re more likely to keep buying from that company. 

Plus, engaged customers often become advocates—they recommend the company to friends and family. This word-of-mouth brings in new customers without the company even needing to advertise.

3 Reasons customer engagement marketing is important for your business

We learned what customer engagement in marketing is, but why should you care about it? Here are three reasons why it is vital for your business growth. 

It fuels organic growth through referrals

Satisfied customers don't just keep coming back. They bring their friends, their family members, their colleagues! 

Engagement marketing fosters a sense of community and loyalty, which encourages customers to refer others to your business. 

This organic growth through word-of-mouth is cost-effective and leverages the trust your existing customers have built with their network.

It builds brand loyalty and emotional connection

People do business with brands they trust and feel connected to. 

Customer engagement marketing builds emotional connections by creating personalized experiences. 

When you address customer concerns promptly, they show genuine appreciation and interest in your business. 

The loyalty of your customers translates to a more resilient customer base, even during economic downturns.

It differentiates you from your competitors

Companies that prioritize personalized interactions, excellent customer service, and proactive engagement create a distinct brand identity that resonates with customers. 

This differentiation can lead to a competitive edge in attracting and retaining customers.

Now that you know the importance, let’s look at some customer engagement marketing examples.

Customer engagement marketing examples

Here are a few examples of how industry leaders are using innovative tactics to keep their customers engaged. 

Spotify's Wrapped

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Spotify's annual Wrapped campaign is a perfect example of interactive engagement. It is a data-driven campaign that allows users to see a personalized breakdown of their listening habits throughout the year every December. 

Wrapped generates tons of social media buzz as users share their unique listening stats. It creates a fun and engaging experience that strengthens brand loyalty.

Nike’s Run Club App

Nike's Run Club is a free app that helps runners track their progress, set goals, and join a community of fellow runners. 

Nike designed it to keep users engaged and motivated to keep running with Nike by offering personalized coaching plans, guided runs, and challenges. 

Users can share their achievements on social media and connect with friends for a more interactive experience.

The app also collects valuable data on user preferences, which allows Nike to personalize product recommendations and refine their running gear offerings.

Sephora’s Beauty Insider Program

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Sephora's Beauty Insider program is a masterclass in loyalty rewards.  

It offers tiered benefits based on purchase history, with points redeemable for exclusive products, birthday gifts, and early access to sales. 

Sephora also uses the program to personalize emails with product recommendations and beauty tips, all of which foster a sense of community and encourage repeat purchases.

LEGO Ideas

LEGO Ideas is another excellent example that combines customer engagement and marketing. 

This platform allows LEGO fans to submit their own designs for new LEGO sets.

Users can vote on their favorite submissions, and if a design gets enough support, LEGO might turn it into an official set. 

This approach not only engages customers by making them part of the creation process but also builds a strong community of fans who share and discuss their ideas. 

LEGO regularly reviews and selects winning designs. Then, it gives credit to the creators and sometimes even shares profits with them.

GoPro’s user-generated content contests

GoPro challenges their fans to submit videos they've filmed using GoPro cameras. 

These contests have themes like capturing the best vacation moments or showcasing extreme sports skills. 

The most awesome videos (voted on by fans and GoPro themselves) win prizes, like cash or new GoPro gear.

Through the contests, GoPro fans get to show off their creativity and win cool stuff while the platform itself gets a constant stream of authentic, high-quality content. 

It's a win-win for both.

Now, let’s talk about some engagement marketing tools that will help you build connections with your audience.

Top 5 engagement marketing tools for your business

After seeing all these amazing examples of top brands, you might be wondering: how do I get started? 

There’s a whole toolbox of engagement marketing tools available to help you build meaningful connections with your customers. 

Some of them include:

Social media management

Social media management tools let you schedule posts in advance for all your social channels, so you can plan your content calendar and avoid last-minute scrambles. 

These tools also help you track conversations and mentions, so you can jump in and respond to customer comments and messages quickly.

Plus, you can use these platforms to run contests and giveaways, host live Q&A sessions, and track what kind of content resonates best with your followers.

CRM systems

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CRM systems, such as Formaloo’s custom CRMs, help businesses engage with their customers by keeping track of all interactions in one place. 

Within these tools, you can store important customer details like their preferences and past purchases. 

CRM systems help you respond quickly to customer inquiries by organizing all messages and requests. 

You can set reminders to follow up with customers to ensure that no one is forgotten. 

These tools include features for sending targeted emails or messages, so you can share updates, special offers, or important news with specific groups of customers.

Another great feature of CRM systems is the ability to track customer interactions over time. You can see when a customer last made a purchase, what they bought, and any feedback they provided. 

This information helps you tailor your approach and offer relevant products or services.

Email marketing software

Email marketing software is essential for businesses looking to connect directly with customers through their inboxes.

It lets you automate campaigns, such as sending welcome emails to new subscribers or follow-up emails after purchases, to save time and ensure timely communication. 

Segmenting your audience based on demographics, purchase history, or interests further enhances engagement by delivering targeted content that resonates with specific groups.

Consistently sending valuable content, updates, and offers builds trust with your audience over time. It also builds customer loyalty and encourages repeat business.

Customer feedback and survey tools

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Customer feedback and survey tools are crucial for businesses to understand their customers better and improve their products or services.

Sending surveys and requesting feedback via tools like Formaloo shows customers that you care about their experience. 

It opens up a dialogue where they can voice their opinions and feel heard, which strengthens the relationship between your brand and your customers.

Once you gather feedback, you can take action based on the responses received. Addressing customer concerns or highlighting their positive feedback shows your customers that their opinions matter. Plus, you get to identify areas for improvement. 

Live chat and chatbots

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Live chat lets you have real-time conversations with website visitors. It provides instant support and addresses concerns the moment they arise. 

Chatbots can handle inquiries round-the-clock. They never sleep, so customers can get answers to common questions or support at any time, even outside regular business hours. 

Formaloo, for example, offers chatbot features that you can integrate with your website.  

Both live chat agents and chatbots personalize interactions based on customer data. They greet customers by name and provide tailored responses to make the experience feel more personal.

Customer engagement on steriods!

Now that you've learned everything you need to know about customer engagement marketing, it’s your turn to take action.

But where do you start? Don't worry, you don't need a million different tools to win at customer engagement. 

Formaloo is your all-in-one solution for building a thriving customer-centric business.

Formaloo offers a range of solutions, including surveys, forms, CRM, chatbots, and apps to help you connect with your customers. 

With Formaloo, you can streamline your customer engagement marketing strategy and ensure every customer interaction is personalized and impactful. 

Sign up for Formaloo today.