With the cost of retaining customers widely accepted as six or seven times lower than attracting new ones, it is no exaggeration to say that customer engagement can make or break a business. However, a lack of awareness and understanding of customer engagement is, I believe, a major sticking point.
All too often, businesses fall back on above the line advertising to draw in new customers, without thinking about the existing customer base and how to make them more engaged. Our recent research provides the missing link – a step-by-step overview of the customer journey and of how factors such as age, gender and geography impact on how engaged a customer is.
What it reveals about demographics
The study revealed some startling results in terms of who is, and is not, engaged. The survey of 18,000 people across 13 countries asked questions about people’s relationships with their bank, mobile phone provider and retailer. The results unlock the core traits that make up an engaged customer. Top of the list? The male, the married and the millennial.
A score was given to rank how engaged people are. For example, millennials had the highest level of engagement with an overall customer engagement score of between 68 and 71. The 65+ age range, by comparison, had an overall score of only 61. There was also showed a marked difference between people in a relationship and those not. Single people had a customer engagement score of 64, while married people had a score of 67. Interestingly, male respondents had a closer connection with banks (68) and mobile providers (65), while female respondents had a closer connection with their favourite retailers (69).
A geographical index
Turkish, Brazilian and American consumers were the most engaged, scoring between 70 and 72 – well above the global average. The lowest levels of engagement were seen in Denmark, Norway and Finland, with scores ranging from 58 to 60. Brazil and Turkey, however, consistently exceeded the global metrics across all three industries, pointing towards the increasing presence and importance of emerging markets and their impact on growth of the global economy.
While it is difficult to draw exact conclusions as to why, the huge amount of development and innovation happening in the technology arena in these countries could be a factor. Evidence suggests that tech-savvy consumers are happier for it, again encouraging not only spend but enhanced brand connections.
Find out what else needs to be taken into consideration if you’re to boost customer engagement