On the most basic level, customer engagement can be defined as the ongoing relationship between a brand and its customers. And, even though customer engagement is only a piece of the marketing puzzle, it shouldn’t be ignored. Engaged customers spend more money, actively support branding initiatives, and often become your company’s best ambassadors.
No matter how big your company is, the industry you work in, or the products you sell, customer engagement is vital to the growth of your business. For this reason, we put together a list of important customer engagement statistics to guide your customer engagement strategy.
The Current State of Customer Engagement
- 63% of marketers agree customer engagement includes renewals, repeat purchases, and retention (source).
- More than three-quarters of marketers say engagement occurs in the middle or end stage of the marketing funnel (source).
- Engagement is driven by price (81%), quality (80%) and convenience (55%), loyalty is about likability (86%) and trust (83%) (source).
- A quarter of Millennials are fully engaged customers, and their engagement is highly dependent on technology (source).
- Customer service interactions over Twitter have increased 250% in the last two years (source).
- On average 29% of B2B customers are fully engaged (source).
- B2B companies retain fully engaged customers more than others by 27% (source).
- 72% of businesses say that improving the customer experience is their top priority (source).
- Only 31% of organizations recognize and reward employees across the company for improving the customer experience (source).
- 40% of customers begin purchasing from a competitor because of their reputation for great customer service (source).
- 77% of strong omni-channel companies store customer data across channels, compared to 48% for weak omni-channel companies (source).
- 56% of consumers have used their mobile device to research products at home with 38% having used their mobile device to check inventory availability while on their way to a store and 34% who have used their mobile device to research products while in a store (source).
- Omni-channel shoppers have a 30% higher lifetime value than those who shop using only one channel (source).
- 86% of senior-level marketers say that it’s absolutely critical or very important to create a cohesive customer journey (source).
- Over half of all customer interactions happen during a multi-event, multi-channel journey (source).
- 15% of companies surveyed say more than 25% of customer service inquiries are initiated over social channels (source).
- 27% of companies say it takes them less than an hour to respond to questions/issues on social channel (source).
- 14% of companies say their company has been integrating “social” into customer support for more than four years (source).
- 81% of companies say social customer service strategy is integrated into overall social strategy of the organization (source).
- 55% of companies have fully integrated their support teams, meaning there is no separate team for social service support (source).
- 25% of companies say they leverage customer service insights for non-customer service related activities in a structured fashion (source).
- 50% of those surveyed said their company provides customer service via mobile devices, up from 38% in 2012 (source).
- 52% of those surveyed whose organizations are building customer service apps for mobile devices are also creating mobile-friendly websites, vs. 36% who are creating native iOS/Android mobile apps (source).
- 16% of companies say they are very satisfied with their company’s efforts to engage customer on social networks for service and support (source).
- Only 35% of respondents say their company has less than 5% of support interactions taking place over social, compared with 57% in 2011 (source).
Successful Customer Engagement
- Companies with the strongest omni-channel customer engagement strategies retain an average of 89% of their customers, as compared to 33% for companies with weak omni-channel strategies (source).
- 52%of companies say Facebook is the most effective social channel for customer engagement, service and support (source).
- Customer retention is 14% higher among companies that invest in big data and analytics (source).
- Answering a social media complaint increases customer advocacy by as much as 25% (source).
- Companies that excel at customer experience grow revenues 4-8% above the market (source).
- 45% of companies offering web or mobile self-service reported an increase in site traffic and reduced phone inquiries (source).
- Businesses that adopt omni-channel strategies achieve 91% greater year-over-year customer retention rates compared to business that don’t (source).
- 32% of companies say they have seen very positive impact from “social” on customer service goals and objectives (source).
Customer Engagement Challenges
- 52% of customers are less likely to engage with the company because of bad mobile experience (source).
- More than half of companies admit to not having a formal customer engagement program in place, and 60% didn’t know how many customers they’d lost over the past year (source).
- Only 14% of marketers say customer centricity is ranked high within their organization; only 11% percent say that their customers would say customer centricity is ranked high within their organization (source).
- 22% of consumers would leave for other brands after a creepy experience (source).
- In the U.S., the estimated cost of customers switching due to poor service is $1.6 Trillion (source).
- Companies lose more than $62 billion due to poor customer service (source).
- 95% of consumers talk about poor customer service experiences with other people (source).
- 80% of companies say they deliver ‘superior’ customer service; however, 8% of people think these same companies deliver ‘superior’ customer service (source).
- 70% of consumers say technology has made it easier than ever to take their business elsewhere (source).
- Consumers are 2x more likely to share their bad customer service experiences than they are to talk about positive experiences (source).
- Customer churn is attributed to the poor quality of customer service (source).
- 90% of customers say they have had poor experience seeking customer support on mobile (source).
- 42% of customer service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces, and multiple applications (source).
- 61% of customers have not been able to easily switch from one channel to another when interacting with customer service (source).
- 64% of marketers cite lack of resources and investment as their top barrier to omni-channel marketing (source).
Customer Engagement Expectations
- 75% consumers expect a consistent experience wherever they engage (e.g., website, social media, mobile, in person) (source).
- 70% of buying experiences are based on how the customer feels they are being treated (source).
- 57% of consumers listed “having a negative review unaddressed while continuing to receive offers for similar products” as the top reason they would break up with a brand (source).
- 80% of consumers indicated they are more likely to do business with a company if it offers personalized experiences (source).
- Consumers who believe personalized experiences are very appealing are 10x more likely to be a brand’s most valuable customer – those expected to make more than 15 transactions in one year (source).
- Consumers who believe companies are doing very well on offering personalized experiences shop more than three times more frequently (source).
- 89% of customers get frustrated because they need to repeat their issues to multiple representatives (source).
- It takes 12 positive customer experiences to make up for one negative experience (source).
- 91% of customers who had a bad customer experience won’t be willing do business with your company again (source).
- 45% of US consumers will abandon an online transaction if their questions or concerns are not addressed quickly (source).
- A customer is 4x more likely to buy from a competitor if the problem is service-related, versus price or product-related (source).
- 75% of online customers expect help within 5 minutes (source).
- 33% of consumers would recommend a brand that provides a quick but ineffective response (source).
- 89% of consumers have stopped doing business with a company after experiencing poor customer service (source).
- 82% of consumers say that getting their issue resolved quickly is the number 1 factor to a great customer experience (source).
- 15 years ago, the average consumer typically used two touch-points when buying an item and only 7% regularly used more than four. Today consumers use an average of almost six touch points, with 50% regularly using more than four (source).
- Consumers prefer assistance over the following channels: Phone (61%), email (60%), Live Chat (57%), online knowledge base (51%), “click-to-call” support automation (34%) (source).
- 64% of customers expect to receive real-time assistance regardless of the customer service channel they use (source).
- 87% of customers think brands need to put more effort into providing a more consistent experience (source).
- Over 35% of customers expect to be able to contact the same customer service representative on any channel (source).
The Impact of Customer Engagement
- Customers who are fully engaged represent a 23%share of profitability, revenue, and relationship growth compared to the average customer (source).
- A 2% increase in customer retention has the same effect as decreasing costs by 10% (source).
- 45% of customers are willing to pay more for better customer service (source).
- It is 6-7 times more costly to attract a new customer than it is to retain an existing customer (source).
- Maximizing satisfaction with customer journeys has the potential not only to increase customer satisfaction by 20% but also to lift revenue by up to 15% while lowering the cost of serving customers by as much as 20% (source).
The Future of Customer Engagement
- Gartner predicts that by 2020 a customer will manage 85% of the relationship with an enterprise without interacting with a human (source).
- 54% of customer service professionals strongly agree that customer experience is more important now than it was 2 years ago (source).
- 83% of businesses predict that by 2020, the focus of customer engagement professionals will be to predict and assist the customer with what they want to do in the future (source).
- Customer Experience will overtake price and product as the key brand differentiator by the year 2020 (source).
- By 2020, the demand for an omni-channel customer experience will be amplified by the need for nearly perfect execution (source).
And there you have it—the most comprehensive list of customer-engagement statistics ever. The importance of customer engagement, customer experience, and customer service is clear. We hope you learned something from this list and can take it back to your work to improve and transform your organization.
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