Maximizing Customer Engagement for Sustainable Growth

Customer engagement is essential for any business to grow, however many companies fail to do it effectively. This could be due to messy data, limited resources or lack of expertise. Meaningful engagements drive Customer Lifetime Value (CLV) and creating meaningful customer engagement maximizes CLV. To measure CLV accurately, companies must have a defined data governance process and the right tools. Understanding the customer journey is also essential to understand how to engage customers. It is not only about aligning marketing and sales, but rather it takes a village to move from value creation to value expansion. Companies should look beyond manually created customer profiles, and instead look to derive real-time insights into customer data and continually optimize their engagement strategy with the use of machine learning and artificial intelligence. This knowledge lets businesses personalize engagement across the customer lifecycle by audience segment and even down to the individual customer. Therefore, it is not a matter of whether a company should do this but when and how soon.

Measuring Customer Lifetime Value (CLV) is a key metric to assess a company's engagement strategy effectiveness and make adjustments to improve it. Having visibility into CLV lets businesses approach customer segmentation from a revenue and growth perspective. It is important to look at the parallel journeys of the customers and their business in order to determine where the move from value creation to value expansion occurs. Knowing each stage of the customer journey and the roles responsible for them enables companies to develop and continually optimize effective strategies for creating sustainable growth. Companies should be able to derive real-time insights into their customer data and use machine learning and artificial intelligence to continually optimize their engagement strategy. This will allow them to personalize the customer experience, leading to increased customer retention and additional purchases.

In summary, customer engagement is essential for any business to grow and having visibility into CLV lets businesses approach customer segmentation from a revenue and growth perspective. The customer journey must be understood to know how to engage customers, and it is not only about aligning marketing and sales but it takes a village. Companies should look beyond manually created customer profiles and instead look to derive real-time insights into customer data and continually optimize their engagement strategy with the use of machine learning and artificial intelligence. By doing so, businesses can personalize engagement across the customer lifecycle by audience segment and even down to the individual customer, leading to increased customer retention and additional purchases.

Originally reported by Martech: https://martech.org/customer-engagement-moving-from-value-creation-to-value-expansion/
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