Customer engagement models are essential to build a thriving business. It’s no longer enough to offer a great product or service. Customers expect personalized experiences and meaningful interactions with the companies they do business with.
Companies must use different engagement models catering to their unique needs and customer preferences to achieve this.
This article will explore ten engagement models and provide insights on maximizing each to boost customer satisfaction and loyalty.
A customer engagement model is a framework or strategy organizations use to interact with customers, build relationships, and encourage them to become loyal.
They help businesses create a positive customer experience at every stage of the customer journey, from the first point of contact to the final purchase.
According to a Salesforce survey, 80% of customers say a company’s experience is as important as its products or services. This highlights the crucial role of customer engagement in building brand loyalty and driving above-average business results.
These are the main engagement stages related to the different steps of the customer journey:
Each customer engagement model is organized according to the stage of the customer in his journey. This will make it easier to adapt your marketing strategy to target your clients with the right materials.
Here is an overview of the most common customer engagement models according to where your clients are in the sales funnel:
At this stage, the customer is unaware of the brand or its products/services. The main ways to engage your potential customers now include outbound marketing, influencer marketing, and content marketing.
The AIDA model was designed to guide marketers in creating effective advertising campaigns. While it may have been effective in the past, it is now considered outdated and oversimplified.
Modern customer engagement models focus on a more holistic and personalized approach that considers the customer’s journey and individual needs and preferences.
Smart Insights popularized this digital marketing model, which consists of four key stages: reach, act, convert, and engage.
During this stage, the customer is aware of the brand and its products or services but is not yet interested in purchasing. During this stage, you should use the following marketing strategies: retargeting, social media engagement, email, and SMS marketing.
The AARRR engagement model is a framework businesses use to understand and optimize their customer engagement strategies.
It consists of five main stages – acquisition, activation, retention, referral, and revenue – representing the customer journey from initial contact to ongoing loyalty.
The USP customer engagement model is used by businesses to identify and promote their unique value – the feature or benefit that sets their product or service apart from competitors.
This model is focused on highlighting the unique value proposition of a product or service to attract and retain customers.
The customer actively seeks more information about the brand and its products or services during this stage. Engage them with live chats, onboarding emails, and detailed product demos.
A high-touch model is a business approach that emphasizes personalized and customized interactions between a company and its customers.
In this model, the company seeks to provide high service and attention to each customer, to build long-term relationships and loyalty.
The low-touch model emphasizes minimal direct interactions between a company and its customers. In this model, companies aim to automate as much of the customer experience as possible, using technology and self-service options to reduce the need for human interactions.
These models are particularly well-suited for SaaS companies because they allow businesses to scale their customer acquisition efforts without incurring significant overhead costs.
Rather than relying on a large team of salespeople to close deals, SaaS companies can use internal sales representatives or automated sales funnels to convert leads into paying customers. This approach goes well with the product-led growth optic many SaaS companies use to reduce their sales costs while still maintaining a high level of customer satisfaction.
The hybrid model combines elements of both the high-touch and low-touch models to create a customized customer experience. Companies seek to balance personalized attention and automation to meet each customer’s individual needs and preferences.
The customer has already purchased the brand’s products/services and is using them. The most effective ways to maintain their interest include loyalty programs, customer feedback requests, and extensive personalization.
Ensure all customer engagement models align with your goals, resources, and user preferences. This will help build strong customer relationships, increase sales, and create a competitive advantage.
The automated retention model can be an effective way for companies to keep their new hires engaged and productive after onboarding.
However, companies need to balance the benefits of automation with the need for personalization and human connection.
The collaborative product roadmap model is based on the idea that new hires can bring fresh perspectives and ideas to the product development process.
Companies need to balance the benefits of collaboration with the need for efficiency and effectiveness in product development to build a more engaged and motivated workforce.
This customer engagement model ensures customers achieve their desired outcomes when using a product or service.
Customer success managers (CSMs) work closely with customers to understand their goals and needs and develop strategies to help them succeed.
By implementing one or more of the ten customer engagement models outlined in this article, companies can foster deeper connections with their customers, enhancing their satisfaction levels.
From personalization and community building to co-creation and advocacy, every company can find the right fit for its target audience and build a loyal customer base to drive long-term success.
Raluca Mocanu is a copywriter at Touchpoint and began her content writing journey in 2016. She loves traveling, reading, on-stage drama and recently discovered a deep interest in psychology.
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