How can Small Businesses reimagine their Customer Engagement

Consumers have changed in many ways. They have higher expectations of brands and use more channels than before. They demand fast service, personal experiences, and digital-first strategies.

According to a recent study on changing consumer behaviour:

• A single-channel strategy is not enough to attract and retain consumers.
• Consumers look for brands with a strong sense of purpose, such as sustainability.  
• Personalisation has become even more important for engagement.

Small businesses must adapt to these changes in order to remain competitive. They need to leverage new channels and technology for greater engagement.

A Vi Business Ready For Next survey of over 60,000 businesses, including small and medium enterprises, shows that an average SME today is 40-45% digitally mature in reaching out to customers. SMEs have immense opportunity to experiment, learn and grow by adopting digital tools of engagement.

The Rewards of Engagement

Customer engagement can be defined as the cultivation of a relationship between the brand and the consumer. It goes beyond a transaction.

Engagement arises when the company provides value at every interaction. This leaves consumers satisfied and less likely to look elsewhere.

A sustained consumer engagement policy has many benefits.

• It builds lasting bonds with consumers, from awareness to purchase and beyond.
• It boosts loyalty and customer retention.
• It creates up-selling opportunities.
• It provides feedback and insights for future product development.
• Last but not least, successful consumer engagement is profitable because it increases sales and revenue.

Customer Engagement Strategies

For successful consumer engagement in 2023 and beyond, enterprises need to:

• Understand shifting consumer needs.
• Use technology to satisfy these needs across channels.
• Analyse data and interactions for insights.

These factors can be taken care of in the following ways:

1. Create great experiences

Creating a great experience every step of the way starts with mapping all customer interaction points. This involves examining all customer channels as well as analysing feedback.

Then, the company needs to evolve a strategy to deliver a quality experience across the board. This ranges from faster response times to efficiently addressing concerns to creating an appealing and consistent tone of voice for the brand.

2. Test the power of personalisation

Customers expect a personalised experience in every interaction. Small businesses can differentiate themselves by offering personalisation at scale.

The first step is to gather and analyse data. This gives insights into tastes and preferences. Consumers can be treated as individuals, not types or segments.

Regular feedback offers more means of personalisation. All employees can be trained to look at operations with this personalised, customer-first approach.

3. Try gamification

Gamification is the use of game-design elements in other contexts. It can be used by small businesses to educate, entertain, and engage customers.

For example, a system of points can be linked to purchases. These are used for frequent flyer programs, loyalty rewards, and frequent shopper points. There could be badges for achievement in online communities. Leaderboards can create status.

These activities boost engagement by tapping into consumer urges for competition, achievement, and collaboration.

4. Create a purpose

A company’s vision and mission can go a long way in increasing engagement. Customers like to do business with companies whose values align with theirs.

The Zeno Study (2020) states that the likelihood of people purchasing from a company increases by four times if the brand demonstrates a strong purpose. This purpose should also be unique, relevant, and sustainable in the long run.

5. Reward loyalty

When consumers are rewarded, they keep returning to the brand. They are more likely to champion it and provide strong referrals.

There are many ways to do this. For example, a loyalty program can provide early access to new products or special discounts. Customers could be acknowledged online and invited to special company events. Loyalty rewards are a strong incentive.

6. Leverage data

The proper use of data can go a long way in personalisation, rewards, and other engagement strategies. Data about preferences and behaviour can be collected across touchpoints.

The data can be analysed for insights into consumer segments. This will yield valuable information on which engagement strategies are working and which ones need to be tweaked.

7. Employ user-generated content

User-generated content is any piece of content linked to the brand that consumers create. It includes images, videos, and text or messages.

For consumers, user-generated content is authentic and trustworthy. Small and medium businesses can encourage user-generated content by using social media hashtags, offering incentives, and hosting contests. User-generated content maximises reach and is cost-effective.

8. Listen to feedback

Customers like to feel that their voices are being heard. For small businesses, feedback is a powerful tool to increase engagement.

It can provide insights that show the way forward. Feedback is also critical when it comes to beta versions of new products.

There are many ways to encourage feedback. For example, online comments can be replied to, polls can be created, and regular surveys conducted. Brand communication should include phone numbers and online coordinates for customers.

9. Encourage referrals.

Customer referrals boost engagement for current and new consumers. Loyal users will be delighted that the brand has acknowledged efforts by asking for referrals. Customers who have received referrals will be driven by intrigue and interest.

Small and medium businesses can create referral programs through codes, cards, and credits. Referral programs drive down acquisition costs and boost retention rates.

10. Embrace technology.

With Vi Business as a partner, MSMEs can understand their own digital maturity index and implement tools and strategies to take one step ahead in their digital journey.

MSMEs also need to leverage emerging technology such as cloud firewalls and IoT. This gives the freedom to scale effortlessly, free from cyber threats across devices, networks, and cloud applications.

Vi Business’s Ready For Next MSME Survey findings show that MSMEs who have adopted security solutions have an average of 1.6X times the digital maturity of non-adopters.

Takeaway

Consumer behaviour has changed, and business strategies need to change, too. Companies, including MSMEs, can drive engagement through service, personalised experiences, and digital-first strategy.

These will increase customer engagement; the result - lasting bonds, greater selling opportunities, and increased sales and revenue.

Vi Business is the perfect destination for MSMEs seeking greater consumer engagement through digital maturity.

In short, our services are ideal for small businesses and MSMEs looking for a technology partner in progress.

To know more about how we can help your business, request a call back or reach out to us directly at 1800 123 123 123

MSMEs are the driving force of the Indian economy. At Vi Business, we believe in equipping them with the right digital tools and technology to thrive in today’s business world.

Our ReadyForNext assessment helps MSMEs gain insights into their digital readiness and access India’s largest MSME study. 

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