Blog 5 min read

The ultimate framework for better Customer Engagement

Based on research and data from 300+ retail brands in Europe, we know which actions really work to boost Customer Engagement. Whether you call it customer engagement, customer experience, CX, or something entirely different, it’s all about nurturing your existing customers and gaining new ones, by analyzing and optimizing your marketing efforts.

In this blog we share the ultimate framework for customer engagement based on the actions that have really paid off for the brands we work closely with. We outline which KPI’s to track and how to really make sure your Customer Engagement is on-point.

For customer engagement leaders, e-commerce and CRM teams, this framework highlights two key cornerstones of your customer engagement work: customer growth and customer monetization. We share which KPIs to track and actions to take to really boost profits. This will help you drive value and prove the ROI of customer engagement work within your organization.

So, are you ready for concrete tips on actions you can take to help your brand with specific business goals? Whether you choose to focus on increasing customer acquisition, improving customer reachability, or reducing customer loss, or all of the above, let’s go get you those actions!

The first main cornerstone to focus on is…. (drumroll please) 

#1: Customer Growth

By focusing on expanding the number of engageable customers, you can really expand the potential for profit for your brand. There are three main areas to focus on here: increasing customer acquisition, reducing customer loss and improving customer reachability.

But how? 

Increase customer acquisition

These are the KPIs to track:

  • Monthly contact base increase ​
  • Online recruitment ​
  • Store recruitment​
  • Welcome offers redeemed​
  • Customer Acquisition Cost (CAC)

If you want to see improvement in those KPIs, you want to think about taking these actions.

  • Make recruitment online and in-store​ easy
  • Offer attractive incentives for becoming a member​
  • Use look-a-like audiences to reach new customers

Reduce customer loss

That’s an obvious one, right? Here’s how you do it.

Track these KPIs:

  • Churn score​
  • Online shopper vs store shopper​
  • Omnichannel shoppers​
  • Average number of purchases​
  • Share of active customers ​
  • NPS

And take these actions to see the numbers soar!

  • Personalize and segment all communication​
  • Encourage recurring purchases.​
  • Encourage omnichannel purchases​.
  • Support customer feedback

You might have a lot of customers in your CRM, but if their details are incomplete and you can’t reach them with your communication, they are not worth much to your brand. But fear not, putting some effort into increasing customer reachability will really make those contacts count.

Increase customer reachability

Track these KPIs:

  • Reachable by email?​
  • Reachable by SMS?​
  • Reachable by email and SMS?​
  • Consent given for ads and social media?

And if you want to see improvement, here are some actions to take:

  • Collect contact details and consent at the first touchpoint​
  • Complement with consent and contact details over time

Once your customer growth strategy is in place, it’s time to put a little effort in on the second cornerstone in Customer engagement…

#2: Customer Monetization! 

By focusing on improving campaign conversion and creating recurring customers, together with increase the purchase frequency per engageable customer, the opportunities for customer monetization will only grow.

But how? 

First up, let’s take a look at increasing that purchase frequency. It’s a super simple way to get your engaged customers to spend a little bit more often.

Increase purchase frequency

Track these KPIs:

  • Avg total sales ​
  • Avg number of purchases ​
  • Avg purchase frequency ​
  • Avg receipt value ​
  • Avg basket size (number of products)

And here are some actions to take to really boost those numbers:

  • Implement an abandoned cart​ automation
  • Improve on-site product recommendations​
  • Improve on-site search ​and navigation​
  • Try our different rewards and incentives. You know your customers so you know what will tempt them to fill up their chopping cart more often.

Another great way to increase customer monetization is to action a strategy to create more recurring customers.

Create more recurring customers

Start by tracking these KPIs:

  • Customer Lifetime Value (CLV) ​
  • Profitability: member vs non-member ​
  • ID rate (share of identified purchases)

Then improve those numbers with these actions:

  • Make communication relevant based on purchase and behavior data
  • Ensure you have excellent customer service ​
  • Build a loyalty and reward scheme

Improve campaign conversion

These are the KPIs to track:

  • Open rate ​
  • Click-to-open-rate (CTOR) ​
  • Opt-out rate ​
  • Bounce rate  ​
  • Conversion rate ​
  • Profit​
  • Revenue​

How do those numbers look? Is there room for improvement? Sure there is! Here are some actions that will see your campaign conversion rate really fly!

  • Conduct A/B testing​ to see what works best
  • Use control groups​
  • Include social proof (User Generated Content)​
  • Use time limited offers​ so there is a deadline for action
  • Create 360° campaigns across several channels​: You know your customers so you know if they are on TikTok or prefer Facebook groups. Either way, the campaign messaging should be spread as widely as possible.
  • Personalize search results based on business goal ​
  • Improve instant relevance in search results auto suggestions.

Is your head spinning with ideas on how your brand can boost customer engagement? We hope so! 

If you want to know more about any of the actions mentioned, book a meeting with us so we can talk more. We really love all things omnichannel retailing and e-commerce, and we could talk about customer engagement strategies into the wee small hours. (And we frequently do, just ask some of our partners!)


We love all things ROI at Voyado and can help you to calculate the potential ROI of your customer base, based on our expertise and data from over 300 brands across Europe. If you want to know more, GET IN TOUCH.



More reading

Browse through all of our blog posts to find more inspiration!

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