Month: June 2016

Trying to make a marketing strategy work without using marketing metrics to track results is kinda like setting out on the longest road trip of your life, only without a map.

Sure, you might know where you started, and you might know where you’re going, and you might know what general direction (north, south, east, west) you should head in too.

But because you don’t have a map, you don’t know which highway is fastest, which roads lead to nowhere, and which motels you should stop at for the night. As a result, even if you do end up at your destination (which is highly unlikely), it would have taken you a long time (with a capital L).

In this post, we’ll explore the nitty-gritties of marketing metrics: what statistics you should be tracking, how you can use the results to focus your marketing strategy, and what tools you should be using.

 

The Marketing Metrics that Count

With the marketing metrics tracking tools available today, you can track just about anything and everything. As a result, it’s easy to end up wasting your time tracking the marketing metrics that don’t give you concrete, actionable information you can actually implement to improve your marketing.

In this section, we’ll take a look at the 5 major categories of analytics (see below), and we’ll investigate each one in depth. We’ll talk briefly about why it’s important to measure to see which metrics will be most useful to you.

• Traffic
• Email
• Conversions
• Customer Activity
• Bottom Line

 

Traffic

The most popular statistics that webmasters track by far are the ones that have to do with traffic.

The Problem with Big-Picture Traffic Statistics

This makes sense, because traffic is a category of analytics that we can easily translate into money for our business. After all, it’s a simple equation:

More traffic = More people viewing my site = More people buying my products = More money

 

Image via QuickSprout

Because of this seemingly simple & valid equation, people tend to focus on the big-picture traffic statistics, i.e. the number of visitors per day/month/year.

But even though the equation is valid to a certain extent (your online business isn’t going anywhere if you have zero traffic), it is by no means the end-all and be-all of marketing.

The importance of big-picture traffic statistics (e.g. number of visitors per month) is overestimated, for several reasons.

Firstly, these big-picture statistics do not indicate how well that traffic is translating into money. You might be getting 100,000 visitors per month, but if you’re only making $1000, then you’re only making a cent for each visitor.

Second, these statistics also don’t take into account how much money you’re spending to produce that traffic. If your monthly marketing budget for content, graphic media, promotion, etc. is $2000 all-in, then your business is losing a cent on every visitor (continuing with the previous scenario).

Last, but certainly not least, the big-picture statistics ignore acquisition: i.e. how your traffic performs as a function of where it comes from.

Reddit and Stumbleupon, for example, are notorious for producing high volumes of traffic, but also very high bounce rates and laughably low conversion rates.

That’s because most people who use Reddit and Stumbleupon aren’t actually looking to seriously engage with the websites they visit through those networks.

On the other hand, traffic from sources like Facebook ads tends to perform much, much better since Facebook allows you to target their users by age, location, interests, and more.

So while you should definitely pay attention to the overall traffic figures, don’t get too hung up on them. Also, you should realize that these big-picture marketing metrics are not going to give you information you can act on to improve your marketing. That comes when you investigate the following statistics that are much narrower in scope.

Acquisitions

As we briefly touched on above, assessing your traffic according to the channels through which it comes is a crucial step to analyzing traffic appropriately.

For starters, you’ll want to think about the volume of traffic that arrives through each source.

Is social media your biggest driver of traffic? Guest posting? Or do you get visitors the ol’ fashioned way, via organic search rankings?

Once you know exactly through which channels your traffic is coming, you can capitalize on that information by focusing your marketing efforts on the sources that deliver visitors.

For example, if you’re running a fitness blog and you discover that Pinterest and other social networks drive you more traffic than anything else, then you’d probably want to focus on building your social media presence even further.

Another important metric to track with traffic acquisition is the cost of each visitor based on the channel through which it comes.

In keeping with the fitness blog example above, let’s say that you got 10,000 visitors in a month from social media. In that same month, you got 5,000 visitors through organic search. Obviously, social media seems like the traffic channel to focus on.

But now let’s add a new piece of information to the equation: cost. If you spent $500 on social media marketing in that month, then you’re spending $0.05 per social media visitor. And if you spent only $100 on SEO, then you’re spending $0.02 per organic search visitor.

Suddenly working on social media presence doesn’t seem like the best idea, does it? Pursuing more organic visitors would mean more traffic at a lower cost per visitor (which translates to more profit).

Average Time on Site

The average time on site metric is a great way to measure engagement on your site.

This slice of data measures the average amount of time a visitor spends on your site each session.

If each visitor spends only about 30 seconds on your site before hitting the back button, then you know that there’s probably something repelling about your site. Get to work on fixing that.

Bounce Rate & Pageviews per Visit

The bounce rate and pageviews per visit metrics are also important indicators of your traffic’s engagement level.

A “bounce” is a visitor that happens on your website, views only one page, and immediately leaves (there are other definitions of a “bounce”, including one that limits bounces to <30-second, single-page visitor sessions).

Therefore, bounce rate measures what percentage of your visitors view only one page before leaving.

Image via Qualaroo

A high bounce rate is a negative result and definitely something you’d want to improve on.

Pageviews per visit is essentially the other side of the same coin: it measures the average number of website pages each of your visitors browse through in each session on your website. More pageviews per visit mean that your visitors are interested in the content on your website.

Returning Visitors

The returning visitors metric is another type of engagement metric altogether. This metric analyzes what percentage of your visitors are ones that have already browsed your website before.

This statistic isn’t black and white, like some of its predecessors on this list.

As we just discussed, a high bounce rate for instance is obviously bad while a low rate is clearly good.

With returning visitors, however, a super-high or super-low measure isn’t necessarily good or bad.

If a very high percentage of your traffic are return visitors (e.g. >70%), then that means two things: 1) your traffic is engaged with your site, but 2) you have very few new visitors.

The second result – very few new visitors – isn’t a result that you’d want to have, since that puts a ceiling on your growth.

The same is true when you apply the reverse. A very low returning visitors percentage means that even though you are getting new visitors, your traffic is never engaged enough with your site to visit it a second time.

The key, therefore, is to aim for a healthy 50/50 or 60/40 balance.

 

Email

Email marketing is a crucial element of any successful business. This fact is evidenced by a simple statistic: 44% of email recipients last year made a purchase because of a promotional email (that’s nearly half of everybody who uses email!).

And according to a 2013 study done by the Direct Marketing Association, email marketing has one of the highest ROIs of any marketing strategy: 4000%. That’s $39 profit on every buck spent on email.

Image via Adobe

But you won’t be getting these sorts of ROI figures by simply setting-and-forgetting an email campaign. To improve the effectiveness of email, you need to track every aspect of your campaign, and use the information you get to continually improve.

Here are a few important email marketing metrics to get you started.

Open Rate

Open rate is one of the most basic email marketing statistics, and an absolute must-know for your campaign.

This metric measures the number of people on your list who open your email. For example, if your latest broadcast got an open rate of 12%, that means for every 100 people on your list, 12 people opened the email.

According to benchmarks provided by email marketing vendor Mailchimp, open rates are notoriously low across almost every industry.

In not even one industry Mailchimp tested did email campaigns get an average open rate above 30%.

If your open rates are significantly lower than that, then it’s time to do something about it.

Test more subject lines, try a more attention-grabbing first sentence, and above all, ensure that your emails aren’t getting redirected to the spam folder.

Click-through Rate

Click-through rate (CTR) refers to the percentage of people who receive an email click one of the links in your email.

As you can see in Mailchimp’s data above, CTRs are usually less than 5%, meaning that for every 100 people on your list less than five are likely to click the links you post in your emails.

One technique you can use to increase your CTR is to repeat a specific link several times within the body of your email.

Neil Patel over at QuickSprout does this in every email he sends out marking the addition of a new post to the blog. He repeats the link to the new post three times from the first sentence to the last.

Unsubscribe Rate

The unsubscribe rate is self-explanatory — it refers to the percentage of people who unsubscribed from your list after reading a specific email.

Typically, a high unsubscribe rate means that there’s something particularly unappealing about your emails. It could be that the content feels too salesy, is properly formatted, or that you email too rarely for your list to remember why they subscribed to you in the first place.

Find out what’s causing the unsubscribes, and work to eliminate that flaw.

Delivery Rate

The delivery rate refers to the percentage of your emails that actually get through to your list’s inboxes. For example, a 99% delivery rate shows that out of every 100 emails you send, one gets stopped by the subscriber’s anti-spam/malware filter.

If your delivery rate is low (less than 95%), then one of the below two reasons are probably responsible:

1. You have too many links (esp. affiliate links) in your email/It sounds & looks spammy.
2. Your email marketing service isn’t doing a good job.

Reason #1 warrants a review of your email campaign.

Reason #2 shows that it might be time to get in touch with your email marketing service. If the problem doesn’t get resolved, then it might be time to switch services altogether.

 

Conversions

Conversion-related marketing metrics are another highly important category of analytics to pay close attention to.

A conversion is defined as when a website visitor completes a goal action. For example, a visitor could “convert” into a subscriber by accomplish an opt-in goal or a subscriber could “convert” into a customer by completing a purchase-product goal.

Conversion rate, therefore, is essentially a metric of how productive your traffic is. The more conversions your traffic gives you, the more your visitors are doing exactly what you want them to do.

One of the biggest drivers of conversion rate optimization is a/b testing, wherein you sent a portion of your traffic to a certain variant of a webpage and another portion to another variant of the same page to see which variant is most productive.

A/b testing is absolutely vital to increased conversion rates: without it, you simply aren’t going to make any progress on the conversion front.

Here are a few key conversion metrics you need to track.

New vs. Return Visitor Conversion

The first metric to analyze is concerned which of the following groups of your traffic converts more: new visitors who have never browsed your site before, or returning browsers who have already had multiple on-site sessions.

Typically, you’ll find that return visitors are more likely to convert — especially when the conversion in question is a big deal (like purchasing a product or becoming a client).

This is a logical result: return visitors are more familiar with your site — and since they’re visiting it multiple times, they obviously find it appealing enough to want to return. Therefore, they’d be more comfortable with spending money on your site.

New visitors, on the other hand, are more likely to convert in other ways. For example, unique visitors may accomplish an email marketing conversion by subscribing to your blog after reading just one post, or they might complete a social media conversion by sharing one of your posts.

Acquisition

Just as with traffic, it’s important to keep in mind the channels through which your conversions come. You should be tracking how much this costs.

PPC and email traffic often convert at much higher rates than traffic from organic search, referrals, or social media, since they are generally much more targeted towards your ideal audience.

Cost per Conversion

Once again, cost is a major metric to track. You should be able to tell approximately how much you’re spending on each conversion.

You will probably have to look at the conversion acquisition channels data to get a good indication of this metric.

Image via Ryan Gum

If you spent $500 on PPC traffic last month and got 250 conversions from PPC traffic, then you’ve got a cost per conversion of $2. Obviously, your target is reduce this number as much as possible, while still maintaining conversion quality and value (see below).

Conversion Value

Another conversion statistic to keep in mind is the value of each conversion (i.e. the impact of each conversion on your bottom line).

This metric may not be so cut-and-dried as you think.

Obviously, the easiest type of conversion to ascertain the value of is a sale. If the target conversion is the purchase of a $50 product, then the value of that conversion is $50. However, you can also assign values to either types of conversions, like email list subscriptions.

For instance: if approximately 10% of your list goes on to become customers (spending $50 on your product), then each time you get a new subscriber you effectively add $5 to your bottom line.

Customer Activity

You may be a little confused at first by this category of marketing metrics, as it’s not one that gets mentioned very often, for a simple reason. Because measuring customer activity doesn’t always produce tangible results like most of the other analytics, it isn’t a very ‘fun’ one to focus on.

But nevertheless, tracking levels of customer activity is absolutely crucial to your business.

When I say customer activity, I’m essentially referring to how your customers interact with your business after having become a customer.

Now why is it important to keep your customers engaged after they’ve already become your customers? After all, they’ve already bought one of your products/produced money for your business, so they are pretty much useless now, right?

Wrong.

Two words: repeat sales.

Repeat sales — i.e. where a customer buys a second or third product/service from you — will easily be one of the biggest drivers of revenue for your business.

Take a look at the above graph from Sweet Tooth Rewards. It shows how on average, 27% of first-time customers are likely to buy from you again. 45% of second-time customers are likely to buy again. And 54% of people who have purchased something from you at least three times are likely to spend more money with your business (and on the trend goes).

So in short, someone who’s already become your customer is far more likely to give your business more money in exchange for goods/services than some random website visitor who’s never bought from you before.

The buy-again potential of customers is largely untapped in the online business world. Many marketers forget that the most productive source of new sales is often their existing customer base.

But you won’t get very many of your customers to buy from you again if you aren’t working to keep them engaged and continually interacting with your brand.

In the following sections, we’ll take a closer look at what sort of customer-brand interactions you ought to track.

Social Media Engagement

Social media is a great way for your customers to interact with your brand, for two reasons:

1. It’s ubiquitous — nearly two thirds of the US is on social media, according to Pew Internet
2. It’s an easy tool to use — customers can tweet, write a Facebook post, or publish an Instagram image in just a few seconds.

Track how much your customers use social networks to engage with your brand. You can monitor mentions of your social media page, brand-related hashtags, and the effectiveness of your social campaigns among customers.

BuildFire’s Twitter profile.

Of course, to keep your customers engaged on social media, your business itself must have a strong social media presence. If you don’t have one already, then Jamil’s post on strategies for social media success is definitely a must-read.

Email Engagement

Yep, we’re back to email.

When a visitor turns into a customer, they should immediately be put on an email list that’s designed and segmented exclusively for customers.

For example, here’s an email from Darren Rowse at Problogger that’s sent exclusively to the customers who have used his job board.

This customer-targeted email list can typically be a little bit more salesy/promotional than your other campaigns; as we discussed above, customers are quite likely to buy from you a second time, so don’t be afraid to push for a sale.

Track how often customers are opening emails, clicking through the links, and unsubscribing.

Onsite Activity

Another important metric to keep track of is how your customers continue to interact with your site. Are they still reading your blog posts and perusing your about page as they were before the sale? Do they spend more time on your landing pages and product pages? Or are they (gasp) not visiting your site anymore at all?

If your customers are still engaging with your site even after the sale, then that’s a good sign that they still have an interest in your business and may possibly spend more money on it in the future.

On the other hand, if a customer is completely abstaining from heading to your site again, then one of the two following reasons are probably responsible for that:

1. They got what they needed, and now have zero interest in engaging with your brand again.
2. They wouldn’t mind checking you out again, but you haven’t given them a reason to.

In scenario #1, there’s nothing you can do except accept the fact that customer was a one-and-done type of guy/gal.

In scenario #2, you need to work harder to re-engage the customer.

Try dropping him/her a special email to check how the product is working, or send out a quick tweet directly to the customer to start a conversation (see above).

 

Bottom Line

Finally, we have bottom line metrics.

Unsurprisingly, bottom line metrics are all about your bottom line. This category of metrics is concerned with the most major performance indicators in all of business: revenue, costs, and profit.

Image via Danube Delta Investment

Revenue

First up is revenue. As you already know, revenue is the aggregate sum of money that you make from your business.

This includes money from customers & clients, advertising, affiliate marketing, or whatever other income streams that you may employ in your online business.

Costs

The second metric is costs. Now, when most people think of costs they think strictly in dollar terms. For example, a list of costs might include things like the following:

• Website-related services: $500/month
• Marketing: $2000/month
• Product development: $2000/month
• Accountancy & bookkeeping: $500/month
• Legal fees: $1000/month
• etc.

However, the one cost that most people tend to overlook is time.

Time is always more valuable than money, and entrepreneurs are among some of the most time-poor people in the world.

When you’re busy growing your business, don’t forget to take into account how much time you’re spending on your work.

For this purpose, I’d recommend a time-tracking app like Toggl.

This neat webapp (which I personally use just about every day) allows you to quickly and easily track how much time you’re spending on each part of your project in a smooth, intuitive UI.

Profit

Last, but certainly not least, we have profit, which is revenue – costs.

As the founders of startups, you’re all no doubt experienced with being in the red early on.

After all, the costs associated with building an online company — although they may be far from the costs of building an offline one — certainly are nothing to sneeze at.

The key here is to realize and accept that you may not be profitable for a while. Amazon, for example, is still be in the red. However, with its continual growth, the eCommerce giant geared to make bucketloads of money when it does hit profits.

 

Marketing Metrics Tools

Now that we’ve finished talking about what you should track, let’s get into the how.

Note that marketing metrics tools come in many different forms, perform many different functions, and are categorized in several different pricing tiers. You have tools dedicated for email stats, conversion analytics, bottom line metrics.

You have tools that cost $0 to use, and you have tools that can run in the mid four-figures every month.

In this post, we’ll cover a few tools at different price points for each of the five categories of marketing metrics that we’ve just discussed.

 

Traffic Marketing Metrics Tools

Google Analytics

Google Analytics is the undisputed king of web analytics. Used by people all over the world, Google Analytics is powerful, versatile, and as an added bonus, totally free.

There are no hidden upsells or upgrades that you need to pay for access to — everything you will need on the platform is 100% free of cost.

Integrating the platform with your website is as easy as adding a few lines of tracking code to your website. If you’re on WordPress, then that process is as simple as a few clicks with the free Google Analytics by MonsterInsights plugin.

Image via Content Marketing Institute

Google Analytics isn’t limited to just traffic metrics, either: it also has some neat conversion-tracking functionality built-in as well. You can track goal completions (conversions) and also assign values to each conversion so you can visualize the amount of money made in each conversion as well.

Clicky

Clicky is another highly popular web analytics tool. Unlike Google Analytics, Clicky does have paid plans — if you want to track more than 1 site and/or more than 3,000 pageviews per day, then you’re going to have to shell out at least $9.99/monthly.

However, Clicky does come with great bang for your buck. It’s real time data is much better than GA’s, and it has more detailed information about each visitor that comes across your website (see below).

It also features heatmaps that show you where visitors click on your pages, spam/bot filtering, an upgraded bounce rate metric, dynamic conversions (that don’t have to be pre-defined) and much more. You can see a tabular comparison of Clicky and GA here.

If you want to learn more about Clicky, read Ramsay’s full review at Blog Tyrant.

Mixpanel

Mixpanel is a fully-featured analytics tool with a lot to offer. It’s targeted at a more premium customer base (paid plans start at $150 monthly), although it does included a very limited free plan.

The tool features segmentation, retention, funnel, and engagement analytics, as well as built-in A/B testing and notifications for the front end user. If you have the budget, then Mixpanel should definitely be near the top of your list.

KISSmetrics

KISSmetrics has built up quite a name for itself in the online marketing industry with its terrific content strategy that includes a (very) popular blog, comprehensive e-business guides, and regular webinars.

KISSmetrics is pretty much on an even keel with Mixpanel. They both mostly have the same features, and both have similar pricing (KISSmetrics starts at $120/month and Mixpanel at $150/month).

A review of both platforms by Sacha Greif came to the following conclusions:

• Go with KISSmetrics “if you want to focus on attracting people”
• Go with Mixpanel “if you’re more interested in tracking trends and applying formulas”

Email Marketing Metrics Tools

Mailchimp

Mailchimp is easily one of the most popular premium email marketing tools. It’s very budget-oriented: the tool is free for up to 2,000 subscribers and 12,000 emails per month. However, the free plan does mean a limitation in the available feature set.

Premium plans start at $10/month. Features include integration with several eCommerce softwares, an intuitive email editor, automation workflows, and mobile options.

TJ’s review of Mailchimp at Small Biz Trends offers a comprehensive overview of the tool.

Vero

Vero is a more premium option for those who have the budget. It starts at $99/month for 12,500 subscribers and 25,000 emails/month, but the impressive feature list makes the cost worthwhile.

Comprehensive reports on every subscriber’s activity, A/B testing functionality, powerful automation ability, and a sleek UI all make for a killer combo.

Here’s a comparison of Vero with two other popular drip email marketing tools published on LinkedIn.

Conversion Metrics Tools

Google Content Experiments

Google Content Experiments is a built-in part of Google Analytics, but it doesn’t function the same way as do the other conversion optimization & tracking tools available.

Image via Rich Page

Unlike traditional conversion testing tools that allow you to a/b test variations of the same webpage, Content Experiments actually sends traffic to two separate URLs to see which page converts better. This isn’t as handy as the tools that allow you to test on a single URL, but that’s the sacrifice that comes along with a $0 price tag.

Visual Website Optimizer

Visual Website Optimizer, commonly referred to as VWO, is a popular conversion testing tool with appreciable functionality. The tool comes with an easy to use website editor, detailed reporting, heatmaps, traffic segmentation, and multiple third-party integrations.

Starting at $49/month for 10,000 tested visitors, VWO certainly isn’t cheap, but its snazzy UI and reporting ability merit the pricing.

If you want to learn more about VWO, check out Rich Page’s review.

Customer Activity Metrics Tools

The best type of tool to use to measure customer activity is a CRM. These tools can track each visitor’s individual actions on your site, right from their first session to their post-sales activity.

CRMs also often come along with many other features, including marketing automation functionality like overall traffic analytics, email marketing, and conversion rate optimization. So if you do decide to go with a full-featured CRM, keep in mind that a lot of the above tools will be redundant.

ActiveCampaign

ActiveCampaign is quite popular with small businesses, and for good reason: it packages into email marketing, automation workflows, and a nifty CRM into one affordable solution.

The tool starts at just $9/month for up to 500 contacts (comes with a two-week free trial), and is well known for its premium customer support. I’ve used the tool extensively myself and have always found it super-simple to navigate and altogether quite easy to work with. If you’re on a budget, then ActiveCampaign is probably the way to go.

In this post, Carl Taylor details why he moved over to ActiveCampaign, and why he thinks you should, too.

Infusionsoft

Infusionsoft is well-known in the online marketing space, but its high pricing point can be a turn-off to many. Infusionsoft’s cheapest plan starts at $199/month, and all plans require purchase of a “kickstart” (customer onboarding), which begin at $699. That makes the minimum spend upfront about $900, which is quite a daunting sum for many.

However, if you can afford the tool, then it’s hard to make a case against it. Infusionsoft features a full suite of CRM and marketing automation functionality: detailed analytics, close interaction with contacts, payments, multiple integrations, and oh-so-much more.

Here’s Seth Ellsworth’s take on the tool.

Bottom Line Metrics Tools

Baremetrics

Baremetrics is an affordable income tracking tool specifically for SaaS business. It creates detailed analyses of some of the most important cash flow metrics through integration with Stripe.

Unfortunately, the only thing that Baremetrics cannot take into account is cost, so you don’t end up with an overall profit/loss picture. But regardless, it’s still a highly useful tool.

As seen in the screenshot above, the founder of Baremetrics, Josh Pigford, publicly displays the company’s own bottom line figures with the use of a public Baremetrics dashboard that you can view here.

Pricing is based on your monthly run rate, and starts at $25/month for a $2500 MRR. All plans include email reports, instant notifications, goal analysis, and more.

Pulse

Pulse is a neat cash flow management app that was created by a small business, for small businesses. Unlike Baremetrics, Pulse does come with the functionality to report costs & expenses so you have a great overall picture of your business’s performance.

The app allows you to import income and expenses from external sources, choose between one-time and recurring items, and project future cash flow based on previous payments.

You can test it out with a 30-day free trial, after which it’s only $14/month for up to 3 accounts, 3 users, and 3GB file storage.

Conclusion

And there you have it — the beginner’s guide to marketing metrics.

This one has been quite a long read, so let’s take a moment to quickly recap the post in a few bullet points:

The five major categories of metrics:

1. Traffic — look at the big picture, but don’t ignore the narrow-scope metrics like acquisition and engagement indicators
2. Email — always track open rate, click-through rate, unsubscribe rates
3. Conversions — investigate the best sources of low-cost, high-value conversions
4. Customer activity — track how your customer interacts with your business through social media, email, and your website so you know how to get more value out of each one
5. Bottom line — carefully account for your revenues, costs, and overall profit

And the best tools for each type of metric:

1. Traffic — Google Analytics, Clicky, Mixpanel, KISSmetrics
2. Email — Mailchimp, Vero
3. Conversions — Google Content Experiments, VWO
4. Customer activity — (use fully-featured CRMs) ActiveCampaign, Infusionsoft
5. Bottom line – Baremetrics (for SaaS companies), Pulse

Remember: all of these types analytics are critical for your business. You’ll never achieve the full potential of marketing metrics without using all of the above in conjunction.

It’s time to get tracking!

How do you use marketing metrics to grow your business? Dso you have any tools you’d like to recommend? Leave your comments below!

 

 

Love your customers.

I guess you already know that. But the question is, “do you really love them?”

Or you’re just concerned about milking them dry.

Think about it. If you truly love them like you claimed, then, why are you in so much a hurry to get their money?

Don’t you think it’s more honorable and easier to engage customers first, and fan their hunger and thirst for your product?

Customers are the lifeblood of your business. Whether you sell ebooks, software, consulting, coaching, or a physical product (e.g., clothing), without loyal customers, you’ll fail.

If you’re looking for actionable “no regrets” strategies to engage your customers, this in-depth article is for you.

I’m not really here to lecture you. You already know that without engaged customers, it would be difficult – perhaps, impossible to win them.

Most brands tend to pay more attention to lead generation and customer acquisition.

They forget that until these ideal customers are motivated, and upgraded in their state of mind, they’ll likely switch to competitors – it’s only a matter of time.

The way you treat your customers matters. Are you giving them a good experience?

According to Verint, 61% of consumers would tell friends and family about their experiences, while 27% reported that they would sign up to the company’s loyalty scheme.

People have a diminishing attention span. Since these people (customers) come from different sources, it’s important to track engagement on both desktop and mobile devices.

According to a recent report from IMRG Calpgemini, “a total of 52% of web traffic to retail sites currently comes via smartphones and tablets.”

More so, over a third (36%) of online sales are now completed on a smartphone or tablet device.

More customer interactions across channels and devices will give them a “welcome note” to remain loyal.

Let’s explore the 13 customer engagement strategies together:

1. Use social media as an engagement tool and not simply a platform

You’re closer to reaching your personal peak, if only you can change your mindset about social media.

Listen up: social media networks, such as Facebook and LinkedIn are not merely platforms for connecting with people.

Yes, these social platforms are primarily for that, but you should use them as tools, if you want better results.

The rapidly evolving behavior of consumers in this age should impact your perception about social media marketing.

Social media is huge. As of July, 2015, the total worldwide population is 7.3 billion. And out of these, about 2.3 billion people are active social media users.

What do you think that these billions of people want?

Do you think that connecting with them is all they want? If that were all, then, it doesn’t make sense – because you can connect with people outside of Facebook.

When people follow you on Twitter, or like your page on Facebook, they took that action because they trust that you’ll help them.

Make no mistakes about it, these people have problems that need urgent solutions. Through customer engagement, you can retain and make customers happier.

Begin to see social media as a tool, not just a platform. This means that you can use the tool to connect, share, identify questions, research influencers and other experts, and create content that your fans will scream, “Wow, ‘ve been looking for this!”

Most brands merely regard Facebook, Twitter, and other social media networks as platforms.

But Lenovo, a global leader in computer technology sees social media differently. As a brand, the company uses digital social tools to deliver immense value to its customers.

The company uses social media to obtain user data and after analyzing it, gets ahead of its competitors – in terms of consumer trends.

For example, after listening to customer feedback, ranging from color preferences for laptops, to screen sizes, Lenovo has mastered product development.

Like Lenovo, if you begin to view social media as a new and viable means to engage with prospects and customers, you can shift your brand’s social media strategy – and begin to cater for your customers.

2. Engage customers with In-Product messaging

When it comes to product messaging (i.e., notifying your customers about your new product), there are several key channels that you can use.

Out of these four channels, in-product messaging happens to generate the best conversion.

Overall, follow up emails have poor conversion rate.

But you can improve your conversions, by sending in-product messages. Because, that’s what your intimate customers are desperately looking for.

According to Wikipedia, in-product messaging means:

“Content, and related media delivered directly to a user’s internet-connected device or software application, with the purpose of informing, gathering feedback from, engaging with, or marketing to that specific user or segment of users at often-higher engagement rates than other digital marketing and online marketing channels.”

The part of this definition that you should consider critically is:

“Marketing to that specific user or segment of users.”

From the definition, you can see that when you send targeted message to a segment of your users, you’ll get higher engagement rates.

You should segment your email list. Because if you don’t, you’ll blindly send the same message to everyone.

Sadly, not everyone of your subscribers or ideal customers want your latest product or ebook.

Sending out of context emails will likely increase your customer’s email fatigue.

The ideal approach is to message a specific segment of your customer base with the exact product/offer which they’ve indicated interest.

In-product messaging is a viable strategy to adopt, because there is a market fit, which is the direction correlation between product and market.

Not all CRM software are equipped with in-product messaging feature. If you find any marketing automation software that supports it, you should grab it with both arms.

A lot of startup and software companies agree that you can leverage in-product messaging to move new customers through a seamless onboarding process and use email to engage customers who are still stuck on a step.

3. Nurture free trial prospects and get them to upgrade

Free trial prospects have gone beyond “onlookers.”

They’re actually customers – even if you haven’t charged them yet. By definition, a customer is someone who had made a transaction that would benefit the business.

To use your product, customers have to spend focus, time, and money.

How often do you sign up to try a new software or solution but never actually upgrade or renew account?

It’s very easy for free trial users/prospects to get overwhelmed when they first signed up to a new service. The ultimate question in their minds would be similar to this: “Should I upgrade my account?”

A study published in the Journal of Marketing Research found that free trial customers act differently than paying customers.

According to the author, “starting a relationship through a free trial influences usage and retention behaviour, how these free trial customers respond to your marketing messages, and ultimately how long the consumer will remain with the service.”

Sadly, companies are struggling to convert their SaaS free trial users into paying customers.

Data compiled by Sixteen Ventures shows that users active in the first 3 days of free trial – regardless of trial length – convert higher than inactive users.

To nudge free trial users to upgrade their account and use premium features, you need to nurture them.

One of the proven ways to do that is through personalized communication. “Getting to know your customers is easier if you give them the chance to get to know you,” says Belle Beth Cooper.

As simple as this might seem, it can help free trial users know you by name, and they’ll feel more secured about your brand.

To get the full tactics for turning free trial prospects into engaged customers, see the resource guide below:

• 8 Ways to Convert Free Trial Users Into Customers Through Email Marketing
• Improve Free Trials By Getting To Know Your Customers

4. Communicate with VIP customers with promotions specifically for them

Simply put, VIP customers are those who have been with you for a long time, purchased your product, referred friends, family members, and fans to your business.

VIP customers are not one-time buyers. But the good news is that through customer engagement, you can turn casual buyers (or one-off buyers) into loyal and trustworthy customers.

Here’s an excerpt from an article on Early To Rise:

“Think of what a VIP customer is, and what it takes to keep him. Think of his long-term value once you have figured out how to motivate him to spend five to 10 times what others will pay for essentially the same product or service. Think about the very small cost of reselling him as compared to the cost of acquiring a new customer.”

Truly, having a lot of VIP customers could mean that your business will thrive even in the midst of economic turmoil.

There are 3 types of retail VIP customers:

i).   Liberal VIP Customers: These are customers who are loyal to your brand. They usually purchase the most over a period of time. Doug Fleener says he measures spending over an 18 – 24 month period.

ii).   Community VIP Customers: These are important group of customers, too. According to Fleener, they aren’t actually big spenders, but you can’t do without them. Because, they refer qualified customers.

Social media influencers and pro bloggers fall into this category. When they tweet your post or new product, you can expect tens if not hundreds of new subscribers and buyers.

iii).   Advocates/liberal VIP customers: This are customers who make impact in your brand. They’re brand advocates as well as big spenders. They’re not only happy after purchasing your product, but they can tell others, too.

As a rule of thumb, dazzle every customer. But elevate the DAZZLE or experience, and provide a more personal touch for your VIPs.

On the other hand, if you neglect or take for granted these very important customers, you’ll lose them. Top notch customer service is what brings about VIP customers, not just great products.

According to data from LinkedIn, “68% of customers will leave your company if they believe you don’t care about them.”

The keyword is “believe.”

So, it doesn’t matter what you think, or how great you claim your customer service to be, once customers begin to feel ignored, they’ll switch over to, maybe your strongest competitors.

Rachel Miller says you should treat all customers as royalty, if you want your brand to be known as a top notch service provider.

Remember to invite your VIP customers to live events and one-on-one coaching programs. You need to be closer to them.

If a customer can spend up to $2,000 with your business, you should allot more time to them.

Apple treated Dang Sung as one of their VIP customers, after he spent £12,000 for an Apple Watch Edition with 18-Carat Yellow Gold Case with Black Classic Buckle.

It all boils down to delivering enormous value in your product.

5. Obsess over your customers by delivering enormous value

No matter your niche or market, when you put customers first and think about their welfare, you’ll nurture an army of brand advocates.

Avis has one of the highest level of consumer engagement for the Car Rental market. They always go the extra mile to answer customer questions and address complaints.

Do you know that customers are distracted?

In case you’ve forgotten, there are more businesses, products, and information online today than there was in 2010.

Information overload has become a major roadblock to engaging customers. Majority of the customers who lack focus could find themselves switching brands.

A study by Accenture found that, “46% of U.S. consumers said they’re more likely to switch providers than they were 10 years ago.”

More so, recent data shows that 72% of U.S. shoppers want to feel more in control than ever before when shopping.

Obsess over customers, and not competitors,” says Evancar Michael

Amazon always top the chart for overall customer satisfaction among America’s largest companies.

Amazon seeks to be Earth’s most customer-centric company …”

And the company, which is being navigated by Jeff Bezos is committed to customer service.

“Obsess over customers, says Jeff – who’s famously a customer service leader.

Above all things, he’s passionate about the welfare of customers. He pays attention to customer questions, listens with rapt focus and delivers outstanding results.

This explains why Amazon is the no #1 online shopping site in the U.S., if not the world over.

6. Create custom content that addresses a bugging customer questions

Are you engaging your customers with custom content.

Overall, content marketing is used to drive leads and acquire new customers, whereas, custom content is primarily used to engage and nurture existing customers.

There you go. That’s the difference between content marketing and custom content marketing.

It’s important to create useful content for your customers. This engagement strategy didn’t just begin today – it’s been used by large companies in the U.S., Uk, China, and more – although, in various forms – several years ago.

Even in the digital marketing world, top brands such as HubSpot, KISSmetrics, Moz, Search Engine Journal, QuickSprout, and the like, have mastered the art of using content to inspire customers.

Custom content is the way to go. According to Demand Centric, “78% of CMOs think custom content is the future of marketing. And 61% of buying decisions are influenced by custom content.”

How did Shopify acquire and nurture over 165,000 loyal customers who are billed on a monthly/yearly basis.

Yes, Shopify provides one of the best shopping cart software, but it’s more than that.

The company have also embraced content marketing – specifically, they create more custom content that shouts out to their existing customers.

Here’s one of such posts:

Here’s what you should know:

Your existing customers have questions bugging their minds right now. What are you doing to proffer answers to them?

Time is precious. If you’ve a large customer base like Shopify, Moz, Volusion, and so forth, you can’t afford to answer every customer.

The easiest way to address that question is to create a custom content. I told you earlier that custom content is a type of content written to customers who are familiar with your product.

You could create custom to inform your customers about new features of your software, or how to install and setup a feature. KISSmetrics does that too well.

It doesn’t even have to be a new product or feature. It could be a new content that highlights an upcoming event, benefits, and how your customers can buy tickets.

Moz recently announced the MozCon 2016 and how their customers can qualify and win a free trip to the event.

All of these are examples of custom content. Because, the sole objective is to engage existing customers and give them a reason to stick to the brand.

7. Hold a customer-engagement summit

There are so many ways to learn today: books, blogs, articles, magazines, newspapers, journals, videos, podcasts, and multimedia.

However, attending a summit or conference will broaden your horizon, and upgrade your learning curve in a dramatic way. The benefits are enormous.

Adobe conducted a study on the impact of summit in attendees’ lives.

The company found that 98% of attendees met or exceeded their expectation. And 80% of them discovered new skills to impact their organization and their career.

If you’ve the resources, I encourage you to host a customer-engagement summit. You could collaborate with other businesses to make this a success.

It’s really not about the ambience, but the value you plan to bring to the table. What matters is the impact you’ll make in customers’ lives as they come.

According to the Academic Association of Contemporary European Studies, when you attend academic conferences, you’ll learn from others and dramatically improve your own skills and knowledge about your field.

As you engage with other people’s work, dare to ask questions.

In like manner, hosting a customer-engagement summit gives you the rare opportunity to meet face-to-face with your customers (especially the VIP customers).

These customers can ask questions, and instead of answering via email, support system, or phone, you can infuse personality and humor while providing answers.

That would make a lot more sense. And your brand will stand out in the crowd.

If you look around carefully, you’ll agree with me that successful digital companies that have loyal and engaged customers all have annual or semi-annual summits/conference.

For example, CEO of Digital Marketer, alongside his inspiring team organizes the Traffic & Conversion Summit yearly.

The summit is regarded as one of the largest conversion summit in North America. As I write this article, the company is about to launch a second flagship summit, which they call, “Content & Commerce Summit.

Remember that the focus of a customer-engagement summit isn’t necessarily to provide great customer support. Rather, it’s to cement the relationship that you already have with your customers.

Customer engagement goes beyond managing the initial touch points. It also cuts across understanding what your customers want and how they want it.

Yes, if your customers want you to create a digital product, have you determined the type of product that you’ll create?

Is it going to be an ebook, software, membership site, online course, email course, or a one-on-one coaching?

You should got to find out.

And it’s through engagement that you become certain. Customer engagement is your responsibility – and you’ve got to do it now. By the way, it’s not a destination, though, but a journey that never ends.

8. Produce interactive content to feed customer demand

What type of content are you producing?

A study by Demand Metric found that interactive content is an effective approach for educating customers.

And when customers are educated and excited, they become engaged and willing to take actions.

Content marketing is the way to do. I’m sure you don’t want me to preach about it. Do you?

In the past, traditional marketing strategies worked well. A lot of brands still use them today – although, with mixed feelings.

When you come over to online, content is king.

Your ability to produce the right content is your one-way ticket to generating more leads, more inbound links, and more sales.

But it’s easier said than done. According to Content Marketing Institute, 52% of B2B content marketers are struggling to produce the kind of content that engages. 39% do not have a budget in place to hire professional content creators.

No two articles are created equal. Or should be.

Do you realize that two writers can write an in-depth article on the same topic, one of the articles could go viral – generating thousands of social shares, comments, links, and clients, while the other may not even reach a few hundred readers.

What could be the cause?

Well, there are several factors that could lead to that.

One thing you should know is that the rules have changed. Content is no longer about the quantity, but the quality.

As an example, Brian Dean writes and publishes one article per month, yet, he drives over 100,000 qualified visitors to his blog. And hundreds of social shares on every new post.

Although, Brian updates his blog once every month, but he doesn’t sacrifice the quality of his post. In fact, he always up his game.

On the flip side, if you want to create an engagement stream that never runs dry, you need a different type of content.

Interactive content.

From the term “interactive content,” It’s simply the type of content that talks back at the reader.

In other words, there is an interaction that goes on when readers go through it. Here are some examples of interactive content:

A typical blog post is not really an interactive content, but it can become if you spice it up.

Generally, humans live to interact. Consequently, if your content follows that pattern, your customers will not only be engaged, but they’ll feel at home with your brand – and become motivated brand advocates.

The real measure of any form of content is action. If you write content and the right people aren’t able to take action, it means that you didn’t achieve any goal. You’ve wasted time.

To truly understand interactive content, here’s an excerpt from a post on Copyblogger:

“By its very nature, interactive content engages participants in an activity: answering questions, making choices, exploring scenarios. It’s a great way to capture attention right from the start. Individuals have to think and respond; they can’t just snooze through it.”

Interactive content is what engages the user and provides enormous value. A typical example of an interactive content is “Your Life on Earth.”

It involves scrolling text with images and video and you get to participate in the HTML5 quiz (interactive element).

Your Life on Earth isn’t solely an integral part of iWonder guides, but it’s in the same development cycle at the BBc of “doing, not just viewing’ content. You should try and play it.

9. Create a “listening center” to drive conversation

Without communication, your customers will be lost.

Confusion sets in only when you neglect to set up systems that will aid effective communication.

A listening center isn’t just an avenue where you listen to your customers, it’s equally an opportunity to pay attention to details – as you sort all questions and make a promise to answer them – if you don’t have all the answers at one sitting.

Cisco and some of the top brands are redefining customer engagement and service. Although, these companies have come a long way, you too can create a listening center that will drive conversation.

There are several benefits to developing a “listening center.” For one, cisco sees and hears social media at new listening center.

In case you don’t know, here’s the truth: your customers are in a haste. It’s your responsibility to shorten response time – especially when they ask questions that’s been bugging their minds.

Knowing which questions to answer first, and how to send it across to your customers will go along way to excite them. That’s what customer engagement entails.

With a listening center, you’ve got a system that you can leverage on to further strengthen relationship with your existing and new customers.

10. Scale your customer engagement budget

Business is not as it used to be.

There are new strategies, tools, vehicles, and content types at every corner. Most companies are confused, because they can’t figure out how they can afford all of these with their limited budget.

Trust me, content creation and distribution is where the budget is mainly at. Recent data from Dcustom shows that marketers are now spending $44 billion on content marketing

Content marketing is expensive.

If you consider the time, research required, money, and sometimes the network that you need to build to make it work, you can’t really equate it with anything.

However, it’s important to scale your customer engagement budget. If a large portion of your budget goes into content creation and distribution, your engagement will suffer.

Ideally, you can optimize your inbound marketing budget like this:

A wise marketer will always put the customers first. After your content has attracted new customers to your business, you need to motivate and fan their zeal.

If you don’t do it, your customers will likely switch – irrespective of the value that your content delivers.

When companies recognize that there’s plenty of money allocated to one aspect of customer relationship marketing, they will map out a strategic means of communication.

A means that will enable them communicate with customers more productively.

If you’re in a tough niche, then creating more content may not help you trounce the competition – but creating the right content and scaling your network.

This means that you connect with more businesses, marketers, influencers, and content curators – who can help amplify your content to reach more people.

If you look at the comparison chart below, you’ll notice that when marketing budget is high, especially towards developing and documenting a content strategy, as well as hiring a competent chief content marketer to manage every aspect of content marketing, the resultant effect is “very effective.”

11. Improve customer support by making it your team’s duty

No matter the product you deal on, what you’re truly selling is experience.

Tony Hsieh, founder of Zappos once said that his business wasn’t primarily for delivering shoes or clothing, but for delivering happiness.

As the Chief Executive Officer of a thriving shopping brand, Tony hires and fires – based on their core values.

Core values that are based on human psychology – and what makes people happy.

I’ve a question for you: “Are you satisfied with your present customer support system?”

I’m not talking about the latest helpdesk solution, tool, or program that you’re using to improve customer support.

Rather, I’m talking about the one-on-one communication that you once had with your customers.

Of course, you can’t possibly connect or communicate with thousands of customers one on one, but you can add personality to your voice.

Because you’re not a robot.

But a human being, with blood flowing through your veins. You understand that customers aren’t “traffic” as we call them – but real people with questions that needs answers.

To help improve your customer support, one thing I recommend for my clients is to make customer service everyone’s responsibility.

Yes, “everybody should be involved.”

It doesn’t matter whether you have a sales team (you should), or administrative team – all hands must be on deck.

Poor customer service will cripple your business.

According to Insightsquared, “$41 billion is lost by US companies each year due to poor customer service.”

Your staff or team should be helpful and kind when communicating with customers. A study by New Voice Media found that about 42% of customers will switch if they’re put off by rude or unhelpful staff.

I encourage you to become customer-focused brand. It doesn’t matter your designation or profession, put customer service at the forefront.

This means that if you’re engaged with a particular task outside of customer service, and you receive complaints from a customer, what should you do?

Here’s what I advise you to do:

Pause whatever task you’re handling and address the customer’s complaints. Be kind to them. Show them that you’re not after their money, but their love and trust.

When customer service becomes your no #1 priority, customers will trust you more, and refer new customers to your business. Drive this urgency into every of your team member.

Let them understand that the customer has been crowned king – and should be treated as royalty.

According to Harvey Mackay, Author of ‘How to Swim with The Sharks Without Being Eaten Alive,’ “Successful organisations have one common central focus: Customers.”

It doesn’t matter if it’s a business, a professional practice, a hospital, or a government agency, success comes to those, and only those, who are obsessed with looking after customers.”

12. Respond promptly to customer calls

How fast do you respond to customer calls?

Fast replies generate revenue. When an airline responded to a customer’s Tweet in less than 6 minutes, the customer was willing to pay almost $20 more for that airline in the future.

By “calls,” I’m referring to feedback, not just phone calls or emails. The customer is the absolute priority.

Companies like Dell, Xerox, Starbucks, Apple, and several the like are leading the way – because they respond promptly to customer calls.

In case you don’t know, here’s a shocker:

Customers are impatient.

It’s estimated that humans attention span is 8 seconds – which is 1 second lower than that of a goldfish.

You’ve got to understand that people are not ready to wait for 48 hours to get their questions answered, when another brand can answer within 24 hours.

Even if the question requires some technical know-how, it’s vital to up your game. You can achieve tremendous results if you have a technical team or department to handle these technical issues.

When it comes to responding to customer’s feedback quickly, don’t make excuses.

How fast you respond will help you gauge and understand the difference between customer service and customer experience. “Experience” is as a result of the service you provide.

If your service is awesome, but you are slow, customer experience will be negative.

On the other hand, if the service is great and the time it took to deliver it blends properly, customer experience will be high and positive.

Don’t wait for a customer to resend a question, or create a new support.

Although, I use GetResponse email autoresponder, but their response time is discouraging. The last time I emailed support, I didn’t receive feedback until after 2 days.

I agree that the company is good at what they do, but I can’t recommend them in terms of customer service.

Speed is critical.

13. Create mobile apps

Have you created your first mobile app yet?

If no, what are you waiting for?

It’s easy to learn different programming languages.

You can drive growth easily with mobile apps. Take a look at the average number of apps used and time per person each month, from Q4 2012 to the Q4 2014.

Deep analytics combined with good psychology for user behavior are the defining factors that differentiates an app from a website or other software.

When it comes to customer engagement, we’ve seen firsthand how apps can turn a casual conversation into a bonded relationship that generates sales.

Having a unique app icon helps too.

If you’re looking to engage your customers, while providing unfeigned value that will remain fresh in their minds for years to come, then you should seriously consider creating mobile apps.

By the way, you can get started with your first mobile app in 15 minutes – Sign up with Buildfire.com

Conclusion

The key learning here is that customer engagement isn’t a destination, but a journey. Because it doesn’t stop.

I’m yet to find any brand, business that can boast of mastering customer engagement 100%.

If only you can take these 13 strategies to heart and implement them, you’ll not only inspire your customers, but you’ll build a brand that thrives in the midst of market downturns.

Using BuildFire to create your app will help keep costs low.

Which of these customer engagement strategies have you used in your business?