In pursuit of better customer engagement, leading brands often undertake strategies that break new ground. 

Take, for example, Nike's 2018 "Dream Crazy" campaign featuring Colin Kaepernick, which sparked global conversations about social justice and also increased stock prices and media attention. Likewise, Airbnb has fostered community engagement by encouraging hosts and guests to share their experiences, fostering trust and loyalty. 

Collectively, these brands demonstrate the power of authentic engagement and community building to drive business success. The same applies to you, whether you're running an e-commerce store or a brick-and-mortar shop.

While there's no magic bullet for retail customer engagement, following expert-recommended approaches can be impactful.

 To help you kickstart this process, this blog post lets you in on some unique retail customer engagement strategies and tools to help your ecommerce brand stand out, impress and drive traffic to your storefront.

What is retail customer engagement?

Retail customer engagement is the process of building relationships with customers across various touchpoints in their shopping journey. 

All efforts you make to connect with your customers and enhance their experience are a part of increasing retail customer engagement. This includes interactions before, during, and after a purchase through both online and offline channels.

Technology plays a crucial role in increasing retail customer engagement. With the right automation tools, you can engage customers across various channels and personalize interactions at scale. 

For instance, Sephora’s mobile app integrates augmented reality (AR) features that allow customers to try on makeup products virtually. This technology enhances the shopping experience and increases engagement, leading to higher conversion rates. The app has over 25 million downloads and contributes significantly to in-store sales.

As an AI-powered, all-in-one customer engagement platform, Plivo CX seamlessly integrates with your Shopify store and helps you segment customers, generate and send personalized messages to your customers in their preferred channel at the right time. 

To understand how to increase retail customer engagement for your brand, let us understand its importance and what strategies to implement in your business.

Why is retail customer engagement so important for your business?

1. Increased customer loyalty

Engaged customers are more likely to remain loyal to your brand. Delivering personalized engagement service boosts repeat business by a remarkable 82%, even when they have other options. This loyalty leads to a stable customer base and better retention.

2. Higher sales and revenue

A Gallup study found that fully engaged customers represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer. So, engaged customers tend to spend more which boosts your bottom line. They are also willing to try new products or services from your brand. 

3. Enhanced customer satisfaction

Engagement efforts often improve customer satisfaction as they feel valued and heard. Satisfied customers are more likely to have positive experiences with your brand, leading to fewer complaints and higher retention rates. 

4. Better customer insights

Engaged customers such as community members provide more feedback and data, allowing you to gain deeper insights into their preferences, behaviors, and needs. This information is invaluable for improving your products, services, and overall customer experience.

5. Stronger brand advocacy

Highly engaged customers are more likely to become brand advocates. They recommend your products or services to others. 92% of consumers trust recommendations from friends and family over all forms of advertising which improves your brand advocacy. 

How to engage customers in retail

Keeping customers engaged requires creativity. There are several effective yet out-of-the-box tactics to connect and build loyalty. From sustainable practices and personalized marketing to seamless experiences across channels, these approaches make a difference. 

Remember, using data to understand your customers and merging online and offline interactions creates meaningful connections that drive sales and foster loyalty. 

Additionally, prioritizing customer feedback further strengthens relationships and shows you truly care.

9 Proven strategies to engage customers in retail

1. Run sustainability initiatives

Sustainability initiatives can lead to better engagement and bigger profits. A study by IBM shows that, on average, 79% of all consumers today state that brands should provide guaranteed authenticity, like certifications, when they're purchasing goods. 

Notably, customers are willing to pay 35% more for sustainable brands.

You can start your sustainability initiatives by using eco-friendly packaging, implementing recycling programs, and reducing waste throughout the supply chain. Then, showcase your initiatives on your website and social media. 

Here’s how you can do that:

• Run interactive sustainability-focused campaigns such as recycling programs, sustainable product challenges, or social media contests to increase retail customer engagement.
• Create dedicated sections on your website and social media profiles highlighting your sustainability efforts. 
• Obtain certifications from recognized environmental organizations and display these badges prominently on your products and marketing materials.

See how Wholesome Culture showcases their sustainability efforts on their website:

2. Personalize marketing experience 

66% of customers want brands to tailor messaging to their needs, and 65% want targeted promotions. Customers are willing to engage with brands that offer personalized experiences. These experiences include:

• Personally addressing them in communications
• Engaging with them when they buy something for the first time 
• Follow up with them post-purchase
• Send triggers based on their behaviors 

Completing all these steps manually will take ages and is also prone to errors. To avoid this, Plivo CX helps you comprehensively automate all the above tasks and deliver personalized experiences. Furthermore, you can sync contacts from the ecommerce store. Then, go ahead and build unlimited customer segments using the Audiences feature.  

Once your segments are ready, you can capture events from your storefront to trigger Journeys. These triggers are based on customer behavior, which means you can send the right messages to the right customer at the right time. 

For example, you can send abandoned cart emails to people who skip checkout or welcome messages to first-time buyers.

3. Map customer journey 

The customer journey is a series of interactions in which a customer makes your brand from the point they became aware of your product to purchase. Your customers go through various touchpoints such as social media, paid ads, product reviews, referrals, etc., while purchasing. 

By mapping this journey, you visualize these touchpoints and increase retail customer engagement across their journey. You can also create more targeted and effective ecommerce marketing campaigns, tailored to specific stages of the customer’s path.

Here’s how you can map customer journey:

• Conduct surveys: Share forms or conduct interviews with your customers to understand their journey and pain points. 
• Use tools: You can use customer journey mapping tools such as ClickUp and Microsoft Visio. These tools also come with templates that map out your customers’ journey.

4. Create an omnichannel customer experience

Over ⅓ of Americans have made omnichannel features part of their regular shopping routines since COVID-19. Customers go through 3-4 channels while making a purchase. That’s why you must unify various channels to increase retail customer engagement throughout their journey. 

The results of implementing an omnichannel customer experience are self-explanatory. For example, Sephora relies on in-app purchases, push notifications, and in-person consultations to drive customers toward a purchase.

These efforts are driving value for them as the customers visiting their retail website are 3 times more likely to make a purchase, and they also spend 13% more. 

Plivo CX Campaigns offers a comparable solution for creating personalized, omnichannel customer experiences across every stage of the customer journey. In four easy steps, you can launch, manage, or monitor your marketing campaigns to engage customers.

1. Select your audience from customized segments 
2. Choose your preferred channel—SMS, email, or WhatsApp
3. Create your messages with the help of templates and an AI copywriter 
4. Finally, schedule these campaigns and monitor insights

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5. Let customers buy online and pickup in-store

Curbside pickup, which means placing an order online and picking it up in-store has seen substantial growth in recent years. These sales grew by 106.9% in 2021. 

Customers are looking to save up on shipping fees or want to enjoy the in-store experience. Either way, you must implement curbside pickup to increase retail customer engagement. 

Here’s how you can set up curbside pickup:

• Set up an online ordering system: Develop or upgrade your website and mobile app to include a user-friendly online ordering system. Ensure your customers can easily select items, choose curbside pickup, and specify pickup times
• Designate a pickup area: Allocate specific parking spots near the entrance for curbside pickup. You can also include instructions and a phone number or text code so customers can notify the store upon arrival
• Streamline order processing: Set up an internal notification system to alert staff when a curbside order is placed and when the customer arrives

6. Build in-store experiences

In-store experiences engage customers on a sensory level allowing them to see, touch, and try products before making a purchase. However, as online shopping continues to grow, physical stores need to add an extra touch to attract customers. 

IKEA is the best example when it comes to engaging customers with in-store experiences. Although IKEA has an online store, they offer a distinct experience to shoppers who can try beds, sit in kitchens and eat at the store. 

Such experiences build deeper connections between your brand and customers and increase retail customer engagement. Here’s how you can build better in-store experiences:

• DIY stations: Set up areas where customers can customize products, like engraving services or design-your-own stations.
• Sampling and demos: Provide opportunities for customers to try out products, whether it’s tasting food samples or testing the latest gadgets.
• Loyalty programs: Implement programs that reward customers for in-store visits, purchases, and participation in activities, encouraging repeat visits.
• Community spaces: Create comfortable areas for customers to relax, socialize, and enjoy free Wi-Fi, making the store a destination rather than just a shopping location. 

7. Integrate online and offline shopping with mobile engagement

Mobile engagement can bridge the gap between physical stores and digital channels. You can deliver time-sensitive messages on mobiles to increase retail customer engagement. 

Furthermore, it is also convenient for you and your customers as most of us are always using our smartphones. As per a Fortune study, Americans check their smartphones 144 times a day. Mobile engagement allows you to create real-time interaction with customers, driving higher engagement. 

This is why Plivo CX comes with automation capabilities for SMS marketing campaigns. It is powered by Plivo’s low-latency, premium career network with a coverage across 200+ countries. So, you can securely and reliably send two-factor authentication messages, alerts, notifications and reminders. 

With trigger-based messages, Plivo CX lets you create dynamic SMS workflows that adapt to customer behaviors and send messages to customers at the right time. 

The best part? You don’t have to write these messages on your own. The tool has an AI-powered copywriter and template to compose personalized messages.

Thus, with Plivo CX’s SMS automation, you can engage customers via mobile and drive them toward your online and offline store.

8. Build loyalty programs

In January 2023, Google observed a 50% increase in the search intent regarding loyalty programs. Customers actively searched for terms like “reward programs” and “loyalty points.” 

Loyalty programs foster a deeper connection between your brand and customers. Since customers become community members through these programs, you have an opportunity to engage them and increase the chances of repeat purchases.

Here’s how can you build effective loyalty programs:

• Point-based programs: Provide points for each purchase, which can be redeemed for discounts, freebies, or exclusive products
• Tiered programs: Share different levels of rewards based on customer spending or engagement, motivating customers to reach higher tiers for better benefits
• Exclusive access: Offer members early access to new products, special events, or sales
• Personalized rewards: Tailor rewards to individual preferences and shopping habits to enhance the program's appeal
• Referral incentives: Encourage customers to refer friends and family in exchange for rewards

Here’s an example of a loyalty program by Blume.

9. Collect and act on customer feedback 

When it comes to feedback, listening is not enough. You must implement feedback into your product and workflow to ensure maximum customer satisfaction. By actively implementing feedback, you prove your commitment to your customers and promote loyalty and trust. 

When customers see their suggestions taken seriously, they feel valued and are more likely to become brand advocates. Here’s how you can collect customer feedback:

• Post-purchase email surveys
• On-site feedback forms
• Social media polls
• Phone surveys
• In-person interviews
• Review platforms (e.g. Yelp, Google Reviews)
• Mobile app feedback
• Comment cards

4 Metrics you must measure to increase retail customer engagement

1. Customer Satisfaction Score (CSAT)

CSAT reflects how happy your customers are with your products or services. To measure it, ask customers to rate their satisfaction on a scale of 1-5 or 1-10. 

You can add these surveys at key touchpoints, such as after a purchase or customer service interaction. 

A high CSAT score indicates that you're meeting or exceeding customer expectations, while a low score signals areas for improvement. 

CSAT = (Number of satisfied customers/ Total number of survey responses)/100

2. Social media analytics 

Monitor metrics such as likes, shares, comments, and mentions across your social platforms. You can also opt for sentiment analysis to gauge the overall tone of customer interactions. 

Track your follower growth rate and engagement rate (interactions divided by followers) to measure how well your content resonates with your audience.

Engagement rate= (Total engagement/ Total followers) * 100

Follower growth rate = {(New followers - Lost followers)/ Total followers at the start of the period}/100

3. Repeat orders

Repeat orders are one of the strongest indicators of customer engagement and satisfaction. To measure this, calculate the percentage of customers who make more than one purchase within a specific timeframe. 

Repeat Order Rate = (Number of customers who made more than one purchase / Total number of customers) x 100

A high repeat order rate suggests that customers find value in your products and have a positive experience with your brand. 

4. Customer Lifetime Value (CLV)

CLV estimates the total revenue a customer will generate for your business over their entire relationship with your brand. A high CLV indicates strong customer engagement and loyalty. 

To calculate CLV, multiply the average purchase value by the average purchase frequency, then multiply that by the average customer lifespan. 

CLV = Average Purchase Value x Average Purchase Frequency x Average Customer Lifespan

Increase retail customer engagement with Plivo CX

To help deliver maximum value, retail customer engagement strategies can benefit from a marketing automation tool. 

As a customer engagement platform, Plivo CX syncs contacts from your Shopify store to deliver personalized messages to your target audience. With a premium carrier network, it delivers your messages globally. It also provides automation across various channels like SMS, MMS, Whatsapp and email.

Plivo CX not only automates your engagement process. It comes with audience segmentation that you can couple with Journeys to send trigger-based messages relevant to your customers.

On top of this, you get access to Copywriter AI that crafts laser-focused messages that resonate with your target audience. Plivo CX also measures analytics from your engagement campaigns to track ROI and help you make better decisions. 

Book a demo to learn more!