How to Engage with Your Customers in 2020

With Q1 in full swing, retailers are putting processes in place to help them reach their 2020 sales goals. As we look ahead into 2020 and beyond, nothing stands out more than customer engagement, interaction, and care as a way to boost sales.

Why? Because an engaged customer represents 23% more revenue than average. Companies who improve customer engagement evidence upsell revenue increase from 13% to 51% and an increase in order size from 5% to 85%. Simply put, engaged customers buy more and spend more.

So how can you level-up your customer engagement in 2020? See the tips below.

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How to Engage Your Customers

Because the competition is tough, customers can demand more engagement from brands and retailers. If customers do not get what they want from one retailer, they do go elsewhere to get it. Retailers need to identify what customer engagement opportunities make the most sense for them to capture and keep customer attention.

Here are 3 suggestions:

Sell experiences, not just things

As Forbes contributor Blake Morgan explains, “creating experiential concept stores, teaching customers, providing personalized service doing good in the community and much more” are all great ways to attract customer attention. Consider your unique business as well as your unique customer demographics, then identify what experiences may be best for them.

Provide interactive, in-store opportunities

Retailers looking to capture customer attention need to identify ways beyond inventory that will boost customer engagement. From interactive merchandising displays (like Sephora‘s digital mirrors), to digital signage to creating selfie stations in stores to offering hands-on learning experiences and more, merchants need to remember that customers want to be engaged and entertained – thus, your store strategies should align with this.

Sephora mirrior

Offer ease in the shopping experience

As much as customers appreciate being entertained while they shop, they also appreciate ease. Very simply, this means providing shopping experiences that cater to the preferences of today’s savvy customers. This can include cashier-less check-out procedures, offering new payment options such as installment payment, and BOPIS.

The key takeaway is this… make it easy. Avoid friction or roadblocks at any point during your customer purchasing experiences.

Retail remains customer-centric and human-driven. Always consider who your audience is and how you can best support them with enhanced engagement opportunities.

Whether you generate a million dollars annually or one hundred million plus, there is always opportunity to grow. Take legendary retailer Nordstrom, for example, who recently unveiled a new flagship store in New York City that is designed unlike any of their past store layouts.

As Nordstrom’s CEO Erik Nordstrom shared at the National Retail Federation’s BIG Show this past January, “stores must be more experiential” and not just a place to buy items.

The recent opening of their flagship store in Manhattan echoes this sentiment, with a bar strategically located within the shoe department and a whole level dedicated to beauty treatments – not just beauty products.

Nordstrom Shoe Bar

Beyond experiences and engagement, however, what else matters to customers? As it turns out, it’s comes down to customer care – but not the kind retailers have historically offered.

Customer Care… Literally

Customers used to only care about how you treated them, with customer service being a core component of their purchase decisions. Now customers care about customer service and retailer actions that directly impact what they personally care about (sustainability, fair wages, social justice, etc.).

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In a recent report, Accenture explains, “consumers in the United States are no longer making decisions based solely on product selection or price; they’re assessing what a brand says, what it does and what it stands for. They support companies whose brand purpose aligns with their beliefs. And they reject those that don’t, with one in five walking away forever.”

Retailers are at risk of losing customers due to what their brands do or don’t do. Now more than ever it’s vital for retailers to communicate what they believe in and how they engage in social responsibility so that they can capture and keep consumer attention and sales.

Accenture clarifies, “while business leaders, investors and employees all bring essential perspectives and capabilities to a brand’s identity, customers provide insights through their words and actions that enable purpose-driven companies to hone their competitive agility.” 

With a reported 42% of customers willing to walk away from brands who don’t align with their values, and 1 in 5 customers admitting to never returning once disappointed in a brand, there is no excuse for retailer’s not to recognize the importance of what customers care about.

Final thoughts…

More so than ever customers are showing their trust, are opening up concerning what they care about, and demonstrating genuine preferences by the dollars they spend. Keeping this in mind, the future looks bright for retailers who are willing to take what customers are telling them into account and improve their customer engagement.

To help your store capitalize new opportunities in retail, explore more of Compliant IA’s “Retail Trends” here.

About the author:

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Nicole Leinbach Reyhle is the Founder of RetailMinded and the author of Retail 101. She is a frequent contributor to The Today Show, Forbes and is the Spokesperson for American Express’s Small Business Saturday. Reyhle is recognized as a Top 10 retail thought leader from Vend and a retail “futurist” for IBM. Reyhle is also the Co-Founder of the Independent Retailer Conference.


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