How to Engage Customers in Retail for Customer Satisfaction in 2024?

Customer engagement is what holds the key to the success of the business. How to engage customers in retail? Given that consumer behaviours and expectations are constantly changing today, this question has become more important. The current retail industry is full of innovative retail customer engagement examples, from immersive in-store experiences to sustainable fashion. 

To address this issue, retailers are experimenting with various methods to amp up customer engagement. Even innovative social media marketing has become standard practice, as companies are adapting to the changing market by providing immersive in-store experiences to sustainable fashion and much more.

For example, consider Tommy Hilfiger’s partnership with Roblox. They blended physical and digital experiences by streaming a live runway show with avatar models wearing the collection, allowing users to buy avatar outfits in real time. Similarly, Chupi, a famous fine jewellery brand, offered a virtual consultation service to provide personalized services and experiences, which led to a 65% conversion rate. Meanwhile, Levi’s made sure to connect with environmentally conscious customers on a different level by promoting upcycling and secondhand shopping

In this article, explore! Top strategies to increase retail customer engagement and see real-life examples. 

Utilize Social Media for Customer Engagement

Social media platforms have become powerful tools for retailers to improve customer engagement in retail. These platforms offer unique opportunities to reach potential customers, showcase products and build brand loyalty. Retailers can leverage social media to create meaningful interactions and drive sales.

One of the effective approaches is to encourage user-generated content (UGC). UGC is content created by customers, such as photos or reviews, that feature a brand’s products. This type of content significantly impacts consumer decision-making. Do you know that 40% of buyers consider UGC to be “extremely” or “very” important when making a purchasing decision? Plus, 82% of consumers are more inclined to buy products from a brand that uses UGC in its marketing strategies.

Social media contests and giveaways are proven to attract new followers and increase user engagement. These promotions can encourage users to tag friends or use branded hashtags. This will help expand the brand’s reach and create a buzz around the products.

Here are some of the iconic giveaways that skyrocketed the respective brand’s growth:

• Dove launched a “Reverse Selfie Campaign” that encouraged users to post unedited, unfiltered selfies with #NoDigitalDistortion to challenge unrealistic beauty standards. They got over 6 billion global impressions and raised self-esteem and body image awareness. This powerful campaign increased Dove’s brand affinity by 21%, sales by 11.9% and favorability by 19%.
• For Mickey Mouse’s 90th anniversary celebration, Disney started a beautiful hashtag campaign called #ShareYourEars. The company donated $5 to the Make-A-Wish Foundation for each user who posted a photo with the hashtag.
• Lay’s launched the “Do Us a Flavour Campaign” and asked consumers to submit their own flavour ideas. It not only generated a massive 3.8 million submissions but also increased their sales by 12%. This campaign not only successfully engaged customers but also provided valuable insights into consumer preferences.

If you want to take engagement to the next level, give your social media campaigns a real-time edge with Mapsted’s location marketing tech. Customers will receive location-based offers in real time as they pass by your store. 

Offer Experiential Retail

The experiential retail strategy focuses on creating unique and memorable in-store experiences. It goes beyond traditional shopping, creating an emotional connection which can lead to brand loyalty and repeat business. As per a study, 87% of customers prefer buying products from a brand after attending their store events. 

Check out success stories in experiential retail: 

• Lululemon hosts free yoga classes, wellness workshops and fitness challenges in their stores that encourage customers to participate. It directly appeals to their core consumer’s passion for yoga and this strategy has been a part of Lululemon’s success in selling a lifestyle range, creating a sense of community and showcasing it as more than a fitness wear. 
• Unilever’s St. Ives wanted to increase the footfall at their store. So, they went with the “The Mixing Bar” concert series that helped the brand attract store traffic. It offered exclusive performer meet-and-greet for the first 60 customers in line, creating urgency and excitement and encouraging customers to visit the store and buy. This strategy shows how unique experiences can attract and engage customers.
• The 30,000-square-foot House of Vans in London embodies the brand’s “Off the Wall” spirit, blending art, music, BMX, street culture and fashion. A cinema, café, live music venue, art gallery and skate ramps make the location a community hub as well as a shopping destination. This immersive experience shows how experiential retail can combine culture and commerce to build brand loyalty and memories for Vans’ core audience.

Also, brands with complex and large stores are partnering with wayfinding technology providers for indoor mapping and monitoring to amplify their user experience. An example of such a technology partner is Mapsted. The solutions offered by the company require no hardware and use Wi-Fi to guide customers effortlessly through the stores and provide information on new products and existing store promotions. 

Implement Data-Driven Personalization

Retailers can retain and improve customer engagement by adopting data-driven personalization techniques. This approach includes using customer data to create tailored shopping experiences. According to a report, 76% of consumers prefer brands that provide a personalized data-based experience. Retailers can use AI and machine learning algorithms data to analyze shopper behaviour and preferences to provide more relevant customized recommendations and promotions.

Personalization can provide significant benefits to retailers. As per a report by McKinsey Global Institute companies following a data-driven approach are 23 times more successful in acquiring new customers and 19 times more likely to be profitable. 

Additionally, retailers can boost their revenue by over 25% when offering individualized product recommendations. These personalized experiences not only improve customer satisfaction but also help retailers gain a sustainable competitive advantage. Mapsted’s location-based marketing technology and innovative geofencing capabilities, for example, give retailers and mall operators the ability to send tailored pop-up offers and promotions to shoppers at the right time and place, optimizing foot traffic and sales opportunities. 

Provide Exceptional Customer Service

Give customers exceptional service and they will be more loyal and will buy more. That is what every retail industry strives for. Research shows that 88% of customers say that good customer service is more important. Nowadays customers expect quick responses, seamless interactions and personalized assistance, whether they are shopping in-store or online. 

Some of the examples of a brand thriving in customer service: 

Zappos: Famous for its “wow” customer service philosophy, Zappos provides free delivery, returns and 24/7 customer support. Their “wow” philosophy has earned them increased loyal customers and their lifetime value. 

Nordstrom: What makes this brand excel is its personalized services like free stylists, curbside pickups and seamless returns. Their employees prioritize customer satisfaction and stress-free, enjoyable shopping experiences.

Zapier: Customer service does not belong exclusively to the customer support department at Zapier. Every employee, no matter what they do in the organization, communicates with customers four hours a week, ensuring product improvements based on real-time feedback and fostering a customer-centric culture.

Omnichannel Engagement

Today’s consumers want a smooth experience across all channels including shopping online, in-store, or via mobile apps. Omnichannel engagement helps unify these touchpoints, allowing customers to switch between platforms without disruptions.

For instance, Starbucks is a brand that has successfully implemented omnichannel engagement through its mobile app and loyalty program. The app is synced across various devices, the website and physical stores, which allows customers to earn rewards, access personalized offers and even sync their order history and preferences. Overall, it provides a smooth experience no matter how they interact with the brand.

By adopting omnichannel strategies, retailers can provide customers with a consistent, convenient and connected shopping experience, increasing overall engagement and loyalty.

Conclusion

Customer expectations and needs are constantly changing. Brands that want to amplify their customer engagement should aim to invest in the strategies discussed above. From leveraging social media to providing exceptional customer service, businesses can reap the benefits of customer loyalty and improved sales. If you found this blog helpful, don’t miss our blog post on Top 10 Emerging Retail Industry Trends To Watch Out for in 2024 or watch our video on Mapsted Location-Based Solutions For Big Box Retail to know more.