The art of driving ROI from customer engagement

How can you make the most of all the customers you gain from your website traffic? The answer lies in being able to combine the elements so you can make a return on investment (ROI).

If that sounds difficult or too complex, don’t worry. It’s not nearly as challenging as you might think. Getting an ROI from customers who come to your site and take time to like, comment or share your content, is easy.

What is ROI

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This post will help you learn exactly what those are and how you can leverage them to your advantage. Focusing on these elements will help you see an ROI in no time.   

Use data to understand your customers

Before you can earn revenue from your customers, you have to take time to understand them. After all, you can’t design anything if you don’t know who you’re talking to.

Fortunately, this is where technology comes to the rescue. With the right tools, you’ll be able to understand more about your customers through data gathering.  

For instance, having lots of shares and comments on your site is excellent. But if you’re not tracking the engagement data, the likes and shares don’t give you any insight into your actual customer base. Without this insight, you will not have any direction as to how you can improve your services.

Data gathering can help you uncover details about your visitors and buyers. This can include things like where they’re located, what they’re looking for, the most loyal customers, and the ones who visit your site most frequently.

You can then use this information to target relevant information to your customers. For instance, if the majority of your customers are from the United States, you can use that knowledge to speak more directly to their geographic region, and also tailor your communication in a way that your content is more personalized.

That kind of effort is always noticed and appreciated by your customers, and they will feel more connected to your brand, and are more likely to be loyal to it.

Not only are loyal customers your biggest advocates, it is far more expensive to acquire new customers than it is to retain your existing ones.

Leveraging the right data to make your product more specialized to your audience, means attracting more buyers, which equals more ROI for your business. That’s why when it comes to customer engagement, data talks.

To illustrate, let’s look at this statistic.  Medallia collected data that shows that in a single transaction, the most loyal brand customers of a leading apparel chain spend 15% more than those who aren’t brand loyal.

Brand loyalty also carries benefits in the long-term. For instance, brand advocates visit you 10% to 15% more and spend about the same percentage more than customers who feel impartial about their shopping experiences with you.  

When you consider these statistics, it only makes sense to use customer experience management tools to understand what customers like, what they don’t, and how to connect with them on a deeper level to foster brand loyalty.

This runs parallel to our next key point.  

Know your customers on a personal level

No one likes to be grouped with the masses. Everyone enjoys feeling special and being recognized as an individual. That doesn’t change when it comes to digital interactions. To score an ROI, you’ll need to make every effort to ensure your customers feel appreciated and unique.

The only way to recognize them and appreciate them as individuals is to know them as individuals. While that may seem like it’s a feat too tedious to achieve or much more easily accomplished through in-person interactions, don’t worry. There are tools what will make this process easier, coupled with the help of data-driven engagement platforms. For example, they can tell you how your customers interact with your site.

Are they most frequently contacting you through email? App? Via text?  

A good customer engagement management (CEM) system will also give you details about individuals, such as how much they’ve spent with you till date, how frequently they visit your site, how long they’ve been members with you, and what products they routinely purchase from you.    

customer engagement management and customer relationship management

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Using this information, you can then design content specifically for the right people and deliver it to them through the proper channels.  

For instance, you can personalize rewards for them based on their tastes, like offering them a free box of their favorite donuts on their birthday, because that’s the flavor of donuts your data indicates they routinely buy.  

Also, if you know a customer engages most frequently with you through your app versus desktop, you can feed targeted specials or messages to them through these preferred channels.

Doing this also ensures you’re not missing out on communicating with them by sending them messages in one medium when they usually interact with you in another.  

Again, being able to know your customers well enough to tailor your approach to them will show them you care. And when they sense your attention and focus on them, they’ll be more likely to give both their loyalty and business to you willingly.

Give your best customers VIP treatment

True, everyone loves to feel special, but the ones you should make feel most special are those most loyal to you.  

Data can reveal which of your customers fall into this category. And once you know who they are, you should make every effort to reward them for that loyalty. Why? Because according to statistics, 20% of your customers drive approximately 80% of your revenue. And that 20% is your most loyal customers.

Offering VIP specials, first dibs on sales, and other such exclusive perks can go a long way in making a substantial impact on your ROI.

To do this, first identify your most loyal customers, then leverage data analytics to get to know more about them (age, gender, demographic, location, etc.). Once you have all this information, you can then determine a customized way to offer rewards.  

If you’re not sure quite how to choose which customers to reward for their loyalty, you might consider those who fall into the falling categories:

  • The ones who frequent you the most
  • The ones who spend the most
  • The ones who have been around the longest

Once you’re able to categorize your customers into the above groups, you can then choose how to segment them further.  

For instance, you can choose to reward groups by spend thresholds. This is particularly a great option if your customer mix comprises mostly of millennials. This generation most enjoys a rewards/loyalty program, which inclines them to continue being loyal to your brand.

In fact, 22% of millennials indicated rewards programs as a brand loyalty driver more than any other generation surveyed.

survey - brand loyalty matters

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So if you don’t have a way to reward your top customers just yet, that should definitely be an item on your to-do list. Especially if you want to see a positive impact on your ROI.

Leverage engagement to your advantage by encouraging feedback

When customers are on your site engaging with you, collecting their feedback can really help boost your business and your ROI. A best practice is to collect this feedback in real-time, when it’s most effectively given and received. Chat boxes or pop up ratings, for example, allow customers to quickly offer their thoughts. Plus they’re tools that are affordable, simple, effective, and easy-to-implement.

Aside from providing you with insight into how you can drive customer satisfaction and improve your business, feedback has another positive perk. Generally, those who you’re able to gather feedback from are those who end up spending more with your company.  

Also, by collecting feedback to drive future improvements, you can ensure future customer satisfaction, which is also proven to boost ROI. On average, a whopping 86% of customers are willing to pay more for great customer experience. And you won’t know their definition of a great experience unless you ask.

bad experiences can cost you your customers

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Keep up with your data to track your progress with ROI

You now know several different ways you can boost your ROI for the long term. But perhaps the most important of all is to test your efforts.

As you’re implementing different tactics to increase your returns, keep track of whether those tactics are actually working and also how well they’re working. That way you’ll know which ones to keep up with and which ones, potentially, to abandon in exchange for another tactic.  

Here are some metrics to track so you can measure improvements over your past performances:

  • Return customers: track how much you’ve made from customers who left for a while but who you won back through your customer engagement efforts.
  • The number of loyalty customers: see how many of your customers have stayed with you for a considerable period (defined by you).


measure customer experiences

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  • Number of high-spend customers: count the number of customers who are spending the most at your business.
  • Number of frequent visitors: customers who regularly pay you a visit are likely to buy more regularly from you as well, so keep up with them. But also be sure to track how/whether their visits correlate with their spend levels.


As you can see, earning an ROI from people who are already loyal to your site and brand isn’t nearly as difficult as it may initially appear. All it takes is a little strategy, the right customer engagement analytics tools, and some patience. Ultimately, you’ll be surprised at how far these things can go.

Earning ROI from your customer engagement basically boils down to a few key factors: being able to leverage data, knowing your customers personally, rewarding the ones most loyal (remember, the ones who spend the most account for the majority of your ROI), soliciting feedback (preferably in real-time, like through live chat) and keeping up with your progress.

Stick true to these tips, and you’ll see your customer engagements reward you in the form of ROI in no time.

Find out how personalised experiences can be implemented at scale across your business at the Freshworks Experience Roadshow. The roadshow, which will feature insightful talks and discussions on how to build delightful customer experiences at scale, will start on October 1 and go on till October 31 across 10 European cities. Register today!