Customer engagement alludes to how a brand connects to its prospective customers through digital and personal means. A great customer engagement strategy helps a brand approach and maintain long-term relations with their customers. This in turn results in more loyal customers, increased revenues, and profitability of the company.

We always talk about providing a great customer experience to your customers when they are interacting with your brand in-store or online. But customer engagement is much more than that – it’s about inspiring your customers, and encourage them to indulge in this experience.

A better understating of customer engagement is highly applicable to the retail world. Every retail business is different, and hence the engagement strategy should be different as well.

For example, in the case of fashion retail, a customer might want to receive information about the latest trends and designs. The engagement strategy can focus on personalization.

Whereas, in the case of a grocer, where the customer might not want to receive product-related updates, the engagement strategy can focus on facilitating the transactions most quickly and seamlessly.

Let’s deep dive to understand customer engagement for your business.

How customer engagement impacts profitability

The Key to Grow your Retail Business

Customer engagement is closely linked to the profitability of your business as strong customer engagement brings in more customer that are eager to engage with your business. Hence, if you do it right, you will not only grow your brand but also build customer loyalty and drive revenue.

According to the study by Constellation Research, companies who improve engagement can increase cross-sell revenue by 22 percent, up-sell revenue by 38 percent, and order size by 5 to 85 percent.

Read more about how you can implement consumer engagement to your business to retain customers.

Yes, investing in CRM can increase revenue

happy client

Customer Relationship Management or CRM is a system that stores customer data and other relevant sales information. For a retail business, a CRM can help you:

  • Collect a database of your customers
  • Know who your customers are
  • Allows you to better understand your customers’ choices and buying behaviors
  • Engage your customers at the right time, with the right messages

All these data and insights are very powerful. They can help your business to scale and help you stand out from your competitors. Let us explain to you how:

The historical data tells you that a particular customer buys a formal dress every 3-4 months. You have their contact number in your database. It has been 2 months since the last transaction. If you offer them a 10% discount and invite them to view your latest collection, what are the odds that they will at least visit your store? Imagine engaging thousands more in your database. All this is additional revenue generated, that might have lost if the customer was not engaged at the right time with the right offer.

Hence, CRM is a crucial part of retail businesses. More so in a country like Singapore, where the market is quite saturated due to limited population, increasing operational costs, and high competition.

A robust loyalty strategy compliments customer engagement

Customer engagement is all about customer loyalty – customers want to engage with brands that they trust, and are loyal to.

The best loyalty strategy is, undoubtedly, is to stay true to your brand promise, and provide the best products/services and customer experience.

Also, your brand can have a well-planned strategy that rewards customers for their loyalty. A Loyalty-CRM is a perfect ingredient for your customer engagement.

Upon every transaction, you can reward your customers with various kinds of targeted rewards, such as discounts, cashback, points, etc. These rewards not only act as incentives for your customers to come back to your brand but also create an opportunity to engage with your customers.

The Key to Grow your Retail Business
The Key to Grow your Retail Business
The Key to Grow your Retail Business
Importance of Customer Engagement in Retail: The Key to Grow your Retail Business
customer retention strategies to generate additional revenue by the business

The best loyalty program is the one that provides real value to the customers, at the same time is beneficial to the brand. We are very excited to share the loyalty program of our retail brand Gadget Mix, and their experience of the same.


In today’s world of innovation, new technologies and methods continue to emerge to help retailers enhance customer engagement. Sooner or later, all brands will have to have a well-defined engagement strategy to continue to serve their customers. It depends on the companies to decide when do they want to adopt automated and technology-driven customer engagement.

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