The best retailers don’t just sell products; they curate experiences, nurture relationships, and become a part of their customers’ lives. As consumers increasingly seek more from brands and differentiation becomes harder, retailers are adapting their engagement strategies to meet changing expectations. This guide shares seven approaches that forward-thinking retailers use to improve brand experiences, build community, and drive both customer engagement and business growth.
Key Takeaways
- Tailored, genuinely caring experiences across all touchpoints boost engagement and loyalty.
- Leveraging technology, such as AI and apps, can create immersive, convenient retail experiences.
- Create a sense of fun and trust among customers to drive long-term engagement and advocacy.
7 Ways to Improve Customer Engagement in Retail
1. Personalize the Customer Experience
In the age of data-driven retail, personalization has moved from a nice-to-have to a must-have. According to a McKinsey report, 78% of consumers will likely continue to engage and purchase again from companies that personalize.
How? Group customers based on demographics, purchase history, and preferences to deliver targeted marketing messages and offers. Use data insights to suggest products that align with individual customer tastes and past behaviors, both online and in-store. Send tailored emails, SMS, and notifications that address the customer by name and reflect their interests or previous interactions with the brand.
2. Leverage Technology
Embrace technology to create engaging, convenient shopping experiences. Implement AI-powered chatbots on your website and social media to provide instant customer support and personalized recommendations. Use augmented reality (AR) to allow customers to try on products virtually or see how items look in their space.
Develop a mobile app that offers features like personalized shopping experiences, loyalty program tracking, and exclusive offers. Integrate dacadoo DHEP to offer health and wellness-related engagement features, tapping into the growing consumer interest in personal well-being.
3. Build a Community
Foster a sense of belonging among your customers to drive long-term engagement. Actively engage with customers on social media by responding to comments, hosting Q&A sessions, and sharing user-generated content. Create online forums and groups where customers can discuss products, share experiences, and connect with other fans of the brand. Encourage customers to engage with the brand through activities like writing reviews, participating in surveys, or attending events.
4. Utilize Content Marketing
According to a Deloitte report, customers who trust a brand are 88% more likely to buy again. Create valuable content that resonates with your audience and builds that sense of trust. Develop educational content such as blogs, videos, and tutorials that help customers make informed decisions about your products. Use storytelling in your marketing campaigns to connect with customers emotionally, sharing the brand’s mission, values, and success stories. Encourage and feature user-generated content on your website and social media.
5. Implement a Loyalty Program
Design a competitive loyalty and rewards program for better customer engagement, retention and acquisition. Allow customers to earn points for every purchase, which can be redeemed for discounts, gifts, or exclusive experiences. Create tiered loyalty levels that offer increasingly valuable rewards and exclusive perks as customers spend more or engage more with the brand. Include experiential rewards that go beyond discounts, such as early access to new products, invitations to events, or personalized shopping experiences.
6. Offer Exclusive Experiences
Create fun, memorable experiences that set your brand apart. According to an Accenture report, 76% of consumers who have some fun while shopping will recommend the brand to others.
Host special VIP events for top customers, such as private shopping events, product previews, or meet-and-greet sessions with brand ambassadors. Give loyal customers early access to sales, new product launches, or limited-edition items, making them feel valued and privileged. Offer one-on-one shopping appointments with personalized styling advice, either in-store or virtually.
7. Continuously Innovate
Stay ahead of the curve to keep customers engaged and excited about your brand. Regularly introduce new products, limited-edition items, or seasonal collections. Monitor industry trends and customer preferences to stay ahead of the curve and offer products that align with current demands.
Partner with other brands to create unique products or experiences that attract and engage customers. Platforms like dacadoo give you the power to add valuable tools to your digital suite. Our health and wellness gamification features let you engage customers in fun, interactive ways that promote both loyalty and well-being.
Examples and Case Studies
Starbucks: Innovative Loyalty Program Drives Engagement
Starbucks Rewards, with nearly 20 million members, has revolutionized customer engagement in the retail industry. The program offers mobile ordering, payment options, and gamification features like Starbucks for Life and Bonus Star Bingo, which enable members to accumulate points and prizes over time. In 2019, 71% of Starbucks app users were visiting a store at least once a week, with app users 5.6 times more likely to visit a Starbucks every day. The program’s success is evident in its contribution to overall sales, with Starbucks attributing 40% of its sales to the loyalty program in 2019.
Glossier: Personal Experiences Drive Customer Engagement and Co-Creation
Glossier, a beauty brand, has successfully leveraged social media to create a highly engaged customer community. The brand’s strategy focuses on encouraging customers to share personal experiences, which drives learning, advocacy, and product co-development. Glossier’s approach centers on authentic user-generated content across platforms like Instagram, Facebook, and their “Into the Gloss” blog. The brand actively encourages customers to share product experiences, ask questions, and provide feedback. As a result, Glossier has become a beauty brand with a cult following — in a study, participants who spent up to $1,000 on beauty products spent up to $300 of that on Glossier products in a six-month period. And overall, most of the participants (76.92%) chose Glossier as one of their favourite beauty brands.
Duolingo: Technology Innovativation Drives Global Engagement
Duolingo, a language learning app, has revolutionized language learning through innovative use of artificial intelligence, crowdsourcing, and offering unique language courses. Duolingo uses algorithms to generate lessons from a database of 3,000 common words in each language, enabling rapid course development and personalization. The company also offers 36 language courses, including options like Hawaiian and Navajo, and fictional languages like High Valyrian from Game of Thrones. As a result, Duolingo has nearly 30 million active monthly users and revenue growth from $36 million in 2018 to $86 million in 2019.
Better Retail Customer Engagement with dacadoo
Elevate your retail strategy and foster deeper customer relationships with dacadoo for retailers. By incorporating health and wellness initiatives into your brand experience, you can create a unique value proposition that resonates with your customers. dacadoo’s innovative platform allows you to differentiate your brand in a saturated market, engage customers on a more personal level, and encourage repeat visits and increased loyalty.
Book a demo and explore how you can leverage our engagement tool and health-driven insights to transform your retail strategy.
