For companies around the world, 2022 was often a confusing and complex year—and 2023 is proving to be just as challenging. We’re at a critical turning point. But while many consumers are cutting back on spending and easy credit is becoming harder to come by, brands shouldn’t panic—there’s a clear path out of today’s turmoil for any company that’s willing to put in the thought and work required. The secret? Build better relationships with the customers you currently have, while mapping out engagement strategies to build stronger relationships with them and future customers. After all, research has found that brands who are able to increase the customers they hang on to by just 5% can enjoy a 25-95% increase in profitability. By focusing on customer engagement—which encompasses the full set of activities that companies use to build and strengthen direct relationships with their users—brands can lower overall acquisition costs by reducing the need to fill a leaky bucket (and by leveraging referrals to drive organic growth). Plus, they can boost customer lifetime value by more consistently driving revenue from an audience of loyal customers. Prioritizing customer engagement has… ...

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