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Likitha A
Likitha A May 4, 2023

Product owners and marketers prioritize one key metric principally above all – Engagement!

Although engagement is a blanket term that means building lasting relationships with customers and driving business success, did you know there are two types of engagement? 

One is promoting a brand, and the other is selling a product. In other words, brand engagement and customer engagement. 

While these terms sound very similar, they refer to two distinct concepts that play different roles in shaping customers’ perceptions and behaviors. 

This blog will explore the differences between brand and customer engagement and why they are essential in creating a successful marketing strategy.

What is Brand Engagement?

Brand engagement refers to the emotional connection that customers have with your brand. It encompasses everything from your brand’s visual identity (logo, colors, font, etc.) to how you communicate with customers.

It is about building a relationship with your audience and establishing a strong, recognizable presence in their minds.

Brand engagements of social media platforms

Why is Brand Engagement Important?

1) Boosts Brand Loyalty and Retention

Only delivering a meaningful experience can cultivate brand loyalty. Customers are inclined to feel emotionally invested in your brand, resulting in an increased likelihood of repeat business if you establish a personalized connection with them. 

Prioritizing brand loyalty can be a savvy long-term strategy that yields dividends in the future. Research shows that 80% of customers are more likely to purchase from a brand that offers personalized experiences.

2) Higher Brand Awareness

Building brand awareness is essential to driving business growth as it is a multi-faceted process that requires a thoughtful approach. A solid online presence and consistent messaging are key factors in achieving this. 

By creating high-quality content, engaging with customers on social media, and maintaining a cohesive brand identity, you can expand your reach, build credibility, and increase recognition among potential customers. According to Forbes, consistent brand presentation across all platforms increases revenue by up to 23%.

3) Build a Strong Community

Brand engagement is crucial for building a community of loyal users and driving business growth. By fostering word-of-mouth marketing and creating exceptional customer experiences, you can expand your reach and build a community of brand advocates. 

According to a survey conducted by BrightLocal, 72% of consumers say positive reviews make them trust a business more. This highlights the importance of building a community of satisfied customers through brand engagement, as positive word-of-mouth can significantly impact brand trust and awareness.

What is Customer Engagement?

Customer engagement is the interaction between your brand and customers to foster customer loyalty and awareness. It includes everything from repeat purchases, social media engagement, and referring your brand to others.

It is all about creating a positive experience for your customers at every touchpoint along their journey with your brand.

Showers pass customer engagement strategy

Why is Customer Engagement Important?

1) Maximized Revenue and Profitability

Customers are the lifeblood of any business and the primary revenue source. So the more you engage your customers, the easier it is to drive sales and increase your revenue as they are completely aware of your value proposition. 

Companies with highly engaged customers achieve a revenue growth rate of 5.1% compared to their competitors, with average engagement and a 10.9% greater annual increase in customer lifetime value.

2) Improved Customer Insights and Feedback 

When you deliver great customer experiences while engaging your customers, you can gain valuable insights into their needs, preferences, and pain points through feedback. 

This information gathered from in-app surveys can be further used to improve your products or services, ensuring that they meet the demands of your target audience.

It can also help you create effective marketing campaigns by tailoring your messaging and promotions to your customer’s needs and interests. 

According to a report by Forrester, customer-centric companies that leverage customer insights and data outperform their competitors by nearly 80%.

3) Increased Customer Retention

Customer retention that brings in repeat business is a critical component of a successful business strategy, and for a good reason. 

Repeat customers spend up to 5X more than new customers. This is because they are already familiar with your brand and have established trust and loyalty with your business. 

As a result, they are more likely to return for future purchases and require less marketing and advertising efforts to retain.

What is the difference between Brand and Customer Engagement?

The difference between brand engagement and customer engagement lies in how they connect with audiences. 

Brand engagement is employed at the top of the funnel (TOFU) to reach out to potential customers unfamiliar with the brand who may not have a prior purchase history. 

In contrast, customer engagement is focused on engaging with your existing customer base.

Brand engagement often involves using pull techniques that draw customers toward the brand. 

These include creating valuable content, providing excellent customer service, building strong customer relationships, and offering unique products or services. 

Pull techniques aim to create a positive image and relationship between the brand and the customer, and they rely on the customer’s interest and engagement.

Apple launched a campaign targeting students offering free Beats headphones with a Mac or iPad purchase. This campaign was a great example of brand engagement, designed to create a positive relationship between the brand and its customers.

Apple's Brand engagement advertisement

On the other hand, customer engagement often involves using push techniques to engage the customer actively. 

These can include email marketing, social media advertising, targeted promotions, and other forms of direct marketing. 

Push techniques aim to grab customers’ attention and persuade them to engage with the brand. They often rely on the brand’s ability to provide a compelling offer or message that resonates with the customer.

Amazon Prime keeps customers engaged with personalized recommendations, 24/7 customer service, and gamification techniques like Prime Day. Its strategy focuses on creating a convenient and personalized customer experience to boost customer engagement. 

Also Read: Web Personalization: The Key to Boosting User Engagement in 2023

Amazan's Prime personalized recommendations

Now, let’s look at the differences between Brand and Customer Engagement!

Difference between brand engagement and customer engagement

Conclusion

Brand and customer engagement are essential strategies for building a successful brand. While brand engagement focuses on creating a positive perception of the brand, customer engagement aims to build a long-term relationship with the customer. 

Both types of engagement are crucial for creating a contextual and seamless customer experience from top to bottom of the funnel. 

Therefore, businesses need to monitor and optimize both engagement strategies to improve brand recognition, drive higher engagement rates, and, ultimately, achieve business success.

The Upshot.ai Advantage

Upshot.ai is an omnichannel, customer engagement, and gamification platform.

With Upshot.ai, banks, Insurance, and FinTech firms can enhance their digital experiences with pre-built gamification features.

It can provide personalized insights, actionable recommendations, and contextual nudges designed to deepen its relationship with its users.

Book a demo of the most comprehensive user engagement and gamification platform to achieve your digital product goals.

Join our communities for more insights, guides, and best practices that keep you updated with proven strategies and tips to supercharge your campaigns.

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