Posted by Shivali Anand
February 15, 2022 | 4-minute read (797 words)
Business owners must continually seek out ways to improve consumer engagement in order to increase client retention and revenue per user. Here we’ll explain the characteristics of the five main customer-engagement archetypes and show you the compound annual growth for profits and sales for each type.
According to our comparison, the "growth champion" archetype for customer engagement provides the most benefits to businesses, as explained below, but we’ll start by explaining the importance of a customer engagement strategy.
Why is a customer engagement strategy so important?
When a consumer or potential customer has a favorable interaction with your business, it improves their perception of your brand and increases the probability that they’ll use your services again. So, in a nutshell, the goal of your customer engagement strategy is to fulfill their expectations and increase your close or sale rate.
While most entrepreneurs fully understand the value of consumer engagement, some aren't sure how to foster it. That could lead them to take a hands-off attitude, or to ignore input from account managers.
About the five customer engagement archetypes:
• The hands-off archetype
Around 28% of CEOs take a hands-off attitude to their work. This archetype believes the sales staff alone is responsible for sales. As a result, the hands-off archetype seldom engages with customers.
Effect on customer engagement: CAGR profits 1.2%; CAGR sales -0.3 %.
• The loose cannon archetype
Around 21% of executives fall into this category. The loose cannon archetype is prone to making promises the company can’t meet, leaving account managers to repair the damage.
Effect on customer engagement: CAGR profits 2.7%; CAGR sales 1.7%.
• The social visitor archetype
The social visitor archetype excels at building customer relationships. On the other hand, they may not discuss much about business during lunches, expos and other client-facing events.
Effect on customer engagement: CAGR profits 6.9%; CAGR sales 4.7%.
• The deal-maker archetype
The deal-maker concentrates on closing sales and is skilled at explaining precisely what the company can accomplish for customers. They frequently enter the process near the end when a customer is close to signing.
Effect on customer engagement: CAGR profits 7.7%; CAGR sales 4.1%.
• The growth champion archetype
The growth champion is prepared for the inevitability of change and therefore understands how businesses frequently need to reinvent themselves to avoid being left behind. They are highly attentive and help move a customer’s business ahead by asking enough questions to understand their needs.
A hallmark of the growth champion archetype is that they go above and beyond to achieve customer satisfaction, but without making promises they can’t keep. As skilled communicators, growth champions are not hesitant to face concerns or discuss challenges, but they do it in a way that is supportive. They tend to be excellent coaches and high achievers.
Effect on customer engagement: 5-year CAGR profits 9.7%; 5-year CAGR sales 8.8%.
Executives should aim to be growth champions
Even senior executives who aren't involved with sales should strive to be growth champions. Because the business-to-business landscape has shifted and become increasingly competitive, all top players must take part in the customer's sales journey.
The engagement of senior executives is especially beneficial when the team is pursuing large or complex projects. Their professional knowledge and experience can be invaluable, and the networks they’ve built over time may lend themselves to stronger relationships with customers. They are also likely to be able to offer unique insight into each individual customer’s needs.
While potential customers can sometimes be skittish of someone in a sales role, dealing with someone in a senior executive role can help ease this tension because they are regarded differently, even though their end goal is also to generate sales. Non-sales executives also bring a fresh perspective to the table, leading to creative ideas, while salespeople may lose their ability to perceive things from the customer's perspective over time.
When clients feel heard and understood, you'll be able to attract and keep them. Who better to advise a sales team on how to prepare for meetings with another company's CFO than your own CFO? Similarly, if your company is contacting another company's health director about a service that your company provides, having your own health director involved in the process could enhance your chances of landing a lucrative, long-term contract.
Conclusion: Growth champions assist their companies in achieving CAGRs that are almost twice as high as any other consumer engagement archetype. If your business can turn even a handful of its social visitor or deal-maker archetypes into growth champions, it can significantly improve your bottom line. The important thing is that you do it in a way that builds positive relationships with clients while also expanding your sales opportunities.