Top Customer Engagement Trends to watch for in 2021

Top Customer Engagement Trends to watch for in 2021

The role of technology is crucial in the digital transformation of customer experience. Customer engagement has always been a focus point for businesses and customers across the globe. More than experience, it is a matter of emotion and trust for both customers and companies. Indeed, brands should understand customer engagement trends in 2021 and why it is important. It helps to make customer engagement more compelling and lead to more retention. 

Customer Engagement Trends

For instance, let us consider that a customer who is happy with the engagement would prefer to buy more and promote the brand. Marketing tools and AI-powered Chatbots improve customer experience by resolving client issues.

Furthermore, experts predict the following trends will help financial institutions increase client engagement.

 Customer Engagement Trends in 2021

Internet of Things (IoT)

The Internet of Things is evolving across various sectors.
Marketers expect to have over a 26billion connected devices by 2020. Yet, when it comes to business opportunities, we are still at the basic level, where only 0.06% of all devices could leverage IoT. Furthermore, around 94% of the business that is utilizing IoT have seen a good return on investments.
Do you wonder what this technology means for banking or financial institutions?
Here’s the reason!
IoT makes it easier for banks to communicate with customers. As the technology connects process, people, and things, the banks can connect in a contextual, and informative way. IoT technology gives actionable and immediate insights, so it allows businesses to adapt to the customer needs. The technology allows marketers access to behavioural data to improve future customer experiences.
For example, a bank could install digital sensors in their ATMs or bank branches to assess user behaviour. It also alert them to any unforeseen service obstacles or customer issues.

Reasons why IoT is the latest customers experience trends for businesses:

Access to real-time data:

Companies can record real-time consumer feedback on their services or products. Furthermore, instant access lets us deliver better customer service.

Enhanced service:
The behavioural analytics insights helps to improve current services or develop new solutions. These insights will help you identify service areas or items that requires update. Therefore, you can arrange customer care operations based on the analytics data.
Better customer service:

IoT technology can boost the customer engagement level and retention rate. It can control problems and detect issues in the early stage and send alerts to the organization or predict the issue before they can occur.

Behavioural Data Analysis for Customer Engagement Trends

To succeed in the business, just knowing your customers is not sufficient, you should be able to understand their issues and provide solutions. But more than anything, you should be able to anticipate your customer’s next move. This is possible only if you have sufficient user data. Based on user behaviour across all touchpoints, organisations can complement their marketing campaigns.

Better opportunity to engagement

Behavioral analytics also allows you to engage people with opportunities. Thus, the campaigns rely on analytics insights and automation to capture users at the correct time.

Customers are evolving, so marketing approaches should also be evolving in parallel. Real-time marketing and event-triggered capabilities will be the next significant revolution. As a result utilizing automation, predictive analytics, and Omni-channel engagement enable personalised messaging.

Marketers have access to fundamental information such as gender, age, region,and  critical dates. Additionally, using automation, predictive analytics, and omnichannel interaction helps to provide better service.

Omnichannel customer experience

In the recent era, users prefer to have multiple touchpoints to establish a connection between customers and businesses. They also expect a seamless customer experience. Hence transformation towards omnichannel customer experience is inevitable to succeed in digital world.

Methods of how omnichannel experience can be a part of customer experience trends in 2021:

Map your user journey:

Understanding customer journeys offers visibility to user personas. These data can help you design end-to-end service journeys across digital platforms. This ultimately means that customers can interact with brands at all levels and receive a cohesive experience.

Outline strategies to engage customers:

Businesses should create a strategy for customer service to deliver a great experience. Those strategies should maintain a balance speed within each channel across all the touchpoints.

Customer Engagement Trends

Identify appropriate channels:

Understanding the customer’s most preferred channels establish connection and enables better customer service. Be active on the channels where your customers stay active and engage more.

Consistent user experience:

It is critical to offer a consistent experience throughout the customer journey, regardless of medium. Your customer should feel a unified experience throughout the journey.

Chatbots automation for improved customer experience (CX)

AI (Artificial Intelligence) is transforming the method of how the business communicates with the consumer. Chatbots are expected to shift from simple user-based queries to advanced predictive analytics based real-time conversation.

With the boom of AI trends, more businesses will incorporate chatbots to boost customer engagement and strengthen loyalty. Over 68% of customers state that messaging is the most convenient method to stay connected with brands.

Methods  how AI chatbots can transform customer experience trends:
  1. AI chatbots is self-learning and can create contextual user engagement through message application.
  2. AI will be able to enhance the user experience with your business and enhance customer loyalty.
  3. Build customer experience by delivering personalized customer experience.

Augmented Reality

More brands are stepping into the AR trend can help both offline and online businesses to boost how they interact with users. Experts anticipate that the AR market may reach up to USD 61 billion by 2023. With Augmented Reality in trend, businesses can deliver training programs quickly and efficiently. Because, the AR can replicate a real product so this can be beneficial to train your staff quickly.

Some ways of how Augmented Reality are useful are:
Virtual Product Training, Enable Decision Making, and much more.


Overall, the customer experience has improved dramatically with evolution of digital technology and other customer engagement trends. It promotes artificial intelligence chatbots, video marketing, predictive analysis, and consistent and tailored communication to assist organisations in finding new methods to engage their customers.


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