Customer engagement top priority for businesses

Back in the day, when company boards sat to deliberate on how to increase business revenue, customer service and engagement were scarcely among the items they discussed.

Most companies would focus on how and where to market more of their products and services, without really finding out what the customers whom they were targeting wanted or thought about the products and services that were available 

In today’s competitive world, however, effective customer service and engagement are top priorities for businesses seeking growth and long-term financial success.

The global customer engagement solutions market size was valued at $22.34 billion in 2024 and is projected to grow from $24.36 billion in 2025 to $48.51 billion by 2032, exhibiting a CAGR of 10.3 per cent during the forecast period.

Several studies show that engaged customers can generate 51 percent more revenue and sales than disengaged customers, with fully engaged clients said to be spending 23 per cent more over their lifetime than the average customer.

Furthermore, engaged customers spend 60 per cent more per transaction, with engagement increasing cross-sell revenue by 22 per cent and up-sell revenue by 38 per cent

Shrinivas Torvi, Workshop head, Tata Motors Limited, says that people are evaluating how particular companies engage their employees, suppliers, customers and the broader community, before deciding whether or not to purchase goods or services from them.

“Similarly, companies are assessing whether potential partners are accountable and transparent not only to their shareholders, but also to their stakeholders, before engaging in contractual obligations with them.”

As a result, Torvi says that a lot of companies are ramping up their investments in deepening customer understanding through data analysis and segmentation, personalized messaging and real-time support.

“Companies are increasingly recognizing the need to move beyond transactional relationships and cultivate genuine partnerships with their customers,” Torvi said.

According to him, this focus on engagement not only helps companies boost customer retention, which is more cost-effective than acquiring new customers, but also to gain insights into market trends and customer preferences.

He revealed that over the past two months, Tata Motors has been conducting regional training sessions in various parts of the country, including Kisumu, Mombasa, Nairobi, Kisii, Migori and Mlolongo.

“Prioritizing customer engagement and proactive service is crucial. This involves actively listening to customer input, implementing surveys, conducting training and addressing issues before they escalate,” Torvi said.

Recently, the company also signed a memorandum of understanding with the Truckers Association of Kenya (TAK) that will see TAK members enjoy various benefits, such as purchasing any of Tata's fleet of vehicles at a discounted price.

“Consumers today expect personalized interactions, offers, and experiences from the companies they interact with,” said Torvi.

“Delivering on these expectations can be the difference between a satisfied customer and one who switches to a competitor,” he added.