Customer Experience 
A customer engagement model is a framework businesses use to increase and enhance customer interactions.
Customer engagement models are like tending a garden. Just as plants need regular care to grow, businesses must consistently engage with their customers. Without that ongoing attention, relationships with customers can wither.
According to our 2024 State of Customer Experience Report, 88% of customers become repeat buyers when they trust your brand. With the right care — such as listening to feedback, providing omnichannel support, and nurturing connections — loyal customers will blossom and even spread the word, helping your business grow stronger. Our guide explains each model and provides customer engagement examples so you can choose the right customer engagement strategy to put in place.
Why Customer Engagement Models Are Important
It’s pretty simple — the more positive interactions you have with customers, the better your relationship. Here are a few reasons why it’s important to have customer engagement models.
- Stronger customer relationships: Engaging consistently and meaningfully builds trust and customer loyalty, making customers feel valued and understood.
- Better understanding of customer needs: Listening and gathering customer feedback helps you stay on top of changing preferences and pain points.
- Higher customer satisfaction: Positive interactions lead to happier customers, driving satisfaction and positive sentiment.
- Increased customer retention: Loyal customers are more likely to make repeat purchases when you meet their needs and provide great customer service.
- Improved customer lifetime value (CLV): Engaged customers tend to spend more, buy more often, and refer others, adding even more value to your business.
Greater competitive advantage: Delivering top-notch customer experiences sets you apart, allowing you to gain a significant edge.
7 Stages of the Customer Engagement Cycle
| Unaware | The customer is unfamiliar with your brand and offerings. |
| Discovery | The customer becomes aware of your brand through methods like advertising, social media, referrals, or organic search. |
| Consideration | The customer compares your brand’s offerings to competitors, weighing factors like price, quality, and brand reputation. |
| Acquisition | The customer makes a purchase and becomes a new customer. |
| Onboarding | The customer is introduced to your product or service and learns how to use it effectively. |
| Retention | The customer continues to use your product or service and remains loyal to the brand. |
| Advocacy | The customer becomes a brand advocate, recommending the brand to others and sharing positive experiences. |
8 Types of Customer Engagement Models
Businesses can use various customer engagement models to help build stronger, longer-lasting relationships with their customers. The model that’s right for your business will depend on a few key factors: the type of product or service you offer, your target audience, and the engagement goals you want to achieve. Let’s dive into some of the most common models and how they can work for different business types.
High-touch model
A high-touch model involves frequent, personalized interactions with customers. This approach is ideal when you’re dealing with high-value products or services where the customer expects and appreciates a more hands-on customer experience.
👉 Example: A car dealership offers personalized, one-on-one customer service to customers buying a new or pre-owned vehicle. Each customer is assigned a dedicated agent who guides them throughout the entire customer journey in ways such as:
- Choosing the right car based on their lifestyle, preferences, and budget
- Arranging personalized test drives
- Handling all paperwork
- Providing regular updates
After the sale, they stay in touch for ongoing support, including scheduling maintenance and offering exclusive service deals.
💡 Why it works: This high-touch approach creates a personal connection, making customers feel valued and supported. It’s especially effective for high-value purchases, where trust and tailored service are essential to building long-term loyalty.
| Benefits | Challenges |
| Builds strong one-on-one relationships | High cost to maintain |
| High customer satisfaction | More difficult to scale |
| Upselling and cross-selling opportunities | Requires skilled staff |
Low-touch model
A low-touch client engagement model takes a more automated, hands-off approach. This model is commonly used for low-value or standardized products or services where customers don’t need much personalized interaction.
👉 Example: An online streaming service uses automated systems to handle customer inquiries. If customers need help, they can access a self-service portal with FAQs, video tutorials, and troubleshooting guides for 24/7 customer support. If their issue is more complex, they can submit an online ticket that automatically routes to the appropriate team for resolution.
💡 Why it works: This model keeps costs low and offers quick, 24/7 support. It’s ideal for businesses that offer standardized products or services, where most customer inquiries can be resolved without human intervention.
| Benefits | Challenges |
| Cost-effective and scalable | Limited personalization |
| 24/7 support through automation | Difficult to address complex issues |
| Consistent customer experience |
Hybrid model
The hybrid model combines the best of both worlds — high-touch and low-touch. This approach promotes a customer engagement process that allows businesses to offer personalized support where it matters most while leveraging automation to handle routine or simple interactions.
👉 Example: A Software as a Service (SaaS) company offers self-service options and personalized support. With this type of customer engagement model, customers can:
- Use a knowledge base or chatbots for customer service to resolve basic issues.
- Connect with a support agent for more complex problems.
This mix allows the company to handle high volumes of simple inquiries while providing personalized help for those who need it.
💡 Why it works: Hybrid customer engagement models balance automation with human interaction, giving customers the option to choose their preferred support method based on the complexity of their issue.
| Benefits | Challenges |
| Flexibility through automation and personal support | Requires careful coordination |
| Scalable with efficient processes | Complex to manage as business scales |
| Combines personalization with speed |
Retention model
The retention model focuses on keeping existing customers happy and engaged. Businesses using this model prioritize customer loyalty through loyalty programs, personalized offers, and standout customer service.
👉 Example: A coffee shop offers a loyalty program where customers earn points for every purchase. They can redeem these points for free drinks, coupons, or exclusive deals. In addition, the coffee shop sends personalized messages via email or in the mobile app to check in with regular customers and offer rewards for referrals.
💡 Why it works: The focus is on keeping existing customers engaged and happy, which reduces churn and converts loyal customers into brand ambassadors. Retaining customers is less expensive than acquiring new ones, making this approach cost-effective.
| Benefits | Challenges |
| Encourages loyalty and repeat business | Ongoing efforts to keep customers engaged |
| Increases customer lifetime value | Loyalty programs can be costly |
| Lowers new customer acquisition costs |
Customer success manager model
In the customer success engagement model, businesses assign dedicated professionals to work closely with customers, ensuring they achieve the outcomes they’re looking for. This model works especially well for complex or high-value products and services.
👉 Example: A small business software provider assigns a customer success manager to each client. The CSM regularly checks in to ensure the client gets the most out of the software, provides training on new features, and suggests ways to improve workflow efficiency. If issues arise, the CSM proactively steps in to resolve them before they escalate.
💡 Why it works: This model ensures that customers are not only satisfied but also successful with the product, leading to long-term relationships and higher customer satisfaction.
| Benefits | Challenges |
| Proactive support boosts satisfaction | Expensive to maintain dedicated teams |
| Increases product adoption | Hard to scale without more staff |
| Helps prevent churn |
Unique Selling Proposition (USP) model
The USP model is all about what makes your product or service unique. Businesses that focus on a unique selling proposition aim to stand out from competitors by highlighting the one or two things that make them truly different.
👉 Example: An AI call center highlights its USP, such as AI chatbots that use conversational AI to understand customer sentiment. Their support team emphasizes this unique feature in all customer interactions, ensuring users know how it differentiates them from competitors. When a customer reaches out for help with chatbot setup, the team showcases the AI’s ability to adapt to emotional cues in customer interactions.
💡 Why it works: By focusing on what makes its product stand out, the company creates a strong identity that attracts customers looking for something different from the competition.
| Benefits | Challenges |
| Differentiates the brand in the market | Requires ongoing innovation |
| Increases engagement and conversions | Competitors may replicate unique features |
| Clear messaging resonates with customers |
Customer segmentation model
In this model, businesses divide their customers into segments based on demographics, purchasing behavior, or interests. Each segment is then targeted with tailored marketing and engagement strategies.
👉 Example: A Unified Communications as a Service (UCaaS) company that provides customer service software segments its customer base based on business size and industry. Here’s how they target each segment:
- For small businesses, they emphasize easy-to-use software with quick setup and affordable pricing.
- For mid-sized companies, they highlight multi-channel support and integration with CRM platforms, emphasizing how these features streamline communication and improve response times.
- For large enterprises, they focus on advanced features like AI-powered chatbots and 24/7 support.
💡 Why it works: By segmenting customers into different groups, the company can tailor its customer service approach to meet the unique needs of each group, making interactions more relevant and engaging.
| Benefits | Challenges |
| Highly personalized engagement | Requires detailed data analysis |
| Increases customer satisfaction | Time-consuming to implement |
| Improves conversion rates |
Community-based model
Finally, the community-based model is about creating spaces where customers can connect with each other and your brand, increasing online customer engagement. This model works well for businesses wanting to build a strong sense of community around their products or services.
👉 Example: A gaming company creates an online forum where players can share tips, troubleshoot technical issues, and engage with the brand’s customer support team. The support team actively participates, answering questions and providing guidance, building your brand’s online presence — while players help each other with game strategies and solutions.
💡 Why it works: This model fosters a sense of community, encouraging customers to engage with both the brand and each other. It strengthens loyalty and provides valuable customer insights while reducing the need for one-on-one support.
| Benefits | Challenges |
| Builds strong brand loyalty | Needs active moderation and engagement |
| Encourages word-of-mouth marketing | Can be time-consuming to manage |
| Provides valuable customer insights |
Tips for Customer Engagement Model Success
Creating a successful customer engagement model requires thoughtful planning, dedication, and a solid customer engagement framework. These tips make it easier for you to start connecting with your customers and build stronger relationships for long-term growth.
- Understand your audience: Start by creating detailed buyer personas and mapping your brand’s customer journey. This helps you get a clear picture of their needs, preferences, and challenges, allowing you to tailor your engagement strategies more effectively.
- Make it personal: Use the customer data you collect to personalize every interaction. Whether it’s customized emails, tailored product recommendations, or personalized customer service, showing customers you understand them can go a long way.
- Be available on their terms: Offer omnichannel customer service — whether that’s through email, phone, chat, or social media. Ensure the experience is smooth and seamless no matter how they connect with you.
- Listen and act on feedback: Don’t just collect feedback — do something meaningful with it. Use surveys, online reviews, and social media interactions to gather valuable customer insights. Then, implement changes that show you’re listening and committed to improving.
- Reward loyalty: Keep your loyal customers returning by offering exclusive deals, discounts, or special perks. A good loyalty program can help build deeper connections and encourage repeat business.
- Leverage data to drive decisions: Use analytics tools to track how your customers engage with your brand. These insights will help you fine-tune your strategies and make smarter, data-driven decisions for continued success.
Optimize Your Customer Engagement With Nextiva
Implementing a strong customer engagement model can do wonders for your brand, from boosting customer loyalty to positively impacting your bottom line. But remember, engagement isn’t a “set it and forget it” deal — it’s an ongoing journey. Staying in tune with your customers’ needs, using technology to streamline interactions, and continually refining your approach can help you build long-lasting relationships that take your business to the next level.
If you’ve made it this far, you’re ready to take the first steps to elevate your customer engagement strategy. Check out Nextiva’s customer engagement platform and learn how easy it is to reach your customer engagement goals.
Surprise and delight customers.
Have conversations with customers any way they prefer to communicate, and work with teammates in a single app.
Customer Engagement Model FAQs
Check out these customer engagement model FAQs for additional information.
There’s no one-size-fits-all answer here — the best model really depends on your industry, customer base, and what you’re trying to achieve. A mix of high-touch, low-touch, and hybrid approaches can often work well. The key is to understand customer preferences and what resources you have available. Then, tailor your approach accordingly.
To see if your engagement model is successful, keep an eye on some of these customer engagement metrics:
🔹 Customer satisfaction (CSAT) can be measured using surveys and feedback on how happy your customers are.
🔹 Net Promoter Score® (NPS) is great for measuring customer loyalty and their likelihood to recommend you.
🔹 Customer retention rates can show you if customers are sticking around.
🔹 Customer lifetime value (CLTV) helps you understand the long-term value of each customer.
🔹 Social media engagement shows metrics such as likes, shares, and comments to gauge how engaged your audience is on social platforms.
Yes, customer engagement models can benefit businesses of any size. Even if you’re a small business, you can use simple and cost-effective strategies to build strong customer relationships—like sending personalized emails, engaging on social media, and offering loyalty programs. It’s all about creating meaningful connections with your customers.
Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.
