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Customer engagement in the digital age: a review and research
agenda
Aaleya Rasool1, Farooq Ahmad Shah2 and Jamid Ul Islam3
With the emergence of digital era, practitioners and
academicians alike aim at comprehending how companies
might facilitate customer engagement. Acknowledging its
significance, this study presents a concise review of some
recent online customer engagement studies to highlight key
research themes that are yet to be enthusiastically uncovered.
Doing so, this study is expected to serve as a stepping stone in
affording an enhanced understanding of where the area of
customer engagement is heading towards and which areas
merit deeper scholarly investigation, thereby reflecting its
academic significance. We also highlight some key areas that
need managerial attention in the adoption of new technologies
to foster customer engagement.
Addresses
1
Department of Management Studies, School of Business Studies,
Central University of Kashmir, India
2
School of Business Studies, Central University of Kashmir, India
3 practical relevance of CE in the corporate world is further
College of Business Administration, Prince Sultan University, Riyadh,
Saudi Arabia
Corresponding author: Islam, Islam (Islam)
Current Opinion in Psychology 2020, 36:96–100
This review comes from a themed issue on Cyberpsychology
Edited by Jon D Elhai and Dmitri Rozgonjuk
For a complete overview see the Issue and the Editorial
Available online 29th May 2020
https://doi.org/10.1016/j.copsyc.2020.05.003
2352-250X/ã 2020 Elsevier Ltd. All rights reserved.
Introduction
Over the years, the world has constantly ben moving
towards the digital era. The emergence of this era has
led to an almost absolute brand transparency among
customers today [1]. In such a progressively networked
era, customers are empowered so much so that everything
for them is replaceable now; any product, any service, all
content, and any function. The advent of interactive Web
2.0 along with technological advancements such as Artifi-
cial Intelligence (AI), Big Data, Augmented Reality (AR), and
Internet of Things (IoT) are driving this change [2]. Such
technologies along with multiple social networking plat-
forms have become an integral part of customers’ lives
[3,4]. With an increasingly interactive environment,
today’s tech-savvy customers spend considerable amount
Current Opinion in Psychology 2020, 36:96–100
of time online [5,6]. As a result, marketers are making
significant investments in providing customers seamless
digital experiences and immediate customized solutions
to engage them with their brands [7].
As consumers are becoming increasingly proficient using
emerging communication platforms, they proactively con-
duct online, technology-facilitated service interactions
(e.g. purchasing flight/movie tickets online, undertaking
online consultation, purchasing items for daily use, and
playing online games). Given this paradigm shift in the
interactive environment, engaging customers has become
a strategic imperative for marketers to nurture customer-
brand relationships vis-à-vis improve their profitability
[8,9]. Therefore, customer engagement (CE), which
reflects the customers’ investment in their brand-related
interactions, is of significant importance [10–12]. The
reflected by the fact that 496 of the Fortune 500 companies
have used social media platforms including Facebook and
Twitter to engage customers [13].
Drawing on multiple theoretical backgrounds, particularly
service-dominant logic and relationship marketing, a num-
ber of CE conceptualizations have been proposed. For
example, Doorn et al. [14] perceive CE as uni-dimensional
(psychological) construct whereas Dijkmans et al. [15] sug-
gest CE to be a two dimensional concept comprising cogni-
tionandbehavior.Theuni-dimensionalnatureofCEmerits
simplicity but it does not reflect CE’s rich conceptual scope
[16,17]. In the recent studies, there is a rising consensus
among scholars that CE is a ‘context-specific’ multi-dimen-
sionalconstructcoveringcognitive, affectiveandbehavioral
dimensions [18,19,20,21,22]. Reflecting this tripartite
dimensionality, CE is defined as ‘a consumer’s positively
valencedbrand-relatedcognitive,emotionalandbehavioral
activity during or related to focal consumer/brand inter-
actions’ [19, p.154]. Similarly, Islam and Rahman [20]
conceptualize CE as ‘the readiness of a customer to actively
participate and interact with the focal object (e.g. brand/
organization/community/website/organizational activity),
[which] varies in direction (positive/negative) and magni-
tude (high/low) depending upon the nature of a customer’s
interaction with various touch-points (physical/virtual)’
(p. 2019).
Given its practical relevance to the contemporary corpo-
rate world, CE has also acquired central position in the
recent marketing literature [10,12,23]. The last few years
have seen a thriving research interest with respect to CE
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 Customer engagement in the digital age: a review and research agenda Rasool, Shah and Islam 97
in the online/digital context [24,25]. A growing number of
journal special issues, conferences, commentaries, and
research publications have actively started talking about
CE in the digitally networked media [3,26], which was
not present in the marketing discussions a decade ago.
Acknowledging its theoretical and practical significance,
we present a concise review of some selected online
customer engagement studies to highlight key research
questions and themes that can guide future research in
this rapidly developing area of CE.
Emerging research themes
We highlight following research areas to digitally facili-
tate CE. These themes also highlight certain important
areas that merit managerial attention in the adoption of
new technologies to foster and manage CE effectively.
Gamification and CE
The progressive accessibility of technology has impelled
corporates to embrace Gamification as a compelling mar-
keting tool [27,28,29]. Gamification market is projected
to reach $11.10 billion by 2020 [30]. Many of the giant
global companies like Starbucks, Amazon.com, and Expe-
dia are incorporating Gamification into their marketing
strategies [31]. Marketers apply gaming-related principles
to offer game-like experiences, which are more enjoyable;
thereby elevate customer engagement and experience
[32]. Because of its wide application to diverse contexts
such as facilitating learning in education, encouraging
more exercises in healthcare, and facilitating favorable
organizational behaviors in employees, Gamification has
attained an increasing attention from practitioners and
scholars [33].
Literature reveals that research on Gamification has recently
been conducted in different domains viz. branding, retailing,
and service design [34,35]. However, key principles that
might facilitate CE through Gamification and drive its suc-
cess remain under explored [27]. Despite the optimistic
perspectiveofGamificationin facilitatingCE,therestill exist
significant gaps which are vital to be reflected upon [27,35].
For example, little is known about the real potential of
Gamification in driving CE from the customer perspective
[27,36]. Research models studied with respect to Gamifica-
tion lack coherence across contexts, which therefore, merit
further investigation to strengthen the foundations of Gami-
fication-customer engagement interplay [31]. Besides, there
is a need for strong empirical evidence to understand the
psychological perspectives of customers’ Gamification adop-
tion and CE. In this direction, the role of psychological
characteristics in engaging customers through Gamification
adoption also needs scholarly pursuit [28].
To nurture insight into these issues, practitioners require
a deeper understanding of managing Gamification mech-
anisms carefully to avoid deviant behavior and negative
reactions [32]. Practitioners also need to focus on
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customers’ available resources and their willingness to
participate in brand-related interactions and activities
[10]. Therefore, the challenge for marketers is to revise
their Gamification mechanisms over time to maintain the
fun and excitement of the gameful experience and sustain
CE.
Mobile applications and CE
Contemporary marketers face a challenge to meet their
customers’ need for personalized expertise and solu-
tions in real-time during their shopping experiences. To
overcome this challenge, marketers are adopting digital
technologies such as location-based mobile applications
and virtual reality mobile apps to provide a highly
customized environment that offers real-time interac-
tive information exchange between the customer and
the brand [37,38]. While customers are progressively
becoming omni-channel shoppers, it is no longer
enough for marketers to strategize only in terms of
optimizing sales in physical versus online stores [39].
Rather practitioner success will be governed by how
they consider a whole mix of customer-brand touch
points to engage with each customer and amplify the
overall consumer experience. Given that digital touch-
points have transformed the way customers interact
with a brand, mobile apps in particular have emerged
as a go-to tactic for marketers because of their potential
to offer convenient digital customer engagement [37].
Mobile apps facilitate CE by providing a richer, porta-
ble, and deeper shopping experience to customers than
websites [40].
Studies investigating CE through mobile apps has tran-
spired into marketing literature relatively recently; there-
fore, this area offers a multitude of future research ave-
nues [37,41]. In this direction, scholars are suggested to
explore the factors that drive customers’ adoption, usage,
and engagement habits of mobile applications [37,40].
Future studies are also needed to more explicitly reflect
the different engagement-related (hedonic versus utili-
tarian) needs of different customers who adopt mobile
apps [38,42]. Besides, some individual personality fac-
tors (e.g. Big five personality traits) may also be consid-
ered to better describe the mobile applications driven CE
mechanism [11,16]. Another promising area as an exten-
sion of mobile applications is the incorporation of
Augmented Reality features, a domain wherein the
investment is predicted to reach $60 billion by the end
of 2020 [43]. Correspondingly, studies are needed to
understand how AR can be adopted to further strengthen
CE [38,44]. Moreover, studies need to examine cus-
tomer perception and engagement intentions towards
those mobile applications that provide AR features com-
pared to those that do not contain such features to
broaden the understanding of the importance of AR in
facilitating CE through mobile app adoption [38,44].
Current Opinion in Psychology 2020, 36:96–100
98 Cyberpsychology
Marketers need a detailed understanding of how to
manage the adoption process of mobile apps and increase
their usage rate. In order to stay ahead of the competition
curve, marketers need to provide customers with AR
experiences through different mobile apps [37,45].
Lastly, mobile apps (with or without) AR features are
typically designed to enhance overall customer experi-
ence, but it can also have counter-productive effects on
social wellbeing. For example, excessive use of such apps
can be detrimental to health and can result in obesity and
loss of eye sight [3,46]. Therefore, practitioners need to
frame sensible guidelines and rules to optimize overall
interactivity and engagement through mobile apps vis-à-
vis minimize such negative consequences.
Negative valenced expressions of CE
The advent of technology-enabled digital interfaces has
offered marketers valid platform to engage their customers
and facilitate their significant co-creating and influencing
role [21,47]. Today, customers rely on the authoritative
information and reviews (whether positive or negative)
shared by other customers about products and services to
reduce perceived purchasing risks [48,49]. Not all engaged
customers always post favorable feedback related to a
brand but some customers are negatively valenced
towards a focal object [47,50]. This is aided by the growth
of social media that has enabled customers to express
negative feedback quickly in the forms of blog writing or
negative comment posting [50,51].
Despite significant theoretical evidence that negative
customer interactions are more persuasive than positive
ones, the CE literature has, to date, focused primarily on
positive CE [20]. Future studies are, therefore, needed to
incorporate the notions of both positively as well as
negatively valenced expressions of CE [50,51,52]. Con-
sistently, studies should identify and validate the possible
threats posed by negatively valenced CE to the overall
brand health. Studies should further identify whether and
how do millennials respond to positive different posi-
tively and negatively valenced expressions of CE. Such
research across sectors and categories is expected to shed
useful insights into the development of this emerging
area [47].
Marketers need to focus strategically on detecting the
intensity level of negative CE and prioritize handling
and/or mitigating the occurrence of such expressions. In
the age of social media and online interaction platforms,
when customers are empowered to voice their dissatis-
faction about brands in an open and widely accessible
setting, it is a challenge for marketers to strategize how
CE can be utilized to create a customer resistance to
negative brand information. Appropriate strategies are
needed specifically in the digital context, where negative
engagement behavior is more viral in nature, with ensuing
Current Opinion in Psychology 2020, 36:96–100
potential detrimental outcomes for the short-term and
long-term performance and reputation of the firms [53].
Marketers need not neglect any negative reviews and
should follow them up with personalized service failure
recovery initiatives to soften their negative effect.
Conclusion
The domain of online CE has grown rapidly in the past
few years, wherein customers have emerged from being
‘passive information receivers’ to active ‘value co-
creators’ contributing in new product development and
service innovation activities. This concise review about
the progressive online CE presents three key areas of
research that warrant crucial debate and investigation to
strengthen the theoretical reflection and empirical
research on contemporary issues of CE in the digital era.
Apart from the highlighted three research avenues, we
believe that studying other customer psychological per-
spectives in relation to CE may also provide some insight-
ful results and implications. In this direction, researchers
may investigate how customers can be better engaged to
co-create value by interactively communicating with
them through multiple touch-points. Besides, scholarly
attention is needed to investigate how firms can utilize
CE to increase profitability. Therefore, how to manage
customer retention to maximize their share of wallet and
facilitate customer’s willingness to pay a premium price is
another promising area that warrants scholarly attention
[5]. Correspondingly, studies are encouraged to investi-
gate whether and how a firm’s CSR initiatives play any
role in engaging customers by fostering positive feelings
and attitude towards such firms. Lastly, a need exists to
empirically examine the strength and directionality of CE
and its conceptual links with relatively recent psycholog-
ical constructs such as brand love and brand hate [11,20].
By presenting some exciting research themes, this study
is expected to broaden the understanding of the exciting
area of CE within evolving digital environment.
Conflict of interest statement
Nothing declared.
CRediT authorship contribution statement
Aaleya Rasool: Writing - original draft, Conceptualiza-
tion. Farooq Ahmad Shah: Supervision, Writing - review
& editing. Jamid Ul Islam: Conceptualization, Supervi-
sion, Resources.
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Aaleya Rasool, M.B.A is an integrated M.Phil- Ph.D research scholar in
the Department of Management Studies, School of Business, Central
University of Kashmir in India. She has obtained her MBA degree from
University of Kashmir, India. She has qualified University Grants
Commission National Eligibility Test and Jammu & Kashmir State
Eligibility Test in Management. Her areas of interest are customer
experience, customer engagement, and services marketing. Apart from
presenting her research work in few national and international
conferences, her work is published Journal of Retailing and Consumer
Services. Her recent work is also accepted for publication in International
Journal of Bank Marketing, and Marketing Intelligence and Planning.
Farooq A. Shah, Ph.D. is Professor and Dean at School of Business
Studies, Central University of Kashmir, India. Prof. Shah has more than
30 years of teaching and research experience. He has authored seven
books and published dozens of research papers in top journals of his
domain. His work has appeared in journals like Journal of Advances in
Management Research, Research in International Business and Finance,
and Asia-Pacific Journal of Business Administration to name a few.
Professor Shah is also the member of various academic and professional
bodies.
Jamid Ul Islam has earned his Ph.D. from Department of Management
Studies, Indian Institute of Technology, Roorkee, Uttarakhand, India, and
is currently working as an Assistant Professor (Marketing) at College of
Business Administration, Prince Sultan University, Riyadh, Kingdom of
Saudi Arabia. His work to-date, which has centered on customer/
consumer engagement, is published in journals, including Journal of
Retailing and Consumer Services, Current Issues in Tourism, Journal of
Services Marketing, Service Industries Journal, Management Decision, Internet
Research, Telematics and Informatics, and Marketing Intelligence and Planning,
among others. His areas of interest are customer engagement, online
brand communities, social networks, and consumer behavior. Dr. Jamid
is the recipient of Emerald Literati Network Awards 2018, for Outstanding Paper
and Highly Commended paper, 2018.
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