In a nutshell, customer engagement metrics are quantitative ways to measure how customers interact with your business.
This can include everything from social media interactions and customer satisfaction ratings to website traffic and conversion rates.
There are a variety of customer engagement metrics that you can track, and the specific ones you choose to focus on will depend on your business goals or KPIs.
But some of the most popular customer engagement metrics include:
Why are customer engagement metrics important?
Customer engagement metrics are important because they give you a way to measure and track customer interactions.
This information can be used to improve the customer experience, increase customer satisfaction, and boost loyalty and retention rates.
It can also help you identify areas of your business that may need improvements, such as customer support or website design. By tracking customer engagement metrics, you can make data-driven decisions that will improve your business and keep your customers coming back for more.
How do you choose the right customer engagement metrics for your business?
The first step is to identify your goals or KPIs. What do you want to achieve with your customer engagement strategy?
Once you know this, you can choose the customer engagement metrics that will help you track and measure progress toward these goals.
Some businesses may want to focus on social media interactions, while others may be more interested in website traffic and conversion rates. It all depends on your specific goals and what you want to achieve with your customer engagement strategy.
Once you’ve selected the customer engagement metrics you want to track, it’s important to set up a system for tracking and reporting. This can be as simple as using Google Analytics or a customer engagement platform like Brand24.
By reporting on your customer engagement metrics on a regular basis, you can identify trends and patterns that will help you improve the customer experience. You can also track your progress over time and see how your customer engagement strategy is impacting your business.
Not sure where to start? Here are some of the most popular customer engagement metrics businesses are tracking:
1. Customer Lifetime Value (CLV)
CLV is a metric that measures the total value that a customer will bring to your business over the course of their relationship with you.
To calculate CLV, you need to estimate the average amount of money that a customer will spend with you each year and then multiply that by the number of years that they are likely to remain a customer.
2. Customer Retention Rate
The percentage of customers who stick with your business over time.
To calculate, you need to take the number of customers you have at the end of a period and divide it by the number of customers you had at the beginning of that period.
3. Net Promoter Score (NPS)
NPS is a metric that measures how likely your customers are to recommend your business to others.
To calculate NPS, you need to ask your customers how likely they are to recommend your business on a scale of 0-10, and then subtract the percentage of people who gave you a score of 0-6 from the percentage of people who gave you a score of 9-10.
4. Customer Churn Rate
The percentage of customers who stop doing business with you over a certain period of time.
To calculate, you need to take the number of customers you have at the beginning of a period and subtract the number of customers you have at the end of that period, and then divide by the number of customers you had at the beginning of the period.
5. Average Revenue per User (ARPU)
ARPU is the average amount of money that each customer spends with your business over time. To calculate ARPU, you need to take your total revenue for a period and divide it by the number of customers you had during that period.
6. Customer Satisfaction Score (CSAT)
CSAT measures how satisfied your customers are with your product or service.
To calculate CSAT, you need to ask your customers how satisfied they are with your product or service on a scale of 1-5, and then subtract the percentage of people who gave you a score of 1-2 from the percentage of people who gave you a score 3-5.
7. First Call Resolution Rate (FCR)
FCR is a metric that measures the percentage of customer service calls that are resolved on the first call.
To calculate the FCR rate, you need to take the number of customer service calls that were resolved on the first call and divide it by the total number of customer service calls.
8. Average Handle Time (AHT)
AHT is the average amount of time it takes to resolve a customer service call. To calculate AHT, you need to take the total amount of time spent on customer service calls and divide it by the number of customer service calls.
9. Customer Effort Score (CES)
CES is a metric that measures how much effort your customers feel they need to expend to get their issues resolved.
To calculate CES, you need to ask your customers how much effort they feel they need to expend to get their issue resolved on a scale of 1-5, and then subtract the percentage of people who gave you a score of 1-2 from the percentage of people who gave you a score of 3-5.
10. Social Media Sentiment Score (Opinion Mining)
The sentiment of customer mentions on social media. To calculate, you need to take the number of customer mentions with a positive sentiment and subtract the number of customer mentions with a negative sentiment, and then divide by the total number of customer mentions.
11. Online Review Sentiment Score
A metric that measures the sentiment of customer reviews on online review sites.
To calculate, you need to take the number of customer reviews with a positive sentiment and subtract the number of customer reviews with a negative sentiment, and then divide by the total number of customer reviews.
12. Overall Customer Satisfaction (CSAT)
CSAT is the overall customer satisfaction score for your product or service across all channels. To calculate CSAT, you need to take the customer satisfaction score from each channel and weight it according to the percentage of customer interactions that happen on that channel.
13. Number of Scans (New)
Have you heard of digital business cards yet? You can measure the number of scans, scans by device type, and the location of customers who scan your business card during in-person events.
14. User Actions per Session
User Actions per Session is a customer engagement metric that measures the average number of actions that each customer takes during a session on your website or app.
To calculate, you need to take the total number of customer actions and divide it by the total number of customer sessions.
15. Activity Time per Session
Activity Time per Session is a customer engagement metric that measures the average amount of time that each customer spends during a session on your website or app. To calculate, you need to take the total amount of time spent by customers on your website or app and divide it by the total number of customer sessions
16. Page Visit Frequency
Page Visit Frequency is a customer engagement metric that measures the average number of times that each customer visits your website or app. To calculate visit frequency, you need to take the total number of customer visits and divide it by the total number of customers.
17. Conversion Rate (CVR)
Conversion rate is a customer engagement metric that measures the percentage of customer interactions that result in the desired action. To calculate conversion rate, you need to divide the number of leads by the number of clicks.
18. Bounce Rate
Bounce rate is a customer engagement metric that measures the percentage of customer interactions that result in the customer leaving your website or app without taking any further action.
To calculate bounce rate, you need to take the number of customer interactions that resulted in the customer leaving your website or app and divide it by the total number of customer interactions.
19. Feature Usage Rate
Feature Usage Rate is the percentage of customers who use a specific feature of your product or service. To calculate, you need to take the number of customer interactions with the feature and divide it by the total number of customer interactions.
20. Week 1 Engagement Rate (First Week ER)
Week 1 Engagement Rate measures the percentage of customers who are still using your product or service after one week. To calculate, you need to take the number of customer interactions in the first week and divide it by the total number of customer interactions.
21. Session Duration
The average amount of time that each customer spends during a session on your website or app. To calculate SD, you need to take the total amount of time spent by customers on your website or app and divide it by the total number of customer sessions.
22. Pages per Session
The average number of pages that each customer visits during a session on your website or app. To calculate, you need to take the total number of customer visits and divide it by the total number of customer sessions.
23. Open Rate
Open Rate measures the percentage of customer interactions that result in the customer opening your email. To calculate, you need to take the number of customer interactions that resulted in the customer opening your email and divide it by the total number of customer interactions.
24. Click-through Rate (CTR)
Click-through Rate (CTR) measures the percentage of customer interactions that result in the customer clicking on a link in your email. To calculate CTR, you need to take the number of customer clicks divided by impressions.
25. Impressions
The number of times that your ad is seen by customers. Most platforms will have this metric readily available.
26. Clicks
Clicks are used to measure engagement and can be used with CTR and CVR.
27. Brand Searches
Brand Searches are the number of customer interactions that result in the customer searching for your brand. To calculate brand searches, you need to take the total number of customer interactions with your brand and divide it by the total number of customer interactions. You can use these numbers to calculate your share of voice (SOV) as well.
28. Average Transaction Value (ATV)
Average Transaction Value (ATV) measures the average amount of money that each customer spends during a transaction on your website or app. To calculate ATV, you need to take the total amount of money spent by customers on your website or app and divide it by the total number of customer transactions.
29. Turnover Rate
Turnover Rate measures the percentage of customers who stop using your product or service. To calculate, you need to take the number of customer interactions that resulted in the customer leaving your website or app and divide it by the total number of customer interactions.
30. Daily Active Users (DAU)
Daily Active Users (DAU) measures the number of unique customer interactions that take place on your website or app each day. To calculate DAU, you need to take the total number of customer interactions on your website or app in a month and divide it by the number of days.
31. Likes
Likes are customer interactions that result in the customer liking your content on social media platforms, including Facebook, Instagram, TikTok, and more.
32. Shares
Shares are customer interactions that result in the customer sharing your content on social media platforms, including Facebook, Instagram, TikTok, and more.
33. Activation Rate
Activation Rate measures the percentage of customer interactions that result in the customer taking action on your website or app. To calculate, you need to take the number of customer interactions that resulted in the customer taking action on your website or app and divide it by the total number of customer interactions.
34. Comments
Comments are customer interactions that result in the customer commenting on your content on social media platforms, including Facebook, Instagram, TikTok, and more.
35. Abandonment Rate
Abandonment or Abandon Rate measures the percentage that a customer leaves your website or app without taking action. To calculate, you need to take the number of customer interactions that resulted in the customer leaving your website or app and divide it by the total number of customer interactions.
36. Followers
Followers are customer interactions that result in the customer following you on social media platforms, including Facebook, Instagram, TikTok, and more.
37. Stickiness
Stickiness measures the percentage of customer interactions that result in the customer returning to your website or app. To calculate stickiness, you need to take the number of customer interactions that resulted in the customer returning to your website or app and divide it by the total number of customer interactions.
FAQ
Is customer engagement a KPI?
A KPI (key performance indicator), by definition, is the metric(s) you choose to measure success in your business. If customer engagement is important for your business, then you can choose one of the above metrics to measure it against. For example, CTR could be your KPI that measures click/customer engagement.
How do you measure KPI for engagement?
To measure a KPI for customer engagement, you can select any of the metrics above and measure your success against it. You can establish any of these metrics as your KPI or key indicators of success.
How do you evaluate client engagement?
A common way to evaluate customer engagement is by analyzing customer behavior data. This can include website or app usage data, customer support interactions, social media interactions, and more. By analyzing this data, you can identify customer engagement trends and establish KPIs to measure success against.
What are engagement metrics?
Engagement metrics are customer interactions that you can measure to track engagement levels. This can include website or app usage data, customer support interactions, social media interactions, and more. By analyzing this data, you can identify customer engagement trends and establish KPIs to measure success against.
What is a customer engagement model?
A customer engagement model is a framework that businesses use to measure and improve customer engagement. This can include website or app usage data, customer support interactions, social media interactions, and more.
Why is engagement an important metric?
Engagement is an important metric because it can be a leading indicator of customer loyalty. If customers are engaged with your brand, they are more likely to be loyal and continue doing business with you. Additionally, engagement can also lead to customer referrals and word-of-mouth marketing. Engagement itself is not a metric, but you can use any of the metrics above to measure engagement.
How do you measure engagement in marketing?
There are many ways to measure engagement in marketing. One common way is to analyze website or app usage data.
This can include things like pageviews, time on site, and bounce rate. Another way to measure engagement is by analyzing customer support interactions, social media interactions, and more. By analyzing this data, you can identify customer engagement trends and establish KPIs to measure success against.
Final Thoughts
Customer engagement metrics are key for businesses to measure and improve. By understanding key customer engagement metrics, you can identify customer loyalty, customer referrals, and word-of-mouth marketing.
Additionally, customer engagement can lead to increased sales and revenue. To measure customer engagement, you can select any of the customer engagement metrics above.
These include website or app usage data, customer support interactions, social media interactions, and more. By analyzing this data, you can identify customer engagement trends and establish KPIs to measure success against.