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Experience

10 Key Customer Engagement Metrics that Every CX Executive

should Know
Mathew Maniyamkott  9 min read 

One of the main goals of businesses these days is to delight its customers. While it is important that you have a mechanism to
get leads on auto-pilot, you are bound to lose them later on if you don’t have a strategy to keep them engaged.

Customer engagement is the measurement of your customer’s engagement with your content or product. You can measure it
by using various customer engagement metrics into consideration. When you calculate your customer engagement, you will
be on top of a lot of information that you can use to better your business.

The engagement can happen through different channels, it could be through your website, social media channels, forums,
chatbots, email newsletter, blogs, videos, third-party websites, etc. Engagement can actually be construed as someone
liking, sharing, commenting, writing reviews, live chat conversation, etc.

Benefits of Measuring Customer Engagement

If you provide excellent customer service, it is a competitive advantage. But there are many industries where taking great
care of your customer and providing extraordinary service by going miles is a must because of the intense competition. The
only way you can show a year-on-year growth is by measuring customer engagement and improving on it with each passing
day.

Having engaged customers is pivotal to your brand as they are the ones who would be willing to talk more and spend time
with your brand. If they don’t engage with your brand, then it means that they don’t care and they will leave you for a
competitor at the first sign of a problem.

10 Key Customer Engagement Metrics

Customer Engagement Metrics are crucial indicators of how your business is faring in terms of engagement. Here are the top
10 customer engagement metrics that you should know about.

1. NPS (Net Promoter Score)

Net Promoter Score shows you how likely a customer is to recommend your product to their friends and family. If you are
focused on growth, there is no metric that is greater than this as it gives you a good idea of how satisfied your customers are
with you. You can use the current NPS score of your company and use it as a benchmark to see if you are improving.

Collect this metric when you engage with them through in-app surveys. Each of the customers should be given the best
possible service and NPS is a determiner of the same. If someone’s score is less than a 9 or 10 (promoter), then you need to
ask them follow-up questions and close the feedback tool.

Start collecting the NPS scores even when your customer size is small. With the NPS score, you can make an immediate
judgement about what is going wrong because you can send the survey exactly after a transaction and also gauge the overall
feeling of a customer towards your brand.

2. Social Media Engagement

For companies, social media is a blessing, as it is a great way to keep in touch with its customers. You might have a full-
fledged in-house team handling your social media or an agency or even a single freelancer taking care of it. It is not wise to
ignore the kind of power that social media has. No matter what kind of industry you belong to, you should monitor the
conversations there about your brand.

While likes, shares and comments on your posts are one thing that you need to be aware of, you should also be proactively
looking for any other mentions on different social media websites.

Use this knowledge that you gather from your engagement to plan any marketing efforts in the future. Both positive and
negative comments about your organization should be monitored and dealt with accordingly. It may be a lot to handle if you
have a large following. When that’s the case, you can take the help of social media management tools.

You can use tools like Google Analytics, Twitter Analytics, Facebook Insights, etc. It will tell you how your customers are
interacting with you. You will be able to analyze why something has greater engagement over something else.
3. Customer Satisfaction (CSAT)
It is the most popular transactional metric. In a CSAT survey, the customer is asked how satisfied they are with the latest
interaction they had with the company. It could be a recent purchase, interaction with a customer care agent, live-chat
conversation, etc.

The CSAT survey is asked on a rating scale. While a simple feedback question is recommended, you can ask follow-up
questions if you are looking to learn more from the interaction.

One of the most prominent uses of the CSAT score is to measure the satisfaction of a customer with a company’s customer
service agents. It will help the business identify if someone needs more training, or if the scripts that are used currently need
to be modified.

For a business, CSAT is perfect because if you have just changed a feature or modified the product, there is no better metric
that can be used to measure it.

4. Customer Lifetime Value

One of the most popular customer experience metrics, CLV is the overall contribution to a company during the lifetime of a
customer. There is no set number on what is considered as lifetime. The longer a customer remains with you, the higher are
the chances that they spend a lot of money on you.

Not only would they be spending money by buying your products, but a customer who stays with you for a long time is as
likely to recommend your business to a lot of his/her friends and family.

CLV=(Frequency of purchase)*(Time period)*(Profit)

When CLV increases, it means that you are making a great impression on them and they are happy to stay with you and give
you business.

You might have spent $5 on acquiring a single customer, but if they end up only buying a $3 product, are you at a loss? Not
necessarily. If you can convince them to buy products from you in the future also, then they would be spending more money
from you and even recommend you to their friends.

While it is advisable that the customer acquisition cost be low, there are times when the marketing efforts and other
promotions take up a lot of the budget. This is where retaining customers and improving CLV becomes a factor.

Customer Lifetime Value is important because higher the number, greater are the profits that you will be reaping. Acquiring
new customers means that you have to spend 5-7x more than keeping an existing customer to stay happy with you. When
you have the CLV score, you should be bent on improving that value.
5. Customer stickiness factor
When your customers don’t leave for your competitors, your marketing budget reduces? How, you may ask? Acquiring new
customers is more expensive than keeping an existing customer to stay with you. Existing customers will be more than
happy to buy your products at a premium, are more open to upselling and cross-selling.

Retaining your customers is a sign of great engagement, satisfaction and them finding value in what you offer. Customer
Churn and Customer Retention measures the stickiness factor of your customers. Churn rate is the rate at which a business
loses its customers. Customer Retention is the ability for a customer to retain its customers over a specific time period.

6. Customer Engagement Score

It is used to measure the engagement of your customer base. By using this, you can easily segment your audience,
understand the areas where priority can be given, and measure the impact of these strategies. It is helpful in the evaluation of
engagement of customers as well as trial period customers.

It is the perfect model for measuring customer engagement for SaaS-based businesses. Offline companies will find it difficult
to get insights about customer engagement as there is hardly any medium where their interaction and engagement can be
measured.

But if you are an online business, using the customer’s online behaviour and interactions with the company’s products, you
can easily measure customer engagement. By measuring the customer engagement score, you are in a position to see who
will be willing to convert from a trial period to a paid customer, identify the ones who will be ready to buy more products
from you and the ones who are close to leaving you for a competitor.

How to measure Customer Engagement Score

In this, the company must assess the kind of value that their product brings to its customers. For example, a social media
agency should be bothered about the number of likes to each of its client’s posts.

After writing down all the benefits associated with your product, the next step is to assign a weight to each of them. Benefit A
might be more valuable than benefit B which means that it will have a higher value.

The formula for CES will be like this:

CES= W1N1 + W2N2+ ……WtNt

Wt– Weight of a random event.

Nt– Number of occurrences of a random event.

7. Session Time
There might be a lot of efforts in the marketing department to increase the reach of your product, but are you doing it right?
Are you engaging your customers with your product? One of the easiest ways to understand that is to measure the session
time of customers. With a lot of users logging in to your website, you will know where they are more engaged. Is it at a
particular page on the website or are they checking out everything that you want to offer? In fact, you can tell a lot by
viewing the activity of a few customers.

A lot of businesses are spending big bucks on content marketing, so if you want their attention too, then you need to be
serious about measuring Session Time as a customer engagement metric. If you want to know how much time was spent by
your customers on your website, then you can take the help of Google Analytics. It tracks the page activities using
timestamps every time a page loads or when an event is triggered.

8. Bounce Rate
It is inversely proportional to the average session duration. The percentage of website visitors that exit it after viewing only
one page is called bounce rate. The lower the bounce rate, the better it is for your business. It is an indication of how good or
bad your website’s content and UX is. If customers don’t spend a lot of time or are not even clicking on a different page on
your website, then they are not interested in the content.

People may bounce to a different website because they don’t feel the content is appealing, your offer isn’t clear, there is no
differentiation, they were looking for different content, etc. Let’s say you have a high number of website visitors, but if your
bounce rate is 95%, then it is something that you should seriously be looking over. The only way to have a better bounce rate
is to post quality content on your website and by providing a great user experience for anyone on the website.

9. Core User Actions

When a customer gets a lot of value from your product, then they will engage more with your product. They will want to learn
more about the features available, check out blog posts, read testimonials and success stories to find out how other
companies have benefited. But if the user is on the app or website, and is not taking any action which indicates that they
understand the problem, then there is something wrong.

Here are some examples of core actions: 1. Create a task, 2. Complete a task, 3. Add more people, 4. Create an invoice, 5.
Comment on a post.

The above are a few core user actions based on the kind of websites that you are using. If the user is not checking out the
various offerings in your website, then get on a call with the customer to identify if there is any problem. Be as helpful as
possible with the customer. Be proactive in finding ways to keep the customer engaged so that they will start using the
product soon.

10. Pageviews
The final one to make it to our list of customer engagement metrics. Pageviews is a metric that is used to indicate the traffic
that is there on your website. It measures when a user visits a particular page on your website. When the Pageviews number
is high, it means that a lot of people are interested in your offering. While it shows traffic, there is not much that you can
learn otherwise from this metric since there is no context. Google Analytics can be used to measure most user engagement
metrics.

Apart from showing how many people are on your website over a particular period of time, Pageview analysis will also help
you see if any changes that you made to your website is performing well. If there is more traffic than usual, then it means
that the changes you implemented are working. By providing them with a good experience on the website, you can keep
improving that number.
Conclusion
Are there only 10 customer engagement metrics that need to be tracked? Of course not. There are many more customer
engagement metrics that you can track to keep your customers engaged. There are a lot of things that go into making your
customers engage with your product. Measuring the engagement of your customers with your product is important for your
success. Without understanding how customers are engaging with your product, there will be no improvement. Remember
that there are too many choices for your customers and if you don’t give them the experience that they deserve, they will
surely go to a competitor.

There are actually several tools that can help you track customer engagement, and identify the areas that need betterment
and the ones that are fine. Customer experience isn’t just a number nor is it something that tools can tell you a lot about
although, for the purpose of study, tools are great. But you need to go beyond mere numbers because customers are more
than just a statistic, they are people and you need to treat them right if you want them to get the best from you and vice
versa.

Here is another pro-tip, keep your employees happy as they are the key to keeping your customers satisfied and engaged.
Only your employees can ensure that their overall brand experience is the same across all channels. Improve each of the
customer engagement metrics, it will result in bigger profits and it will keep your customers loyal to you.

Mathew Maniyamkott
Guest Blogger at SurveySparrow

Regular contributor to various magazines. Passionate about entrepreneurship, startups, marketing, and
productivity.
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