Many factors can affect the image enhancement and profit of a business. Customer involvement in your business is the lifeblood and growth and development of your business image. Therefore, customer engagement metrics are an important element that must be monitored.
When you monitor and track regularly, there will be a lot of useful information that can be used to improve offerings and business development. Let's take a look at customer engagement and how to measure customer engagement for your business.
Benefits of Tracking Customer Engagement metrics
Tracking customer engagement metrics is key to getting detailed information about what makes people or customers choose to stay or leave your business. Knowing this, you can improve strategies aimed at retaining or even increasing customers. Tracking customer engagement provides several advantages or benefits, including:
Measuring customer engagement success metrics can help to understand how people perceive a brand, product, or service. This will give you a good idea of how customers feel or sentiment about your business.
Business strengths and weaknesses can be identified by tracking customer engagement, for which you will get data from these activities. This data can then make you more aware of which areas of your business can be improved to attract customers.
With the help of customer data, you will be in a better position to design strategies that help you better engage your customers.
With customer engagement tracking you can easily spot areas that need attention and then strengthen resources in those areas. It is important to be able to utilize data and improve decision making in various aspects.
Success Important Customer Engagement Metrics to Track
Customer engagement metrics are always an important indicator of how your business is doing when it comes to dealing with customers. Tracking key metrics is a powerful tool for gaining in-depth knowledge of how customers interact and engage with your brand. They are also very helpful to understand customer needs better. Here are some customer engagement metrics to choose from:
1. Net Promoter Service (NPS) or Net Promoter Score
Loyal customers often refer your product or service to others. In addition to saying good things about your business, loyal customers are more likely to recommend it to family and friends. NPS metrics can be used to determine the level of willingness of customers to promote your business or provide information about your business, this is known as NPS.
Customer satisfaction of your business products or services can be known through NPS. Collecting these metrics can be through a survey at the end of the activity or via email, usually by giving a value of 1 - 10. Then apply the formula NPS = % Promoters - % Detractors.
2. Customer Satisfaction Score (CSAT) or Customer Satisfaction Score
CSAT helps track the level of customer satisfaction with your business products or services. CSAT can also show the level of satisfaction with all types of engagements or interactions that customers have with your brand. By tracking these metrics, you can improve customer satisfaction and provide the best possible experience.
How to calculate the CSAT is to ask customers how they rate their experience when buying a product or service and satisfaction with the service, then ask them to give a score. After that, divide the number of satisfied customers by the number of survey responses. You can also add or customize a question if you want to learn more about the interaction.
3. Customer Lifetime Value (CTLV)
Getting new customers costs more than retaining customers who have already purchased your product or service. This shows how retaining customers has a direct effect on revenue. CTLV metrics can be used to find out how much value customers provide when they relate to your business.
How to calculate CTLV:
4. Number of Active Users or Number of Active Users
In business, you need to track how many users are engaged with your service or product in a given time period. Metrics like this are helpful in getting a broad view of how your engagement efforts are working. There are two categories of active users, namely:
Both DAU and MAU are quite helpful customer engagement metrics for knowing user variations between specific timeframes. This way you can track fluctuations and design a customer engagement strategy. The way to calculate DAU and MAU is to compare your daily active users with monthly data to get this metric.
5. Customer Engagement Score (CES) or Customer Engagement Score
When it comes to measuring engagement, both existing and trial customers or those who engage but may/don't convert can also be great examples of customer engagement for your business.
When you measure customer engagement scores, you should focus on every activity that users can do, be it social likes, comments, sharing of your brand and more. This model is ideal for SaaS-based businesses as they have a large number of trial customers.
6. First Week Engagement
First week engagement is a good metric to know the success of their engagement strategy. This metric measures the rate at which users interact with or ditch a service or product in the first week of use. When you use these metrics, it's easy to see the effectiveness of the customer engagement tools and the efforts you're using.
7. Social Media Engagement
Social media affects businesses massively and is now an important part of customer engagement strategies. For brands large and small, this channel is a great way to engage, interact and connect with customers.
Each platform may be unique in terms of demographics or messaging style, but it's always a great source of data. Each provides multiple metrics to understand customer engagement in detail.
You can use some of the popular social media management tools like Hootsuite or Zoho and manage interactions successfully. You can also use tools like Google Analytics, Twitter Analytics, or Facebook Insights to get a detailed view of how your customers engage and interact with you.
8. Stickiness metric
A “sticky” metric, you can measure the level of happiness customers feel with your product or service. It can also help you find out how likely your customers are to continue using your product. The way to calculate the stickiness metric is to divide DAU (daily active users) by MAU (monthly active users).
9. Conversion Rate
Conversion rate tracks the percentage of people who complete certain actions related to your marketing campaign. Depending on the industry level, conversion rates can be measured for many things, be it email newsletter signups, ebook downloads, Facebook ad clicks, and so on.
Calculating conversion rate is easy and you need data related to total number of conversions and visitors for the same:
Conversion Rate = Total number of conversions/ total number of visitors x 100
10. Pages Per Session
The pages per session metric helps to measure the number of pages a user clicks on in a single visit. If the page per session is high, it means that your website has succeeded in providing the desired value. While a low page per session indicates that your content is not in accordance with the target audience.
11. Average Session Duration
Tracking this metric is important because it shows whether a website visitor had a long session on your blog or landing page in a single visit. It also shows the effectiveness of your customer service communications.
With this metric you can understand how not every page on a website or on a blog generates a similar response from visitors. While some pages may keep them hooked for longer, there will always be pages that don't get much attention at all.
12. Bounce Rate
The bounce rate is used to determine the percentage of people who leave your site after viewing only one page. The lower the bounce rate, or the more you reduce the bounce rate, the better for your business. A high bounce rate can indicate many issues with your site such as poor user experience, irrelevant content, or slow page load times.
13. Churn Rate
Churn is a natural cycle of losing and gaining customers. No matter how great you think you've been to provide a service, product, or customer experience, some churn is almost inevitable. The churn rate metric can help you figure out the rate at which customers have stopped doing business with your business over a period of time. The lower the churn rate, the more customers you retain.
You need total customer data at the beginning of the month and total at the end of the month to calculate the churn rate:
Churn rate = the difference between the number of end customers and the beginning of the month / the number of customers at the beginning of the month.
Of course, the best products and services still hold the main factor for the success and profit of your business. However, taking into account the important metrics above can make a more mature business plan.
Customer satisfaction and loyalty has a direct influence on the progress and profits of the business. Because of that, you can also learn how to get to know customers better through the Customer Satisfaction & Relationship Program to avoid mistakes in service.
Many factors can affect the image enhancement and profit of a business. Customer involvement in your business is the lifeblood and growth and development of your business image. Therefore, customer engagement metrics are an important element that must be monitored.
When you monitor and track regularly, there will be a lot of useful information that can be used to improve offerings and business development. Let's take a look at customer engagement and how to measure customer engagement for your business.
Benefits of Tracking Customer Engagement metrics
Tracking customer engagement metrics is key to getting detailed information about what makes people or customers choose to stay or leave your business. Knowing this, you can improve strategies aimed at retaining or even increasing customers. Tracking customer engagement provides several advantages or benefits, including:
Measuring customer engagement success metrics can help to understand how people perceive a brand, product, or service. This will give you a good idea of how customers feel or sentiment about your business.
Business strengths and weaknesses can be identified by tracking customer engagement, for which you will get data from these activities. This data can then make you more aware of which areas of your business can be improved to attract customers.
With the help of customer data, you will be in a better position to design strategies that help you better engage your customers.
With customer engagement tracking you can easily spot areas that need attention and then strengthen resources in those areas. It is important to be able to utilize data and improve decision making in various aspects.
Success Important Customer Engagement Metrics to Track
Customer engagement metrics are always an important indicator of how your business is doing when it comes to dealing with customers. Tracking key metrics is a powerful tool for gaining in-depth knowledge of how customers interact and engage with your brand. They are also very helpful to understand customer needs better. Here are some customer engagement metrics to choose from:
1. Net Promoter Service (NPS) or Net Promoter Score
Loyal customers often refer your product or service to others. In addition to saying good things about your business, loyal customers are more likely to recommend it to family and friends. NPS metrics can be used to determine the level of willingness of customers to promote your business or provide information about your business, this is known as NPS.
Customer satisfaction of your business products or services can be known through NPS. Collecting these metrics can be through a survey at the end of the activity or via email, usually by giving a value of 1 - 10. Then apply the formula NPS = % Promoters - % Detractors.
2. Customer Satisfaction Score (CSAT) or Customer Satisfaction Score
CSAT helps track the level of customer satisfaction with your business products or services. CSAT can also show the level of satisfaction with all types of engagements or interactions that customers have with your brand. By tracking these metrics, you can improve customer satisfaction and provide the best possible experience.
How to calculate the CSAT is to ask customers how they rate their experience when buying a product or service and satisfaction with the service, then ask them to give a score. After that, divide the number of satisfied customers by the number of survey responses. You can also add or customize a question if you want to learn more about the interaction.
3. Customer Lifetime Value (CTLV)
Getting new customers costs more than retaining customers who have already purchased your product or service. This shows how retaining customers has a direct effect on revenue. CTLV metrics can be used to find out how much value customers provide when they relate to your business.
How to calculate CTLV:
4. Number of Active Users or Number of Active Users
In business, you need to track how many users are engaged with your service or product in a given time period. Metrics like this are helpful in getting a broad view of how your engagement efforts are working. There are two categories of active users, namely:
Both DAU and MAU are quite helpful customer engagement metrics for knowing user variations between specific timeframes. This way you can track fluctuations and design a customer engagement strategy. The way to calculate DAU and MAU is to compare your daily active users with monthly data to get this metric.
5. Customer Engagement Score (CES) or Customer Engagement Score
When it comes to measuring engagement, both existing and trial customers or those who engage but may/don't convert can also be great examples of customer engagement for your business.
When you measure customer engagement scores, you should focus on every activity that users can do, be it social likes, comments, sharing of your brand and more. This model is ideal for SaaS-based businesses as they have a large number of trial customers.
6. First Week Engagement
First week engagement is a good metric to know the success of their engagement strategy. This metric measures the rate at which users interact with or ditch a service or product in the first week of use. When you use these metrics, it's easy to see the effectiveness of the customer engagement tools and the efforts you're using.
7. Social Media Engagement
Social media affects businesses massively and is now an important part of customer engagement strategies. For brands large and small, this channel is a great way to engage, interact and connect with customers.
Each platform may be unique in terms of demographics or messaging style, but it's always a great source of data. Each provides multiple metrics to understand customer engagement in detail.
You can use some of the popular social media management tools like Hootsuite or Zoho and manage interactions successfully. You can also use tools like Google Analytics, Twitter Analytics, or Facebook Insights to get a detailed view of how your customers engage and interact with you.
8. Stickiness metric
A “sticky” metric, you can measure the level of happiness customers feel with your product or service. It can also help you find out how likely your customers are to continue using your product. The way to calculate the stickiness metric is to divide DAU (daily active users) by MAU (monthly active users).
9. Conversion Rate
Conversion rate tracks the percentage of people who complete certain actions related to your marketing campaign. Depending on the industry level, conversion rates can be measured for many things, be it email newsletter signups, ebook downloads, Facebook ad clicks, and so on.
Calculating conversion rate is easy and you need data related to total number of conversions and visitors for the same:
Conversion Rate = Total number of conversions/ total number of visitors x 100
10. Pages Per Session
The pages per session metric helps to measure the number of pages a user clicks on in a single visit. If the page per session is high, it means that your website has succeeded in providing the desired value. While a low page per session indicates that your content is not in accordance with the target audience.
11. Average Session Duration
Tracking this metric is important because it shows whether a website visitor had a long session on your blog or landing page in a single visit. It also shows the effectiveness of your customer service communications.
With this metric you can understand how not every page on a website or on a blog generates a similar response from visitors. While some pages may keep them hooked for longer, there will always be pages that don't get much attention at all.
12. Bounce Rate
The bounce rate is used to determine the percentage of people who leave your site after viewing only one page. The lower the bounce rate, or the more you reduce the bounce rate, the better for your business. A high bounce rate can indicate many issues with your site such as poor user experience, irrelevant content, or slow page load times.
13. Churn Rate
Churn is a natural cycle of losing and gaining customers. No matter how great you think you've been to provide a service, product, or customer experience, some churn is almost inevitable. The churn rate metric can help you figure out the rate at which customers have stopped doing business with your business over a period of time. The lower the churn rate, the more customers you retain.
You need total customer data at the beginning of the month and total at the end of the month to calculate the churn rate:
Churn rate = the difference between the number of end customers and the beginning of the month / the number of customers at the beginning of the month.
Of course, the best products and services still hold the main factor for the success and profit of your business. However, taking into account the important metrics above can make a more mature business plan.
Customer satisfaction and loyalty has a direct influence on the progress and profits of the business. Because of that, you can also learn how to get to know customers better through the Customer Satisfaction & Relationship Program to avoid mistakes in service.
