Customer engagement metrics: The ultimate guide

When implementing any plan, business-related or otherwise, it’s vital to continually evaluate feedback to assess its performance over time and institute any adjustments accordingly. Customer engagement is no exception; regularly assessing relevant metrics can provide valuable insights that enable your outreach team to refine its approach as opportunities for improvement are identified.

Here, key performance indicators (KPIs) such as customer satisfaction scores (CSATs), customer effort scores (CES), and net promoter scores (NPS) can be valuable in understanding whether your engagement efforts are meeting expectations and where critical resources should be allocated. When KPIs are efficiently gathered, displayed in an easily digestible manner, and provided to pertinent stakeholders, organizations can make data-driven decisions that improve the customer experience (CX) and support broader business goals.

Today, we’ll dive into what customer engagement metrics are, why they’re so important, and the KPIs that you should have your eyes on.

What is customer engagement?

Customer engagement refers to the interactions between a business and its customers that aim to build strong, lasting relationships. This requires actively involving individuals in the brand experience, whether through social media, customer support, marketing campaigns, or product feedback loops. Successful customer engagement goes beyond simply one-way communication, instead encouraging interactive dialogue and promoting long-term loyalty.

Why should you measure customer engagement?

Regularly assessing customer engagement levels can provide valuable insights that fuel your overarching CX approach. Here are some helpful practices that can assist in incorporating customer engagement metrics into your existing business processes:

1. Understanding how your customers feel

Customer engagement metrics often act as a window into customer sentiment. With them, you can gauge user satisfaction through KPIs like net promoter scores and customer satisfaction scores. Analyzing social media sentiment and monitoring review platforms can reveal valuable insights into customer perception as well.

2. Identify strengths and weaknesses

By analyzing customer engagement metrics across different touchpoints (website, app, social media, etc.), you can identify areas where your brand excels and where it may need improvement. For instance, a high bounce rate on your product page might indicate a confusing layout or lack of useful product information. This allows you to focus your efforts on optimizing all customer touchpoints to create a more engaging end-to-end experience. 

3. Define a strategy to develop more customer engagement

Once you have a firm understanding of your current customer engagement levels, you can leverage relevant data to craft a targeted strategy for improvement. For example, if customer feedback and KPIs indicate a need for enhanced personalization, you can implement specific measures that contribute to more tailored communication. Analyzing engagement across different content formats (articles, videos, social media posts) can help you understand what type of material and language resonates with your audience the most.

You might also choose to make it a priority to offer interactive experiences. Here, consider incorporating interactive elements into your website or app. For instance, gamifying the CX through quizzes, contests, or loyalty programs can encourage users to engage more actively with your brand. 

4. Evaluate performance over time

Customer engagement is a never-ending journey, not a one-time destination. You’ll need to regularly monitor your chosen metrics to assess the effectiveness of your strategies and adjust accordingly if objectives aren’t being met. By continuously testing, refining, and optimizing your approach, you can create a dynamic customer engagement approach that fosters lasting connections with your audience.

15 customer engagement metrics to follow

Tracking the right engagement metrics can help companies not only understand how individuals are interacting with their brand but also identify areas for improvement and growth. From measuring the frequency of visits to assessing the lifetime value of each customer, these KPIs empower companies to assess the level of interest, satisfaction, and loyalty within their customer base.

Some key metrics to keep an eye on include:

1. Conversion rate

Conversion rate refers to the percentage of visitors who take a desired action on a website, app, or marketing campaign. This could involve making a purchase, signing up for a newsletter, downloading an app, or filling out a contact form. To calculate conversion rate, simply divide the number of conversions by the total number of visitors and multiply by 100. 

This is a crucial metric, as it reflects how well a company’s marketing, user experience (UX), and overall engagement strategies are working. A high conversion rate typically indicates that individuals are not only interested but also motivated to take the next step in their journey with a brand. 

2. Pages per session

Pages per session is a web analytics metric that tracks the average number of pages an individual views during a single visit to a website. A session refers to a continuous interaction with a website within a specific timeframe, typically 30 minutes. The more pages a visitor navigates through, the higher the pages per session metric. 

A higher pages per session rate often reflects strong customer engagement, as users are actively interacting with various parts of the site. On the other hand, a low pages per session rate may signal disinterest or difficulties in navigating the website. 

3. Net Promoter Score (NPS)

Net promoter score can be used to measure customer loyalty and satisfaction by asking individuals how likely they are to recommend a company, product, or service to others, typically on a scale from 0 to 10. Based on their responses, customers are categorized into three groups: promoters (9-10), passives (7-8), and detractors (0-6). The NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.

NPS is a valuable tool for measuring customer engagement because it provides insight into the emotional connection that individuals have with a brand. By tracking NPS over time, companies can assess the effectiveness of their engagement strategies and identify areas for enhancement, ultimately promoting deeper customer relationships.

4. Average session duration

Average session duration assists in evaluating the average amount of time a user spends interacting with a website or app during a single session. It’s calculated by dividing the total duration of all sessions by the number of sessions within a specific timeframe.

Here, a longer duration often suggests that visitors find the content valuable or the site easy to navigate, leading them to spend more time exploring. On the other hand, a short session duration may indicate that users are quickly losing interest, facing issues with the site’s usability, or not finding what they’re looking for.

5. Customer satisfaction score (CSAT)

Customer satisfaction score is typically measured through a survey where users are asked to rate their experience on a scale, often from 1 to 5 or 1 to 10. The percentage of positive responses (usually ratings of 4 or 5) is then calculated as the CSAT score. This metric is straightforward and provides immediate feedback on how well a business is meeting customer expectations at key touchpoints.

Customer satisfaction score is a powerful tool for measuring engagement levels since it captures direct sentiments about the CX. Tracking CSAT over time allows companies to monitor trends, address issues that negatively impact engagement, and enhance the overall customer experience.

6. Ticket volume

Ticket volume refers to the total number of customer support requests that a business receives over a specific period. Tracking ticket volume helps organizations understand the level of customer interaction with their support team, as well as the frequency and types of issues that individuals encounter.

This KPI offers valuable insights into customer behavior and the effectiveness of a company's customer support system. A steady or increasing ticket volume usually reflects active engagement, showing that users are highly involved with a product or service. However, if ticket volume spikes or remains consistently high without resolution, it could indicate friction points or dissatisfaction.

7. Social media

Social media interaction refers to the actions that users take in response to content posted on social platforms, including likes, shares, comments, retweets, and direct messages. This interaction allows brands to foster a stronger relationship with customers, create a community, and respond to feedback in real-time.

Engagement metrics such as likes, shares, and overall reach help businesses assess the level of interest and emotional connection customers have with their brand. By analyzing which types of posts drive the most interaction, organizations can fine-tune their engagement strategies to better meet customer preferences.

8. Customer lifetime value

Customer lifetime value (CLV) strives to estimate the total revenue a company can expect from a single customer throughout the duration of their relationship. It helps businesses understand the long-term value of their customer base, enabling them to make informed decisions about acquisition costs, marketing strategies, and retention efforts. 

Assessing CLV in conjunction with engagement metrics like repeat purchases and interaction on digital platforms enables businesses to gain insights into the effectiveness of their outreach strategies. A high lifetime value suggests that individuals are not only engaged, but are also finding long-term value in a brand, which contributes to organizational growth. Conversely, low CLV may indicate a need to improve customer engagement initiatives.

9. Customer retention rate

Customer Retention Rate (CRR) is a metric that reflects the percentage of customers a business retains over a specific period, without losing them to competitors or other factors. It can be calculated by comparing the number of customers at the end of a period to the number at the start, accounting for new acquisitions.

CRR is a valuable measure of customer engagement as it directly correlates to how connected customers are with a brand. Engaged individuals are more likely to return, make repeat purchases, and remain loyal over time. By tracking CRR alongside engagement activities such as purchases and participation in loyalty programs, companies can assess the effectiveness of their engagement strategies.

10. Churn rate

Churn rate refers to the percentage of customers who stop doing business with an organization over a given period. It can be calculated by dividing the number of customers lost during that time by the total number of customers at the beginning of the period. 

Engaged individuals are less likely to churn, as they tend to feel valued and find continued benefits in their relationship with a business. Addressing the causes of churn, such as improving the CX or adjusting product offerings, can directly help reduce customer turnover and increase engagement.

11. Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) encompasses the expenses related to marketing, advertising, sales, and any other efforts used to convert prospects into paying customers. CAC is generally determined by dividing the total cost of these acquisition efforts by the number of new customers gained over a specific period.

Although acquisition cost primarily focuses on the expenses involved in attracting new customers, it can also be an indirect measure of customer engagement. Businesses with a highly engaged customer base often benefit from word-of-mouth referrals, organic growth, and brand advocacy, all of which can reduce CAC. Additionally, engaged individuals tend to have higher lifetime values, which offsets the initial acquisition costs. 

12. Customer effort score (CES)

Customer effort score (CES) is a metric used to gauge how easy it is for individuals to interact with a company, particularly when seeking support or making a purchase. It’s usually evaluated by asking customers to rate the level of effort required on a scale, usually from ‘very easy’ to ‘very difficult,’ after completing a specific interaction.

A high CES, where individuals feel they had to put in significant effort, can signal disengagement and dissatisfaction, which may lead to them seeking alternatives. Conversely, a low CES suggests that customers are finding interactions easy and are likely to remain engaged with the brand. 

13. Bounce rate

Bounce rate serves to measure the percentage of visitors who land on a website and leave without interacting further, such as clicking on links, filling out forms, or visiting additional pages. It’s a solid indicator of a visitor’s immediate reaction to the content or usability of a site.

This metric can be used to assess customer engagement by showing how effectively a website captures and holds the attention of its visitors. Examining bounce rates in conjunction with other KPIs like time spent on the site or pages per session allows organizations to identify areas for improvement to make their content more compelling and keep visitors engaged longer.

14. Visit frequency

Visit frequency takes into account how often a user returns to a website or digital platform within a specific timeframe. It’s useful in understanding visitor behavior and the level of interest users have in a brand’s content, products, or services.

How often individuals return to a platform can help highlight the depth of their connection with a company. Frequent visits often indicate that users are engaged and interested in maintaining an ongoing relationship with the brand. This is of particular importance for businesses that rely on recurring interactions, such as e-commerce, subscription services, or content platforms. 

15. Session time

Session time refers to the duration a user spends on a digital platform during a single visit, from the moment they arrive until they leave or become inactive. It provides a snapshot of how long users are engaging with the site’s content, services, or features.

High session times are typically associated with more engaged customers who are interested in the content or products and are actively browsing. On the other hand, if session times are consistently low, it could signal the need for adjustments in content strategy or user interface (UI) to better capture and retain visitors’ attention.

Customer engagement trends in 2024 and beyond

Recently, a clear trend has emerged in an increasing reliance on AI and machine learning technologies to help understand and predict customer behavior in real-time. These new solutions are transforming the way in which businesses interact with their customers by facilitating a more personalized and efficient approach to engagement. Leveraging these tools can empower companies to offer tailored experiences that better meet unique customer needs and preferences. 

Omnichannel strategies have also become increasingly sophisticated, providing seamless customer experiences across both traditional touchpoints and emerging platforms. These recent advancements have positioned organizations to redefine customer engagement, making it more efficient, meaningful, and integrated.

Start measuring customer engagement today with Freshdesk!

Freshdesk acts as an all-in-one customer engagement platform, combining the help desk functionality of Freshdesk with the communication capacity.

When it comes to powerful reporting and analytics tools, Freshdesk has everything your business requires to not only gather useful insights, but to display them in a visual, easy-to-understand manner that makes it easy to take action.

Freshworks’ dashboards offer real-time performance reports that can be customized with your business’s most relevant KPIs and presented in a manner that best suits each team member’s unique learning preferences. Curated reports can also be generated and sent to pertinent individuals’ emails at scheduled intervals to help ensure that no valuable insights are overlooked. Even more, CSAT surveys and top customer analysis reports are available, letting companies know how users feel about their support and allowing them to understand the types of interactions that frequent customers are having with agents.