How to Measure KPIs: Customer Engagement Metrics Every Business Should Track

by | Oct 7, 2022 | Financial Advice, Insights To Business

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If you’re in marketing or sales, it’s your job to understand what makes your customers tick. You need to know what they want, how they want it delivered, and how often they buy from you if you give them what they want. The best way to do this is by measuring the impact of customer engagement programs and KPIs. In this post, I’m going to explain the different types of customer engagement metrics and KPIs that can help make that happen:

Customer Satisfaction

Customer satisfaction measures how satisfied your customers are with your products or services. It’s measured by asking customers to rate their experience on a scale of being “very dissatisfied” or “completely satisfied.” Customer satisfaction is a crucial indicator of current and future loyalty. And you want to retain loyal customers and attract new ones. In that case, it’s essential that you maintain the highest level of customer satisfaction at all times.

Net Promoter Score

Net Promoter Score (NPS) is a way to measure customer loyalty. NPS asks customers to rate on a scale of 0-10 how likely they are to recommend your business to others, with ten being very reasonable and zero not at all possible. Group into three categories: promoters, passives, and detractors. A supporter scores 9 or 10 on the eleven-point scale and is loyal to your product/service; these customers will tell others about you. When promoters ask why they do so, they often say it’s because of your product or service quality. Passives score 7 or 8 on the eleven-point scale. These customers like what you offer but only go out of their way to recommend your services. You’re performing adequately; thus, there are no significant complaints about your business. Detractors score six or lower on the eleven-point scale. These people dislike what you provide so much that they won’t buy from you in the future even if offered something free.

Customer retention

Customer retention is the percentage of customers that continue to use your product or service in the future. Retention rate is the number of customers that continue to use your product or service divided by the total number of customers you have. Retention rate is measured in percentages, and it will vary depending on the industry and the type of product or service you offer. For example, a company that sells clothing will have a higher retention rate than a company that sells software because clothing can be worn repeatedly.

First Week Engagement

The first-week engagement metric measures your customers’ engagement within their first week of using your product. The formula for calculating this KPI is: Users who completed onboarding/user experience flow / Total number of users = First-week engagement This can be further broken down into two separate KPIs: first-time completion rate, which measures how many users complete your onboarding process, and user retention rate, which measures whether or not they continue to return over time. The most common way that companies get this number is by tracking an event in their app. Each time an event is triggered, it signifies that someone has completed the onboarding flow and then created its calculations. However, some platforms have advanced analytics tools that allow you to track events directly within the forum without needing to build any additional code or integrations. Improving first-week user retention requires finding what causes people to stop using the product after signing up for an account with you. This may communicate flaws in the UX flow, or the messaging is unclear on what value they can derive from using your product daily.

Social Media Engagement

Depending on your business vertical, social media engagement is another key metric to measure customer engagement. It can be measured by the number of likes, comments, and shares on your posts. This will show how people react to your content and how much they like it. Suppose you’re seeing much negative feedback on social media. In that case, this can show you where there might be opportunities for improvement in your products or services. Your customer engagement metrics and KPIs should be tailored to your business. But some basics apply to any venture. If you want to measure the success of your customer engagement, you need to plan. Establishing the appropriate KPIs early on can help you generate more revenue and ensure your success’s longevity. How long does it take for someone in my company to respond? This is an excellent way to see how much time passes before one person engages with another. It also lets you know if some roadblocks or bottlenecks need addressing. How many customers do we have talking about our brand online? The number of online conversations can indicate how effective your social media efforts are. Still, it also shows how engaged people are with your brand. Are they coming back repeatedly? Do they tell friends about their experience at your business? What’s the average time spent on-site per visit? Suppose people spend more time browsing on google search engine results pages (SERPs). In that case, you may need better content within those SERP listings! Or maybe they also like what they see from other similar sites/brands.