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How can you determine and improve your Customer Engagement Scores

Aug 16, 2023

Scroll through the apps that you have installed on your smartphone and see the ones you use every day - and also the apps that which you downloaded months ago, but have only opened a couple of times.

What is the distinction between them? Customer engagement.

With so much competition for customers' attention, it's more important than ever before for companies to understand customer engagement and how they can improve their services and products for better engagement.

An engagement score provides you with a gauge of how effectively you're engaging your intended group and which of your customers are most at risk of becoming churned - as well being those who are most likely to benefit from upselling.

Here's how to calculate a customer engagement score for your company, which includes the customer engagement score formula and the most important metrics for customer engagement including more.

Skip ahead:

What's the client engagement score?

A score for customer engagement (CES) can be described as a measurement which is used to determine how engaged your customers are. The scores for engagement of customers are generally calculated on a scale from 1 to 100 for each customer. The higher the number higher, the more engaged and happy your customer is.

In calculating your customers satisfaction score you will be able to look at just one data point instead of several It gives you the ability to measure in a single moment the individual customers' engagement with your organization and how the strategies you employ, such as customer satisfaction and content marketing affect the customer's engagement.

What is the purpose of measuring customer engagement important?

It can cost 5-10 times more for new customers compared to keeping a current customer - and existing customers pay on average six times more money than the new ones. So, investing the time in keeping track of your customers is a smart move for your profitability.

Here are a few more stats to keep on your radar:

  • Repeat customers spend an average of 33% greater on each order than brand new customers.
  • businesses that are extremely engaged customers can beat their competitors in more than 147% .
  • For B2B firms an increase in customer engagement has led to the 63% reduction in customer churn

An assessment of customer engagement can help you know the best potential and risky areas in your organization. In particular, those with a low engagement score are more likely to being churned out - hence they're ones you should focus on to improve engagement and help you retain the most valuable customers.

The flipside is that an engagement score that is high indicates the customers who are most likely to open to possible opportunities for upselling or reselling. Happy and healthy customers could be enticed to increase their subscription tier, purchase another product or one that is related to it or refer your services to a friend for example.

Customer engagement measurement lets you know how your customers interact with your products and services. It also lets you know those areas that you must do more to get them and retain your customers.

The significance of the customer in driving business success

Simply put, the success of your business depends on the contentment of your clients. If they don't like to use your products and services, then it's unlikely to survive long.

There's no universal approach to measuring your engagement with customers. The way you measure customer engagement varies for various businesses, based on the nature, frequency and the nature of your customer interactions.

For example If you've got the app that your customers are in contact with daily - like a social media management tool customer interaction will look quite different to a platform that customers use monthly or every quarter - such as invoicing software, as an example.

How do you determine your customer engagement score? You must first choose the right metrics for your customer engagement.

Understanding Customer Engagement Metrics

7 common customer engagement metrics

  • Conversion rate is the percentage of visitors who take an action that hits your conversion goals such as downloading a template or registering to try a trial version of your product for free. Dividing the total amount of conversions by total number of visits and multiply the figure by 100 in order to determine your conversion rate.
  • Pages per Visit: How many pages on your site the user visits in one visit - also known as sessions per page. A high page-per-session rate indicates higher levels of customer engagement.
  • Time spent: The amount of time a user spends on a page of your website, your application or product in one visit - also called the typical session time. Long session times indicate higher user engagement, and may reveal what your audience is looking to know more about.
  • Bounce rate: The number of people who exit your product or website instantly without ever engaging in any material. The lower your bounce rate more beneficial for your business.
  • Clickstream data: The full process users follow during their journey through the channel, including each contact and click, including what pages they spend most time on, what things they buy or remove from their cart and their preferred method of paying and much more.
  • stickiness the percentage of monthly users who return to your website over a 24-hour period, determined by divising the number of daily active users by the number monthly actively using users.
  • Social media engagement Comments, likes as well as shares made on social networks are an excellent indicator of the level of engagement your customers have. Tracking the responses to your content on social media could reveal something about your audience and the topics they're most interested in.

The metrics you select to calculate your customer engagement score is contingent on your company's model as well as your product or service, and your goals. Choose the metrics most relevant to your business.

For example, if you're interested in monitoring customer engagement through your app, you might decide to keep track of daily and weekly active users in the context of your score for customer engagement.

Once you've decided on the metrics for your customer engagement score, you can follow this formula.

Customer Engagement Score Formula

Customer engagement score = Total Event Value #1 + Total Event Value #2 + Total Event Value #3 + Total Event Value #4...

How do I use the Customer Engagement Score Formula

Here are 5 steps to put this customer engagement score formula into action.

    Identify your key engagement metrics    

The score you assign to your customer's engagement is individual to your business. There aren't any hard or fast guidelines for what the most effective metrics for engagement are to be used, which means that you select the metrics for customer engagement which are most important to your business.

    Weights assigned to each occasion    

When you've decided on the measures you'll employ to gauge customer engagement, and the types of events that are important indicators of customer engagement look through the calendar and assign a weight to each of those events.

Events with more significance - like upgrading from a free trial to an expensive subscription should have more significance than less significance events like opening an email for marketing or posting a message on social media.

Assign weights based on the importance of each occasion to your products and to your ideal client. The weighting of each event will be unique to your company and the type of engagement that you're monitoring.

    Find the Event Values Total    

Once you've got your key events and their score or weight It's now time to record the events over a certain amount in time.

Make use of event tracking tools to gain detailed statistics on the engagement of users and how often an individual user engages in specific events - like linking their social media accounts to your site or adding other users and administrators.

to calculate the weighted average, times the number of times a user is engaged in a particular action by the score you gave to that event.

This is the method :

Total Event Value is the weight of an event x the number of events

Let's have a take a look at an illustration :

Say your key event first is linking your item to a social media account.

You assign this event a an overall score based on weighting of 10.

And this event takes place at least 4 times during a specified duration of time - e.g. 30 days.

Your Total Event value will be 10x4 = 40

Continue this procedure for every occasion.

    Calculate your customer engagement score    

Armed with the total value of your events, you can now calculate your customer engagement score.

This is the client engagement score they'll be using:

Customer engagement score =

Absolute Event Value #1 + Total Event Value #2 + Total Event Value #3 + The Total Event Value 4...

    Examine the results    

The customer engagement score formula gives you a numerical output. This score can be used to assess the overall health of your clients.

Here's a rough idea of how to evaluate the level of engagement your customers have with you:

  • Negative CES - High probability of customers turnover
  • CES 1-40 highly disengaged clients
  • The CES period is between 41 and 70. some customers are somewhat active
  • CES between 71-100 - very active customers
  • CSS above 100 - highly engaged users

An excellent user engagement score is 71 and above .

Anything that is less than 70 can be an indicator of low customers' engagement. This is the group of customers that are most at risk of losing customers and require greater attention.

Make use of your scores for customer engagement to segment your customers and inform your customer success strategy. In the case of example, if you're selling subscription-based products then you can try the following:

  • Get involved with 40 to 70 group 1-3 months before the time of their renewal, such as an individual call or meeting in order to provide them with more attention, identify any issues, and the possibility of improvement to allow them to get the most value benefit from your solution.
  • Find customers within the 170-70 age group by using an email marketing campaign that is specifically targeted including targeted messaging and feedback surveys to combat churn.
  • Dedicate the least time to customers in the 71-100 group since they're healthy and are the most likely of renewing their subscription - These are the people you can target with re-conversion campaigns.

An example of the customer engagement score formula

Still not clear on what the Customer Engagement Score formula works? This is a simple illustration of the formula in action.

Imagine that you're a SaaS company that offers a no-cost trial of your software product and you'd like to gauge the amount of time spent by your customers throughout the trial.

You select to employ 4 important events for calculating your customer engagement score

  • Log in
  • Team member added
  • Project was added
  • Upgrade to paid subscription

Each of these occasions You assign each event a specific weight. Here's an example.

Event Weight Numerous activities Event Score
Log in 1 30 30
Team member has been added 10 4 40
Project was added 5 5 25
Upgrade to paid subscript 50 1 50
Total 145

Pick an engagement duration such as 30 days and keep track of the number of activities that occur during the period by weighing the importance of each engagement event for calculating a satisfaction score.

In this instance it is clear that adding team members adds more weight than simply logging in to the product. Upgrading to a paid subscription has the highest score.

Customer Engagement Score = (Log in + Team member joined + Project added + Upgrade)

The customer engagement score may be mixed with other scores in order to get a more in-depth picture of customer engagement and satisfaction during a free trial.

In this case, for instance, the company might also choose to measure feature adoption and interaction with support reviews and feedback from customers as well as other factors.

Use your customer engagement score to boost business development

The process of calculating your score for customer engagement for different users is an essential tool to assist you in assessing and understanding customer interactions with your products and services. Through a blend of different metrics like conversion rate, stickiness, and engagement on social media - you'll get a more precise image of your overall customers satisfaction with your company and possibilities to improve.

A score on customer engagement isn't just a number - it's a guide to building deeper, more long-lasting connections with customers to drive business expansion.

Plus is designed to offer learning experiences that keep customers engaged.

Our Solutions team is skilled in developing custom-designed strategies, utilizing Plus to elevate the quality of your training, increase participation, and simplify the process.