How to Measure Customer Engagement

“Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time, or we’ll lose them.” – Kevin Stirtz

But how can you tell if your customers are genuinely engaging with your brand or just giving you a passing glance?

 …by knowing how you measure customer engagement.

You see, 

Measuring customer engagement is like reading the room at a party — it allows you to know who’s loving your playlist and who’s secretly texting their escape plan. 

In this post, we’ll discuss the top customer engagement metrics you need to track. 

Let’s dive right in. 

1. Customer Retention Rate

Customer retention rate is the metric that tells you how many of your customers are sticking around for the after-party!

Think of these as the number of customers completing a specific action, such as:

• Making a repeat purchase
• Signing up for a service renewal
• Engaging with your services consistently over time
• Referring friends or family to your business
• Providing positive feedback or testimonials

Below is the formula to measure the customer retention rate.

 A high retention rate shows you’re keeping customers happy!

By the way, with MioCommerce Reports, you can easily track these metrics, including new customers, number of bookings, and more.

2. Net Promoter Score® (NPS)

NPS® is like the “How much do you love me?” question for your brand.

It’s a simple survey asking customers how likely they are to recommend your product or service to others on a scale of 0 to 10.

Those who score you 9 or 10 are your cheerleaders, while the 0-6 folks… well, they might need a little more convincing.

The Net Promoter Score categorizes responses as follows:

• Promoters (9-10)
• Passives (7-8)
• Detractors (0-6)

The formula to calculate NPS® is:

Bain & Company, the creators of NPS®, found that companies with high NPS grow faster than their competitors. 

So, next time you wonder if your customers are committed to your brand, just ask them—and let the NPS® guide you.

Watch the video below for more insights on how to use Net Promoter Score (NPS) to improve customer satisfaction. 

3. Ticket Volume

Ticket volume is like a health check for your customer service. It’s measured by counting the total number of support tickets your business handles over a specific period. 

To keep things in check, track the following:

• Total Tickets = Number of customer support tickets received
• Tickets Per Customer = Tickets / Total Number of Customers

A sudden spike in ticket volume could indicate an issue with your service. A decrease, on the other hand, might mean things are running smoothly and, by extension, a better customer experience.

The key is to balance the volume by resolving issues quickly to ensure higher customer satisfaction.

That said, maintaining a good ticket volume score can be challenging if you don’t have a robust customer engagement system. This is especially true if your team handles customer requests from different channels, such as chatbots, social media, SMS, or email. 

You can, however, streamline customer engagement by investing in a robust multichannel communication tool. 

…Meet The Multichannel Inbox

With the MioCommerce Multichannel Inbox (MCI) you can streamline and enhance your customer engagement efforts.

Imagine all your customer inquiries coming in from different platforms — email, social media, live chat — and landing in one unified inbox.

This setup helps streamline ticket volume in a few key ways:

1. Centralized Management: Instead of juggling multiple platforms, your team can handle all customer interactions from one place. This reduces the chances of missing or duplicating tickets and ensures a smoother, more efficient workflow.
2. Prioritization: With all tickets in one place, it’s easier to prioritize urgent issues and distribute the workload evenly across your team, reducing bottlenecks.
3. Faster Response Times: When your team isn’t bouncing between platforms, they can respond to customers more quickly. This helps lower ticket volume over time because issues are resolved faster, leading to happier customers who need less follow-up support.
4. Consistent Communication: A multichannel inbox ensures that your team provides consistent responses across all channels, reducing confusion and the need for additional support.

In short, the multichannel inbox helps your team work smarter, not harder, by making ticket management more organized, efficient, and customer-friendly.

4. Pages Per Session

Pages per session is one key customer engagement metrics to track if you want to determine how deeply visitors are engaged with your website.

Below is the formula to measure pages per session. 

A higher number of pages per session often means your content is engaging and relevant. Statistics show that the average number of pages per session across industries is 2 to 3. Hence, you want to keep your sessions within these parameters. 

With the MioCommerce Customer Floating Dock, you can boost engagement by keeping key widgets visible on every page, no matter how many sessions or views a user has. 

The dock is a simple yet effective way to keep customers engaged with easy access to essential tools.

5. Churn Rate

Your churn rate is like the breakup letter from the customers.

It’s the percentage of existing customers who decide to move on from your brand. And let’s be honest, breakups are tough. But, understanding your churn rate can help you patch things up before it’s too late.

To measure the churn rate, use the formula below:

So focus on understanding why customers are leaving and how you can win them back.

After all, one study found that reducing churn by just 5% can increase profitability by 25 to 125%.

Speaking of which, the multichannel inbox can help you understand why customers are leaving and how to win them back.

 It does this by sending feedback and review requests after each service to boost your online reputation.

6. Customer Satisfaction

Customer satisfaction is your brand’s happiness index.

It’s measured through surveys where customers rate their experience on a scale (e.g., 1-5 or 1-10). 

To quantify it, you can calculate the Customer Satisfaction Score (CSAT) using the formula below.

According to the American Customer Satisfaction Index (ACSI), higher customer satisfaction scores are directly linked to customer loyalty. 

Satisfied customers are more likely to become repeat buyers and stick around for the long haul.

💡You can send feedback and review requests directly from the multichannel inbox, which helps you keep customers satisfied and encourages repeat business.

7. Social Media Engagement

“Two-thirds of social media’s potential value lies in improving collaboration and communication within and across enterprises.” – McKinsey & Co. 

Social media engagement is your brand’s popularity contest on the digital playground.

You measure it by tracking likes, comments, shares, and overall social media interactions on your media

Available data shows that 59% of consumers want brands to connect with them on social media. The more engagement, the better your brand’s visibility and reach.

To get a sense of how engaged your audience is, use this formula:

Note: You can add social media channels to your multichannel inbox, which will help improve your social media engagement.

8. Average Session Duration

This metric tells you how long visitors are hanging out on your site. The longer the session, the more engaged they are with your content.

The average session duration across industries is around 2 to 3 minutes.

If you’re hitting that mark or going beyond, it means your content is compelling enough to keep visitors interested. Remember, time spent equals interest, and interest equals potential loyal customers as well as conversions.

To measure it, divide the total duration of all sessions by the number of sessions during a specific period:

How To Track Session Duration

You can track your session duration using Google Analytics.

MioCommerce does you one better when it comes to helping you track your sessions. We offer professional website themes, complete with Google Analytics integration. 

That way, you can track your session and enjoy an appealing website optimized to attract customers at the same time. That’s a nice combination to have for your business.

9. Conversion Rate

Tracking conversion rate is the ultimate goal, the cherry on top when it comes to the key customer engagement metrics to measure.

It’s the percentage of visitors who take the desired action, whether it’s signing up, purchasing, or subscribing.

According to stats, the average landing page conversion rate is 9.7%. A high conversion rate means you’re not just attracting visitors — you’re turning them into customers.

Here’s how to calculate your conversion rate.

The multichannel inbox is built to help you boost your conversion rates. 

When a customer contacts you through the inbox, you can quickly send direct booking links to simplify the booking process.

In addition, the Live Pricing Buy Button lets you display all your services on your website, making them easily accessible. 

This visibility helps boost conversion rates by making it easier for customers to take action right away.

10. Customer Lifetime Value

Customer lifetime value (CLV) wraps the list of metrics you need to track to measure customer engagement.

CLV is the dollar value of a customer over the entire period they do business with you. It’s like knowing how much your BFF is worth over your lifetime of friendship — in business terms, of course.

Here’s the formula to measure customer lifetime value.

Knowing your CLV helps you understand the long-term value of keeping your customers happy and loyal. 

It also allows you to determine what you need to do to improve customer satisfaction. In a nutshell, measuring CLV enables you to nurture lasting customer relationships.

The MioCommerce Reporting Tools allow you to quickly access the customer data, making it easy to calculate CLV. 

With that being said, watch the video below for insights on how to increase customer lifetime value.

Frequently Asked Questions (FAQs)

Measuring Customer Engagement is Crucial; Get the Right Tools

Keeping track of customer engagement is crucial for understanding how your audience interacts with your brand. It is also great for driving long-term business growth.

When you track key metrics like customer retention, NPS, and CLV, you gain valuable insights into your customers’ behaviors and preferences. That way, you can build a customer engagement strategy that allows you to boost client retention.

However, to measure customer engagement effectively, you need the right tools.

A robust customer engagement tool, like a multichannel inbox, can streamline communication and improve customer satisfaction.

Coupled with the right strategies, the multichannel inbox can help you keep your customers engaged, loyal, and ready to champion your brand.

Eager to learn more about the multichannel inbox?

Book a free demo below to see how it works.