Customer Experience

Customer Engagement Metrics: Why they Matter the Most for Business Growth?

Manoj Rana
November 26, 2023
min read
Customer Engagement Metrics: Why they Matter the Most for Business Growth?
Share this article:
Table of contents
Table Link

10 Key Customer Engagement Metrics You Can't Afford to Miss in 2023

Customer engagement metrics are the key elements of the modern business landscape that measure the output of your marketing strategies by analyzing the customer response. By decoding the nuances of different customer interactions with the brand, these metrics help determine and redefine marketing methods for the desired success.

However, knowing which customer engagement metrics to measure that can offer you the best insights is highly crucial. After extensively researching about it, we have apprehended the ten most important customer engagement metrics in businesses that make a substantial difference in your marketing output. Let us begin!

An Overview of Digital Customer Engagement Metrics

Before we delve into the details of how to track customer engagement metrics, let us first learn more about what these metrics are essentially about.

These metrics provide crucial intel into the depth and quality of customer relationships. Furthermore, they offer a window into the performance of marketing tactics, products, and overall customer satisfaction. Essentially, customer engagement metrics guide businesses to clearly understand their audience's preferences, behaviors, and needs.

A study by Salesforce indicated that 88% of buyers say customer experience with the brand matters as much as a company's products or services. Hence, measuring these crucial engagement metrics is the obvious choice that results in greater profits.

Tracking customer engagement involves measuring various indicators, such as website visits, email open rates, social media interactions, and customer feedback. These data points offer a complete view of how customers interact with a brand through various channels.

For instance, tracking the duration spent by a user on a website can signal the extent of their interest and engagement with the brand. Whereas, the social media interaction data can demonstrate the influence of a brand's online visibility.

Therefore, businesses can fine-tune their strategies to better align with customer expectations by tracking key metrics and KPIs for customer engagement.

Do Customer Engagement Metrics Really Matter for Your Business?

Customer engagement metrics are not just arbitrary numbers. They are like a unique tool that helps brands understand the likeliness of their customers towards them. Instead of presenting ordinary data, these metrics showcase how people feel and act toward a brand. Imagine them as a map, showing businesses the optimal way of satisfying their customers and improving the customer retention rate.

Apart from analyzing what customers do, these metrics are a great indicator of revealing why they do it. Suppose you are an eCommerce fashion brand that sold a new shirt to a customer. Unfortunately, the customer wasn’t satisfied with the product but violated your 7-day return policy.

After seven days, the customer started arguing that he needed a return, but you couldn’t do that due to company policies. This turns out to be a bad experience for the customer, and he starts spreading bad mouth about the brand.

Now, in this case, having the information on why the customer got irate due to the short-period return policy could help the business understand that maybe they require a more profuse return policy that helps their brand build a better customer experience and enhance customer satisfaction.

A survey done by Calabrio suggests that over 60% of consumers agree to switch brands due to a negative contact center experience. Having said that, the importance of these customer engagement metrics cannot be understated. They help businesses find the best roadmap to make customers happy, resulting in higher business growth.

Benefits of Measuring Customer Engagement

The three fundamental benefits of using customer engagement metrics for your business are:

Enhancement in Customer Satisfaction Score

Keeping your customers content and satisfied is vital for any business, and customer engagement metrics play a major role in achieving this. By monitoring crucial metrics such as customer feedback surveys and Net Promoter Score (will be discussed later in the blog), brands can identify areas that require enhancement and comprehend what brings happiness to their customers. Working on these aspects further leads to a higher customer satisfaction score.

Improvement in Customer Loyalty and Retention  

Customer engagement goals are focused on fostering the relationship between the brand and its customers. When brands analyze metrics like purchase frequency or customer retention rates, they gain insights into what keeps customers returning.

Hence, the brands can address customer pain points more effectively, tailor business offerings to meet customer preferences and earn higher customer loyalty. This insignificantly increases the brand’s retention rate of customers.

Increase in Customer Acquisition

Certain customer engagement metrics, such as social media engagement and referral rates, can provide crucial information regarding the effectiveness of your brand's reach. Satisfied and loyal customers are generally more likely to spread a positive word about your brand.

When your brand actively engages with existing customers to build a positive experience, the customers become your brand’s advocate and selflessly promote your brand, decreasing the customer acquisition cost.

Learn to Improve Your Customer Experience in 5 Simple Steps

Read Now!

Top 10 Customer Engagement Metrics that Make All the Difference

You might find a plethora of customer engagement metrics online that will guarantee an increase in your business growth. However, not all have the same output capacity in tracking customer engagement goals.

That is why using the best tools, such as Qwary, is suggested to execute this job, which is used to measure the most necessary engagement metrics that certainly make the difference in your business growth.

Let us uncover these ten vital customer engagement metrics below:

Conversion Rate or Ratio

It is an important metric that suggests the rate of leads converting into your customers after engaging with your brand on any specific touchpoint. The conversion ratio helps you assess the success of marketing strategies and the overall user experience.

The conversion rate for a brand is measured by a simple mathematical notation:

Conversion Rate Formula

For instance, you initiated a campaign that aims at people downloading your new catalog for updated products. So, if you engaged with a total of 100 people in a day, of which only 33 of them downloaded the catalog, then your conversion rate would be 33/100 x 100 = 33%.

A high conversion rate demonstrates that a website or landing page effectively convinces visitors to take the desired action. Brands can use this metric to improve online visibility and build efficient strategies to acquire more customers.

Customer Satisfaction (CSAT) Score

The customer satisfaction score, or the CSAT score, is one of the most crucial metrics measures that state how satisfied customers are with a transaction, interaction, and overall experience with a brand.  

The CSAT score is often analyzed through surveys or feedback calls and questions. Companies leverage the CSAT score to pinpoint their strong points and identify areas of improvement.

The CSAT score is calculated using the formula:

CSAT Formula

A higher CSAT score signifies a satisfactory customer experience, further nurturing brand loyalty and favorable recommendations. Conversely, a lower CSAT score signifies customer dissatisfaction and urges businesses to tackle any issues promptly.

If your brand is currently showcasing a poor CSAT score with existing customers, it might be time to redesign your strategies to help measure and uplift your brand’s customer satisfaction score.

Net Promoter Score

Net Promoter Score (NPS) is an important customer engagement metric that measures customer loyalty for the brand. It further determines the customer’s inclination to endorse the brand's offerings to friends and family. NPS is an exceptional metric that can help brands comprehend their potential for organic growth through word-of-mouth marketing.

Similar to CSAT, NPS, too, is based on surveys from existing customers. The most likely questions that qualify for the NPS survey are:

  • How likely will you suggest our product to a friend or coworker?
  • Which features of our product or services do you find most valuable?
  • What did you feel could have been improved in your customer service interaction with us?
  • How do you look at what customer engagement is from a customer point of view?
  • In what ways can we enhance your customer engagement and customer experience?

The more questions you ask your users, the higher insights you will derive from their answers that will help you strategize your marketing campaigns and bring improvements to products and services.

On an NPS scale, the respondents are divided into three groups based on their scores:

  • Promoters with scores of 9-10.
  • Passives with scores of 7-8.  
  • Detractors with scores of 0-6.

To measure NPS, use the formula:

NPS Formula

A higher NPS score indicates a better likelihood of customers promoting the brand, whereas a lower NPS suggests that the customers have a poor brand experience.  

Page Visits per Session

Page Visits per Session is a critical user engagement metric for brands, especially new startups. It tracks the average number of pages a user goes through during a single session on an application or website. It helps understand users' engagement and how well your products and services capture their interest.

Page Visits per Session is calculated by

Page Visits Per Session Formula

A higher Page Visits per Session determines that users thoroughly navigate the website and have a satisfying user experience of scrolling through your website or application.

For example, a brand received 20,000 page views and 2,000 sessions in a specific timeframe. Then, the Page Visits per Session would be 10 in this case. It indicates that, on average, users browse through ten pages during each visit. Using this information, brands can access their website usability and evaluate the retention of their content for better outcomes.

Customer Effort Score (CES)

The CES, commonly known as the Customer Effort Score, is often neglected by many brands in their customer engagement goals. However, this crucial metric is a great way to analyze how much effort a customer requires in interacting with a brand.

The goal is to minimize customer effort and recognize ways to nourish more effortless conversations and interactions with the brand’s users.

Leveraging CES engagement metric measures, businesses can

  • Measure customer engagement effectively.
  • Identify customer’s pain points.
  • Streamline processes more efficiently.
  • Reduce customer engagement efforts.
  • Enhance overall customer satisfaction.

CES is usually calculated by asking users to rate the ease with which they could complete the task on the brand’s platform. Every brand has its parameters to acquire the scores. Some brands offer a scale table of 0 to 10, while others incorporate the old typical technique of ranging a particular task from "Very Difficult" to "Very Easy scale.

After receiving all the user inputs, the scores are averaged to calculate the overall Customer Effort Score. A low CES means an easy and more efficient customer experience and vice versa.

​​Customer Lifetime Value (CLV)

CLV is one of the most prominent and valuable engagement metrics of the modern business landscape. It estimates the total revenue a business can expect from customers over their lasting relationship. CLV is an effective metric that examines the potential value a customer brings to the business in the long run.

CLV results in accumulating the following vital data and insights for a brand:

  • How often a user buys from your brand?
  • What is the average money they spend in a session?
  • How long do the users stay active on your business platform?

Getting answers to all these questions results in a better understanding of customer behavior and formulating better strategies for growth.

Customer Lifetime Value is calculated by

Customer Lifetime Value Formula

A higher CLV means that your business is earning positively from the customers. On the contrary, a lower CLV score indicates that your business might be spending more in acquiring and retaining a customer than the business they provide.

Customer Retention Rate

Businesses always look for ways to improve Customer Retention Rates (CRR). A CRR is generally defined as the percentage of brand customers retained over a specific period by the business. These retention metrics exclude new customer acquisitions of the brand.  

The CRR is calculated using the formula:

Customer Retention Rate Formula

Now, let us assume that a brand starts the year with a total of 1000 customers in a year. Over time, the brand acquired 200 new customers but lost 100 out of them. Now, the CRR will be (1100 - 200) / 1000 X 100 = 90%. This showcases that the brand retained 90% of its original 1000 customers. A high retention rate hugely benefits businesses because it indicates that their customers are satisfied with their services and products. Ultimately, a high retention rate contributes to the swift growth of business and customer success.  

Churn Rate

The Churn Rate is an important customer engagement metric that evaluates the percentile of users who stop using the brand service or product within a specific timeframe. CR helps you measure customer attrition and generates insights on the rate at which customers eliminate their engagement with the brand.

Basically, when a user uninstalls your application from their phone or unsubscribes to your brand services, it determines the customer churn rate. Finding your business's churn rate helps brands figure out potential reasons customers are switching to a competitor.

The customer Churn Rate is calculated by:

Churn Rate Formula

For instance, if a brand begins its month with 1,000 customers and then loses 50 customers by the month's end, the calculation of the Churn Rate would be (50/1000) X 100 = 5%.

A higher Churn Rate indicates a potential issue with the brand. This prompts businesses to identify and address the reasons for leaving customers. By understanding and working on the user’s pain points, brands can build effective customer retention strategies and sustain long-term growth.

User Activity

Knowing what your users are up to can be a game-changer in respect to business growth. User activity is a pivotal customer engagement metric that indicates how actively people are engaging with your brand’s website or application. User activity metric includes monitoring of multiple user activities, including:

  • User logins
  • User click-through rate
  • User engagement with the platform

Collecting information about the following data helps businesses identify valuable insights into the popularity of their most-used features and the general user satisfaction rate.

For instance, suppose you are a clothing brand that incorporated a new price filter feature to your app. After the feature update, you noticed a significant increase in user activity. This means your recent updates are resonating positively with the customers.

This exceptional engagement metric is crucial for improving the user experience, enhancing attractive features, and ensuring lasting customer involvement for long-term success in a competitive market.

Social Media Statistics

Needless to say, social media today has transformed into the biggest marketplace to build brand awareness and promote business offerings. The social media engagement metrics reflect the effectiveness of a brand's visibility and social media presence.

The following are some of the key elements that are tracked for social media engagement:

  • Like, share, comment on the business products and services
  • Brand mentions by people and different influencers
  • Brand post clicks
  • User reviews
  • Retweets of brand posts and products
  • Brand’s following-to-followers ratio

By closely monitoring these parameters, brands can efficiently evaluate the performance of their social media strategies and further customize content to the preferences of their target audience, which in turn would establish meaningful customer-brand relationships.

Calculate the Given Customer Engagement Metrics for Your Brand Using Qwary

Check Now!

Common Challenges & Pitfalls to Avoid While Tracking Your Customer Engagement Metrics

Though measuring key customer engagement metrics helps in optimal business growth, a few common pitfalls can hinder the accurate assessment of these metrics. Hence, you need to be certain to avoid these common pitfalls while tracking customer engagement rates.

Inconsistent Data Collection

It is one of the most common pitfalls brands face while measuring customer engagement metrics. Inconsistency in data generally occurs when using multiple tools to gather user data, which leads to higher discrepancies.

This affects the credibility of generated metrics based on uncertain data and leads to ineffective engagement strategy creation. This challenge can be successfully countered using an excellent and reliable customer engagement metric tool that encompasses different measures of customer experience.  

Lack of Clarity on Goals & KPIs

Tracking customer engagement metrics without clearly understanding goals and Key Performance Indicators (KPIs) is aimless. For this reason, it is advisable to establish clear goals, match metrics with these objectives, and consistently review to ensure alignment with changing business priorities. This transparency ensures better engagement metrics and KPIs that are relevant and support overall business goals.

Overemphasis on Vanity Metrics

Paying too much attention to vanity metrics like likes and clicks without measuring the impact on business results can be deceiving. It's better to prioritize metrics that are connected to your customer engagement goals, such as conversion rates, customer satisfaction, and retention rates, which offer more valuable business insights.

Neglecting Qualitative Data

Depending exclusively on quantitative data generally results in ignoring the qualitative elements of customer interaction. Do not make this common mistake of ignoring the quality, and make sure to leverage vital engagement metrics that determine the optimal quality for your data.

Leverage customer feedback, reviews, and comments to better understand the customer's experience. Qualitative data offers a deeper insight and a more detailed comprehension that significantly impacts customer and business growth. In addition, it is supported by Google Analytics, which further helps gain better SEO insights.  

Missing the Context

Interpreting metrics without considering their context can result in misunderstanding. Therefore, it is crucial to take into account the larger picture surrounding the data, such as market trends, seasonal changes, or marketing efforts. Understanding the context of the metrics helps avoid making incorrect judgments and ensures a more precise assessment of customer involvement.

Brands that Got Uplifted with their Smart Use of Customer Engagement Metrics


Netflix is a great example of using customer engagement data to improve user experience and content delivery. By carefully keeping track of what viewers like, what they watch, and how they rate shows, Netflix uses advanced algorithms and tools to give personalized suggestions.

This doesn't just make customers happy by giving them content they're interested in and helps Netflix keep people engaged and subscribed. Using data in this way has been a key part of making Netflix a top streaming service worldwide.


The success of Amazon is closely linked to its skillful use of customer engagement measurements. Amazon carefully monitors its customer's actions, buying patterns, and user feedback.

In addition, it also focuses on statistics like conversion rates and customer feedback, which helps Amazon consistently improve customer engagement and increase customer loyalty and satisfaction. This analytical approach enhances the customer experience on the platform and results in continuous revenue expansion.


Airbnb has revolutionized the travel and accommodation sector by adopting crucial customer engagement metrics that promote higher customer trust and contentment. Through diligent observation of user feedback, host ratings, and reservation trends, Airbnb ensures a dependable and gratifying experience for both visitors and hosts.

The platform's focus on statistics such as the response time a customer takes and addressing customer concerns, have built up trust among users for the platform. This, in return, leads to a greater loyal customer base and favorable recommendations for the business.

Ready to Boost Your Brand’s Customer Engagement?

Achieving proficiency in the given essential customer engagement metrics certainly can bring a significant change in your brand’s business growth. These metrics, from conversion rate to social media statistics, offer unparalleled insights using which brands can refine strategies and elevate customer experiences. So don't miss out! Catapult your business success with these engagement metrics using Qwary. Qwary is a cutting-edge platform designed to empower businesses and elevate swift business growth using data-driven decisions.

Explore Qwary to Learn About its Features!