Numerous businesses now prioritise customer engagement by integrating their brands and products seamlessly into consumers' lives, rather than relying solely on traditional advertising and sales tactics. This paradigm shift in marketing strategies underscores the growing importance of customer engagement (CE) metrics as key performance indicators (KPIs).
Why is it important?
A company with a high engagement ratio or many engaged customers would simply mean that they are very likely to come back for more products and services. Ultimately leading to higher company profits. This must be a good enough reason.
What questions does KPI answer?
1) How well are we engaging our customers?
2) What percent (%) of our customers fully engage?
3) How close are we to converting a customer?
4) How many customers are close to churning out?
KPI target
Companies offering CE services would be able to provide benchmarks. Alternatively, one can be established over time.
Measuring CE more often if possible may help an organisation better understand actions directed towards engagement and consumer reactions. This may help companies become more competitive.
Data sources
Quantitative and Qualitative surveys. Starting from basic ratings to questionnaires to in-depth interviews.
CCCKPI Formula
There’s no industry formula. Usually, it’s a mix of factors that are identified as affecting engagement. The factors are combined (and may be weighted) to reach a score, ratio or percent (%). Often offered by external providers.
Below is a detailed KPI map:
