Identifying Engagement Metrics

Customers are the driving force for every business- businesses simply wouldn’t exist without people wanting to invest in their product. With the realization that customers are extremely important to overall success, many businesses have implemented a Customer Success team within their operational structure.

Customer success is when customers attain their desired outcome through interactions with your business. A customer success team is responsible for helping customers get that desired outcome, as well as managing relationships between customers and your business. Intuitively, you should understand why customer success is important within a business — successful customers lead to a successful business. Monitoring relationships with customers can help reduce turnover, increase existing revenue, and influence new sales. A common term for that customer-business relationship is customer engagement.

What is customer engagement?

Put more formally, customer engagement is the process of actively building, maintaining, and managing relationships with customers in order to keep them coming back for more business. It involves encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a customer engagement strategy will promote brand growth and loyalty.

Why is customer engagement important?

Customer engagement is important in developing customer loyalty and growing the lifetime value of each customer. It’s about retaining them and leading them to become devoted and advocative for your business. Loyal customers are defined as those who choose to maintain a relationship with your business, no matter the choice of competitors. The more a customer is engaged, the more likely they are to be loyal and continue to use your product over a competitor’s.

Along with creating loyal customers, customer engagement helps lower churn rate and boost retention rate due to its focus on extending the customer relationship past the purchasing point. Once a good relationship is established and customers are benefitting from your product, they can become great advocates for your business.

What are customer engagement metrics?

Tracking customer engagement metrics shouldn’t be limited to just looking at typical marketing metrics like site visits and product referrals. It’s important to also consider customer service metrics to understand the overall customer experience. Below, we’ve included a good mixture of marketing and service metrics to help you gain a comprehensive view of your business’s customer engagement.

  • Activity Time – the total time someone spends actively using your product
  • Visitor Frequency – how often someone returns to your product
  • Number of Core User Actions – a count of actions performed by users that are considered the basis of your product
  • Number of Active Users – a count of the number of unique users that actively use your product, usually measured over a specific period of time
  • Stickiness – a measure of how often your “regular” customers return during a period of time
  • Customer Retention Rate – the percentage of customers your business is able to retain
  • Customer Lifetime Value (LTV) – the predicted revenue a customer will bring in over their contract lifetime
  • Net Promoter Score a way to measure how likely a customer is to recommend your service to someone else
  • No-Contact Rate the percentage of customers who experienced issues with your product but did not try or gave up trying to contact you
  • Number of Customer Complaints – a count of complaints submitted by customers


Customer success has become an integral part of business, even more so, the practice of customer engagement. Customer engagement is essentially fostering a connection between a consumer and a business through various channels of correspondence. Having good customer engagement leads to loyal customers, valuable advocates, and overall, a more successful business. Tracking metrics, like the ones identified above, are an easy way to monitor your customer engagement performance. Learn how to measure customer engagement metrics in this tutorial.


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About Bryn Burns

Hi! I'm Bryn Burns. I am a current senior at Virginia Tech pursuing degrees in Statistics and Mathematics. Data science and visualization are two things I'm very passionate about, as well as working with numbers and helping people learn. I'm thrilled to share my knowledge here at The Data School!