There’s a lot you need to do to stay in business and grow. One of the most important is keeping your customers happy and hooked, but how do you know you are hitting the mark? Customer engagement metrics. They open a window into how customers interact with your brand, how satisfied they are and what encourages them to come back.
When you track the right metrics, you can understand your customers better and where you need to improve and drive business growth. The question is, which customer engagement metrics should you track? Here are the top 4.
1. Net Promoter Score (NPS)
NPS asks one big question: “On a scale of 1 to 10, how likely are you to recommend us?”. Based on their responses, customers are categorized as promoters (9-10), passives (7-8) and detractors (0-6). Subtract the detractors from the promoters, and you have your NPS score.
A high NPS score is a clear indicator of your customers’ strong loyalty and their willingness to advocate for your brand. You can also use open-ended questions such as “How can we improve your experience?” to identify actionable steps for improving customer loyalty and willingness to recommend you.
Make sure to leverage a top-rated phone number reverse lookup API, such as the one Trestle offers, so you not only have more information to communicate with your customers across multiple channels but also be sure you’re interacting with the right customers.
2. Customer Satisfaction Score (CSAT)
Do you want to know how customers feel about your business and offering? Try CSAT. It measures how satisfied your customers are with a specific experience or interaction on a scale of 1 to 5.
CSAT is typically based on the question, “How satisfied are you?”. A high CSAT score shows you that your customers are happy with your product or service and, thus, more likely to become loyal customers.
- Conversion Rate
Are your efforts turning browsers into buyers? A marketing campaign’s conversion rate measures the percentage of people who complete an action tied to its goal. It defines conversion efforts from various campaigns based on the goals. Some of the efforts include downloading an eBook, signing up for a newsletter, registering for a free product trial, etc.
To calculate the conversion rate, just divide the total number of conversions by the total number of visitors (or sessions), then multiply by 100. A high conversion rate shows you that your campaigns are working: they are effective at getting users to do what you want them to do.
4. Churn Rate
It takes a lot of time and effort to get customers, but are they sticking around? A business’s churn rate is the opposite of another key metric: retention rate. It is the percentage of existing customers who stop doing business with you within a specific period. Although all businesses strive to have loyal customers and a churn rate of zero, the reality is that customers come and go.
Therefore, every business will have a value in its churn rate, with the recommended value being 5% or lower in most cases. A high churn rate shows that customers are facing issues such as poor-quality service, pricing concerns or low-quality products. Tracking churn rate allows you to identify these issues and implement strategies to retain customers: the goal is to keep the churn rate as low as possible.
Building Success on Measurable Metrics
There are dozens of ways to measure customer engagement depending on your goals; these four are just a start. These metrics are crucial in any business since they take the guesswork out of marketing.
Want to be even more confident when running your business? Work on improving the overall data quality in your databases by leveraging validation, verification, and enrichment tools such as the ones available on trestleiq.com.
All these efforts will help you to allocate your marketing budget to campaigns with a high probability of success and direct such efforts to real customers.
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