The retail business takes place where your customers are. They’re on social media, on mobile apps, and everywhere else you can imagine. But unfortunately, none of this matters if you can’t compete with other retailers in today’s omnichannel environment. That’s why 85% of marketing executives expect customer engagement metrics to be critical in choosing the right marketing strategies for their brand in 2022.
Additionally, don’t forget that in order to properly monitor your marketing efforts and define your next steps, you have to set clear and measurable goals. Therefore, we gathered the most important metrics and comprised a detailed guide that can be used as a roadmap for your data analysis.
Online Customer Engagement Metrics
#1: Net Promoter Score
How it works: The Net Promoter Score (NPS) calculates the percentage of customers who would recommend your product to a friend and the percentage who would not. The difference between these two numbers gives you the NPS, which can help you improve your customer engagement.
Why you should track it: The NPS is a measure of online engagement, tracking how likely your customers are to recommend your products or services, and why. Online businesses can use this metric to gauge customer satisfaction and loyalty and to identify opportunities to improve their offerings.
Tools or ways to track it:
- Promoter.io, an eCommerce tool that helps you manage and improve customer feedback
- SurveyMonkey, which allows you to design and send surveys to gather customer opinions
- Delighted, an eCommerce tool that helps you track customer satisfaction
#2: Customer Satisfaction Score
How it works: Your customer satisfaction score (CSAT) is a weighted average based on the percentage of customers who rate their experience with your business as either satisfied or dissatisfied. You can calculate your CSAT by taking the number of satisfied customers and dividing it by total responses, then multiplying by 100 to get a percentage.
Why you should track it: The CSAT is a crucial customer engagement measure because it represents the first step in understanding how well your business is meeting customer expectations. Many companies use CSAT as a leading indicator that measures the success of their products, services, and customer experience initiatives.
Tools or ways to track it:
- Live chat surveys asking customers to rate their satisfaction on a scale of 1 to 10 immediately after an interaction
- Survey widgets embedded into your website to collect customer feedback at various touchpoints throughout the customer journey
- Product reviews that provide valuable insight about your customers when they purchase one of your products
#3: Customer Lifetime Value
How it works: Customer lifetime value (CLV) is a measure of the total revenue that a business can reasonably expect from a single customer relationship. It includes all the future transactions a customer is likely to make, not just the ones they’ve made in the past.
Why you should track it: You need to track your CLV carefully because it helps you make informed customer engagement decisions about how you spend your marketing dollars, whom you target with your ads, and how much you can afford to pay for a new customer.
Tools or ways to track it:
- A simple average of all customers’ total purchases over time
- Adding up all monthly sales and then dividing by the number of months since the first purchase
- Repeat rate: a method that looks at CLV as a percentage of total sales and is weighted toward customers who have made repeat purchases in the past few months
Check out my source to read more customer engagement metrics.