Not many businesses consider it however, customer engagement score might be one of the most crucial criteria in determining your business’s success.
You either want to know your most engaged or churn-out customer or want to retain your customer or grow your business. CSE metrics allow you to evaluate all the important points between your customer and product.
In this blog, we will talk about the Customer Engagement score, why it is important to calculate the engagement score, and how to do it.
What is the Customer Engagement Score?
Customer Engagement score also known as CSE is a calculable figure that measures the engagement level of your customer and trial prospects with your SAAS product. Each user is assigned a score based on their activity and use of the product and services. The interaction and customer activity include login, feature utilization, support tickets, subscription renewals, and more.
Customer Engagement Score helps you get the information about:
1- Customers who are free trial prospects and can be converted into paying customers.
2- Identifying the up-selling and cross-selling opportunities with your existing customers.
3- Predict and prevent customers who are about to churn.
Identifying the information shown above enables businesses to make appropriate decisions to boost client retention and engagement.
Best Way To Measure Customer Engagement?
The secret lies in the metrics we consider. There are metrics like visits, clicks, page visits, time on the website or app, and other data that are undoubtedly useful in differentiating a user who uses your product. But there’s a better way of doing it.
For example, we know that engaged customers get the best value out of products or services, but we cannot measure the engagement solely by the product’s utilization level. Someone may use your product frequently, but may not derive the actual value or benefits.
Imagine having a mobile app designed to help people improve their physical fitness. The app has all the personalization such as workout plans, tracking exercises, providing diet plans and tracking your health score.
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Consider a person logging into your app daily and note down their fitness objective and their meal plan, by doing so they spend a significant amount of time on the app and also utilize the personalized feature available in the app. However, the person does not see any improvement in their health and is not losing weight or gaining strength. The main objective of that person is losing weight and staying fit.
Is this customer considered a highly engaged customer? Yes based on their usage metrics.
But what benefits did he gain from the app?
True customer engagement is not about the frequency of use but the value and benefits customers will gain from the product or services.
Don’t stuck your business with plain metrics, and consider whether customers are achieving their desired goal and are gaining any value from your product or service.
How Do We Measure The Customer Engagement Score?
1- Understand the main advantages of your service and product
You must understand the primary benefits of your product and services; if you are still unsure, now is the moment to figure it out. You must define measurable benefits linked with the product and service.
2- Prioritised and Scored Them
Once you’ve become aware of the multiple benefits, start tracking them individually. Individual events are then defined by assigning weights, based on their significance. Higher benefits yield higher weight. Set the range at the start, say 1-10 or 1-50, altering the parameter later will prevent you from comparing previous data.
3- Calculate the Score
You are now ready to compute the final score. Multiple departments utilize the score to develop new plans of action for employee engagement and retention.
Best Practices to Follow While Considering Customer Engagement Score
1- Defining Metrics
Businesses must always first clearly define which interaction will be tracked by them and how points will be assigned to each defined interaction. The metrics which you select must be aligned with the business goal.
2- Regular Score Update
Your job doesn’t end with simply defining the score. Keep regular track of the engagement score and keep analyzing customer interaction. It’s important to ensure that customer engagement scores should reflect the current behavior of customers and their product usage.
3- Integration with CRM and Analytics Tool
By integrating with CRM and another analytical tool you will get a comprehensive view of your data in one place while also improving accuracy.
4- Analyse and Implement
Customer data will be gathered using tools and CRM. The collected data are analyzed and transferred into understandings and data are then utilized to improve the overall customer engagement score.
5- Improvement
Changes are a constant part of data. Study and monitor the data continuously and change the customer engagement score strategy based on the analysis outcome.
Final Thoughts On Customer Engagement Score
Customer Engagement Score is important for a business since it helps them to evaluate customer engagement of the users and also allows to segment your users and free trial users based on their engagement score.
Businesses may easily calculate the score themselves, or there are various automated platforms available that offer the calculation of customer engagement. Customer engagement score will assist you in answering questions such as churning-account for business, why customers are not getting onboard, highlighting the customers who require product training, who are your most engaged customers and more.
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Alisha Limichana is a seasoned growth marketer and part of the MCG team at EnR Cloud, specializing in driving business growth through innovative strategies. She has a proven track record of delivering impactful marketing campaigns. Outside of work, Alisha enjoys exploring the mountains, travelling, and staying active and fit.
