Customer Engagement Measure

A Customer Engagement Measure is a organizational performance measure based on product usage (by a product user).

• Context:
  • It can (typically) be a Composite Measure, such as based on: Activity Time, Visit Frequency, and Core User Actions.
  • It can (typically) be correlated to Customer Satisfaction Measures.
  • …
• Example(s):
  • Online Customer Engagement Measure, such as MAU, DAU/MAU, and User Retention.
  • …
• Counter-Example(s):
  • a Customer Profitability Measure.
  • Civic Engagement.
  • a Service Uptime Measure (SLA).
• See: Customer Product Attachment, Conversion (Marketing), Customer Service, Customer Experience, Engagement Marketing, User Generated Content.

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References

2017

• (Wikipedia, 2017) ⇒ https://en.wikipedia.org/wiki/customer_engagement Retrieved:2017-2-17.
  • Customer engagement is a business communication connection between an external stakeholder (consumer) and an organization (company or brand) through various channels of correspondence. This connection can be a reaction, interaction, effect or overall customer experience, which takes place online and offline. The term can also be used to define customer-to-customer correspondence regarding a communication, product, service or brand. However, the latter dissemination originates from a business-to-consumer interaction resonated at a subconscious level. Online customer engagement is qualitatively different from offline engagement as the nature of the customer’s interactions with a brand, company and other customers differ on the internet. Discussion forums or blogs, for example, are spaces where people can communicate and socialise in ways that cannot be replicated by any offline interactive medium. Online customer engagement is a social phenomenon that became mainstream with the wide adoption of the internet in the late 1990s, which has expanded the technical developments in broadband speed, connectivity and social media. These factors enable customer behaviour to regularly engage in online communities revolving, directly or indirectly, around product categories and other consumption topics. This process leads to a customer’s positive engagement with the company or offering, as well as the behaviours associated with different degrees of customer engagement. Marketing practices aim to create, stimulate or influence customer behaviour, which places conversions into a more strategic context and is premised on the understanding that a focus on maximising conversions can, in some circumstances, decrease the likelihood of repeat conversions. Although customer advocacy has always been a goal for marketers, the rise of online user generated content has directly influenced levels of advocacy. Customer engagement targets long-term interactions, encouraging customer loyalty and advocacy through word-of-mouth. Although customer engagement marketing is consistent both online and offline, the internet is the basis for marketing efforts. Leveraging customer contributions is an important source of competitive advantage – whether through advertising, user generated product reviews, customer service FAQs, forums where consumers can socialise with one another or contribute to product development. In store, or offline customer engagement is best leveraged by associates’ extensive brand and product knowledge, and the digital access that supports it. Equipped with a tablet that also delivers store and sales training, educated on-floor associates become brand ambassadors who can show consumers high-definition product imagery and video to help cross-sell, up-sell, grow relationships and foster loyalty.

2017

• http://blog.popcornmetrics.com/5-user-engagement-metrics-for-growth/
  • QUOTE: Lets start by defining what User Engagement is and User Engagement Actions and why you should care.

    Lincoln Murphy says user engagement is "when your customer is realising value from your SaaS." More generally you can say “user engagement is when your customer is realising value from your product/service/website/app”.

2016

• "Top 3 Metrics to Measure Customer Engagement."
  • QUOTE: Businesses these days are making significant efforts to delight their customers, and for good reasons. One of the key areas where businesses focus their efforts is in creating online self-serve applications with a great user experience in order to help customers get what they need and when they need it.

    But how do businesses know if they are successful? Below are 3 key metrics you need to measure customer engagement.

    1. Activity Time: When an online service creates value, people use it and use it often. Usage is measured by the number of times a customer visits your service (sometimes termed sessions) and the elapsed time they spend in using it. We call this Activity Time – the total time a user spends online, interacting with the offered service. Note that Activity Time measures the actual time a user spends interacting with the service, and factors out time in which the user is idle (even if logged-in). This is critical given modern usage behaviors where users typically have many web-applications and sites open on different browser tabs.
    2. Visit Frequency: How often a user returns to your service is a key reflection of the value they get from it. This is often called Visit Frequency. Visit frequency yields many potential patterns in customer behavior, as shown in the table below. The main goal is to identify the pattern that is most relevant for your service and monitor users against that pattern. If you expect a delighted user of your service to visit every day, measure against that, if you offer a seasonal service and expect them to only return on holidays, look for that pattern and so forth.
    3. Core User Actions: Another indication of value customers gain is their use of Core User Actions, as defined for your service. If a user is consistently performing core actions, it is a good indication of adoption. When user’s explore new features and start to use them, the service is growing on them, and they are happy to use it more.

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