Top 11 Customer Engagement Metrics You Must Track

Surbhi Nahata

Jayadeep Subhashis

February 2, 202412 min read

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Gone are the days when customers made purchasing decisions based solely on advertisements. Today, they have various options and gravitate towards brands that resonate with their values. Establishing a robust connection is critical; the stronger it is, the more likely they will choose your brand. So, it’s critical for you to observe the performance of key customer engagement metrics regularly. 

Increasing customer engagement is a strategic imperative for both established and growing brands. Contact centers are pivotal in creating proactive and meaningful interactions across various touchpoints.  

To gauge just how impressed customers are with your products, how likely they are to refer you, and their overall satisfaction with the quality of customer service, one must evaluate crucial customer engagement metrics.  

In this blog, we will guide you through the meaning of customer engagement, its business significance and the vital customer engagement metrics you must diligently track. 

Table of Contents

What is customer engagement? 

 Customer engagement encompasses how customers connect with and experience your brand through your products/services, website, application and other touchpoints. Customer engagement has the potential to significantly build customer loyalty, satisfaction and purchasing behaviors.   

In today's fiercely competitive digital era, you must prioritize creating and maintaining positive customer relationships, as customers are swift to switch allegiance even after a single unsatisfactory encounter. Companies that successfully engage their B2B customers realize 63% lower customer attrition and a 55% higher share of wallet. 

However, brands have not been able to match the customer expectations. Most of the customers think Companies need to transform how they engage fundamentally. Since brands don’t have effective ways to measure/track their customer engagement, most of them fail to realize the disconnect and end up losing their customers in the bargain. 

Given this dynamic, tracking key customer engagement metrics becomes imperative. It offers you a bird's-eye view of their engagement patterns and sentiments, enabling you to take corrective actions for optimal customer engagement along the customer journey

Importance of tracking customer engagement metrics 

Customer engagement strategies in the digital era are not a novel concept. However, it has become one of the most challenging areas. With the proliferation of digital channels, communication has become more fragmented than ever before, and only a few have managed to excel at it. 

The root cause lies in the absence of a well-thought-out customer engagement model and the struggle of brands to cultivate a distinctive and authentic voice. 

By assessing critical customer engagement metrics, you can gauge how successful you have been in your customer engagement endeavors. Moreover, there are compelling reasons why customer engagement metrics hold so much importance today.  

1. A better understanding of customer behavior 

Tracking customer engagement metrics provides invaluable insights into your customer behavior patterns. For instance, analyzing click-through rates on email campaigns can reveal which types of content resonate most with your audience. Understanding these patterns enables you to tailor their strategies to meet customer preferences and needs effectively. 

Example: If an e-commerce platform notices that many customers frequently cart items but don’t check out, it may indicate a need for smoother checkout processes or more persuasive product descriptions.  

2. Enhanced customer experience  

Customer engagement metrics serve as a compass for refining and elevating the customer experience. By monitoring metrics like Net Promoter Score (NPS) or customer satisfaction scores (CSAT) using surveys, you can identify pain points and areas for improvement in your products or services. This leads to a more seamless and satisfying experience for your customers.   

Example: A software company might use a customer survey to discover that users struggle with a particular feature. They can address this concern in the next software update, resulting in a more user-friendly experience. 

Related Read: A detailed guide on customer experience management 

3. Increased customer retention  

By closely monitoring metrics like customer churn rates and lifetime value (CLV), you can identify at-risk customers and implement targeted strategies to retain them. This ultimately leads to high customer retention.  

Example: A subscription-based streaming service may observe that customers who frequently engage with exclusive content have a higher CLV. They can then focus on creating more such content to enhance customer loyalty.  

Must Read: 7 proven ways to reduce customer churn rate 

4. Stay informed about upcoming trends 

Tracking customer engagement metrics also provides valuable insights into emerging trends and shifts in customer preferences. By analyzing metrics related to emerging platforms or channels, businesses can adapt their strategies to meet their audience where they are.  

Example: A social media marketing agency might notice a surge in engagement on a newly emerging platform. Recognizing this trend allows them to pivot their efforts toward that platform and gain a competitive edge. 

Learn More: 3 effective ways to improve customer engagement on social media 

5. Better return on investment (ROI)  

By understanding which channels and campaigns yield the highest return on investment, you can focus your efforts and resources on the most lucrative avenues.   

Example: A digital advertising campaign may reveal that paid social media ads generate a higher ROI than display ads. This insight prompts the company to allocate more of its advertising budget towards social media campaigns.   

Top 11 customer engagement metrics to track in 2024

Monitoring key metrics is crucial for assessing and improving customer satisfaction and interaction. Here are the top 11 metrics to monitor for customer engagement in 2024.   

1. Customer satisfaction (CSAT) 

Successful companies prioritize customer satisfaction (CSAT) as a foundation for growth. They utilize CSAT surveys to gauge customer happiness and identify areas for improvement. CSAT provides valuable insights into customer sentiment, helping businesses address issues and enhance their overall customer experience.   


Example: Suppose the number of customers that gave a rating of 4 or above out of 5  is referred to as the "no. of positive responses."  In a survey, 64 out of 100 survey responses gave a rating of 4 or above on a scale of 1 to 5.  Therefore, CSAT score = (64 / 100) X 100 = 64%  

Good to know: Modern customer satisfaction software with AI-powered CSAT Prediction and automated CSAT surveys delivers the data-driven insights you need to build better service experiences on all channels.

Customer Satisfaction Software by Sprinklr Service

2. Net promoter score (NPS) 

NPS is a key metric to measure customer loyalty. Simply ask customers, "How likely are you to recommend our product/service on a scale of 0 to 10?" Based on their responses, classify customers as promoters, passives or detractors. NPS measures customer advocacy and the brand's potential for organic growth.  

NPS = % of promoters from total responses - % of detractors from total responses 

Promoters are users who offer a rating of 9 or higher out of 10 (active, loyal buyers), whereas detractors are users who give any rating between 1 and 6 (unhappy customers who may spread misinformation and tarnish a brand's reputation). 

Example: Consider 100 survey responses divided into 90 promoters, 20 detractors, and 10 passives responses.  

Therefore, NPS = 90% - 20% = 70%. 

Suggested Read: How to improve the Net Promoter Score of your brand 

3. Customer churn rate 

Customer churn rate is the percentage of customers who discontinue using a product or service. High churn rates indicate the need for improved customer engagement. Businesses can take corrective measures to understand how to reduce customer churn rate. 

Customer churn rate = (Total no. of customers lost over a period / total no. of customers before the specified period) x 100 

Example: Consider a company that started its business with 5,000 customers but lost roughly 500 by the end of the previous quarter.  

Therefore, customer churn rate = (500 / 5000) x 100 = 10%, equivalent to the number of customers leaving each year. 

4. Customer lifetime value (CLV) 

CLV measures the total revenue customers generate throughout their interactions with a company. Monitoring Customer Lifetime Value (CLV) enables efficient resource allocation and prioritizes high-value customer segments.

CLV = Average purchase value x Average purchase frequency x Average customer lifespan 

CLV is calculated by multiplying the average transaction value (the amount a customer spends in a single transaction), the average transaction frequency (how frequently they purchase) and the average customer lifespan (how long they remain a customer).   

Example: Let's say an e-commerce company, XYZ, has the following data: 

  1. Total Revenue in a year: $500,000 

  2. Total Number of Transactions: 10,000 

  3. Total Number of Unique Customers: 2,000 

  4. Average Customer Lifespan: 3 years 


    1. Average Purchase Value (APV)= $500,000/10,000 = $50 

    2. Purchase Frequency (PF) = 10,000/2000 = 5 

    3. Customer Lifetime Value (CLV)= 50x5x3= $750  

5. Customer retention rate (CRR)

The customer retention rate is calculated as the percentage of customers a company successfully retains over a specific period. This indicator is essential to evaluate the general health of customer relationships since attracting new customers is more expensive than keeping existing ones. 

Customer retention rate = [(Total customers - new customers) / Existing customers before the period] x 100 

Example: Consider a company with 5,000 consumers who added 500 additional customers after the preceding quarter. They had 5,300 customers altogether after the quarter. 

Therefore, customer retention rate = [(5300 - 500) / 5000] x 100 = 96%. 

Learn More: What is the average customer retention rate in your industry 

6. Average resolution time 

Average resolution time is a metric to gauge how quickly customer complaints are addressed and resolved. Improve customer satisfaction and prevent frustration by promptly addressing and resolving customer complaints, focusing on reducing average resolution time.   

Average resolution time = Total time taken to resolve all tickets / Total number of resolved tickets

If an employee receives 200 tickets and resolves 120. The time taken by the employee to resolve 120 tickets is 600 minutes. 

Therefore, average resolution time = 600 / 120 = 5 minutes per ticket.  

7. Feature adoption rate 

Understanding the feature adoption rate is crucial for product development and marketing efforts. A high adoption rate indicates that users find the feature valuable and relevant to their needs. In contrast, a low adoption rate may signal a need for further user education or improvements to the feature. This metric helps businesses make data-driven decisions to enhance user satisfaction and product success. 

Feature adoption rate = (Number of users who adopted the feature / Total number of users) x 100

Let's consider a software company, ABC Tech, which recently introduced a new feature in its project management tool. They have 1,000 registered users. 

  • Number of Users Adopting the Feature: 300 users have actively started using the new feature. 

  • Total Number of Users: 1,000 registered users.  

Using the formula:  

Feature Adoption Rate
= (300/1000) x 100 = 30%  

This means that 30% of ABC Tech's user base has adopted the new feature.  

8. Click-through-rate (CTR)   

CTR measures how effectively calls-to-action (CTAs) perform in marketing initiatives. It shows the percentage of recipients who clicked on a CTA and expressed interest.

Click-through-rate = (Number of clicks on a link or ad / Number of impressions) x 100 

The percentage of people who click on a link or advertisement after seeing it (impressions) is determined by CTR. While a lower CTR denotes the need for optimization or relevance enhancement to draw in more clicks and user engagement, a higher CTR shows that the content or advertisement engages and connects with the audience. 

9. Social media mentions and sentiment analysis 

Monitoring brand mentions on social media and analyzing sentiment (positive, negative, or neutral) may help you understand how engaged and satisfied your audience is and how to address their concerns best.  

Good to know: Today, with AI-powered speech analytics software, your teams can rapidly uncover how satisfied customers are when they call with detailed agent quality scores, product and service sentiment and performance data — and then use those insights to boost customer satisfaction.  

Speech Analytics Software Powered by Sprinklr Service

10. Email engagement metrics

Metrics for measuring customer engagement and email campaign performance are crucial if you rely substantially on email marketing. These metrics include open rates, click-through rates and unsubscribe rates.  

💡Pro Tip: To enhance your email marketing metrics and boost customer engagement, start by segmenting your audience based on demographics and behavior. This allows for more targeted content. Personalize emails with recipient names and tailored recommendations. Optimize email design for mobile, ensuring they're visually appealing with clear CTAs. 

11. Web Analytics 

Analyze user behavior on your website, including page views, session duration, bounce rates, and conversion rates. These metrics provide insights into how engaged visitors are with your online content.  

How to measure customer engagement  

Here are some best practices that can help you accurately measure customer engagement.  

1. Define engagement metrics 

 Choose metrics that align with your company's objectives and customer interactions. Standard engagement metrics are excellent starting points, such as website traffic, time spent on a website, click-through rates (CTRs), and interactions on social media (likes, shares, comments).  

2. Use multiple data sources 

 Gather data from various sources, including website analytics, social media insights, CRM systems and consumer surveys. This comprehensive approach provides a deeper understanding of customer engagement.   

3. Monitor social media 

Keep a vigilant eye on social media conversations. This practice lets you track customer sentiment, identify emerging trends, and promptly address concerns or complaints. 

💡Pro Tip: Today, with AI-powered social listening tools, you can tap into 500 million conversations every day beyond your core brand channels — and transform unstructured data into actionable, relevant insights for driving business growth and evolving customer experiences.   

Social listening dashboard in Sprinklr

4. Implement customer feedback loops  

Establish mechanisms for collecting direct feedback from your customers. Surveys, feedback forms, and interviews are effective tools for gaining valuable insights into customer experiences. Analyzing this feedback can help you unveil specific pain points and areas of delight, informing refined engagement strategies.    

Bolster customer engagement with Sprinklr Service  

 It's not merely about interaction but building relationships that resonate and endure. By understanding the key customer engagement metrics and employing strategic measurement practices, you have the power to forge meaningful connections that drive loyalty, advocacy, and growth.  

Now, imagine having all these insights at your fingertips, effortlessly integrated into a powerful platform designed to elevate your customer engagement strategies. This is where Sprinklr Service steps in and empowers your teams to:  

  • Engage and listen to your customers across more than 30+ digital and traditional channels. Address their inquiries, resolve issues, and curate enhanced experiences. 

  • Leverage your customers' purchase intent to elevate your revenue. Direct such messages to the appropriate teams, ensuring your marketing, service and sales teams connect with the right customers at precisely the right moments. 

  • With Sprinklr's AI-powered Rule Engine, categorize and prioritize messages based on keywords, issue types, and sentiment. This ensures that you promptly address and attend to critical customer concerns. 

For more information, schedule a demo with our experts or register for a 30-day Free Trial today! 

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