10 customer engagement metrics to track in 2023

Thomas Paris
January 5, 2023
10 customer engagement metrics to track in 2023

We all want super engaged customers. They’re the ones that shout about you to their friends, like all of your social media posts, and spend every day using your product or service. To enjoy this kind of loyalty though, you need to understand and focus on customer engagement. 

In this guide, we’ll take a look at what customer engagement is and why you should measure it. We’ll also share some of our top customer engagement metrics, plus a simple and fun tool to help you boost customer engagement. 

What is customer engagement?

At its simplest, customer engagement refers to the interactions and relationships between a company and its customers. It’s everything that makes up that relationship — from a like on an Instagram post to recommending a friend to sign up. 

When we look at customer engagement as a business activity, it’s all about finding better ways to make that relationship between you and our customers stronger. You want to be their go-to brand or service provider for what you do, and for them to stay happy, loyal, and active customers for as long as possible. 

Why measure customer engagement?

Measuring customer engagement brings you so many benefits. Here’s just a few reasons why it’s essential that you make tracking customer engagement and satisfaction a priority this year. 

Understand how your customers feel about you

The first benefit that comes with measuring customer engagement is understanding how customers feel about you and your product or service. Without measuring this, there’s no way to know whether you’re reaching your target market or if your product isn’t making the impact you hoped. 

Use customer engagement metrics like Net Promoter Score (NPS) and customer satisfaction scores to get a feel for how customers view you, and whether they’d recommend you to others. Look for interactions on social media, or what people are saying about you in online communities. These are all great ways to understand market sentiment and benchmark where you currently are. 

Identify strengths and weaknesses

Without data, you can’t fully understand what you’re doing well and where you could improve. By measuring customer engagement against key metrics, you can start to build a picture of your strengths and weaknesses, so you see where your opportunities lie. 

Track website visitors and feature uses to identify trends and uncover data that could suggest a need for improvement in areas like user experience, onboarding, pricing, and speed. With plenty of data from evaluating various touchpoints, you’ll soon be in a better place to go all in on your strengths and make a move towards fixing those weak points.

Design a more strategic approach to customer engagement

Once you’ve got enough data in your hands and know your strengths and weaknesses, you can make a strategic plan that’ll take you from great to amazing. Take a look at your whole customer journey and measure actions taken, then set some goals to help you define what customer success looks like — and create a customer engagement strategy to help you achieve it. Weave these themes and ideas into your sales strategy and marketing strategy too, so the whole team is onboard with improving your customer experience and engagement. 

Evaluate your performance over time

Collecting data from your customers once doesn’t mean your drive to measure and understand customer engagement is finished. Commit to regularly monitoring how you are performing using benchmarks and key performance indicators (KPIs). 

Your customer engagement will change over time, and being able to understand what has an impact on it is crucial. One small change to your pricing structure or onboarding process could cause it to spike or decline, so monitoring in real time and on a monthly basis is a must-do for savvy businesses. As you continue to monitor and collect information, you’ll be able to make decisions based on not just your instincts but raw, powerful data too. 

10 customer engagement metrics to track in 2023

Guy with yellow background holding finger up

Now that we’re onboard with why it’s so essential to track customer engagement, let’s take a look at exactly what to measure. Here are some of the best user engagement metrics to know, use, and monitor over the next year. 

1. Net promoter score

Net promoter score is one of the most well known ways to track customer happiness and satisfaction. It’s simple — you ask customers whether they’d recommend you to a friend, coworker, or someone in their network. They then give you a score on a scale of 1-10. 

Scores of 0-6 are known as ‘detractors’, and ideally you don’t want too many of these. Scores of 7 and 8 are known as ‘passives’, and don’t get counted in calculating your NPS score. Your 9 and 10 scores are your ‘promoters’ — the people who are super likely to recommend you to someone else. To get your NPS score, minus your ‘detractors’ from your ‘promoters’. 

Your net promoter score is a quick and easy way to measure customer sentiment over time, but you can also take a closer look at the details. If you’re scoring lower than usual, examine why — you might be able to make an easy change that’ll help bring your score back up. 

2. Customer satisfaction score

The customer satisfaction score (also known as a CSAT) is a lot like a net promoter score, except it directly asks your customer how happy they are with something. You can use this to identify how well a help chat went with your support team, or how easy your online shopping experience was. 

Most customer satisfaction score questions ask customers to score you between 1-5, with 1-2 being negative, 3 being neutral, and 4-5 being positive. To find your CSAT score, divide your ‘positive’ scores by the total number of scores. 

Experiment with your CSAT survey to see what works best with your audience. They might prefer giving you a number score, or you could switch to smiley faces, or even emojis if it’s a good fit for your audience and brand voice. Whatever you choose, just make sure the options are really clear to your customers so there’s no confusion. 

3. Customer lifetime value

Your customer lifetime value is how much revenue you’re likely to see per customer over the period of time they stay with you. It’s a great way to help you work out how much you can afford to spend on acquiring new customers, and what you might miss out on if your customers leave you too soon. 

Calculating your customer lifetime value isn’t always easy — there are a lot of different metrics and data points that feed into it. You need to understand how often your customers typically buy from you, what they spend, and how long they stay with you. You also need a feel for how much everything costs you — from the product or service itself to the money you spend on digital marketing to attract new customers. 

To figure out your customer lifetime value, you first need to know your lifetime value. Multiply the average revenue (value of sale x number of transactions) by the retention time period. Once you have your lifetime value, multiply it by your profit margin to understand your customer lifetime value. 

4. First week engagement

You want your users to be highly engaged when they first join you, which is why measuring first week engagement can be a valuable way to understand overall customer satisfaction. If a customer isn’t engaged now, they’re unlikely to pick up the pace later on.

To understand first week engagement, choose a handful of key milestones during your onboarding and initial process to measure. This could be whether someone completes a tutorial, opens every email in a welcome series, or successfully uses the product or service for its intended use. 

If your first week engagement looks poor, evaluate why that might be. Walk through your onboarding process and look for opportunities to improve it. Check your email series or in-app notifications, and make sure they’re helpful but not overwhelming. Ask your support team if there are any specific questions that new users ask. Each of these will help you understand what’s working and what isn’t, so you can improve your first week engagement over time. 

5. Daily and monthly active users

Signing people up to your service or SaaS product is great, but if they’re not using it they won’t stick around for long. Monitor your daily and monthly active users to understand whether people are active or not, so you can take steps to improve activity. 

Your daily active user score is the number of people that access your product or service on any given day. Your monthly score is the same, just over the period of a month. Track both of these continuously, so you can begin to see trends emerge over the months, quarters, and years. 

A low number of active users suggests there’s a reason why people don’t want to use your service — especially if there's also a low number of pages viewed per session. That might be poor user experience, that they’ve found an alternative they prefer elsewhere, or simply that they’ve forgotten you exist. Three very different problems, but each can be solved with some tweaks to your product or your marketing strategy. 

Girl on green background holding her heart

6. Website engagement

You can learn a lot about how your customers interact with your SaaS product or ecommerce store by monitoring website engagement. Lots of tiny details here can help you build a picture of how areas like user experience, accessibility, site speed, and backend processes perform.

Use a tool like Google Analytics to help you capture useful data automatically — like pageviews, average session duration, number of website visitors, bounce rate, and more. You can then monitor this and look for trends over time, or check in to see if your digital marketing or SEO campaigns are making an impact. 

7. Social media engagement

In an ideal world, your customers don’t just use your product — they engage with you in other places too. If you’re active on social media, make it a priority to track and measure your social media engagement. 

Each social media platform will have its own built-in metrics and data tracking. You’ll usually be able to see follows, likes, comments, video views, shares, and other types of engagement. Use this information to help inform your social media strategy and marketing campaigns, so you’re delivering content and a community that your target audience can’t help but engage with. 

8. Feature uses

Measuring your daily and monthly active users can tell you how many people are using your product or service, but monitoring the use of features gives you an even deeper level of detail. For SaaS companies and ecommerce store owners, knowing exactly which aspects your customers use (or don’t use) can help you refine operations. 

Think about which user actions you want to track, then find a reliable way to do this. For example — you might want to monitor how many people use your new add-on, engage with your chatbot, or the amount of time people spend in your most popular feature or tool. Having this information lets you know exactly what your customers are doing, so you can encourage engagement in more relevant ways. 

9. Conversion rate

Your customers can engage with you in different ways beyond simply using your product. Think about all the other touchpoints your audience can interact with you through, and use these as a data source to monitor conversion rate from action to intended goal. 

To find your conversion rate, all you need to do is divide the number of conversions by the total number of interactions. This will give you an idea of how many people took the intended action, compared to those that didn’t quite make it.

A great area to start monitoring here is your email marketing or content marketing efforts. Track how many people download your lead magnet, sign up via your website pop up, or click on your email campaigns. View this data over time as you tweak and perfect your marketing strategies. Keep an eye on negative actions too — like unsubscribes — as these can indicate other problems you could address.

10. Churn rate

Not every customer is with you for the long haul, but if too many leave without warning you could find yourselves in a tricky situation. This is why it’s always a good idea to keep an eye on your churn rate.

Churn rate refers to how many customers leave your service over a period of time — usually a month. To calculate your churn rate, divide the number of lost customers by the total number of customers at the beginning of the period. Take the end figure and multiply this by 100 and you’ll have your churn rate. 

Engaged customers are more likely to stay with you longer, which means you get to spend less energy (and budget) on attracting new ones. Reducing your churn rate should be one of your top areas to focus on if you want to keep profitability and customer retention levels high. Introducing sales incentives for customers is a great way to increase customer loyalty — like sending Hoppier virtual cards to customers to celebrate customer milestones. 

Hoppier: a fun way to boost customer engagement

Keeping your customers engaged and happy is an ongoing effort. Whether there’s an exciting new competitor in town or your customers are looking for ways to save their budget, there’s always something on the horizon to challenge their loyalty. 

If you’re looking for a fun way to keep your customers feeling appreciated and engaged, try Hoppier. Our virtual credit cards are easy to set up, customize, and distribute — so you can reward your customers or thank them for their loyalty in moments. 

use a virtual card for Hoppier

Getting started with Hoppier is simple. Create a program, give it a relevant title and even choose a fun emoji to accompany it. Personalize your virtual card with your brand colors and logo, so it feels like it matches your brand perfectly. Customize the vendor options, or leave them open to give your customers total freedom. Choose a spending limit, and even set a spending period — with any unspent funds returning to you at the end of it. 

Hoppier vendor screenshot

Hoppier makes it easy to create exciting, unique ways to engage with your customers and build deeper relationships with them. Whether you send virtual cards as part of a virtual event experience for your customers, or as a thank you gift for being with you for several years, they’re a great way to make your customer feel special. 

Master customer engagement to keep your audience for the long haul

Once you know which customer engagement metrics to track, you’re well on your way to being able to strategically tackle any experience, success, or engagement challenges you might encounter. If you’re looking for more ways to lift your customer engagement scores, take a look at our guide on customer and employee engagement strategies. It’s filled with practical ideas to help you create the kind of experience that your customers will love.

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Ready to 2x your global engagement at your next event, with Ox stress?

Make Hoppier your unfair advantage today, schedule a demo

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Ready to 2x your global engagement at your next event, with Ox stress?

Make Hoppier your unfair advantage today, schedule a demo


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