5 User Engagement Metrics For Ecommerce Growth

5 User Engagement Metrics For Ecommerce Growth
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Software-as-a-Service (SaaS) solutions have the inherent advantage that you have all of the application access data and are able to use this data to understand how customers are using your solution. This is a typically untapped source of information that you can use to substantially improve your business. Given that many SaaS providers are not doing this basic level of analysis and follow-up, then more advanced analysis and customer conversations are unlikely to occur. Improving customer engagement has long been a method to improve churn and conversion rates. In addition to the very real profitability improvements that can result from a better understanding of customer usage data, you can also use it to improve the product itself.

Do you know what parts of your application are rarely used? Do you know why? Maybe your software development efforts would be better spent on other improvements, or maybe a better understanding of why customers aren’t using certain features is in order. Although there have been ways in the past to collect and analyze this information such as Google Analytics, recently SaaS solutions have been developed, called customer engagement analytics, which are specifically designed for collecting, analyzing and taking action for SaaS solutions. One of the advantages over Google Analytics is that with customer analytics you can look at the analytics for individual users and specific customers and not look at data just in the aggregate.

Of course, the definition of an engaged customer depends on the application and the user. You can also look at a CRM account that is fully engaged as what percentage of each type of user is fully engaged. The key is understanding, for your application and for each type of user, what excellent customer engagement looks like from an analytics perspective, defining at what level of detail you want to look at this information and defining how to measure trends over time. You can also look at the usage of new features and you can define what a usage pattern for a customer who is ready for a particular product up-sell looks like. This may be the opportunity to have the conversation that talks about the marketing communications and social media monitoring add-on that you just developed.

How do you measure customer engagement? While no single metric alone is going to be a solid indicator of how engaged your community or customers are, there are a few things you can look at that help guide you toward the conversations and interactions to pay attention to for deeper analysis. As always, there is no single perfect KPI for tracking results in digital marketing. Also keep in mind that none of these five metrics alone can paint a complete picture. These metrics are part of a paradigm shift towards hyper-connected consumers in a fast-moving landscape with tons of data. Here are few of the engagement metrics to watch for:

Text Analytics

Time on page” sounds like a much better measure of engagement than “reach.” If someone spends a minute or more on a page, we can safely assume they were reading and absorbing – engaging with our content. Not exactly. We talk a lot about time, but the one thing we definitively know about time is there’s never enough. For a marketer, that means you’re going to have to work hard to get a minute or two from a consumer. You need to earn it, so if your site can garner a high time spent, pat yourself on the back for a job well done. Time spend is not a very actionable metric, it’s more a sign that you’ve done the right thing. When users are browsing a category, they see hundreds of things they’ve never seen before that are very high quality about a specific topic of interest. It’s all about the experience, and a lot of it just holds people’s attention.

Clicks and shares may create the impression that your content marketing stories are generating mass attention – but whether anyone actually reads them is a different story entirely. Extended dwell time correlates with people actually reading and absorbing content – which is exactly what content marketers want. The type of emotion a customer feels about your store is important for relationship building. Emotion is not really a metric, but finding out what topics are trending within reviews is in fact a metric. A text analytics tool can help you understand customer sentiment, which is how a customer feels about your business. So, in other words, text analytics gives you a better idea of where customers are at in their relationship with you.

Response Time

Average page views per visit are an excellent indicator of how compelling and easily navigated your content is.In general, more pageviews per visit is a good sign. To figure out your pageviews per visit, simply divide the total number of pageviews by the total number of visits for a particular time period. Keep in mind that if you get a lot of visitors through social media sites, these viewers tend to get what they came for and leave, so you may not get  lot of pageviews per visit from these visitors. Fortunately there are many things you can do to help increase the number of pageviews per visit to your site. Make your site easy to navigate. Add site search if You Don’t Already Have It. Use Internal Links Within Posts.

Add a List of Related Posts at the End of All Blog Posts. Ensure Pages Load Quickly. Focus on the Audience needs and interests. Open rates – the number of times an email was opened divided by the number of emails sent – remain the KPI for emails. Why? Open rates directly affect Click-through rates (CTR), the number of clicks divided by emails sent. Think of open rates as the community reach in your email funnel. And just like community health and size need attention in social media, the same goes for email communities. If unsubscribe rates are climbing, maybe content is not relevant for customers, or it’s time to aim for the right marketing pressure and communications cadence.

Conversion Rate And Time

The number one way organizations can improve customer retention is…By focusing on the entire experience of their customers. While experts debate whether the marketing funnel is outdated, it’s been proven that managing the entire experience of any age of customer is a better way to keep customers. The conversation cannot stop once the sale is made.. It is critical that companies focus on sending personal communications throughout the lifecycle of the customer. In today’s competitive environment, it is not enough to rely on service or repairs to hold on to customers. Customers are five times more likely to engage with you in the first 90-100 days than at any other point. So, it’s very important that you dialogue with them at the onset not just at the end.

Click-based models fall short of measuring e-commerce performance (a customer looking all across the site but failing to find the right information still generates high click counts, but leaves disgruntled). Are your customers satisfied? Use the Net Promoter Score to find out. To learn more about the loyalty, and how you can categorize your customers, divide the customers who responded into promoters, passives and detractors. Promoters are the customers who are devoted and will support you and are loyal to you. Passives are customers who are happy with your product or service, but they can easily take their business to a competitor. Detractors are customers who are dissatisfied with your business. When you have figured out where your brand stands with customers, create a customer engagement strategy that works.

Customer Loyalty

Clicks and shares may create the impression that your content marketing stories are generating mass attention – but whether anyone actually reads them is a different story entirely. Retention basically means the percentage of users returning to your website in a given period of time. Calculating retention rate over a period of 1, 7 or 30 days helps determine its longevity in the market. Marketers don’t always have customer retention top of mind. Unlike lead generation or customer acquisition, retention campaigns take relatively longer before producing results. When you publish a lead gen form or launch an ad campaign, you can easily see and measure the results. This isn’t always the case in customer retention because it deals more with loyalty, relationships, and engagement, which yield results that are not immediately seen and/or are trickier to measure.

As always, there is no single perfect KPI for tracking results in digital marketing. Also keep in mind that none of these five KPIs alone can paint a complete picture. For instance, a customer may engage with a piece of content for a very short dwell time but still convert into a purchase because the right information was right where it was needed. These KPIs are part of a paradigm shift towards hyper-connected consumers in a fast-moving landscape with tons of data. Shifting your focus towards these KPIs will eliminate a lot of noise and clutter in this bright Big Data advertising age, and help justify those new data-driven marketing budgets for next year.


How long does it take for your customer engagement team to respond to a question or issue? According to Buffer, customers expect a company to respond to their questions and problems soon after they send them. In addition to response time, how long does it take for a team member to understand and solve the customer’s issue? Although time should not be an indicator of how well a customer engagement team member solves a problem, it’s an important metric to measure in order to benchmark customer expectations – especially online review responses. Turns out, news of the death of click-based models are somewhat exaggerated.

Web traffic still remains the #1 metric and keeps gaining ground: In August 2010, 47.6% of respondents in the Duke University study primarily tracked hits and page views, while the number surged to 60.7% by August 2014. In Useful Social’s 2014 study, 47.3% of marketing execs also named “web traffic” as their preferred KPI. But in 2015, it’s all about verified users – what with all the robots out there. This calls for an omnichannel engagement platform that can build rich profiles of visitors both known and unknown.

Pragyan Sharma

A quiet person, likes to keep things to myself - well mostly. Have a passion for writing. Loves singing and playing Guitar. Reader. Dreamer. Wanderlust.

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  1. I am very interested in learning about how companies show up even on the most random word search. I guess, SEO is key.

  2. I am very interested in learning about how companies show up even on the most random word search. I guess, SEO is key.

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