Improving user interaction leads to customer retention and ultimately growth. Engagement metrics measures the quality of customer engagement. Quantifiables are needed to pursue relevant customer actions to enhance user engagement causing the businesses to grow.
Customer interaction is possible only when the audience realizes the value in the brand.
Engagement metrics work to quantify the value a consumer is gaining from using the brand. It also measures the quality of customer interaction, its frequency, and cause.
Customer Interaction and Growth
The impact of customer engagement is felt on different levels of the business. The value of the customer increases with the duration of his relationship with the brand. Becoming the best content marketer depends on the quality and type of content being offered by the business.
The first step after gaining a customer is retaining him. The longer the business can maintain that loyalty, the more revenue is generated by that connection. This leads to the particular customer being associated with higher Lifetime Value and hence he could be considered for a higher customer retention cost.
A positive user interaction leads to income and recommendations.
Each brand is unique to its business and has its own customer base. Therefore, one interaction measure can’t be used as a yardstick for another business.
Also, it is important that the organization understands its objectives before applying a metrics. The business should attempt a few before finding the one that complements their requirements a 100%.
Daily Active Customers (DAU), Weekly Active Consumers (WAU), and Monthly Active Audience (MAU)
DAU, WAU, and MAU segregate the customers that are active within the specific time period.
An active customer is defined as the one that is not passive in his interactions with the brand on the social media platform or the company’s website. He is willingly sharing content, or completing feedback form, etc., tasks designed to judge his participating status.
Also, comparing Daily Active Users against weekly or even Monthly Active Users lets the business judge the loyalty of an active customer. The frequency with which he interacted with the brand and stayed with it for how long!
The Stickiness Ratio
It is calculated by comparing DAU against MAU. A 50% ratio suggests that the customer is using the app or returning to the site for 15 days in a month.
This engagement metrics calculates the aggregates of customers actually utilizing the app after 1, 7, or 30 days of downloading it. It is quantified as D1, D7, and D30.
It can be tabulated using tools such as Mixpanel, KISSmetrics cohorts analysis, and the Retention Curve.