As a business, you want to ensure that your customers are engaged and satisfied with your product or service, especially if you are in the subscription business. One way to measure this is by using a customer engagement score. This score is an indicator of how involved your customers are with your business, which can help you predict their likelihood of churn or canceling their subscription.
The first step in defining your customer engagement score is to identify what metrics and behaviors you believe are important indicators of customer happiness and longevity. For example, you might look at how often customers log in to your software, how many times they use a particular feature, or how long they’ve been a customer.
To get started, look at your happiest, longest-standing customers and identify patterns in their behavior. Do they use your product on a daily basis? Do they complete specific milestones within a certain period of time? Use these insights to develop a list of inputs that you believe will predict customer engagement and satisfaction.
Once you have your list of inputs, assign a value to each one based on how important it is to customer retention. For example, logging in every day might be assigned a higher value than using a particular feature once a month. You can then calculate an engagement score for each customer by adding up their scores for each input.
To make it easier to interpret your engagement scores, you can create a scale that ranks customers based on their level of engagement. For example, you might use a scale where a score of 0-3 indicates low engagement, 4-6 indicates medium engagement, and 7-10 indicates high engagement.
It’s important to note that each company’s engagement score scale will be different, depending on how customers use their product or service. So, it’s crucial to take a personalized approach to developing your own score.
Once you’ve calculated your engagement scores, you can use them to identify which customers are most engaged and which ones may be at risk of churning. You can also use this information to target specific customers with personalized engagement campaigns or to identify areas of your product that may need improvement.