There are many ways to define customer engagement. However, the core of it is all about interactions between your customers and your brand. It’s a marketing strategy that focuses on increasing the engagement your customers have with your brand. The easiest way to do this is by delivering personalized messages across preferred channels. In a perfect world, great customer engagement is a two-way conversation. The content you put out is the medium for brands to initiate and maintain the conversation. 

Your customers benefit from this significantly because it’s all personalization fueled. It ensures that the brand will give them what they want, address their pain points, and offer solutions that create a response. It’s the best way that a brand can show just how valuable its audience is to them. 

Today’s most successful brands try to engage customers beyond the transaction. By doing this, they stand to bring in more repeat purchases. Also, they keep their customers as the focal point of the customer experience. They do so by offering incentives, personalizing the customer journey, or providing educational content that’s relevant to what customers have shown interest in before.

Customer engagement is another route that allows you to drive loyalty outside of any loyalty program. Treating loyalty members in a personalized way drives both customer satisfaction and repeat purchases.

How to calculate customer engagement

If you don’t know how to measure customer engagement, you can’t improve it. There are a number of ways to calculate it, but we will highlight the most important metrics. 

Guest checkout rates are the number of customers who make a purchase without an account. You can calculate it by the number of orders completed by guests divided by the total number of orders. When a customer creates an account, they’re more likely to come back for another purchase. 

Purchase frequency is how often your customers make a purchase from you. You can calculate it by taking the number of orders in the last 365 days and divide it by the number of unique customers in the last 365 days. It’s important because when you know how long it takes an average customer to make another purchase, you’ll have a better understanding of how engaged they are. 

Average order value is the average amount a customer spends when they make a purchase. It can be calculated by the total revenue over the last 365 days divided by the total number of orders placed in the last 365 days. This number will tell you how much the average customer spends on a purchase when they shop with you. 

Repeat purchase rate is the percentage of customers who have made more than one purchase with you during a specific period of time. You can calculate it by taking the number of customers that have bought more than once and divide it by your total number of customers. Your repeat purchase rate will give you a more clear image of the effectiveness of your retention strategy. It tells you how many customers are engaged with you enough to make more than one purchase.