We’ve published several articles about the customer engagement score, including how to create your own score, how to manage and measure your customers with it, and even how to increase customer acquisition. In this post we wanted to start by defining the customer engagement score.

At its core, the customer engagement score is a single number that is used to measure how engaged your customers and free trial prospects are. Each customer has their own score based on activity and usage of your product and services. The higher the score, the healthier and happier the customer. You can then group customers into segments (by demographics, product, account owner, etc.) to see how the segment is performing compared to other segments, and identify at-risk customers within those segments. The score can also be used to estimate things such as how likely your customers are to renew, upgrade and purchase additional products. And if you have a free trial product, the customer engagement score is a great way to estimate likelihood of closing.

To calculate customer engagement score, you begin with inputs, such as frequency of usage, depth of usage, specific actions taken, clickstream information, key performance indicators, and so on. Combining all these inputs gives you a single number representing the sum total of your customer’s health, success, and engagement.

One key benefit is that the customer engagement score allows you to look at just one number, instead of many different data points, and immediately know how a customer is doing.

Another benefit is that it makes it very easy to measure the impact of customer marketing, engagement, and success programs, as well as onboarding and free trial strategies. For example, if you improve your documentation and support site, you can monitor how fast your customer engagement score rises or falls in the first few months for new customers and compare it to trends from customers who purchased prior to the change. Through this comparison, it is very easy to see if the changes made had a positive or negative impact, and what the magnitude of the impact was.

You can also segment your customers and free trial users by their score. For example, you can create segments of customers with a score from 80-100 that historically renew at a very high rate, 40-80 renew at a 50% rate, and 1-40 have a very low renewal rate. Using these segments you can then ask your customer success or account management team to spend less time on the 80-100 bucket as you know they’ll renew; to call the 40-80 bucket 3 months before the renewal and given a little extra attention; and to use in-context messaging and email marketing to nurture those in the 1-40 range until they’re in the 40-80 bucket and then you give them a call. While this example is most relevant for high-value accounts, you can use a similar process to easily manage massive amounts of low-value customers.

A customer engagement score also allows you to easily identify problems with your install base and diagnose the issue, measure the effectiveness of customer support at engaging customers, and even to determine what kind of training your customer team needs.  

Lastly, the customer engagement score is very reliable and more effective than surveying your customers.

As you can see, the customer engagement score is simple metric used in a variety of different ways to maximize both customer success and operational efficiency.  I hope this article helped explain what the score is and how it can be used. We look forward to writing additional articles with more details on how you can create and use your own score, so please check back soon!

Read more:

Beyond Net Promoter Score to Customer Engagement Score

3 Simple Steps for Reducing Customer Churn

Improve Onboarding and Trial Conversion Speed with Personalized Emails