A SaaS customer engagement metrics score is a performance indicator measuring how well (or poorly) your customers interact with your product(s) and features. It’s represented by the number of interactions they have with you and their level of satisfaction.
Customer satisfaction and SaaS customer engagement metrics are vital to your company’s success. Knowing the metrics to measure user engagement helps you in several ways, including:
- You can find leads by identifying people who are ready to buy.
- Asking customers what they are doing to the service is a great way of predicting churn.
- To find out what might motivate your customer to buy more, ask them! If they say “I want this one,” you can always offer the opportunity for an upsell or cross-sale.
SaaS Customer Engagement Metrics: How are customer engagement metrics for SaaS measured?
Many companies only look at the amount of time a customer spends on their site, but there is more to it than that. People need to be engaged with your product and not just browse.
Engaged customers are those who get the most out of your product or service. This means that you can’t measure customer engagement by how much someone uses it; for example, if they use it once and find no value in what you offer.
When a customer is engaged, they are more likely to be happy with the product or service that you provide.
You have a mobile app that helps people manage their finances, and users need to input all of their transactions, purchases, etc.
A customer that regularly uses your product but is not getting the desired results (let’s say paying down debt, for example). This could mean they are experiencing financial hardship and need to save more money.
On the surface, this user seems engaged, but without the desired or promised benefits (the “what’s in it for them” aspect of your product), these users will likely leave.
Three steps to do your SaaS Customer Engagement Metrics right:
1st: Make a list of all the advantages of the business’s product or service
You probably already know that — If you don’t, you’re probably in serious trouble. But this may be harder than you think. If you dig deep into the benefits your customers get from your product, you’ll probably get to “increase revenue/make more money.”
The point here is that you need to identify benefits that your customers can track with specific events, actions, or results — and guess what, your customers’ revenue is probably not something you can follow.
2nd: Give those advantages top attention, and give each one equal weight
When tracking your product, the thing to remember is that it’s not just about the features. It’s also essential to follow what you want and in order of importance.
The higher the benefit, the more weight it has. A range of 1 to 10 is a good start (be aware that historical data will no longer work).
3rd: Calculate the Customer Engagement Metric Score for SaaS
The score calculated by tracking customer interactions with your company and their feedback to you will be used for follow-ups. The goal of the follow-up emails is to retain customers or increase engagement.
Is it possible to calculate SaaS Customer Engagement Metrics using a formula?
There are many ways to calculate the score, but a well-known formula may help you.
A Customer Engagement Score is calculated by multiplying the Net Promoter Score (NPS) and Average Purchase Value.
The weight of a random event is given by the number of times it occurred and has nothing to do with its magnitude.
Keep in mind that if you’re a B2B SaaS company, your product is likely being used by different types of users with varying degrees of involvement. In this case, it might be worth tracking SaaS User Engagement Scores for individual customers and the entire organization.
The SaaS Customer Engagement score is worth measuring because it provides insight into customer behavior, usage and engagement. You can calculate this yourself if you want.
Still, some fantastic platforms like Gainsight and Totango provide profound information about your customers with capabilities such as warning when an account has a churn risk, identifying which customers need more product training, identifying executives who have tuned out of the process, etc.