We have heard of customer Engagement here and there–how important it is to e-commerce success and how to enhance it by various marketing campaigns. But what exactly is customer engagement and how can e-commerce businesses measure it?

What is customer engagement?

Chances are you already knew what customer engagement is, but here is our definition of it: customer engagement is the ongoing interactions between e-commerce company and customers, and customers with each other. It is highly correlated to brand loyalty–customers who are more engaged with a brand is also more loyalty to it.

How to measure customer engagement?

While it is a difficult job to calculate the overall customer engagement depth, you can measure the it on a campaign-by-campaign basis. A third party web analytics tool will allow you to compare engagement depth and degree on your site as a whole to those for an individual campaign or channel.

Some KPIs such as Click-Through Rates are to measure the upper-funnel campaigns. CTR allows you to see how many people click your ad or email campaigns, therefore shows you the effectiveness of those campaigns. Cost-Per-Click, which is another basic KPI, allows you to see how much you pay for each click that reflects the effectiveness of your campaigns.  

Besides these two basic KPIs, here are the ones you need to check when you want to measure customer engagement in a deeper level:

#Bounce Rate
#Goal Funnel Abandonment
#New vs Returning Visitors
#Average session duration
#Page Views per Visit

A few more thoughts…

For e-commerce websites, conversion and revenue alone aren’t enough. It’ll be the engagement with the brand that builds the depth of relationship with a consumer…which in turn delivers the long term loyalty and prosperity.

By examining these engagement metrics for a given campaign and comparing them to those for your site overall site or to similar campaigns, you should get a better idea of how your marketing efforts are selling out.

Getting the right audience to your website is fundamental step to make future engagement possible, that will help you reach the future customers who come to your website to browse, buy, come back and engage with other customers on a topic of your brand!

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