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User Engagement

1. What is user engagement?

User engagement measures whether or not your users find value from the product or services you have to offer. It is measured by a variety of combination of activities such as:

  • Downloads.
  • Clicks.
  • Shares, etc.

Customers that are highly engaged with your brand are generally the most profitable ones. Their activities are tied up with valuable outcomes for companies such as:

  • Purchases.
  • Signups.
  • Subscription.
  • Clicks, etc.


2. Why is user engagement so important?

User engagement is related to the overall profitability of the company. The user’s attention is valuable as it is inherently finite. If a user is choosing to spend time on a particular app or site it's an indicator that they find value from it. This helps them in generating revenue from the product or service with ads, sales, subscriptions, etc.

The more the user is engaged with the business, the higher the returns. A highly engaged user would be more likely to buy or share the product or service with his friends and family members.

Marketing and product teams that measure user engagement use tools like product analytics to understand user engagement. This helps them in understanding the important factors and increases their product's profitability. It includes hard metrics such as daily active users, cost-per-acquisition, ROI, etc. Engagement metrics depends on the business model of the company.

An example of this would be, high engagement via views or clicks might be good for a news site but not so much for an insurance app. More usage on an insurance app may suggest that users are about to file a claim. Therefore it depends on the business goals and model of the company.

 

3. How do you calculate user engagement?

To calculate user engagement, you first need to decide what engagement means to you.

For a media publication, all the activities are considered as a positive engagement because that generates revenue for their business.

 

For an e-commerce business, activities are considered positive if it generates income through purchases from their site. Here the outcome depends on the action taken.

 

But for an insurance company more engagement can also mean more settlements.

So companies need to decide what engagement means to them.

4. How do different companies define user engagements?

The list of activities that businesses use to count the engagements are:

 

For a Media Site company, engagements would be:

  • Their daily usage.
  • Views on their page.
  • Time spent by customers on their page.
  • Number of clicks received.
  • Total volume of searches received.
  • Number of comments on blogs.

 

For a Music Streaming App, engagements would be:

  • Daily usage on the app.
  • Total time spent on the app.
  • Number of songs listened to by the user.
  • Number playlists created by the user.
  • Number of times a song is shared or friends added on the app.

 

For an E-commerce store, engagements would be:

  • Monthly usage on the app.
  • Items added on the cart to be purchased in the near future.

For a Personal finance app, engagements would be:

  • Weekly usage on the app.
  • Number of bank accounts synced.
  • Views on dashboards.

For an Enterprise software, engagements would be:

  • Monthly usage on the app.
  • Reports created.
  • Reports shared.
  • Users invited.

 

It is also very important to define and track negative actions such as unsubscribes, app deletions, plan downgrades, blocked notifications, etc.

Analytics helps businesses to know what events caused the user to disengage and they can work on it to improve the engagement.

Measure the average activity of your users to calculate the varying levels of engagement.

5. How to improve user engagement

You can improve your user's engagement by:

  • Researching and working on what your user's value the most.
  • Improving the usability of the product.
  • Educating your users instead of just selling them your services.
  • Enhanced communication with your users.

6. What are the Top User Engagement KPIs to Measure?

The engagement received on your website is an indicator of your website's success. Some of the most common yet the most important user engagement metrics are:

 

A. Pageviews

So what exactly are Pageviews?

Pageviews are the most common metrics used by companies to track traffic on their site. They are the most basic form of all the user engagement metrics. They measure the instance of a user visiting a particular page on your site. 

Measuring them helps in understanding how frequently people visit your site. The higher the number, the better it is for the company. It is considered as an indicator of good SEO practices since search engines are often the biggest drivers of traffic on your sites.

Though page views help in showing the traffic but solely using them without considering other metrics won't help. This will stop the company from fully understanding the meaning behind these numbers.

 

How to Track Pageviews?

To track page views you need tools such as Google Analytics to get a compressive picture of engagement metrics. Plus it's free, making it one of the best tools available out there. 

It not only helps you with the page views but also helps you with:

  • Number of people visiting your site over a given period.
  • Performance of your campaign.
  • Page view analysis, etc. 

An increase in page views means that the changes implemented by you are working, which is always a good sign.

 

How do you optimize/Improve your pageviews?

Things you can do to improve your page views are:

- Providing a good user experience.

-  Giving your visitors good content to consume.

- Promoting your websites using social media, blogging, and related forums.

 

B. Time on Page

With so much content that's already out there, it is important to know how much time people spend on your content.

There are 2 ways to do this:

  • Micro View: It's the time spent on a single page by a user.
  • Macro View: It's the average session duration or average time spent by a user on your site.

What is Average Session Duration?

Average session duration is the average time spent on the site by a user. It calculates a user's average session on the site. It is then divided by the total number of sessions over a period of time.

 

How to Optimize /Improve the time spent on the page?

As every website is different it’s important to focus and compare your current web statistics with your past data.

Choose a specific time frame and use google analytics advanced filtering options to determine which pages receive the most traffic and try producing similar content.

How to Optimize/Improve Average Session Duration? 

They are harder to optimize as they measure the macro view, there are different considerations to it.

Some of these considerations are:

  • The variety and the value of the content you post on your site.
  • User site experience, how easy it is to navigate.
  • Clear call-to-actions on your site.

Considering these factors might help in optimizing the average session duration time.

 

C. Bounce Rate

Bounce rate closely relates to the time spent on a site. In simpler words, it is inversely proportional to the average session duration. As the bounce rate increases, the average session duration of the site starts reducing.

 

What exactly is Bounce Rate?

Bounce rate is the total percentage of visitors that exit your site after just viewing one page. It gives you an indication of how good your content is. Bounce rate means your current content isn't working and you need to update it.

A few reasons why people might bounce through sites are:

  • CTA isn't clear.
  • Content isn't as good as they expected it to be.
  • They are bored by your content.
  • You're not offering something new or different than others.

How to improve the Bounce Rate?

  • Produce good in-house content and interlink your blogs.
  • Be reliable & helpful with your content.
  • Use good CTA's.
  • Ensure to provide a good user experience.

 

D. Top Exit Pages

 

What is the Top Exit Page?

Exit pages are the last page that your user assesses before leaving your site. It measures the percentage of people that leave your site after visiting the exit page.

Exit pages are somewhat related to bounce rates as they both consider the last pages a visitor visits before leaving it.

The causes of high exit rate on a non-exit page are:

  • Unorganized information on your website.
  • Missing CTA.
  • Information flooding.
  • Lack of information/ missing important information.

How to Improve your Top Exit Pages? 

  • Work on your content. Always try improving it.
  • Improve the site's usability.
  • Have clear CTA’s.

E. Page/Scroll Depth


What is Page/Scroll Depth?

Page/scroll depth measures how the audience consumes your content on your site. It can be measured by tracking where on the page they stop reading. It depends on 2 things i.e the Readability & Interest.

 

F. Conversion Rate

What is Conversion Rate?

Conversation engagement is related to the overall profitability of the company.

Conversion rate includes actions such as:

  • Purchasing any of your product/services from your site.
  • Downloading your app or ebook, or some other product you have to offer.
  • Contacting your business by providing their personal information.
  • Engage with your websites and social channels.

 

How to Track Conversion Rate?

Most social media channels like Facebook, Twitter, Pinterest, Instagram have their built-in analytics tools. These tools can be used to track conversion rates.

For websites, tools such as Google Analytics and Google Adwords can be used to track conversion rates.

How AI Chatbots are Changing Customer Experience

Customer experience differentiates one company from another and that's why it's a top priority for any kind of business. A happy customer can add more value to the business over the long run. A good customer retention rate and customer lifetime value are what every business craves, and both these metrics depend on how a customer is treated in a customer lifecycle.

But with the recent technological advancements, brands are becoming better at delivering quality services. Huge credit goes to AI chatbots. They have completely changed the game in customer experience over the years. The services they provide ensures that a customer is truly satisfied with the overall experience making him/her a loyal customer.


7. What are the Benefits of Using Chatbots for Customer Engagement?

  • 24/7 Availability for your customers.
  • Help customers by providing them with quick resolutions.
  • Provide accurate answers and clear basic queries.
  • Ensure a personalized customer service experience.
  • Cross-Promote your company's products/services/content.
About Engati

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