Customer engagement metrics to look out for in 2024 and beyond

Acquiring new customers is expensive.

With changing ad networks and raising acquisition costs, it’s more profitable to fuel success through existing, loyal customers. 

But your existing customers are diverse. They have different needs and want unique shopping experiences. That’s why it’s important to understand these different customer segments and how they engage with your brand. 

This article simplifies that journey for you. We'll explore the top eight customer engagement KPIs to help you find out if your customers are engaging with your brand.

1. Loyalty score

A loyalty score is a measure of how much your customers enjoy shopping with you. When your customers keep coming back to your store and choose your products over and over again, you have a high loyalty score. And it's a great thing!

It's like having a community of loyal fans who love what you offer. By keeping an eye on this score, you can spot those customers, create personalized shopping experiences for them, and make sure they feel appreciated. 

Think of loyalty score as a way to know who your biggest fans are and how to keep the good vibes going in your Shopify business.

2. Customer retention rate

The customer retention rate is a critical metric for assessing repeat purchases and engagement. It tells you how many people come back to your store to shop more, signifying if your products or services are hitting the mark.

When more customers return to your store, your repeat purchase numbers go high, thereby increasing your sales. According to Shopify reports, a good returning customer rate ranges between 20 and 40%.

There are several ways to increase your customer retention rate based on the type of your business. FreshKatch, for example, built an exclusive channel for their loyal customers with a mobile app. They engaged their loyal customers through push notifications, live selling, and personalized shopping experiences to see a 33% increase in return customer rate

3. Average order value (AOV)

AOV is a fundamental metric that reveals the average amount your customers spend in a single transaction. So, if your AOV is high, it means your customers are loading up their carts with more items or high-end items, and that's a win for your business.

Monitoring AOV helps you optimize pricing strategies and implement upselling or cross-selling tactics to boost revenue. 

Dot & Key, for example, promotes combo discounts and other attractive offers for different product categories. Cross-promotion like these can boost your average order value, and play a crucial role in your customer engagement strategy. 

The average order value is a gauge that shows you how much joy your products bring to your customers' lives, one order at a time. To increase your AOV, don’t just focus on selling one thing; explore opportunities to make each shopping experience a little more exciting for your customers. 

4. Customer lifetime value (CLV)

CLV is the total revenue a business makes from an average customer throughout their entire relationship. Here’s how you can calculate CLV for your business:

CLV = AOV x Average customer lifespan

This metric helps you understand the long-term value of acquiring and retaining customers. It's not just about one purchase; it's about the total value a customer brings to your business over their entire shopping journey.

So, when you see a high CLV, you know you've built a connection that lasts, and that's special.

Here are 8 creative ways to increase the lifetime value of your customers.

5. Cross-channel participation levels

Cross-channel participation helps you track how much your customers enjoy spending time with your brand on different platforms, such as your website, mobile app, or social media. 

This metric helps you know which zones your customers love the most. It's not about being everywhere; it's about being where your customers enjoy being. So, think of cross-channel participation as your guide to creating the ultimate hangout experience for your customers in the diverse world of online interactions.

Creating an omnichannel shopping experience across all platforms is a surefire way to increase engagement and retention.

6. Churn rate

Churn rate measures the percentage of customers who decide to take a break from using your product or service within a certain time. Keeping an eye on churn rate is important because it helps you figure out how to keep more customers in the loop for the long run. 

Reducing churn is super important for long-term success and growth. Think of it as creating a community where your customers want to stay, grow with you, and keep coming back for more. This metric is also helpful to win back lost customers and make sure they stay loyal to your brand in the long run.

7. Number of customers

This basic yet important metric gives you a quick look at your customer group, helping you understand who your customers are. It's the starting point to figure out how your online community is growing. It's not just a count; it's the foundation for understanding how your store is expanding and evolving. So, while it might seem simple, keeping an eye on your customer numbers is key for setting goals.

8. Net promoter score (NPS)

The net promoter score is a way to measure how satisfied and loyal your customers are. For Shopify, it's about finding out if your customers would recommend your products or services. It's not just a number; it's a way to peek into the feelings of your online community.

If a lot of your customers say they’d be happy to spread the word, it means your brand is a hit. But if there are areas for improvement, NPS shines a light on those spots. It helps you understand the weak spots and continuously enhance the shopping experience for your customers.

Enhancing customer experiences with engagement strategies

With these handy metrics, it's time to create custom engagement strategies. To make these metrics even more precise, use tools like Google Analytics to see where your customers are coming from, what they like the most, and where they hang out the most. 

Sending out surveys and feedback forms is one of the best ways to find out how your customers feel about you. It can be as simple as reaching out to customers after a purchase and asking them about their experience. This simple chat helps in making your products and services even better based on what they love or want more of.

But engaging in this friendly conversation through surveys and feedback forms is not just about improving – it's about making every customer feel heard and valued in the online community.

Craft the right customer engagement strategy with Vajro

Paying attention to customer loyalty, retention, and satisfaction is the best way to engage with your customers. It's about creating personalized experiences that your customers will always remember.

Over 5,000 Shopify and Shopify Plus brands use Vajro for their customer engagement strategy. Vajro comes with all the tools needed to keep customers hooked to your brand. Give your customers unforgettable shopping experiences with a mobile app that comes packed with rich features like push notifications, live selling, personalized discounts, advanced analytics, and more. 

Get a demo or sign up for a free trial to find out how Vajro can help you build a customer engagement strategy that works with your customers.

‍