Customer Engagement Score

Definition

Customer engagement score or engagement score is a SaaS metric that gives insight into customer engagement and free trial prospects. Companies can use this metric to predict churn and identify potential upselling opportunities.

Example

Companies can segregate their user base across various score levels. This will help in reaching out to customers through different messages that will be relevant to their behavior and usage patterns. Once segmented, a company can make an action plan for reaching out to customers. For instance, increasing engagement for customers who are in the lower score group. Reaching out to customers in the bottom-most score group and finding out their pain points can help companies in adding them back to the active user base.

Why it matters

Any business’ success is based on how much its customers use the product/service and how engaged they are with it. If users are disengaged, they will churn and the company loses revenue. Customers who are not finding value in the product/service will likely churn too. Engaged customers, however, continue to use the product/service and may likely increase their usage. By focusing on customer engagement scores, SaaS companies can design their sales strategies specific to each of these customer categories.

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