Engagement scoring

Engagement scoring - What it is and how it can be used to increase retention

The customer engagement score is a metric that shows how engaged your customers are with your app. It’s one of the best churn predictors out there, as the correlation between churn and engagement is high. When engagement goes down, retention goes down as well.

The engagement score and how accounts are moving between different engagement levels will help you generate automations such as:

  • Preventing churn by targeting accounts that decrease their engagement with your product;
  • Asking for reviews from accounts that have high engagement, and therefore receive more value from your product than others

How is the engagement score calculated?

The engagement score is a metric that InnerTrends calculates daily for each account. There are two main factors taken into consideration:

  • The number of engagement actions performed in the last 30 days
  • The frequency with which those actions were performed

Which actions are considered engagement actions?

InnerTrends considers engagement actions to be any event that can be used to answer either of the following questions:

  • What are the main reasons your customers are using your product?
  • What are the actions that help your users achieve their goals?

These events are set as engagement actions during the setup of your account or any time after by updating your Customer Journey Metrics map.

Note: When a user simply logs in to their account but performs no other action(s), the account is deemed active, but without engagement. 

For an account to start receiving engagement points, they need to perform the events you defined above.

How is the engagement level calculated?

InnerTrends calculates the engagement level of all your active accounts in the last 30 days by splitting them into four categories: 

  • High engagement
  • Medium engagement
  • Low engagement
  • No engagement

The engagement level is calculated based on an algorithm that considers the engagement score of the accounts that churned (activity churn) in the last four months. 

Here’s how the four engagement levels are generated:

  • High engagement is represented by the outliers, those that engage with your platform considerably more than the rest of your accounts.
  • Accounts with medium engagement are accounts with regular activity and have a small churn risk. 
  • The low engagement level is represented by the accounts that have a high churn rate. The upper threshold is calculated based on the engagement score of the accounts that churned in the past.
  • Accounts with no engagement have not performed any engagement actions in the past 30 days, though they used your product.

Engagement level changes 

Know which accounts are getting value, and which are about to churn

InnerTrends calculates the engagement score of an account daily, based on the last 30 days of engaged activity. If the new score fits a new engagement level, the user will be moved to that level.

All of the changes are presented in the engagement overview section:

For companies with thousands or tens of thousands of accounts, you can expect tens or even hundreds of users to change their engagement level every single day.

You definitely want to monitor the decreasing engagement scores, because someone who goes from high to medium engagement, and then to low engagement will considerably increase their churn risk. But, because they are still active, you can still interact with them; that’s easier than recovering them after they’ve left. The best thing to do is to find out the problem and fix it, and thus prevent them from leaving.

InnerTrends also syncs the account’s engagement changes with your CRM and marketing automation platforms. 

Actions you can take:

  • For accounts that move into high engagement:
    • Ask for a review, testimonial, or to recommend you to a peer
    • If they just finished the onboarding process, ask for upgrading
    • Offer access to beta features
  • For accounts with medium engagement:
    • Target with success stories specific to their persona to show how they can get more value from your product
  • For accounts with low engagement:
    • Send activation emails for accounts that have not finished onboarding and have low engagement rates
    • Get on a call with them if they fall from high to low engagement 
    • Analyze their feature usage to discover possible friction points
  • For accounts with no engagement:
    • Target them with case studies, workshops, educational content
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