Four Ways to Measure Customer Engagement

Consumer insights on customer engagement

In “The Positive Economics of Customer Engagement” (, Allegiance identifies four ways to measure customer engagement.

Engagement is the emotional connection to or attachment the customer develops during the repeated and ongoing interaction with a company, product or service.

Engagement accumulates through satisfaction, loyalty, influence and excitement about your brand.

Companies who engage customers to the point where they are moved to make behavioral changes do so be creating opportunities for emotional connections through ongoing and consistently positive experiences.

The top four measures of engaged customers are simple to understand, realistic to execute, support and measure, and offer high impact and solid results.

1. Share of Wallet

Engaged customers buy more products and services. Based on a monthly survey Allegiance fielded called the Pulse of America, engaged retail banking customers used an average of 5.54 products — 23% more than disengaged customers.

2. Referrals

Nineteen percent of engaged customers told an average of 4.1 friends and 23% of those friends switched banks. Only one percent of disengaged customers told an average of 4.3 friends and 15% of those friends switched.

3. Churn

One percent of the engaged group would switch banks while 33% of disengaged customers would switch.

4. Feedback Response

When companies listen and respond to their customers’ feedback, customers have more confidence in the company and feel valued. Active listening helps address customer concerns before they become major problems, which in turn helps to strengthen customer engagement.

Additional benefits of engaged customers include:
– Decreased negative word of mouth
– Decreased negative referrals
– Longer-term relationships that are less costly to maintain and serve
– reduced risks

According to the AMA Journal of Marketing, customer satisfaction improves repeat business, usage levels, future revenue, positive word of mouth, reservation prices, market share, productivity, cross-buying, cost competitiveness and long-term growth. It reduces customer complaints, transaction costs, price elasticity, warranty costs, field services costs, defective goods, customer defection and employee turnover.

How does your firm measure customer engagement?


About Insights From Analytics

Integrated marketing professional who generates insights from analytics to increase revenue. Daily blog now resides at
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