6 Customer Engagement Metrics for B2B SaaS Companies

The significance of customer engagement to a business’s profitability and growth cannot be overstated. A recent survey shows that over 60% of customers will stick to a company if they receive a more personalized experience.

It is proven that when customers are engaged with a brand, they will likely buy more from it and promote it to others. However, how do we know if your customers are engaged? And what strategies are most effective? The answer lies in customer engagement metrics.

These will offer valuable insights into how your customers relate to your brand, helping you make more informed decisions. Let’s look at the six most useful customer engagement metrics for B2B SaaS companies you must track.

Customer engagement metrics for B2B SaaS companies

You may have already found ways to improve engagement or score leads with your internal marketing team. Even though that’s a step in the right direction, you must first understand the customer engagement strategies that are working and which don’t.

Here are the metrics you can track to find out:

Metric 1: Net Promoter Score (NPS)

NPS can measure your customers’ loyalty and tell you how much they trust your products and services – all on a scale of 0 to 10. This metric also helps you measure how much effort you’ve put into your service.

The general NPS questions include, “How likely will you recommend this product to your friends on a scale of 1 to 10?” This will help you track your customers’ impressions of your company and make informed changes that will improve customer loyalty.

Besides the rating question, you can also use open-ended questions. Ask why they have a specific rating for one of your products or services. To calculate your NPS, you must find the percentage of your customers that are:

• Detractors: Customers in the 0-6 score range are unhappy with your products and services. 
• Passives: customers in the 7-8 range are satisfied but indifferent.
• Promoters: These loyal customers will be willing to promote your brand. They usually fall between 9 and 10.

Metric 2: Customer churn rate

This metric measures the number of customers who have stopped subscribing to your products in a specific period. If you have a high churn rate, you must improve your customer engagement and satisfaction. Below is a simple formula for calculating the customer churn rate:

(Total number of customers lost in a specific time/total number of customers at the start of the period) x 100

For example, as a B2B SaaS company, let’s say you had 1,000 customers in the previous quarter and lost 45 of them. Then, your churn rate will be:

(45/1,000) x 100 = 4.5%

Although this is below the average churn rate for software companies of 14%, you shouldn’t ignore it. To reduce this further, you can improve your customer retention strategy, customer experience, onboarding process, account management, and other areas that cause attrition.

Metric 3: Product Adoption Rate

As a B2B SaaS business, you must ensure that your leads not only subscribe to your products and services but also receive value from them. To track this, you must calculate your product adoption rate.

This metric measures the number of users engaging with your product’s features. Analyzing this will help you make data-driven decisions to improve your SaaS products and satisfy your users.

In addition, tracking your product adoption rate will help you identify areas with friction. Your customers may struggle with utilizing specific features or with onboarding.

Metric 4: Customer Effort Score (CES)

CES measures how easy (or difficult) it is for visitors to achieve their goals when using your product. It’s a critical metric that determines user experience.

The lower the CES rating, the easier it is for customers to utilize your product’s features, navigate the platform, and accomplish tasks. This positive experience will contribute to higher customer satisfaction and may lead to increased retention and customer loyalty.

On the other hand, a high CES score indicates that customers are having trouble using your product. This will lead to dissatisfaction and an increased churn rate.

As a B2B SaaS company, this data will help you identify pain points in the customer’s journey, implement changes to ensure a more seamless product use and improve the UX.

Metric 5: Lead-to-Customer Conversion Rate

The lead-to-customer conversion rate measures the number of leads that purchase and use your product. This is why it’s one of our top 5 customer engagement metrics for B2B SaaS companies!

This metric also shows how well your sales lead generation efforts are going and the number of leads that convert into real customers. Tracking this metric also lets you pinpoint areas within your sales funnel that require improvement. Therefore, improving this conversion rate may lead to an enhanced bottom line and significant growth in revenue.

To receive an accurate lead-to-customer conversion rate, it is vital to take note of the important touchpoints:

• Trials to premium rate
• Product-quality leads (PQL) to customer rate
• Visitor sign-up rate
• Sign-up-to-PQL rate

Metric 6: Social Media Metrics

Social media is a channel that lets you monitor and facilitate customer engagement.

You can also monitor brand mentions and seek your users’ sentiments through social media. Tracking comments and reviews offers insights into how customers perceive your brand and lets you address their pain and pleasure to boost customer retention.

This lets you understand how satisfied and engaged your customers are and quickly address any concerns. In addition, these metrics reveal the conversion rate of your social media efforts. You can check out how effective your channelers are in driving business growth and the effectiveness of your contactless marketing strategies.

Wrapping it up

Creating a solid relationship with customers is essential for your business’s growth. Track these six customer engagement metrics for B2B SaaS companies so you’ll understand your company’s current situation and make improvements to maintain positive customer relationships.

From bounce rates to customer retention rates, these metrics will analyze user behaviors to inform which channels and strategies are working and which aren’t. Monitoring these metrics allows you to optimize your products and services for better engagement and user experience and create the ultimate product your users are looking for!