Customer Engagement Score (CES) CES combines engagement
Posted: Thu Jan 23, 2025 9:14 am
Cost per acquisition (CPA) or customer acquisition cost (CAC) CPA measures the average cost to acquire a customer through specific marketing efforts. Tracking CPA and CAC helps you evaluate campaign and channel performance. For example, if your CPA is high, you may need to optimize your ad spend or improve your messaging. A lower CPA indicates effective marketing spend and targeting, suggesting your strategies are worth scaling. To calculate CPA, divide the total cost of a marketing campaign by the number of paying customers that campaign generates. CAC is a similar metric that calculates the total cost of acquiring a customer across all marketing and sales efforts . To calculate CAC, divide the total acquisition cost over a given period by the number of new customers.
Metrics like login frequency, duration, and interaction type. It's a comprehensive measure of how engaged your customers are with your service. Tracking your customer engagement score allows you to namibia email list identify highly engaged users and those at risk of losing customers. If CES is low, you may need a better user experience or more features. If CES is high, there is an opportunity to upsell or turn happy users into brand advocates. To calculate CES, combine the data points into a weighted formula. Let's say your SaaS platform looks at two key factors for engagement: number of logins per week and time spent per session. You consider each activity. For example, a user logs in five times a week (five points) and averages 30 minutes per session (one point for each 30-minute session). You score and combine these factors to get a CES of 10 points.
Customer Lifetime Value (CLTV) CLTV (also known as LTV or CLV ) estimates the total amount of money you expect a customer to spend over the entire relationship. Tracking CLTV helps evaluate the return on investment for acquisition costs. If your CLTV is increasing, it means your retention strategies are working and customers are getting a lot of value from your services. If it's lower than expected, you may need to improve your customer service or tweak your pricing structure. To calculate CLTV, multiply your average purchase value by your purchase frequency, then multiply the result by your average customer lifespan. Let's say your average purchase value is $100, your average purchase frequency is 5 times a year, and your average customer lifespan is 3 years: CLTV = 100 x 5 x 3 = $1,500 This CLTV shows that each customer will generate $1,500 in revenue over their lifetime with your company.
Metrics like login frequency, duration, and interaction type. It's a comprehensive measure of how engaged your customers are with your service. Tracking your customer engagement score allows you to namibia email list identify highly engaged users and those at risk of losing customers. If CES is low, you may need a better user experience or more features. If CES is high, there is an opportunity to upsell or turn happy users into brand advocates. To calculate CES, combine the data points into a weighted formula. Let's say your SaaS platform looks at two key factors for engagement: number of logins per week and time spent per session. You consider each activity. For example, a user logs in five times a week (five points) and averages 30 minutes per session (one point for each 30-minute session). You score and combine these factors to get a CES of 10 points.
Customer Lifetime Value (CLTV) CLTV (also known as LTV or CLV ) estimates the total amount of money you expect a customer to spend over the entire relationship. Tracking CLTV helps evaluate the return on investment for acquisition costs. If your CLTV is increasing, it means your retention strategies are working and customers are getting a lot of value from your services. If it's lower than expected, you may need to improve your customer service or tweak your pricing structure. To calculate CLTV, multiply your average purchase value by your purchase frequency, then multiply the result by your average customer lifespan. Let's say your average purchase value is $100, your average purchase frequency is 5 times a year, and your average customer lifespan is 3 years: CLTV = 100 x 5 x 3 = $1,500 This CLTV shows that each customer will generate $1,500 in revenue over their lifetime with your company.