User Engagement 101

User engagement is the process of developing a product by analyzing user needs. The use of user engagement allows building greater brand awareness and improving conversions for any business process or the product itself. We can also see the response to our products with user engagement, whether users like it or not. Hence, it’s crucial to give the success or failure of a product also depends on how interested the user is in using the product.

Next, how does User Engagement work?

It can be done in two ways, and they are:

  • Build an Interaction with the user. We can do it by asking how the user feels when using the product. After the interaction, we can figure out whether the product is following user requirements or requires other additions.
  • Observation. We can do it by observing how the user interacts with the product. For example, in a website, users click links, view images, and do certain use cases. From this observation, we can figure out whether the product is easily understandable or not.

Then why do we have to pay attention to user engagement in developing our products? According to research, the user’s attention is limited, and if a user is interested in using that product, we can determine that user satisfaction is good enough. However, a good product is not enough to guarantee that users will keep using our product. Therefore, another strategy is needed as a workaround for overcoming these problems.

But obviously user engagement not stops on the development. The main part of user engagement occurs on user experience while using our product, which led to better customer retention. While the customer relationships are emotional, it’s possible to measure and improve them to retain clients and their loyalty. Engaging customers throughout all touchpoints can build and enhance the “human-to-human” connection, thus working beyond transactional relationships, and the traditional CRM approach.

Every interaction your company has with a client offers the potential to build trust and improve customer satisfaction, be it signing up, participating in a loyalty program, filling out a survey, writing reviews, and more.

User Engagement and Customer Retention

When it comes to building your business, customer quality wins over quantity. Connection and loyalty are integral to the success of your company. Customer engagement encompasses interest, loyalty, and commitment. All these factors are paramount to business growth. In short, an engaged customer is a happy and loyal customer, who is likely to stay on board and recommend your services to their friends, family, on public forums, and other word-of-mouth channels. This helps you reach more potential customers and build your business.

Here’s are some metrics that we should keep in mind to measure the user engagement:

High product/service usage

The more often your customer base uses your services, the happier they are with what you’re offering. Accordingly, you must be doing something right with your engagement efforts. The usage metrics to pay attention to are frequency and average time.

Frequency

It gives you an idea of how often a customer uses your product over a certain period. Is the customer incorporating the product into their routine?

Average time

High DAU (daily active users)

When a company sees a high number of daily active users, it’s likely to enjoy better customer engagement benefits.

Low churn rate

Customer engagement is directly tied to your retention effort. The lower the churn rate is, the higher the retention rate is, which indicates satisfactory customer engagement.

High referral rates

Referrals are among the most important benefits of your customer engagement efforts. If you see customers referring your services to others, the engagement levels are high.

License utilization

By measuring the number of active users in an account against the purchased number of licenses, you can gain insight into upselling opportunities and measure customer engagement against the capacity.

How, We, La Casa De PPL, build the user engagement?

Since Our JIKI Monitoring App target users are the JIKI Admin, our lecturer in this PPL Course, we are regularly building interaction and observing every sprint progress report and sprint review.

How do we keep our stakeholders engaged?

  1. Honesty. We are always honest about everything that happens in the development of the product with our stakeholders and being realistic about what we can or can not handle during the sprint.
  2. Up-to-date. We always discuss the regular updates in scrum meetings with the scrum master. So the stakeholders can know the regular updates of our teams through our scrum master.
  3. Goals. We always set the goals for every sprint and discuss this with our stakeholders. In that way, we can share the obstacles that might come up during the sprint. Keep maintaining the goals and expectations is very important.

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Fikri Adidharma

Fikri Adidharma

Penultimate CS Student @ University of Indonesia