In the fast-paced world of digital products, understanding user interactions is crucial. The Product Engagement Score offers a comprehensive metric, highlighting how deeply and frequently users engage with your product. But why does it matter, and how can it drive your business forward?

Why It’s Important

This metric is crucial because it offers a high-level view of user or account health. A high engagement score typically indicates that users find value in the product and are likely to continue using it, whereas a low score might signal the risk of churn. Understanding this can help teams focus their efforts on maintaining and increasing engagement where it's needed most.

How It Is Calculated

The Product Engagement Score is based on the frequency and weight of key events performed by users within the product. The calculation involves two main steps:

Raw Score Calculation

Multiply the count of each event by its assigned weight and sum the results:

Raw Score=∑(Event Count×Event Weight)

For example, if a user creates 3 new leads (weight 9), schedules 5 meetings (weight 7), and logs 10 calls (weight 5), their raw score would be calculated as:

Raw Score=(3×9)+(5×7)+(10×5)=27+35+50=112

Normalization

The raw score is then normalized using a process that scales scores between 1-100, typically by setting the 90th percentile score as the benchmark (100) and adjusting other scores proportionally.

Finally, an exponential function is applied to these normalized scores to better represent differences in the raw scores, resulting in a final engagement score on a scale from 1 to 100.

Signals of Health or Weakness

• Healthy Signal: A score of 85/100 suggests users are highly engaged and frequently interacting with the product.

• Weakness Signal: A score of 20/100 may indicate that users are disengaged and at risk of churning.

Who Uses It and When

• Customer Success Teams: Regularly monitor this score to prioritize support and interventions for low-engagement accounts.

• Product Managers: Use it to identify power users for feedback and beta testing.

• Sales Teams: Leverage this metric during renewal discussions to highlight value or address concerns.

• Marketing Teams: Monitor this metric to identify and segment highly engaged users for targeted campaigns or upsell opportunities.

While engagement metrics give us insight into who’s actively interacting with our product, frequency metrics take it a step further—showing us how often users are coming back.