I am blown away by the level of engagement from the Newsletter name contest. Who would have thought adding an element of competition with a bunch of hard charging professionals would generate such a strong turnout? (That was sarcasm, in case you couldn’t tell.)
I had over 80 submissions from 20 individuals. Clearly, a few folks had a disproportionate number of submissions. You know who you are. Thank you to everyone who submitted a name.
I’ve added all the names to the bottom of last week’s post. I found a few of them particularly amusing, such as “Notes of the ROND Table.”
I’ll announce my selection next week.
Now, to the newsletter:
Topic of the Week: What is engagement?
Per Google, “engagement” is defined as both 1) a formal agreement to get married and 2) a fight or battle between armed forces.
I’m going to let the irony of that sink in for a minute before moving on.
When I talk about engagement, it means the way and frequency by which a customer interacts with your business.
Engagement is one of the most important metrics for a business to measure. Engagement is a good indicator of customer satisfaction and the value your product/service provides. The more engaged your customers are, the less likely they are to leave you.
I always ask for engagement data when I’m evaluating an investment opportunity. Unfortunately, the majority of the time the company isn’t actively tracking the information I want to see.
So what is the right engagement information?
If you’re a software company, I don’t care about the number of users you have. How many users actually use the system? How often do they use it? Are they using it more over time? What modules are they using? Do some customers use the system more than others?
If you don’t know the answers to these questions, you’re not tracking engagement.
If you’re a service business that lives and dies by referral business, how many customers are referring new business to you? How many customers are writing positive reviews on Yelp?
If you’re a product company, how many customers buy from you multiple times?
If you’re not systematically tracking this type of information, then you aren’t tracking engagement.
I’m currently consulting a few folks on reporting automation and will have resources for you at a later date. That’s all for now.