What is Product Engagement?

Product engagement is the measure of how users are interacting with your product. Common product engagement metrics include depth, breadth, and frequency of interaction over time, and understanding this behavior allows you to maximize usage of your application.

There has been a dramatic shift in the way product development is done. Many of today’s product teams are Agile: They build, test, and iterate to better meet customer needs and stay ahead of competition. So, how we learn from and educate customers also needs to change to keep up. That’s why product engagement matters.

Why is product engagement essential?

Building great products is not easy. Customers want products that exceed their expectations and evolve with their needs. And it’s not just about building the right features–often a bigger challenge is teaching customers how to use the features properly (or even just letting them know the features exist).

How do you improve product engagement?

To operate effectively in this new world, the way we measure product usage and the way we educate customers needs to change. We need to do more than just announce features via email blasts, FAQs, and webinars–we also need to educate users on these new features within our applications. By constantly measuring product usage, we can not only improve our products, but also learn the most effective ways to teach our customers to use our products to solve their problems.

How do you measure product engagement?

Product engagement is best measured through the Product Engagement Score, or PES. You can think of PES as a report card for product health. It’s a composite metric that combines adoption, stickiness, and growth to offer a holistic view of how your product is performing overall.

Here’s the formula: (Adoption + Stickiness + Growth) / 3

And here’s how to measure each of the components:

Adoption: Average number of Core Events adopted across all active Visitors or Accounts.

Stickiness: Average of the percentage of weekly active users who return daily (DAU/WAU), or the percentage of monthly active users who return daily (DAU/MAU) or weekly (WAU/MAU)

Growth: Sum of new and recovered Accounts or Visitors divided by dropped Accounts or Visitors (also known as the Quick Ratio)

Once you have that bird’s eye view of your product’s health, you can start working on improving (or maintaining) it by improving each of those metrics.

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Product adoption is about driving usage of–and engagement with–the right features and workflows. Use this framework to effectively measure and improve your product adoption.

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Product engagement resources

Product engagement reading