How to Create an Engagement Index

By Jonathan Bales , last updated December 24, 2011

An engagement index is a way of monitoring the performance of a website or online marketing campaign in terms of how intricately it engages potential customers or visitors. Engagement indices are extremely useful for companies and websites because they can learn which aspects of their business are working, and which need to be improved. The easiest way to create an engagement index is to develop performance indicators to track what you want to learn about your company.

The indicators you use will depend on what you want to learn about your business. If you want to find out how visitors to your website are interacting with it, you might want to analyze things like click-through rate, time on site, conversion rate, and so on. These indicators tell you how often potential customers click, how long they stay on your site, and how often a visitor purchases something from you. By making a list of indicators, you can create an engagement index to learn how engaged people are with your business. The goal of any company is to create as much engagement as possible. Facebook, for example, has been so successful because visitors to the site are extremely interested and engaged. This translates to long periods of time spent on the site, high click-through rates, and big payoffs for Facebook.

Once you have your list of indicators, you can rate any site or business based on them. Provide each with a score from 1 to 10, for example, and then compare them to other companies. In doing so, you can determine how well your business is engaging customers as opposed to other similar businesses. Of course, you may need to weigh some indicators more heavily than others. Still, once you find out where your particular business is lacking in terms of certain components of your engagement index, you can begin to make improvements to those areas.

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