The Product Engagement Score (PES) quantifies user interactions by integrating
What Is a Product Engagement Score?
The Product Engagement Score (PES) measures how users interact with a product by combining 3 key engagement indicators:
- Adoption Rate: Tracks the average number of core events users engage with. For example, on an e-learning platform, this could mean the number of lessons completed per user.
- Stickiness: Indicates how frequently users return, calculated as together help you identify strengths, reduce friction, and work toward product-market fit by providing a holistic view of product engagement. Since PES tracks quantitative engagement trends, integrating it with user feedback enables you to refine features, enhance communication, and create seamless user experiences.
are most likely to upgrade.
- Offer targeted in-app prompts for premium features.
- Provide trials for advanced features to encourage adoption.
- Use tiered pricing to drive upsells.
- Cross-sell complementary products to engaged users.
- Offer time-sensitive promotions to nudge upgrades.
Focusing on highly engaged users maximizes revenue potential without increasing acquisition costs.
2. Identify Product-Qualified Leads (PQLs)
Unlike traditional leads, PQLs have already interacted with your product and shown intent to convert. PES helps identify these high-value prospects by:
- Analyzing usage patterns to find engaged users.
- Comparing PES across different customer segments (e.g., startups vs. enterprises).
- Helping sales teams prioritize high-conversion accounts.
For example, if a segment of trial users has a significantly higher PES than others, they’re more likely to convert. Your sales team can then prioritize outreach, improving efficiency.
3. Reduce Customer Churn
A declining PES serves as an early warning system, allowing you to:
- Identify at-risk users before they leave.
- Collect feedback to uncover friction points.
- Improve user retention strategies by addressing engagement drops.
By monitoring PES, your customer success team can proactively reach out to disengaged users with support, education, or incentives to keep them engaged.
4. Improve the Product Experience
PES helps assess how well your product resonates with users by analyzing engagement trends over time. This allows you to:
- Improve usability and UX.
- Optimize product functionality based on real user behavior.
- Refine onboarding to boost adoption.
- Measure the impact of new features and updates.
If PES drops after a product update, it may indicate usability issues, a confusing interface, or poor communication about changes.
How to Calculate PES
PES is calculated as the average of Adoption, Stickiness, and Growth. To get an accurate PES, it's critical to measure it separately for different user segments, as engagement can vary widely across different groups.
Step 1. Measure adoption
This calculation helps you determine whether users engage with key product features and find them valuable.
Step 2. Measure stickiness
Stickiness measures how often users return to your product. It’s calculated as:
- DAU/WAU (for daily-use products)
- WAU/MAU (for less frequent usage)
This formula shows whether your product is successfully acquiring and retaining users over time.
Final PES Calculation
Once you have the three metrics, calculate PES as:
(Adoption + Stickiness + Growth) / 3
How to Increase Product Engagement Score?
1. Optimize First-Time User Experience (FTUX)
A user’s first experience with your product determines whether they stay or churn. A poor FTUX leads to lower retention, higher support costs, and negative word-of-mouth.
Ensuring your product truly solves a need for your target audience is the foundation of sustainable growth.
Here’s how to refine your PMF at different stages:
- Early stage: Focus on validating your core value proposition by gathering feedback from early adopters and iterating based on their insights.
- Growth stage: Once you’ve established a clear audience, balance acquisition with retention to prevent churn from outpacing growth.
- Maturity stage: Explore new markets or enhance your product’s capabilities to meet evolving user needs and sustain long-term engagement.
3. Educate and Engage with Product-Led Content
Product-led content helps users discover and understand your product’s value naturally. Instead of hard selling, focus on providing educational, actionable content that builds trust and drives adoption.
Here are some content formats to consider:
- Interactive tutorials to guide users through essential workflows.
- Engaging video content featuring customer success stories and best practices.
- Webinars and online events with industry experts and power users sharing insights.
By mixing different formats, you can engage users with valuable, relevant content that suits various learning styles.
4. Engage and Re-Engage Users Across Channels
Your users interact with content across multiple platforms - don’t limit engagement to your product alone. A multichannel approach increases brand visibility and strengthens user relationships.
- Social media: Announce feature launches, share insights, and engage with users in real-time.
- Email campaigns: Re-engage inactive users with personalized messages, reminders, or special offers.
- Community forums: Foster discussions and provide support, building a loyal user base.
This omnichannel strategy ensures that users stay connected with your product beyond their in-app interactions.
5. Personalize the Customer Experience with User Segmentation
Generic messaging no longer works. Today’s users expect tailored experiences that address their specific needs. Segment users based on in-app behavior and trigger targeted messages accordingly.
to collect direct user activity.
, funnel, and easier across Web3 teams.
Follow us on , and join our .
3. Why is PES important for Web3 product teams?
PES offers several benefits:
Holistic Engagement View: Combines adoption, retention, and growth metrics into a single score.
Actionable Insights: Identifies areas for improvement in user experience and feature adoption.
Data-Driven Decisions: Guides product development and marketing strategies based on user behavior.
By monitoring PES, Web3 teams can optimize onboarding processes, enhance feature adoption, and reduce churn .
5. How can Formo help track and improve PES?
Formo offers tools to:
Visualize Engagement Trends: Monitor PES over time to identify patterns.
Segment User Cohorts: Analyze PES across different user groups to tailor strategies.
Optimize Onboarding: Use PES data to refine onboarding processes and enhance user retention.
By leveraging Formo's analytics, Web3 projects can make informed decisions to boost user engagement and product success.
SOCIAL SHARE CARD GENERATOR