Understanding exactly *how much* product engagement signals a customer will stick around is crucial for Australian SMEs. It’s not just about getting people to buy – it’s about ensuring they actively use and value what you offer. We often see businesses focus on acquisition, but retention is where the real, sustainable growth happens. Setting clear engagement thresholds allows us to proactively identify customers at risk and intervene effectively.

So, what numbers should you be watching? There’s no one-size-fits-all answer, as it depends heavily on your specific product and business model. However, we’ve identified a few key indicators that consistently correlate with higher retention rates.

• Frequency of Use: This is often the most telling. For subscription-based products, aim for at least 80% of customers using the product at least once a month. For less frequent purchases, look at purchase cycles – are customers re-ordering within a predictable timeframe? A drop in frequency is a major warning sign.
• Core Feature Adoption: Identify the 2-3 features that deliver the most value. We recommend tracking the percentage of customers actively using these. If less than 50% are utilising these key features, it suggests they aren’t fully realising the product’s benefits and are more likely to churn.
• Time Spent in Product: For software or digital products, monitor average session duration. A significant decrease in time spent indicates disengagement. Benchmarking this against your ideal customer profile is essential.
• Customer Satisfaction (CSAT) Scores linked to Usage: Don’t just collect CSAT scores; correlate them with engagement metrics. Customers who frequently use the product *and* report high satisfaction are your most valuable asset.

It’s important to remember these aren’t static numbers. Continuously analyse your data to refine these thresholds. As your product evolves and your customer base changes, so too will these indicators. We’re seeing more businesses in 2025 leverage cohort analysis to understand engagement patterns within specific customer groups, allowing for more targeted retention strategies.

Ultimately, establishing these engagement thresholds isn’t about hitting arbitrary targets. It’s about gaining a deeper understanding of customer behaviour and proactively nurturing those relationships. Your next step should be to identify your core product features and begin tracking usage data. This will provide the foundation for a data-driven retention strategy and set your business up for continued success.