Net Revenue Retention (NRR)
METRIC
REVENUE OPERATIONS
Net revenue retention measures how recurring revenue from existing customers changes after upgrades, downgrades and cancellations, excluding new customers.
METRIC
PERFORMANCE ADVERTISING
Engagement Rate
The share of people reached, impressions served or followers who interact with content through actions such as likes, comments, shares or clicks.
BUSINESS RELEVANCE
Engagement rate shows whether content holds attention relative to its audience, which helps compare posts, creators and formats of different sizes; it is a signal of resonance, not of revenue.
IMPLEMENTATION EXAMPLE
A LinkedIn post gets 180 reactions, 24 comments, 12 reposts and 84 clicks, 300 interactions in total, from 15,000 impressions. Engagement rate by impressions is 300 / 15,000 x 100 = 2.0%.
LIMITATIONS
Formulas and counted actions differ by platform and tool, so rates are only comparable when calculated the same way. High engagement can come from controversy or giveaways and may not lead to leads or sales.
TECHNICAL EXPLANATION
Engagement rate by reach equals total interactions divided by reach, multiplied by 100; by impressions it divides by impressions; per post it divides by followers. Counted interactions vary, for example reactions, comments, shares and clicks on LinkedIn, or saves and replies on Instagram. In Google Analytics 4 the same name means the share of engaged sessions. It is used with Click-Through Rate (CTR) in Paid Social and Social Listening.
Secondary Topics
Experience Design
Sources
Hootsuite — How to calculate engagement rate — https://blog.hootsuite.com/calculate-engagement-rate/; Google Analytics Help — Engagement rate and bounce rate — https://support.google.com/analytics/answer/12195621
Related terms
Page Authority (PA)
METRIC
SEARCH OPTIMIZATION
A proprietary Moz SEO score predicting the ranking strength and link equity potential of an individual web URL.
LTV:CAC Ratio
METRIC
REVENUE OPERATIONS
The LTV:CAC ratio divides customer lifetime value by acquisition cost to show whether growth spending creates more value than it consumes.
Advertising Cost of Sales (ACoS)
METRIC
PERFORMANCE ADVERTISING
ACoS divides ad spend by attributed ad revenue and shows it as a percentage, the main efficiency measure for Amazon Sponsored Products campaigns.
Cost per Mille (CPM)
METRIC
PERFORMANCE ADVERTISING
A standardized digital advertising metric indicating the financial cost for every one thousand impressions delivered.