I recently found this good article on “Measuring Engagement”.

The article discusses engagement goals (what you want people to do) and what key performance indicators (KPIs) are good to measure.

Every client/company may have unique goals but I thought the final list was a good example.

1. Register for Alerts by RSS feed – to get new content
2. Views (videos, rich images, design concepts)
3. Use the design widget
4. Put the widget on their blog or Facebook, etc
5. Feedback (via the site)
6. Email subscriptions
7. Favorites (add an item to favourites)
8. Feedback (via the site)
9. Forward to a friend
10. Invite / Refer (a friend)
11. Social media sharing / participation (activity on key social media sites, e.g. Facebook, Twitter, Digg, relevant design forums, blogs etc)
12. Time spent on key pages
13. Time spent on site (by source / by entry page)

By tracking and measuring your user’s actions you then can start to focus on the user’s needs, likes and dislikes. In the end you give your audience the right tools and content they are looking for.