Recently, I was hiring for an account management role, and during one of the interviews, the candidate shared something that stuck with me. He said that when it comes to retention, customer engagement is actually a better indication of loyalty than customer satisfaction.

At first, this idea felt counterintuitive. You’d think that as long as your customers are satisfied, they’ll stick around. But that’s not always the case. An engaged customer, even if they’re not 100% satisfied, is far less likely to churn. They’re involved, they’re connected, they have a relationship, and they’re in the habit of using your product. Meanwhile, a satisfied but unengaged customer is vulnerable. They may leave if someone else offers them a slightly better deal or a bit more satisfaction as they are purely judging you based on the offer you have for them.

This made me realize how important it is to focus not just on keeping customers happy but also on keeping them engaged. Engagement drives loyalty. And it’s those regular touchpoints—whether through product updates, personal outreach, or ongoing support—that keep customers connected to your brand.

It’s a reminder that in business, and maybe in life too, sometimes engagement matters more than satisfaction.