Sometimes metrics aren't obvious to understand at all. I think this is the case for the Facebook Engagement Rate KPI and it deserves an explanation.
Most of the time, we would define engagement rate as some action metric divided by the number of the population.
For example, on a website, it could be the number of visits converting to a goal divided by the number of visits. And you are right, this is commonly known as conversion rate! Conversion rate is an engagement rate after all.
In Facebook’s case, this is the number of people engaging with your page divided by your fans count. The exact definition of Engaged Users in Facebook Insights is "The number of people who engaged with your Page. Engagement includes any click.".
Any click: Like. Share. Comment. View a photo. View details of a story and so on. A measure that tells that people are engaging with your page.
The number divided by the number of fans you have and voilà, you have the Facebook Engagement Rate.
You can find this KPI in the drop down menu:
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