Eric Enge had a presentation at PubCon Austin that he felt Panda pumped up 20% user engagment metrics into the algo. It really got me thinking about this aspect indepth. I started to put together a list of possible data sources google could use as metrics (signals), and I was pretty surprised at how large a list it became with very little effort.
There is a whole host of data Google can use to determine a "quality site". Most of those metrics will fall into the realm of user engagement. Those metrics combined with a successful search result in a metric for your website. I believe that metric is now replacing Page Rank as the number one Google metric. I have been calling this mythical metric, the User Search Success Rate (USSR) or the Panda Metric (PM). This is the rate at which any search results in a happy Googler.
The metric starts before the user ever types in a query at Google:
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