1) Post reach refers to the number of people your post is seen by, either directly or through shares and reposts. The term "reach" could also refer to how many different kinds of online communities your post is seen by, not just communities directly tied to your business.
Post engagement, meanwhile, refers to how much interaction is occurring between people and your posts and FB page. Clicks, likes, comments, and messages are all a form of engagement, since they involve communication and interaction between a person and a business.
2) Knowing the difference between reach and engagement is important because, as I said above, they are both very different. A posting with a far reach might be seen by many, but it could be the post with greater engagement that gets spread further due to interesting content, like a question from the business to the consumer, a contest, or a funny joke. Similarly, a post with more engagement might generate more loyal followers than the post that is simply seen by people.
3) Businesses can use these insights in order to create a more balanced page/follower relationship. The reach and engagement metrics can be used to see what kind of posts do well at getting the most engagement and which posts get the most reach, and using those numbers to compose posts that succeed at getting a far reach with great engagement.
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