At the Player's Theatre, audience repartee was an integral part of the evening's entertainment, sometimes to the bemusement of those who had never been there before.

As with all participation it can either be done well or badly. Done badly, it detracts from the performance.

In my view, good repartee involves:

Clear, controlled, measured delivery.
Knowing when not to start and when to stop (less is more).
Delivered in the context of the performance.
Not interrupting or talking over the performer.
Ensuring that it good natured and humerous.