Product Adoption

How can you use web analytics data to improve product adoption?

Product adoption helps you understand your audience base better. It helps you understand their motivations, their expectations and the real value your product has for them. Using web traffic data to measure product adoption is easy to set up, and has immeasurable value.

Businesses make real money not from new customers but existing ones. And for a business to grow, it is absolutely imperative for them to understand why their existing customers (and super users or power users) use their product and hopefully love it. Understanding this helps you on a lot of fronts:

  • It improves product usage by existing customers
  • It increases the value your customers get out of using your product
  • It helps define your onboarding process for new customers
  • It helps you shape up both the product roadmap as well as the marketing strategy

Your customers using your product to an extent where it has become a part of their day to day life is what an ideal product adoption looks like, and that is what will help you retain your users and gain new users in a more efficient manner.

So today, let us talk about product adoption. What it is, how you can measure it, what should you be measuring, and how can you use your analytics data to improve it further.

Etymology of ‘your’ product’s adoption

Technically speaking, your product adoption lifecycle kicks off as soon as a user has found your product. Long before he makes a transaction and becomes a paying customer.

Pragmatically speaking though, you start considering product adoption having kicked off when a user of your product starts using it for the intended task/action/goal (the task for which your product was made), and starts receiving the value for which it was created.

Efficient product adoption metrics would be a percentage of users who are using your product for its intended use.

Take us, for example. Our main focus is on helping businesses like yourself grow via our actionable insights. So, we would be measuring product adoption by measuring the percentage of users who are engaging with our insights module, and taking actions based on the insights they are receiving.

Stages of product adoption

Much like the customer’s lifecycle, product adoption also follows the stages of awareness, interest, evaluation and conversion.

When a potential user first learns of your product, he enters the awareness phase. At this stage, he has little to no information about your product, and he would have come across your product via any number of marketing activities you have been engaged in.

How your customer came across your product is extremely important. The more intrigue he feels about your product at this stage, and the more perceived value you are able to project, the higher would be the probability of you getting him interested in knowing more about the product and checking it out. Essentially, the key to higher conversion here is your communication skill. So your copyrighting skills will decide how wide your mouth of the funnel ends up being.

And with that, we have moved the customer from the awareness to the interest stage. Everything that your customer to quench the intrigue you generated during awareness would be a part of this stage. This includes checking out your product features, looking at demo dashboards, videos, checking out testimonials, your customer stats, pricing, FAQs. All of it.

This phase is extremely crucial. The onus of providing the potential customer with enough information for him to make an informed decision is on you. So, you need to be thorough, detailed and cover all bases.

If the customer can’t find enough information to address the questions he has, chances are you will lose him. And even if you don’t, you just landed a customer who made the decision to get onboard without enough information, which increases the chances of him churning out and/or leaving with extreme discontent for you, your brand and your product. You definitely don’t want that.

Now that you have generated enough intrigue, and addressed the concerns, the customer moves on to the next phase - evaluation. Evaluation may start with the customer comparing your product with any product he may have been using in past to fulfil his needs, or against other competitors he has been considering right now. How efficiently you are able to project the value of your product would be the winning method here. (Convey value to win customers’ vote, engaging in a pricing war is never a good idea.)

The real evaluation though starts with a customer starting to use your product - whether via a free/limited period trial, or his first transaction. It is during this time that your customer will match his expectations with the reality of your product. It would be imperative for you to guide your customer through using the product better with the goal of maximising the output your product delivers to him at this stage. Your customer, at this stage, will get to familiarise himself with the product, witness firsthand the value the product adds to his life, and there is no amount of demos or customer testimonials that can supersede this personal experience he would be having.

Now that we have guided the customer through various stages, the customers who come out of this funnel satisfied would be the ones you can call converted. You have just enabled adoption of your product for these customers, and it should always be your goal to maximise the percentage of customers who come out of the funnel with respect to the number that entered the funnel.

Depending on your product and your business, there should be different KPIs you should be tracking to efficiently measure your conversion rate here, and we would be talking more about it in future. But, just to give you some idea, some of these KPIs would be your Net Promoter Score, Customer Satisfaction Rating/Score, Renewal Rates, Churn Rate etc.

Why is measuring product adoption absolutely critical for your business?

To improve retention, and develop satisfied customers who would be long-term users of your product. These are the customers who would bring for you more customers, and a small percentage of them would even end up being the absolute champions of your product.

So how can you improve product adoption, and where web analytics can help you do that?

Improve marketing communication

You won’t hit the jackpot every single time. Some of your communique would vastly outshadow others. And you need to stay on top of what’s working and what isn’t.

You should use your web traffic data to keep track of at least two things:

Which avenues generated the most inflow for you. What were the primary sources of this traffic, what was the theme of the communication, what are the macro/micro traits of this audience set and what could be their interest areas that are intersecting with your product traits.

Benne Analytics does a number of these things for you - even on the minutest levels. For example, in addition to showing you a list of your highest traffic generating sources, it keeps an eye out on the outliers. Even if a particular traffic source is sending you a low number of daily traffic, but is consistently doing so, the system understands that the audience of that particular traffic source may have good points of intersection with the product, so it would highlight that for you.

Which avenues generated the most promising inflow. Data is rarely useful on its own. To get the most out of it, you need to apply it in the right context. Take two traffic sources, for example. Source #A drives 100 visitors through your awareness funnel, and Source #B drives just 50. But if both of them end up driving 10 user each through the awareness stage, that means Source #B is twice as valuable to my funnel as Source #A

When you set up Goals in your Benne Analytics dashboard, it doesn’t just look at the count of conversions. Our insights engine automatically and constantly measures the quality of conversion on a dozen of different parameters to isolate the most promising traffic sources, audience types etc for you. A deeper understanding into your audience helps you devise a better marketing strategy. The result, more customers, more happy customers, more revenue.

Improve accessible information to address customer concerns

Remember the interest phase? The customer, in this stage, was looking for information about your product. Keeping an eye out on your web analytics data would help you understand the segments that are playing the most crucial role in this stage. And once you understand that, you can do more of it.

Many a times, you would need to use this insight in conjugation with other activities. For example, if your Benne Analytics dashboard reflects customers spending a lot of time checking out your Product FAQs, or going through detailed specifications of Pricing Plan inclusions before signing up for a trial, you know you should look at improving it even further to increase conversions. To do that, you would additionally need to go through questions your customers may have asked you in past - via emails, tweets, live chat. All of that helps you in executing on the insights you would be seeing on your Benne dashboard.

Keeping customers engaged

Once a customer has activated his trial, you want him to use the product. You do that by having helpful tips present on his dashboard, guiding him through the key sections of the product. You can also do it by having an onboarding email flow process. For both of these, you can use your web analytics data to understand better what your customers are engaging with, and what is resulting in them using the product more. Once you have isolated those, do more of those things, and things that are in the same category.

The more a customer uses your product during evaluation phase, the more chances you have of delivering delightful value, the higher are the chances of you retaining and converting the customer.

Add features, fix bugs and upgrade the product

Using your web analytics data dashboard, in conjugation with customer conversation, you would be able to identify holes in the system, or places where you need to add in new features to increase the value output for your customers.

All of these steps individually add to improving the conversion rate of your product adoption, and the more of these steps you successfully execute on, the more compounded the product adoption will get.

Understanding your product adoption process is crucial.

It will give you more insight into what it’s like for a potential customer to become a new user of your product and start using it.

It also helps you understand what your product’s winning usecases and winning audience bases are. This knowledge will help you improve your processes, increase customer satisfaction scores and lower your churn rate. Do that, and you start winning the game.

If you have any more questions on how you should effectively measure product adoption or improve your product adoption processes, give us a shout. We would be happy to help.

That’s it for today, see you tomorrow.

Cheers

Abhishek

Subscribe to Benne Analytics Blog

Get the latest posts delivered right to your inbox