How Product Adoption Helps In Retaining Customers? by Jay T T T T Get notified with latest updates October 15, 2022October 20, 2022 Product Adoption can be one of the major aspects in any business for a growing customer base or the onboarding program. Understanding when, how, and why (or why not) clients become power users or high-valued customers can boost your ROI, inform future product roadmap decisions, and reduce customer acquisition expenses. So let’s understand the term in simple terms. Product Adoption refers to the method by which stakeholders adopt and operate/use a product. It makes us understand that: The product fits the market in the right way An efficient onboarding process simplifies the process and manages the team’s workload. To solve bugs and issues as quickly as they are identified. Product adoption is the ultimate key to customer retention. If a company has a high product adoption rate, it indicates a good market fit and a product that people demand. If a company has low product adoption, it could be due to a variety of factors ranging from poor market fit to a poor onboarding experience to product flaws and more. Better adoption indicators imply higher customer lifetime value and, as a result, higher ROI and growth. (Source – chameleon.io) Advantages of a high customer product adoption include: Low customer acquisition expenses Increased product ROI and marketing Better lifetime value Boosted retention rates Contents Measuring Product AdoptionHow to increase Product Adoption?Wrapping up Measuring Product Adoption The success metrics will differ from company to company, based on their mobile app and the target user. It will also rely on your product’s complexity or the breadth of the feature release. Regardless, metrics should focus on accelerating and streamlining the adoption process. There are various Project management tools to track the customers and their actions. Orangescrum is one such tool to make use of while tracking product adoption. (Source – Medium.com) When onboarding new clients or introducing a new product, product managers should monitor the following KPIs: Retention: How long do stakeholders use a feature after discovering it? Do they only use it a few times or continue to use it for months or years? Duration is related to retention and can indicate whether a feature is providing real value beyond its novelty, also when a feature needs to be modified. Depth: It’s vital to learn how much your product or new feature is being used by clients. Is it used once and then never again? Are they using it as it was intended or in an unexpected way? By using simple Cloud Product Adoption tools, the impact, and its queries while adopting the feature can be tracked. Orangescrum, a top Project management tool, helps teams to utilize this feature to calculate metrics of SaaS Product Adoption, Team Workload, Project Management, etc., Reach: Knowing how broadly the new feature/product/offering is used, can aid in validating product decisions, identifying high-value features, and highlighting significant areas for improvement. For example, if MAU (monthly active users) begin to decline after the launch of a new product, this indicates a faulty customer experience. Time: Knowing how long it takes customers to embrace a new feature and begin using it might help you rapidly detect barriers in the onboarding process. If a product uptake is high, it can help validate the demand for your product or new feature. Never miss an update from us. Join 5000k+ marketers and leaders. Join for free How to increase Product Adoption? Recognize your ideal customer: Determine which customers bring the most long-term value to your organization and research how they use your product. Building products for power users or high-value clients will help to maintain those ties. When you understand your ideal consumer, you can build goods they want and are more likely to adopt. Define success criteria: Without success metrics and a constant pulse on them, you won’t understand your new product’s success or areas of opportunity. Check out the section above for further information on measuring adoption metrics along with a few other critical metrics to keep an eye on. Make onboarding a continuous process: Onboarding should never be a one-time event. Maintain consumer education and engagement throughout your product experience by providing helpful tips, lessons, and other in-product/in-app messaging. (Source – apty.io) 4. Proactively communicate within the app: Many brands’ prime focus in the current market will be retention rather than acquisition. Companies that proactively interact with consumers at the necessary times have 90-day retention rates that were double the industry average. 5. Ask for consumer input regularly: Collecting, analyzing, and acting on feedback is more important to effective and rapid product uptake. Understanding how customers feel and what they’re thinking about before, during, and after the introduction of a new product will help you quickly identify and resolve bugs. This method can also assist in alarming future product releases and provide insight into what should be next on your product roadmap. Join 10,000+ Project Managers Who Manage Their Work Using Orangescrum Sign Up – It’s Free! Wrapping up Improving product and feature uptake are more than just a “nice to have” for your company. It is a fundamental and crucial factor that will provide a measurable advantage over your competitors. Particularly in today’s fast-paced, digital environment, where client loyalty is on the decline, a product adoption plan always helps. Remember, try to apply and test some of our highlighted strategies, and turn to successful organizations for inspiration. Make sure you have a robust analytics system like Orangescrum in place to evaluate and analyze your metrics and be data-informed if you are not data-driven so you can make smarter decisions.