Adoption metrics vs engagement: what's the difference and how to improve both? (2023)

Adoption vs. Engagement Metrics: How Are They Different or Similar?

Product acceptance and customer retention are not the same. As such, the metrics you use to track adoption and engagement should be different.

Your customers need to stay connected with your product in order for you to generate revenue from your SaaS business. However, commitment alone is not enough. Your customers should be aware of any existing or new features that are relevant to them and adopt them in their customer journey.

So let's see whatassumptionand engagement metrics and how to improve them.

TL;DR

  • product acceptanceIt occurs when a user transitions from being a trial user to actively using your product as they find value in it.
  • time to evaluate,user activationrate, andresource acceptanceRate are the top three acceptance metrics.
  • user interactionis the quality and frequency of your users' interactions with your product.
  • product liability,Customer Engagement Score, micustomer salesRate are the top three engagement metrics.
  • WetterAcceptance and Commitmentare similar, the former tells you the number of unique features users embrace while the latter tells you how engaged they are with a feature.
  • interactive guidelinesmiIn-App-Self-Service-SupportHelp users activate andaccept your productbut fast.
  • gamificationmisplash screensMacheteintegration processfunny and attractive, value generator.

What is Product Adoption in SaaS?

product acceptanceIt covers the user journey from initial interest in your product to active, valuable use.

Your product is "adopted" when a user starts using your product to achieve their goals.

(Video) Customer Engagement Tips for 2023

You need to ensure customer success so that they become long-term loyal users and, ideally, advocates.

What are the key product adoption metrics?

You can't have a great product.adoption strategywithout tracking the right metrics to measure various aspects of adoption.

Here are the keysProduct Adoption Metricswhich differentiate the acceptance of the obligation.

  • time to evaluate
  • User Activation Fee
  • resource acceptanceto rate

time to evaluate

time to evaluateis the time it takes a user to realize the expected value of your product. Measures the time it takes the user to complete the experienceOh! Momentand reach the trigger point.

Therefore, reducing response time is essential to ensure users find value as quickly as possible.

Adoption metrics vs engagement: what's the difference and how to improve both? (1)

A long TTV is likely to result in low trial conversion rates as it is difficult for users to add value. This means users are not promoting your product.adoption trip.

On the other hand, a short time-to-value indicates low friction in the journey that creates an easier and faster path to value. The lower the TTV, the higher the customer success and the lower the churn.

User Activation Fee

Activation occurs when new users perform certain key actions within your product that let them experience its value. The user activation rate indicates the percentage of users who reach the activation point.

First you need to define the in-app events that users need to complete in order to use and activate the product. Then count how many users performed those events in a given period of time.

To calculate activation rate, divide the number of users who reached the activation point/milestone by the number of users who signed up and multiply the ratio by 100.

Adoption metrics vs engagement: what's the difference and how to improve both? (2)

The activation fee varies by product type, so finding one is difficultactivation reference🇧🇷 This is because trigger events vary by company, product, use case, and user personality.

resource acceptance rate

As customers progress through their adoption journey, they adopt more and more features relevant to their use case.

You can measure themresource acceptanceCalculate by dividing the number of monthly active users of a resource by the number of user logins in a given period and multiplying the result by 100.

Adoption metrics vs engagement: what's the difference and how to improve both? (3)

Along with other feature adoption analytics, feature adoption rate tracking helps you make informed decisions about your product adoption strategy. This allows you to create a series of experiences that guide users along their journey.

(Video) The Feature Adoption Funnel: How to measure feature usage the right way

What is user engagement in SaaS?

user interactionis the quality and frequency of your users' interactions with your product. It reflects the relationship your customers have with your brand.

User interaction varies by company and product type. For SaaS companies, user engagement depends on where you are in the user journey.

As customers progress through the journey, this indicates they are having meaningful experiences with your product that keep them engaged and loyal.

What are the key user engagement metrics?

User engagement metricsare the data points you can measure based on user interactions.

watchuser behaviorin oneProduct analysis toolLike Userpilot, user interviews and session recordings can help you identify interaction patterns.

So, let's go through the top user engagement metrics to track:

  • stickiness of the product
  • Customer Engagement Score
  • customer churn rate

stickiness of the product

The more customers interact with your product, the longer they stay. This can be measured byproduct complianceReason.

To calculate it, simply divide the number of daily active users (DAU) by the number of monthly active users (MAU).

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To find the DAUs and MAUs, the total number of logins will not be able to shed much light on user engagement as many users may feel frustrated after logging in and out of the app.

Therefore, you should check whether the users are interacting with the main features and the average time they spend in the app. You can track these with a tool like Userpilot, which lets you flag top features to gauge how much of your customer base is engaging with them.

The overall goal should be to maintain a completion rate of 1, meaning everyone is an active user receiving value throughout the day. On the other hand, for a complex product, a ratio as low as 0.4 may be acceptable because users don't want to interact every day.

Customer Engagement Score

ÖCustomer Engagement Score(CES) shows you how engaged free trial prospects and paying customers are with your product. The higher the score, the happier and more engaged the users are.

First, you need to set specific engagement events to track, e.g. B. Key features that customers interact with (or not) and how often the product is used. The selected events should be based on your product type.

Next, assign each event an engagement score on a scale of 1 to 10 based on how important it is to your product and user profiles. Find the total value of the event by multiplying this score by the number of times the event has occurred over the past x days.

(Video) Engagement Metrics Deep Dive

The CES is the sum of all total event values.

Adoption metrics vs engagement: what's the difference and how to improve both? (5)

Also, you can trackresource bindingto delve deeper into user engagement and focus on specific issues impacting overall product adoption.

As mentioned above, you can track resource engagement by tagging a specific resource. Userpilot allows you to do this without code.

customer churn rate

Disconnected customers are the most likely to churn, which is why tracking and pursuing them is crucial for youreduce rotation🇧🇷 It's impossible to get to zero dropouts, but you can reduce it to the point where your income exceeds the amount you lose from dropouts.

Customer churn rate is the percentage of users who leave your product within a given period of time. It is equal to the number of customers lost during the period multiplied by the number of customers at the beginning of the period multiplied by 100.

Adoption metrics vs engagement: what's the difference and how to improve both? (6)

Churn is on the other side of the basement. The lower your churn, the more existing users you will keep. According to the Harvard Business Review,growingThe 5% retention rate can increase your profitability by up to 95%!

You can useIn-app billing surveysto learn why users are leaving and take steps to resolve issues. In addition, you can suggest alternatives to rotation, e.g. B. Pausing the account while a product improvement is being made.

Engagement vs Adoption Metrics: What's the Difference?

While measuring engagement is similar to measuring adoption, the latter gives you the percentage of top features your customers are using. Customers can be highly engaged with just a few features, but adoption metrics will tell you how many unique features are being used.

Adoption may be a result of engagement. As users become more engaged with your product and find your features useful, they will likely choose to subscribe to your company and adopt your product.

Tips to improve product acceptance

Now let's see how you can get more users to adopt your product. Here are two tips for you:

  • Use interactive tutorials to drive user adoption
  • Offer self-service in-app support to help users hit trigger points efficiently

Use interactive tutorials to drive user adoption

interactive guidelinesThey are powerful tools for user onboarding. Initial activation does not result in your users taking on all the functionality of your product. it is heresecondary integrationSign up to introduce your users to relevant secondary resources and drive adoption.

Andersproduct toursInteractive tours that spit out a lot of information at once grab users' attention and encourage them to learn by doing.

Whether it's a new or existing feature, you can provide contextual guidance so customers can learn more about the feature if they need it.

Below is an example of Communicate's interactive tutorial that provides a step-by-step guide to designing the chat widget.

(Video) Product Adoption: Engagement, stickiness and retention

Adoption metrics vs engagement: what's the difference and how to improve both? (7)

Offer self-service in-app support to help users hit trigger points efficiently

In-App-Self-Service-Supportallows users to solve their own problems, especially the most common ones. So you don't have to wait for their support team to be available.

Self-Service AssistanceIt gives users some control over their experience, giving a sense of power and autonomy.

Users are less likely to become frustrated as they learn about your product and hit trigger points. As the time to resolution decreases, users can quickly take whatever action is needed to find and activate value.

knowledge basesmisupport centersThey are ideal for providing self-service support. Here's an example of the Userpilot resource center with things like FAQs and open chat options.

Adoption metrics vs engagement: what's the difference and how to improve both? (8)

Tips to improve user retention

Let's see how your customer success team can make your productvery attractivefor customers.

  • Use splash screens to customize the onboarding experience
  • Use gamification to increase user engagement score

Use splash screens to customize the onboarding experience

Greet each user with acustom integrationexperience right after they sign up for your product.splash screensHowever, you shouldn't just say hello.

Splash screens help you make a good first impression by not only introducing your product but also setting the right expectations.

The image below shows how Postfity used its welcome screen to let users know they care about their personal/professional goals. This allows you to engage new users and give them the right flow of experience to help them achieve those goals.

Adoption metrics vs engagement: what's the difference and how to improve both? (9)

Use gamification to increase user engagement score

Add excitement to your onboarding flow by introducing yourselfgamification.

AGamification-Strategieinvolves using a "reward" as an incentive to encourage more desirable behavior. These rewards make the product experience more fun, competitive, and therefore more engaging.

The most commonly used gamification elements are:

  • insignia
  • Rabatt Coupons
  • leaderboards
  • puts
  • Elements of rivalry between users.

Additionally, gamification provides users with a regular reminder of how much closer they have come to their goals and serves as inspiration to keep moving forward. Users are free to choose to participate without you penalizing them for not completing a task.

The example below shows how Prodpad motivates users to extend their tests through specific actions.

Adoption metrics vs engagement: what's the difference and how to improve both? (10)

Main Conclusions

Customers need to interact with and take advantage of all the key capabilities they may need to drive user retention and adoption.

(Video) Product Metrics: How to measure product success

Tracking the right metrics is critical to gaining insights and choosing the right engagement and adoption strategies.

Want to significantly improve your adoption and engagement metrics?Schedule a Userpilot demoand see how your customer success teams can drive higher customer retention.

FAQs

What is the difference between adoption and engagement metrics? ›

While measuring engagement is similar to measuring adoption, the latter gives the percentage of key features your customers are using. Customers can be highly engaged by only using a few features, but the adoption metrics let you know the number of unique features in use.

How would you increase the adoption of a new product or feature how would you measure success? ›

How to Increase Feature Adoption Rates
  1. Announce Features the Right Way. ...
  2. Provide a Better User Onboarding Experience. ...
  3. Analyze Your Feature Adoption Rates. ...
  4. Support the In-App Experiences with Behavioural Emails. ...
  5. Provide Customer Support. ...
  6. Use Targeting to Boost Feature Adoption. ...
  7. Improve Yourself Continuously.
Mar 16, 2021

What is adoption and example? ›

adoption noun (TAKING CHILD)

the act of legally taking a child to be taken care of as your own: She was homeless and had to put her child up for adoption (= ask for the child to be taken by someone else as their own).

Which of the following is an example of engagement metric? ›

Examples of engagement metrics are, for example, the pages viewed by users, the time they remain on a website, the comments on a post, or the number of subscribers, in the case of websites or blogs.

What are the 5 characteristics of the adoption level? ›

Rogers' Diffusion of Innovation Theory [5] seeks to explain how new ideas or innovations (such as the HHK) are adopted, and this theory proposes that there are five attributes of an innovation that effect adoption: (1) relative advantage, (2) compatibility, (3) complexity, (4) trialability, and (5), observability.

What are the three types of metrics? ›

There are three types of metrics:
  • Technology metrics – component and application metrics (e.g. performance, availability…)
  • Process metrics – defined, i.e. measured by CSFs and KPIs.
  • Service metrics – measure of end-to-end service performance.
Apr 2, 2013

How can we improve adoption in customer success? ›

Driving Software Adoption through Customer Success: 6 Ways to Improve Customer Engagement
  1. Establish Goals and Milestones.
  2. Offer Relevant Communications.
  3. Proactively Provide Value.
  4. Build a Customer Community.
  5. Create a Cross-Functional Customer Journey Team.

How can early adopters be improved? ›

Give them something they can use right away

Early adopters are prepared to work with your minimum viable product. They want something they can put into action. To win them over, consider offering the solution at a discounted price or with other perks that make it even more advantageous for them to try it out.

What is an adoption strategy? ›

The goal of a user adoption strategy is to help users reach their goal. That means conducting research to understand users' motivations, needs, environments, beliefs, complaints, and, most important, all the reasons why users don't adopt.

What metrics would you consider to determine if the new feature will be successful? ›

The 5 key metrics for tracking new feature success are total active users of the feature, the frequency of feature usage per day, retention rate, net promoter score, and customer satisfaction score.

What are the key metrics used to measure process improvements? ›

16 types of process metrics
  • Efficiency. Efficiency is the ratio of an input to an output. ...
  • Productivity. Productivity measures how much of a process you can complete within a time period, in hours. ...
  • Cycle time. ...
  • Turnaround time. ...
  • Takt time. ...
  • Throughput. ...
  • Error rate. ...
  • Effectiveness.
May 17, 2021

What metrics would you use to measure success when entering a new market? ›

10 Marketing Metrics to Drive Business Success in 2021
  1. Leads. Leads or lead generation is the most important indicator of marketing success. ...
  2. Return on Marketing Investment (RoMI) ...
  3. Referral Traffic. ...
  4. Total Website Traffic. ...
  5. Testimonials and Reviews. ...
  6. Customer Acquisition Cost (CAC) ...
  7. Customer Lifetime Value. ...
  8. Cost Per Lead.
Aug 30, 2022

What is adoption short answer? ›

Adoption means the process through which the adopted child is permanently separated from his. biological parents and becomes the lawful child of the adoptive parents with all the rights, privileges. and responsibilities that are attached to a biological child.

What are the six 6 steps in the adoption process? ›

There are six product adoption stages—awareness, interest, evaluation, trial, activation, and adoption.

What are three benefits of adoption? ›

The Benefits of Adopting a Child
  • Fulfilling lifelong dreams of raising a child. ...
  • Experiencing the joy and blessing of adding a child to your family. ...
  • Building new meaningful relationships. ...
  • Adopting a more regular schedule. ...
  • Experiencing new cultural traditions. ...
  • Exposing yourself to new activities and interests.
Nov 15, 2016

What are examples of engagement strategies? ›

11 Proven Customer Engagement Strategies That Increase Your Conversions
  • Share Your Company's Story, Mission, and Vision. ...
  • Personalize Interactions. ...
  • Practice Active Listening. ...
  • Offer Lots of Helpful Content. ...
  • Collaborate to Define and Mutually Agree on a Plan that Works. ...
  • Provide Free Benefits to Users. ...
  • Take a Social Approach.

How do you measure engagement? ›

How to measure engagement
  1. Determine engagement outcomes. ...
  2. Identify what's important to your employees. ...
  3. Perform a drivers analysis. ...
  4. Develop a continuous listening strategy. ...
  5. Don't exclusively use pulse surveys. ...
  6. Don't survey a sample population. ...
  7. Don't focus only on the quantitative results.
Jan 21, 2020

What are the five key metrics? ›

Here are five key metrics that every business owner should track.
  • Sales Revenue. Sales include your earnings through customer purchases of your service. ...
  • Customer Acquisition Cost. ...
  • Customer Loyalty and Retention Rate. ...
  • Margin. ...
  • Return on Advertising Spending.
Aug 8, 2019

Which metrics are most important? ›

What are your Most Important Metrics?
  • Gross Revenue.
  • Net Revenue.
  • Profit Margin.
  • Conversion Rate.
  • Leads Generated.
  • Customer Retention Rate.
  • Website Traffic.
  • Cost-Per-Conversion.

What is an example of a metrics? ›

While a measure is a simple number, such as, how many miles you have traveled, for example-a metric puts that measure into context - how many miles you have traveled per hour. This additional context makes the same measure orders of magnitude more useful, especially when looking at business KPIs.

What are the main problem in adoption? ›

The classic "Seven Core Issues in Adoption," published in the early 1980s, outlined the seven lifelong issues experienced by all members of the adoption triad: loss, rejection, guilt and shame, grief, identity, intimacy, and mastery/control. Others have built on these core issues.

What factors affect adoption? ›

Way back in 1962, Everett Rogers, fondly known as the father of the Diffusion of innovations theory, listed five attributes which affect the rate of adoption: relative advantage, compatibility, complexity, trialability and observability.

What are the 3 most important things that you would need for complete adoption of information technology? ›

7 Steps to Successful Technology Adoption
  • Align technology and strategy. ...
  • Communicate for buy-in and engagement. ...
  • Perform a current systems analysis. ...
  • Develop training approach early. ...
  • Integrate technology deployment with change management. ...
  • Create an effective governance structure. ...
  • Monitor and course correct.
Jul 21, 2017

What are some good metrics? ›

Up next, we'll explore 12 popular business metrics that reflect on your company's performance and indicate growth or decline.
  • Sales Revenue. ...
  • Net Profit Margin. ...
  • Gross Margin. ...
  • Sales Growth Year-to-date. ...
  • Cost of Customer Acquisition. ...
  • Customer loyalty and retention. ...
  • Net Promoter Score. ...
  • Qualified leads per month.

What is 7 step improvement process? ›

The Seven-Step Improvement Process

The goal is to define and manage the steps needed to identify, define, gather process, analyze, present and implement improvements. The objective of the seven-step process is to identify opportunities for improving services, process etc and reduce the cost of providing services.

What are the key elements of a metrics? ›

5 key characteristics of performance metrics.
...
Performance metrics should include the following five characteristics:
  • Aligned to strategy.
  • Transparent.
  • Contextualised.
  • Reliable.
  • Consistent.

How do you motivate employees to adopt a new process? ›

Here are a few things you can do to convince the skeptics to adopt new technology:
  1. Set the vision. Make sure this your vision is compelling and something employees can rally around. ...
  2. Empathize with them. ...
  3. Identify a champion. ...
  4. Highlight quick wins. ...
  5. Offer incentives.

How do you adopt a customer positively and professionally? ›

5 Strategies A Business Can Adopt to Improve Its Customer Service Performance
  1. Make Customer Service a Company-Wide Value. ...
  2. Make Sure the Messaging Is Consistent Across the Organization. ...
  3. Remove Anonymity from Your Team. ...
  4. Always Be Available from Every Place. ...
  5. Make Your Knowledge Accessible to Customers.
May 17, 2017

What are key factors to consider before adopting? ›

Five Important Factors to Consider Before Adoption
  • The paperwork. Adoption agencies require a lot of documentation, so it's easy to feel overwhelmed by the amount of paperwork you have to complete. ...
  • The home study. ...
  • The family book. ...
  • The uncertainty of getting matched. ...
  • The birth parents.

What are the 2 main sources of increasing returns to adoption? ›

Two primary sources of increasing returns to adoption are learning effects and network externalities.

How do you answer an adoption question? ›

How to Answer This Tough Adoption Question from Your Child
  1. Use positive adoption language. The words you use to talk about your child's adoption story matter. ...
  2. Answer honestly. ...
  3. Keep it age-appropriate. ...
  4. Talk to their birth family if possible. ...
  5. Be reassuring.
Jan 19, 2018

What is adoption and why is it important? ›

Adoption is the social, emotional, and legal process in which children who will not be raised by their birth parents become full and permanent legal members of another family while maintaining genetic and psychological connections to their birth family.

What metrics are you using to ensure performance improvement goals are met? ›

KPI. KPI stands for key performance indicator. A KPI is a metric of performance and determines if you are achieving success in an organization. KPIs are used as indicators that look backwards in most contexts.

How do you create an effective performance metric? ›

To create effective performance metrics, you must start at the end point — with the goals, objectives, or outcomes you want to achieve — and then work backward. A good performance metric embod- ies a strategic objective. It is designed to help the organization monitor whether it is on track to achieve its goals.

What are the seven criteria for good metrics? ›

7 Characteristics Of Data Quality & Metrics To Track
  • Consistency. Data has no contradictions in your databases. ...
  • Accuracy. Data is error-free and exact. ...
  • Completeness. Data records are “full” and contain enough information to draw conclusions. ...
  • Auditability. ...
  • Validity. ...
  • Uniqueness. ...
  • Timeliness.

What is a metric for improvement? ›

What are continuous improvement metrics? Continuous improvement metrics are methods for assessing the progress that a business makes in enhancing its operations. Companies can also use them to verify that they're consistently improving as time progresses.

What are the 3 types of measure used for improvement? ›

Three Types of Measures

Use a balanced set of measures for all improvement efforts: outcomes measures, process measures, and balancing measures.

What are the 4 steps involved in metrics program? ›

8-Step Practical Approach to Program Management Metrics
  • Identify Your Project Management Goals. ...
  • Determine Which Project Management Metrics are Right for Your Company. ...
  • Choose Metrics to Track Ongoing Project Performance. ...
  • Choose How Each Metric Will be Measured. ...
  • Design Methods for Collecting Project Management Metrics.
Jul 2, 2019

How do you use metrics to inform a strategy? ›

How to Use Metrics to Improve Performance
  1. List what you're currently measuring. Close ratios? ...
  2. Find a single additional area that you can measure. Could you use better data from your website? ...
  3. Track and review your measurements. ...
  4. Involve your team. ...
  5. Repeat the process.

What are the 5 most important metrics for performance of the product? ›

The most important key metrics for measuring the performance of a product are as follows:
  • Conversion Rate.
  • Customer Growth Rate.
  • Churn.
  • Cost per Acquisition.
  • Customer Lifetime Value.
  • NPS.
  • Active Trials.
  • Session Length.
Nov 30, 2022

What are the three most common marketing metrics? ›

According to a Google study done in partnership with MIT, 89% of leading marketers use strategic metrics, like gross revenue, market share, or CLV, to measure the effectiveness of their campaigns.

What are the three types of social metrics? ›

The 3 Types of Social Metrics and What They Mean for You
  • Business Metrics. Business metrics are the overarching goals for social media that align with your brand's business objectives. ...
  • Performance Metrics. ...
  • Optimization Metrics.
Dec 4, 2016

What is the difference between adoption and retention? ›

What are customer adoption and retention? Customer adoption isn't just about acquiring customers; it's about getting people to buy into a product. After people have bought into the product, the goal becomes retaining users who become customers.

How do you use metrics to inform your strategy? ›

How to Use Metrics to Improve Performance
  1. List what you're currently measuring. Close ratios? ...
  2. Find a single additional area that you can measure. Could you use better data from your website? ...
  3. Track and review your measurements. ...
  4. Involve your team. ...
  5. Repeat the process.

What are the three A's of metrics? ›

Test your existing metrics against the three “A”s of good metrics; actionable, accessible and auditable.

What are two types of metrics? ›

There are leading and lagging indicators in business. It is important that managers understand the difference between them and ensure they have both types of metrics to get an accurate picture of performance.

What are the three rules of engagement? ›

Three Golden Rules of Engagement: Frequency = Depth, Empathy is Everything & Feelings First: Facts Second, Part 3. Our six-year old son, apparently knows far more about effective communication than I do.

What are the five core values of engagement? ›

The CPPR model reflects the five core values of equitable relationships: respect for diversity, openness, equality, empowerment (redirected power) and an asset-based approach to work.

What are the three C's of employee engagement? ›

3Cs of employee engagement: Career, competence and care.

Videos

1. Develop a Successful Change Management Playbook
(Simplus)
2. Metrics Worth Measuring
(Salesforce Admins)
3. How to define the right engagement strategy for customers at scale
(Customer Success Network)
4. 2022 engAGED and Commit to Connect: Virtual Social Engagement Summit Day One
(engAGED National Resource Center)
5. Product execution mock interview: measuring success of a bank app (w/ FinTech PM)
(rocketblocks)
6. What is Workforce Engagement?
(Great Systems)

References

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