What is a Product Engagement Score?
(Images December)
Interested to know how to determine a Product Engagement Score (PES)? Then you’re in the right place.
We’re going to cover its effect on how users relate to a product. It centers on three elements, and this includes product adoption, stickiness, and growth. This helps the organization grasp the customer experience.
After calculating the quantitative data, decide on ways to boost product engagement. The product team uses this information to increase the active user base, lower the number of dropped accounts and guide customers in the right direction.
Let’s jump right into this topic for more details.
What is the Purpose of a Product Engagement Score?
There are three elements of the Product Engagement Score:
- Breadth: This is the amount that customers interact with a product. It is the proportion of features with 80 percent or above user activity.
- Depth: This is how deep customers delve into product features, and this accelerates retention.
- Frequency: This is the frequent usage of active visitors or accounts. Often this is the number of users that return on a day-to-day basis.
The product engagement score measures adopted core events. Product teams use this knowledge to increase and retain active users and active visitors.
What are Examples of the Most Important Metrics
The following are some examples of essential metrics.
Types of Active Users
Daily Active Users (DAU), Weekly Active Users (WAU, and Monthly Active Users (MAU) provide valuable data on who uses the product and at what times. If you have many users, but only a tiny proportion often interacts with the product, that is bad news.
Conversion Rates
What proportion of active users access the free-trial version? What percentage of users upgrade to the paid or specially configured version? This shows whether users find worth in the product. If not, the engagement numbers are low.
Customer Retention or Churn
Customer retention measures the percentage of new users for a duration of time. Churn looks at the number of users that leave over a fixed time.
That said, the crucial metrics differ depending on your business. The metrics below offer an excellent place to start. They are helpful when collecting meaningful product data about your product’s engagement.
What are the Benefits of a Product Engagement Score?
Calculating the product engagement score allows SaaS businesses to see which features engaged users understand and use. It also helps them know how the product features fall short of the standard.
Retention of Customers
The more valuable a customer finds the product, the more likely they are to remain an active user. Active accounts remain as users engage and continue to subscribe over time. This affects brand loyalty in a positive way, and the risk of churn decreases.
Improving Sales and Returns
Increased engagement leads to additional revenue and returns. More sales causes product-led growth.
Higher User Satisfaction
A high Product Engagement Score (PES) is essential for the following reason:
- A higher product engagement score relates to higher user satisfaction.
- Satisfied users return at higher rates.
- Gain new customers through user referrals and positive reviews.
The product team uses this information to improve overall engagement. They need to guide users through any difficulties. As users learn, users, return.
Essential Features of the Product Engagement Score
Being aware of the way that customers use your product is good. Metrics need to be in place and monitored over time to enhance engagement.
The following steps capture those measurements and help you understand what they mean in the broad scheme of things.
Install Product Analytics
Many tools allow you to monitor analytics for your SaaS business. This enables you to predict which users are at risk of churning.
Detecting Risks
After engaging with the data, identify the factors preventing your product engagement from reaching its full potential. Is the new feature adoption fast enough? Are you converting as many users as possible? Is churn occurring at a rapid rate? Improve all metrics but center on problem areas first to get a better outcome.
Formulate a Hypothesis
Identifying the problem is simple. On the other hand, linking its cause is trickier. Low retention and low conversions are sometimes part and parcel.
If your marketing department fails to express and repeat your value concept, both metrics suffer. See the performance of similar products to decide the popular features and market them in the best way.
The reason that these metrics are low differs between businesses. That said, the data places you in the vicinity of the problem.
Monitor and Calculate Results
Do not take the hypothesis as the truth. Also, do not assume your attempts to enhance product retention have been fruitful. One of the fundamental reasons for monitoring metrics is to see if your improvements are successful. And this is important to accept or reject your hypothesis.
That said, measuring product engagement helps you analyze user behavior. After analyzing the key metrics, develop an engagement model.
How Do You Measure the Effectiveness of Your Product?
The product engagement score is the average number of the product adoption, stickiness, and growth metrics. You calculate your product’s (PES) through product adoption stickiness and growth metrics.
Stickiness
This shows the amount of customer retention daily and weekly. Choose either time as long as you stick to a consistent value.
Feature adoption: Many go unused. Monitoring feature use highlights how popular each one is.
Customer Retention
This is the number of users that remain after a specified period. You choose this. Again, make sure that you stick with a consistent value.
What’s next you may ask? Work out the sum and then divide that by three to find out your product engagement score. Your product engagement score helps you to figure out how and where consumers are and are not interacting with the product.
Best Project Engagement Score Guidelines
Improve your product engagement score to increase new and recovered accounts.
Write Interactive Product Copy
Your copy should be exciting to grab users’ attention and see the product as valuable. The tone and focus of the copy do much to make users more interactive once they start using the product.
Make Sure the Onboarding Process is Easy and Stress-free
Your product must be easy to learn how to use. Customers need guidance, so educate users. Doing all this increases product adoption and customer experience.
Give Outstanding Customer Support
Deal with all questions and queries with promptness and efficiency. Do not hold up a user’s workflow by ignoring issues related to the product.
Glean from Customers and Improve the Product
Updates are a massive advantage of subscriptions. If updates are not forthcoming, the product stagnates, and your product engagement score decreases.
Assess and Adjust your Advertising Campaign
You should focus on high-value features in your value concepts. On the other hand, advertise high-value under-utilized features to gain more engaged users.
Improving your product engagement score (PES) enhances user engagement. Identify high-value features to increase active visitor growth. Convert active visitors to active users. SaaS businesses need a comprehensive understanding of product usage.
Conclusion
The product engagement score looks at adoption, stickiness, and growth. It is helpful to identify why there is low engagement.
After you equip customer success teams with this knowledge, they hone their strategy. They find ways to add value to the product and increase product engagement.
That said, the product engagement score is not always clear-cut. Look into variances so that there is a more accurate picture of engagement.
You need the product engagement score to measure product engagement. By understanding product usage, there are fewer dropped accounts, and you attract new users. If you want to experience product-led growth, you need to prioritize all aspects of product engagement.
FAQs
What is the difference between product engagement score and net promoter score (NPS)?
The product engagement score is more objective than the net promoter score. It is not premised on feelings that fluctuate over time. It looks at the hard facts – is a user operating your product and finding it to be a valuable tool or not? This multifaceted, modern viewpoint is the correct way to speculate churn because it conveys usefulness and value.
While we are sure that product teams are not throwing out NPS with yesterday’s trash, we are also confident that product engagement connects with customer retention. A decreased product engagement score gives you more information than whether a user clicked on a six or seven on the net promoter score scale.
What is account-level product engagement?
As a SaaS business, you supply your product to companies and function at an account level. So make sure you track engagement in that way.
Once you have organized everything at the account level, examine account-level product engagement.
Once you capture this data, you are able to do the following:
- Work out the engagement level of your accounts.
- Point out engagement trends in your accounts
- Monitor activation and onboarding for SaaS at the account level. By observing how your new accounts are moving in terms of onboarding, the sales team knows what to center on.
- Recognize feature adoption at the account level. When you analyze how you adopt your key features, consider it at the account level.
Investigating at an account level makes you see things from a completely different angle.
