What is Product Adoption & How to Measure and Increase It for a SaaS Product?

Although SaaS product trend is growing exponentially, there is one big problem every SaaS businesses have: “Customer Retention Rate”. It is a metric that demonstrates whether your marketing and customer care efforts are wasting your time and money or boost your business. Here is the situation that “Product Adoption” steps in to offer an effective way to improve your business’s retention.

Let’s start with a short definition of product adoption, then continue with some exclusive clues that will help you increase it.

Sounds good? Let’s go 👇

What is product adoption?

Product adoption, by definition, is a process by which customers hear about a new product or a service and become recurring users of it. It is a crucial aspect of customer health and plays a primary role in customer success.

Increasing SaaS product adoption encourages your customers to detect new items and elements. And also, your customers can discover new features of an existing product. Plus, it enables them to become long-term users. For the most successful companies, higher adoption is indispensable for higher revenue.

Especially, SaaS start-ups are highly familiar with the term of product adoption. Because they continue to struggle with low retention rates, users not coming back after signing up and always looking for a solution to keep their users for a long time to increase lifetime value.

You know, it’s the fundamental of a SaaS business model. You have to sell your SaaS product every month to your customers. Product adoption process provides a more advanced customer success by increasing the average lifetime value and the conversion rate of trial to subscribed user and free to paying user.

Amazing, like a swiss knife for product teams, isn’t it?

Let’s dive into how to measure product adoption first, and then to how to increase it.

How to measure product adoption?

There is an obvious fact that most software people do not actually have adequate knowledge and understanding of adoption.

Apart from classical visitor to user, user to customer rates, there’s a whole different area to measure new feature adoption.

Let’s think about a scenario which you are really familiar with:

You worked for weeks over a new cool feature and finally launched it to all of your users. How many of them could actually reach it? Did they really start to use it? How actively did they use it? Did you actually do a good job working on that new feature, instead of something else?

You need to attentively detect the areas that users drop off and exit. If drop-off and exiting rates are high, it is an obvious indicator of something going wrong and an urgent call for fixing it.

To monitor and measure adoption rates, you can employ some tools which are able to review the new user onboarding funnel to analyze the steps in which users are having trouble with.

Mixpanel is one of the best tools to measure product adoption with customizable funnels and lots of helpful resources.

How to increase product adoption?

We need to attract customers who tend to actively and consistently use our products or services. No matter what business model we have, we can only achieve success when we make users experience unprecedented moments which make them say “aha, this is what I’m looking for”. It suddenly takes our product or service to a core ingredient of customers’ work.

To clarify it, I want to define Product Adoption Process by 5 stages.

5 stages of Product Adoption Process:

Every user respectively goes through these stages no matter what kind of product it is.

To increase your SaaS product adoption;

  • Follow the stages in the adoption process,
  • Detect weaknesses and deficiencies in each step carefully,
  • Try to fix them immediately.

1 – Awareness (Introduction Stage): 

In this stage, potential customers enter your website to know about a product but they don’t have sufficient knowledge about it yet.

The first step is to make a product more recognizable and to make customers be aware of it. Bring features, price, quality or usability into the forefront with a smooth onboarding process.

 2 – Interest (Information-gathering Stage):                                       

It is the stage that customers get attracted to the product and try to have more information about it.

Follow the steps of your customers instantaneously and make sure you have strong customer support. Sending segmented emails will increase product adoption at this stage as well.

3 – Evaluation (Consideration Stage):

At this stage, customers determine whether a product is worth to try or not.

Help your prospects evaluate your product objectively. Make them see the aspects that differentiate from alternatives to it.

4 – Trial (Sampling Stage):

Users try your product to see how efficient the product is for compensating customers’ need. It can be either the first purchase or free trial period.

Give free trials and a money-back guarantee to ensure your product is worth employing.

5- Adoption / Rejection (Buy or not Buy Stage):

Prospects determine if your SaaS product has the value and decide to adopt it or not. Customers proceed from a cognitive state (being aware and informed) to the emotional state (liking and preference) and finally to the behavioral or conative state (deciding and purchasing).

Read more about product adoption process here: https://study.com/academy/lesson/how-a-new-product-is-adopted-by-consumers.html

Use a “Product Adoption Software” to get more effective results instantly

You don’t want your developers to work for hours to create product adoption guides. It takes too much time and undoubtedly considerable effort is needed to do it. Save your developer team’s time and don’t waste your budget.

A product adoption software helps your users reach the product in websites and web apps with interactive guides that you created for them. It is the easiest and cost-effective way. You don’t need a big team and a high budget to make guides, your interns can even do it in a couple of minutes.

Moreover, product adoption software permits you to follow the product adoption process stages and provides analytical information which allows you to make objective evaluations handily.

For a longer answer to your question “Why shouldn’t I build onboarding walkthroughs insource?”, check out our article: Onboarding Walkthroughs Are Hard.

Try product tour software Userguiding for free