How many of your customers pay without experiencing your value proposition? They will be the first to churn!
Today I’ll be talking about how to get more people to reach your product goals.
When I’m saying product goals I’m referring to goals such as: paying for the product, inviting the whole team to use the product, or completing a number of successful events within the application.
But first things first: we need to measure how many people reach the product goals, so we know what we need to optimize.
Let’s take the example of a B2B company that wants to optimize the number of people that end up paying for their product.
How do we increase the number of paying customers at InnerTrends?
We analyse the number of people that reach a goal in relation to the onboarding process. The onboarding process is defined as experiencing the promise of your business.
Why is that important? Because onboarding is essential to retention. People that don’t experience the promise of your business have no reason to come back to your product and use it for the long term.
There are 2 growth opportunities in this analysis.
The first one is the people that reached the goal of paying for the product but did not finish the onboarding process.
These users have a very low retention rate, which means that they will churn in the next month or two unless you do something about it right away.
Basically, for this category, you need to drive as many users as possible to finish the onboarding, otherwise you’ll have very small chances for them to stick to your product for the long term.
What you want to do is to help them experience the promise of your business.
The second opportunity lies in the number of people that finished on onboarding process but did not reach the goal.
They know your product, understand the value it brings them, but they need more incentives in order to convert.
These are the only users that you should target with your campaigns designed to reach that goal.
Don’t target all sign-ups with your campaigns!
One of the biggest mistakes we see that a lot of Saas businesses do is trying to convince all those new sign-ups to reach a specific goal, .
Our data shows that such campaigns can have a negative impact on the decisions of the users to finish the onboarding process, which would have given them higher chances to convert in the first place.
In order to know what to focus on in these campaigns, Innertrends provides another report that analyses the difference in activity between onboarded users that return and those that churn. But that’s the topic for another video.
If you need help in having your users reach the product goals, I’d be happy to help out, so let’s get in touch!
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