Congratulations, you’ve released your product into the market.
However, downloading or signing up on your platform is not enough, you need to be sure they have been activated. Apart from that you still need to know whether they’re actually using it—and to its full potential.
By tracking user behaviour trends, sales figures, and engagement metrics, you know if customers are interested in your product or not.
This is where product adoption metrics come in.
Before you continue, you might want to read up on product adoption
So what are product adoption metrics?
Product Adoption Metrics
HotjarProduct defines product adoption metrics as metrics that help you measure and track how successful your product is at meeting your users’ needs and helping them achieve their goals.
It is important to keep track of these metrics as it helps you understand how customers are using your product and what stops them from fully adopting your product so you can improve.
Now, let’s look at 10 essential product adoption metrics you can track, to understand different aspects of user behaviour and increase your end goal, which is more people adopting your product.
10 Key Product Adoption Metrics To Track
1. Adoption Rate
It is the percentage of new users to all users, whether it is for a product or a specific feature.
For example, if you have 64 new users this month and the number of total users is 572:
Adoption Rate = Number of New Users (64) X 100 /Total Number of Users (572) = 11.18%
It can be calculated on a daily, weekly, monthly, or yearly basis.
2. Time To Value(TTV)
Time to value measures the time it takes from when your customer purchases your product/service, to when they start to derive value and validate their expectations.
The faster a solution solves a problem, the better the customer experience and the more money a brand makes. It’s as simple as that.
TTV = The amount of time it takes users to get value (where time is measured in user clicks or minutes).
3. Customer Lifetime Value
Customer lifetime value is the measure of the total amount of money a customer is expected to spend with your business or on your products, during the lifetime of an average customer/business relationship.
This is an important metric as it helps you to make decisions about how much money to invest in acquiring new customers and retaining existing ones.
Formulae to calculate CLV is:
CLV = Average value of a purchase x Number of times the customer will buy each year x Average length of the customer relationship (in years).
4. Churn Rate
The churn rate is a metric expressed in percentage, that measures the rate at which a business is losing its customers or subscribers within a specific time period.
The churn rate helps you understand how well you’re successfully retaining customers.
The formula below can be used to calculate the churn rate
5. Average Session Duration
Average session duration is an engagement metric that allows you to measure the amount of time a user spends using your application or browsing your website at a time.
Average session duration is important because it can indicate how engaged users are with your brand and your product/service.
Here’s how to calculate the Average session duration:
6. Customer Usage Frequency
Customer usage frequency measures how often a customer uses your product. This takes into consideration user log-in frequency or user sessions.
Tracking these metrics helps you group your users into Active users, Frequently active users, Occasionally active users and Inactive users.
There’s no special formula required to calculate this metric.
Customer Usage Frequency = Number of log-ins or user sessions within a specific timeframe.
7. Customer Retention Rate (CRR)
CRR is a metric that measures the percentage of customers you are able to retain within a specific time period. It is the percentage of retained customers who remain loyal to a company, within a time frame.
Here are the parameters needed to calculate CRR:
- Total number of customers at the beginning of a time frame (S)
- Total number of customers at the end of the time period (E)
- Total number of new customers you gained within that time period (N)
Based on the parameter above, the Customer Retention Rate Formula is:
8. Activation Rate
The activation rate is a key metric and indicator of how successful your activation process is.
It is the percentage of users who successfully complete a predefined set of steps or activities within the activation process, whether it’s the onboarding flow for new users, feature activation for existing users, trial-to-paid flow, or something else.
- Conversion Rate
A conversion can refer to any desired action that you want your users to take. This can include anything from a click on a button to making a purchase and becoming a customer.
So your conversion rate measures the number of users who complete those required actions.
10. Customer Satisfaction Score
Your customer satisfaction (CSAT) score is your customer’s level of satisfaction with your product.
Tracking and calculating your customer satisfaction score helps you evaluate customer sentiment towards your product and helps you see areas to improve the user experience.
You can measure CSAT scores using several tools like Microsurveys. They are one-question surveys with a scale of 1-5, triggered by user action within your product.
Conclusion
Customer behaviour towards your products and features changes all the time. So it is important to continuously track your progress with product adoption metrics that reveal key trends in customer buying and adoption behaviour.
Tracking and understanding these metrics helps you know how users think and feel about your product, and you can make necessary changes to increase your product activation and adoption.