It’s not news that all businesses (and Apps!) are looking for growth, preferably fast-paced. But growth alone isn’t ideal. You desire a healthy, sustainable, and measurable growth process.
Great Product-led companies are known for delivering a product that serves the user (usually self-serve) and encourages inviting colleagues or friends to grow the monetizable user base. This expansion is part of an integrated marketing strategy, transforming the product to be at the “heart” of user acquisition – saving huge costs for other advertising and marketing. (Your App is so viral it’s k-factor is >1.0. As you may have seen in the pandemic Omicrocron A/B was more infectious that Delta – it’s the same concept.)
Many product makers fail due to three scenarios:
- Their competitor’s App execution is better which resonates with users
- Their users have bad in-App experiences (reported and unreported)
- The company’s cash runway is short before being able to be profitable or have enough proof points to raise additional funding.
So, how do Product Managers avoid these scenarios?
Product-Led Growth, Explained
Companies utilizing their PLG strategies (like Slack, Calendly, and Dropbox) can improve the efficiency and effectiveness of their products.
However, product-led development has an impact beyond the go-to-market formula. Let’s break down some of the principles beyond product-led companies:
- Growth isn’t significantly reliant on anything else. As your strategy is product-driven, monetization is easier and allows your company to expand without spending a great amount of time or money on advertising or sales reps.
- Users are not committed to paying. A freemium-based payment model is typically used to power product-led growth. Individuals may get started and interact with the tool without having to commit to a monthly or annual price. As time flows, businesses may provide more premium features that can attract users.
- The customer is the center of business. Product-led businesses strive really hard to prove that they have a one-of-a-kind product. They focus on customer feedback, customer data, customer research – THEN actively develop new features driven by what user’s deeply value. This is the secret of any successful App.
Product adoption is easier. The secret is to let users discover the product for themselves, using tools like Contextual to provide guidance and right-time help. Users can check out different features and stay engaged. Lowering the adoption barrier makes them experience the aha moment sooner.
Why to Integrate Context Marketing in Your Strategy?
Whereas content marketing got more popular as a technique over the previous decade, it became evident that a single marketing approach is not enough, as you need to filter the information to provide the best user experience out there.
This is when Context Marketing mindset becomes essential for product-led growth. With its many mailings and notifications, content marketing may soon become overwhelming. in-App Context Marketing, meets the user at a certain point in time (you are aiming for “right-time”).
Prioritizing your user’s satisfaction leads to more organic growth (in terms of Pirate Metrics, you are gaining retention, referral and revenue).
Generally speaking, Contextual marketing changes your focus from what you sell to providing value. Let’s take a look at the main reason why you should introduce this marketing strategy to generate more revenue:
1. Increased Engagement
Now, this is a simple equation: enhanced user experience → increased engagement.
Marketing has always been a priority for product-driven businesses. If you recall the AARRR! Pirate Metrics that were provided in our previous blog post, content marketing is required for acquisition. Context marketing, on the other hand, is directly related to retention.
When it comes to contextual marketing, this is a smart rule to follow. Concentrate on providing the greatest possible user experience to your current customers. Prioritize their JTBD and aha moments → then engagement rises → they’re happier → they’re more inclined to recommend your app to others.
The concept behind product-led companies is to position the customer in the center of your business, improving user engagement rates in your analytics are a by-product of each individual user’s interest.
2. Less Intrusive, More Organic
Marketing approaches may become increasingly disruptive to a user’s typical workflow, or be just advertising noise. Users love it when the content they come across is tailored to their preferences. This should never, however, come at the expense of the user experience.
Content marketing is important, but context is key. Learning what to show, when to show it, and who to show it for is crucial for product-led growth. Studying your users’ behaviors is the key to learning to filter and better target the relevant material for each of them. Anyone is more convinced by a personalized user experience. When faced with tailored content rather than generic one, they are more likely to take action and eventually become your client.
3. Better Conversion Rates
Hubspot explains it quite simply: targeted marketing always meets people at their specific point of need. In other words, product-led companies should give people what they want and need, and they will keep coming back. The retention rate is higher, churn rate is lower.
Personalized marketing also keeps consumers engaged for longer periods of time, making users less likely to abandon your app. Keep in mind that your app’s users are the link between it and the rest of the world. Higher retention rates imply a greater probability of recommendations.
How can you improve the conversion rates? The answer is quite simple: you can start by introducing some non-intrusive tools to help with the user experience and improve your marketing strategy:
- Make the user onboarding process as simple as possible. Tools like Contextual can help.
- Remove all distractions. Use Contextual small tooltips instead of spammy pop-ups or hard-coded text cluttering screen real-estate – especially on mobile!
- Add testimonials or feedback surveys. Yes, Contextual lets you ask a micro-question at the right-time.
- Include some pop-up tips to enhance the user experience. Contextual can nudge users if they haven’t yet tried a feature or completed a goal.
4. Level-up your Analytics. Quantify your efforts
in-App contextual marketing allows Product Takers to see whether their guidance initiatives are generating more:
- User growth
- DAU, MAU growth
To prove its worth in terms of improving user engagement, retention, and comprehension, each initiative, experiment or campaign you run should be quantified (against a baseline). You can check if any features should be maintained, updated, or abandoned by tracking the uplift on a single target and even run A/B tests.
Take Advantage of Context Marketing
But how to do that?, you may ask yourselves.
Start by choosing some in-built tools that Contextu.al has to offer. You can transform any user experience into a smoother one with announcements, videos, guides, surveys, or tips.
We know the importance of the relationship between the user journey and Context Marketing, so your app would be in safe hands with us. Allowing us to show the most contextual content possible, user retention is a given.
We’re all about context, so don’t hesitate to book a demo with us at Contextual!