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  • Pirate Metrics, PLG, user journey

    Pirate Metrics, PLG, user journey

    By David Jones Founder and CEO Contextual

    The wave of Product Led Growth has revolutionized the industry in recent years. When discussing Product Led Growth (PLG), it is often compared to “sales-led” approaches, the dirty little secret is that many SaaS companies presenting as PLG are in reality Sales-Led.

    In addition to Product-Led and “sales-led” approach, other prevalent strategies include marketing led, customer led, engineering led, and service led. However, in this presentation, I dare to suggest that most PLG software products rely on the tried-and-true “Pirate Metrics” (AARRR) framework. By examining key elements of PLG, we can always reframe them in terms of AARRR and their correlation to the user journey.

    To summarize, Pirate Metrics represent a funnel for fostering deeper engagement. Typically, ownership of these metrics lies with Product Management, Customer Success, and Growth teams, encompassing interconnected phases such as:

    • Acquisition: Typically owned by marketing is the user journey up to registering with your product and logging in Attracting users through various channels and acquiring them as customers.
    • Activation:. Is discussed extensively in this video. Activation is the moment where the user extracts value in the product. This can also be the first moment the user completes an action such as filling out their profile, inviting their co-workers to sign-up for the app or completing a transaction. Activation is guiding users to experience the core value of the product and ensuring a successful onboarding process.
    • Retention: Encouraging users to continue using the product and cultivating long-term engagement. This can be measured in revisits to the application, typically measured in Daily Active Uses, average session length and custom (per application) engagement metrics. Of course an important metric might be (one or recurring) monetary transactions.
    • Referral: Harnessing the power of satisfied users to advocate for the product and refer others. This includes activities where your user is inviting and engaging other users in a virtuous circle that grows Activation and Retention. This is a key part of Product Led growth where marketing and acquisition costs are significantly subsidised (or eliminated entirely by harnessing network effects of the users in the App). Whilst B2C apps like social networks are poster-children for network effects, B2B apps like Atlassian have been well documented as having a growth flywheel based on this strategy.
    • Revenue: There is no growth without revenue!  As can be seen, this can happen at one or more points elsewhere in AARRR and single or multiple times. Optimizing monetization strategies to drive revenue growth and maximize customer value is the ultimate measure of success

    So we can see that PLG is very much supported by a product design that rolls up these key User Journey components. This talk tracks the journey on a timeline.  By leveraging the power of contextual walkthroughs, contextual user onboarding, contextual mobile tooltips, and a comprehensive digital adoption platform, businesses can enhance their product adoption and effectively implement PLG strategies.

    Webinar: How to Automate Product-Led Growth in APAC

    With MeshAI

    Tue 29th September 2022, 12:00 pm SGT (2:00pm AEST)

    • How Product Led Growth is transforming in 2022
    • Evolving your software  product’s PLG model
    • Automating PLG the who and how
    • Product-Led Go-To Market strategy
    • The PLG Automation analytics, onboarding and communications


    ux anti-pattern

  • FTUX – is not a dirty word (plus upcoming webinar!)

    FTUX – is not a dirty word (plus upcoming webinar!)

    In this video clip Bess and David hosted a highly informative “Onboarding and Activation” event, both in-person and online. The event aimed to address the confusion among app makers regarding prioritizing onboarding steps and designs that may unintentionally lead to increased trialler abandonment and churn.

    Throughout the event, David and Bess analyzed both exceptional and subpar examples to provide valuable insights. The agenda covered essential topics including:

    • Pirate metrics and the significance of product-led growth
    • Understanding the user journey curve
    • Exploring the concept of FTUX (First-Time User Experience)
    • Examining successful Activation strategies
    • Leveraging empty states, feature discovery, and driving referrals

    Watch a brief clip from the event’s introduction, where Bess sheds light on the elements of FTUX and how contextual walkthroughs, user onboarding, mobile tooltips, product adoption, underpinned by digital adoption platforms play a pivotal role in improving user engagement and reducing churn.

    The session wasn’t about the Contextual product, focussing mainly on some classic “patterns” and “anti-patterns” – this is just a geeky way to say: “Do’s and Don’ts”.

    For example, there are many “Do’s” that work for B2B that “Don’t” work for B2C. For this post, here are a few “anti-patterns”.

    • Mobile is not a small desktop
    • B2C: Force registration before “Aha”
    • B2C Mobile: Don’t default to System Permission Prompts
      • Don’t ask until you need permissions
      • Soften with your own popup before the system
    • Forced carousels/guides/tours
    • 16 step guides!!!!
    • External Help/External Videos (Never leave the App!)
    • Login after Register (Repeat passwords)
    • 2-factor on first try
    • Spam with push notifications

    We are doing a deep dive with our friends from Mesh.ai in a Webinar on 8th September – so if you’d like to learn more – register for the event.

    Webinar: How to Automate Product-Led Growth in APAC

    With MeshAI

    Tue 29th September 2022, 12:00 pm SGT (2:00pm AEST)

    • How Product Led Growth is transforming in 2022
    • Evolving your software  product’s PLG model
    • Automating PLG the who and how
    • Product-Led Go-To Market strategy
    • The PLG Automation analytics, onboarding and communications


    ux anti-pattern

  • The Product Knowledge Base is dead, it just hasn’t stopped moving yet

    The Product Knowledge Base is dead, it just hasn’t stopped moving yet

    The Product Knowledge Base is dead, it just hasn’t stopped moving yet

    61% prefer to just Google it

    How an App’s customers search for help has rapidly changed – not merely influenced by an “instant gratification” culture (e.g chatbots) but also the user’s context (e.g inApp) and the efficacy of product knowledge bases. 

    A recent Salesforce Survey on customer service and support reveals shifting customer service standards amid COVID-19. The data shows that thirty percent of Americans now contact customer service more than they have in the past. Millennials have ramped up interactions the most (46%) compared to Gen-Zers (42%) and baby boomers (11%).

    The Salesforce data clearly shows that online search is the preferred channel for customer support which is not entirely surprising as technology providers have financial interest in encouraging their customers to self-service support. In their quest  to reduce their support costs, product knowledge bases have increasingly become the only support resource offered by providers.

    The generational cohort preferences also bear out considering Millennials have surpassed Baby Boomers as the USA’s largest living adult generation, according to population estimates from the most recent U.S. Census Bureau data available at the time this article was written.

    But if you have never wondered about the general efficacy of Product Knowledge Bases then you might not be surprised to learn that you may also belong to a large cohort of users that instinctively reach for Google rather than apply their research skills to get support from knowledge base resources provided by the product they are using.

    We at Contextual did wander so we ran a poll using LinkedIn’s Poll feature to find out.  The first question was framed;

    How often do you reach for product knowledge base?

    Our follow-up survey was; 

    When using a Product Knowledge Base how often do you get the answer you need the first time?

    On face value it would be tempting to draw the conclusion that product knowledge bases only have a 20% efficacy rate therefore 86% of users don’t use them. However there is a little more to unpick here.

    What we found interesting about the results was the responses seemed to be  influenced by the roles of the respondents.  For example respondents answering the first survey “it’s my go to resource” 14%  and “Often” 20% in the second survey were mostly involved in highly technical roles such as Software Developer, Product Manager and QA.   

    Respondents who answered the first survey “I just Google it” 61% and “Sometimes” 54% in the second survey also had representation from Software Developers and Product Managers but then also included Product Analysts, Senior Managers, Founders, CEO and Sales Professionals.

    Respondents answering the first survey “Sometimes” 14% and The second Second survey “Rarely” 21% had similar role representations but tended to lean more towards Marketing and Managers.

    What the results “go to resource” 14%  and “Often” 20% results might suggest is that those who are involved in highly technical roles like Software Developers and  Product Managers are more likely using advanced technical products and are better skilled at formulating questions to get the answers they need.  Equally the products they use by virtue of their complexity may have better quality knowledge base resources. This theory was also reflected in the comments section of the survey post.  

    What might be behind the results  “I just Google it” 61% and “Sometimes” 54% is that the roles in that group are more likely to be using productivity tools which are not as complex as the tools used by software developers and don’t have the same level of data quality in their knowledge base.  The range of job roles in this group might also not apply the same level of rigor in their search queries as the previous group.  Comments by respondents indicated that the knowledge base was their first port of call but the answers were often not available.  The “I just Google it” user behavior here seems to be influenced by user experience.  If users don’t get the answer they need the first time often enough they may be more likely to ditch using product knowledge base resources over time and take their chances with Google instead.

    Knowledge Base is a pathway to Digital Distraction

     

     

    If your users are having to leave your application to get help then you are going to risk exposing them to digital distraction.  We have all been there,  you pause a task to get a piece of information to support what you are doing right now and BAM!  you are confronted with a myriad of distractions ranging from a new email demanding your immediate response to any number of reminders of competing priorities.  Studies have shown that digital distraction has a massive impact on productivity with workers talking on average 25 minutes to fully refocus after an interruption.  Bringing focus to mobile users where the digital distraction rate is higher and the screen real estate is limited so users have no option but to go outside to get help and you have an even greater challenge.   If a mobile user has to leave your app to get help before they achieve Activation (In the Pirate Metrics model of Acquisition to Revenue) you be unwittingly helping them become a churn statistic.

    The Future of Help is not self service

    The answer to this problem is giving your users the help they need within the mobile application rather than sending them outside the app and then making them do the work i.e. search.  Offering users an in-app user onboarding walkthrough. The support content can then easily be repurposed as an in-app mobile contextual tooltip or user guide.  Rather than send a user to a website to get an answer, which is an awkward experience especially on a mobile app, you can offer an in-app Contextual FAQ

    Mobile User Onboarding Guide Example

    This strategy provides product managers, designers and customer success professionals the opportunity to make the in-app support experience contextual so the in-app mobile tooltip or user guide provides the right answer to the right user at the right time in their user journey.  The payoff is self-evident to those whose roles and success are defined by product adoption metrics.

    If you are a product manager, a UX/UI designer, a growth marketer or a mobile app developer then you already know that producing a user engagement strategy with mobile in-app user guides, tours, walkthroughs or tooltips like the ones shown in these examples is no walk in the park.  Without a no-code tool like Contextual you are limited to hard coding and competing for development resources dedicated to all the features in your product  roadmap.  You will need to incorporate Onboarding tours and Guides and mobile app walkthroughs in your sprints and App Store Google Play releases,  it’s a significant increase in overhead.  This is why introducing an off the shelf, no-code, “engagement layer” product is a winning strategy.

    Besides allowing you to iterate much faster than a traditional software sprint, the beauty of the engagement layer is that it allows you to provide contextual onboarding, contextual tooltips and contextual guides, what this means is providing the right information to the right user at the right time.

    What the survey results do is put a big question mark over the strategy of relying on a product knowledge base to service your customers.The survey results reflect what most know to be true, knowledge base resources fall well short of satisfying customer service and support needs. The future of customer support isn’t self-serve, it’s “in-app” and it’s contextual.

  • For mobile user onboarding. Does the world really love Android more than Apple?

    For mobile user onboarding. Does the world really love Android more than Apple?

    Smartphone manufacturers are clearly the earliest proponents of sophisticated digital product adoption techniques like mobile user onboarding flows and product walkthroughs but how are they faring in their global battle for hearts and minds? 

    A report by Electronics Hub in 2021 showed that out of 142 countries, 74 prefer Android over Apple 65 with Belarus, Fiji and Peru showing a draw.  The survey methodology described in the report was based on sentiment analysis of over 347,000 tweets.

     

    What was remarkable about the survey is that North America overwhelmingly prefers Android (yep you read that right) over Apple with Android averaging 32, over Apple 19 in terms of positive sentiment.  Curiously Poland emerged as the world’s number 1 Android hater with 34% of tweets averaging negative.  Latvia ranked as the world’s number one Apple hater with 35% tweets about Apple averaging negative.

     

    Whatever religious standing consumers hold over either platform the sentiment doesn’t stack up when it comes to B2B and B2B2C mobile apps.  A tally of Apple and Android SDKs for three of the most popular analytics firms Segment, Amplitude and Mixpanel tell a very different story. A sample of Business and Finance apps using SDKs for the aforementioned analytics firms reveal Apple as the clear front runner with almost double the number of SDKs over Android.

     

    Love or hate when it comes to the question of how users feel the apps they use, analytics will provide some insight however they don’t provide any tools enabling quick response to change or influence user behaviour.   App developers are largely limited to hard coding which extends to any user engagement strategies like mobile app user onboarding tours, product walkthroughs, contextual mobile tooltips, in-app FAQ’s and user surveys.  Darryl Goede, CEO and founder of Sparkbox knows first hand how long and painful software development can be, however being able to use a low-code user engagement platform like Contextual allows his team to quickly respond to changes in user behaviour and maintain the love of Spark Pico users

     

    React Native shares the love!. At Contextual we are noticing emerging B2B apps are trending towards Android particularly in Asia and South America however what we are also seeing is a preference for React Native for the development of both Android and IOS business apps.  This is great news for Product Teams looking to accelerate their apps across both iOS and Android platforms.  The good news is Contextual provides a simple easy to implement solution for creating and targeting mobile and web application user onboarding guides and walkthroughs and in-app contextual tooltips, FAQs and user surveys across each operating system.

  • Mobile app user onboarding walkthrough guides ever more critical as spending on non-gaming apps overtakes games for the first time ever

    Mobile app user onboarding walkthrough guides ever more critical as spending on non-gaming apps overtakes games for the first time ever

    Spending on Apps Overtakes Games on Apple’s Platform for the First Time Ever

    A strong lead indicator that consumers are depending ever more on mobile phones to conduct their day to day lives is borne out by the latest Sensor Tower Q2 2022 Data Digest: U.S. which reports that spending on Apps Overtakes Games on Apple’s Platform for the First Time Ever.

     U.S. consumer spending in non-game mobile apps “pipped” spending in mobile games for the first time ever in the second quarter of the year to $3.4 billion.

    Both traditional bricks and mortar businesses and technology led firms are increasingly realizing the potential for greater customer engagement by achieving tenancy on their customers handheld devices.

     However despite the massive amount of investment pouring into the development of apps achieving success it’s not as easy as just launching an app! Over 70% of new app installs are used just once and then abandoned and studies have shown that the drop off rate after a free trial period can be as high as 60%. [5 Tips on how to reduce Mobile user churn]

     The apps that have survived that initial install and free trial period Gauntlet of Death and become part of the latest success numbers have achieved this by helping their users achieve Activation by shortening the time to “Initial Value” via effective mobile user onboarding strategies and maintained a path of “Realised Value” through effective in-app user engagement via ToolTips, new feature announcements, in-app FAQs and User Surveys.

     Sensor Tower also reported that the preferred revenue strategy adopted by B2B and B2B2C mobile apps have also proven to have had a significant impact on these numbers.

     The comparative difference between the two sectors (with $3.3 billion spent on mobile games) puts the delta in spending between the two at a mere $100M. However, the difference in comparative growth rates with gaming apps on 20% v non-game mobile apps at 40% compound annual growth rate has non-gaming apps on a trajectory to grow to almost $15B and increase the delta in spending between the two by almost $1B in 2023.

    These numbers will place product teams and software developers of B2B and B2B2C mobile apps under even greater pressure as they seek to take advantage of this phenomenal growth.  Apps that do not have an effective contextual mobile user onboarding walkthrough strategy will struggle to claim their share.  Established mobile and web apps that do not have in-app messaging and tooltips to help guide users find new features and nudge users towards deeper engagement with existing features will lose ground to competitors.

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