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Product Adoption Strategies, Tips, and Success Secrets

June 24, 2022 Edwin Kooistra

Technology and product adoption is key to customer retention and loyalty. By improving product adoption for new technology or product app, businesses can ensure that their customers remain engaged and continue to generate revenue. Product adoption can also help to improve customer lifetime value (CLV).

For products to work and be successful, they need to be adopted by consumers. Adoption rates can vary based on several factors, so it’s essential to measure and track them to improve your product’s chances of success.

This blog post will discuss tips for measuring and enhancing product adoption rates.

We’ll also provide a few examples of how companies have succeeded in increasing adoption rates for their products. By reading this post, you’ll learn how to create a plan to improve your products’ adoption rates.

Let’s get started!

What is Product Adoption?

Product adoption is the process of people using and becoming familiar with a new product. Product launch often happens in stages, where people first learn about the product, then try it out, and finally start using it regularly. Product adoption can be influenced by various factors, including how easy the product is to use, how well it meets people’s needs, and how much it costs.

Doesn’t product adoption sound similar to customer acquisition?

Well, it’s not!

Product adoption introduces a new product to the market and makes it available for purchase by consumers. Product adoption aims to make the product available to as many potential customers as possible to try it out and decide if it meets their needs.

On the other hand, customer acquisition is the process of convincing potential customers to purchase the product. This involves creating awareness of the product, generating interest in it, and providing information to help potential customers make a buying decision.

Why Product Adoption Process is Essential for Growth?

Product adoption is vital for growth because it enables companies to increase sales and revenue. By convincing more people to use their product or service, companies can grow their business.

Product adoption can be difficult, especially for new products or services. There are a few things that companies can do to increase their chances of success:

  • Make sure the product or service is solving a real problem for potential customers
  • Create a user-friendly product or service
  • Have a strong marketing and advertising campaign
  • Offer incentives or discounts to encourage people to try the product or service

There are numerous advantages to streamlining and improving your product adoption process. If you can give your users a good onboarding experience, you have a better chance of reducing customer churn. Increased adoption rates frequently result in improved customer satisfaction, higher customer retention, and lower cost-per-acquisition rates.

Increased product adoption, at the very least, indicates that more people are using your product, and the more simplified and optimized your process is, the greater your customer success rates will be.

5 Important Factors Influencing Adoption

When it comes to product adoption, a few key factors can make or break the success of a product. The most important ones include a smooth onboarding process, a competitive advantage in quality and features, ease of use, product visibility, and attractive pricing offers.

Let’s take a closer look at each of these factors:

  1. Smooth Onboarding process
  2. Competitive advantage (quality & features)
  3. Ease of use
  4. Product Visibility
  5. Attractive Pricing offers

1 – Smooth onboarding process

A smooth onboarding process is crucial for product adoption. If users find it complex or confusing to get started with your product, they’re less likely to stick with it. Make sure your product is easy to understand and use from the first time someone tries it.

2 – Competitive advantage

A competitive advantage in quality and features can also influence product adoption. If your product is better than others on the market, users will be more likely to choose it over alternatives. Make sure your product constantly improves and expands its features to stay ahead of the competition.

3 – Ease of use

Ease of use is another critical factor. If users find your product difficult to use, they’re less likely to continue using it. Ensure your product is intuitive and easy to use from the first time someone tries it.

4 – Product visibility

Product visibility can also influence product adoption. If users can’t easily find your product, they’re less likely to use it. Make sure your product is visible and easily accessible to potential users.

5 – Attractive pricing offers

Finally, attractive pricing offers can also influence product adoption. If users find your product too expensive, they’re less likely to use it. Ensure the product is priced competitively to attract potential users.

6 Main Product Adoption Stages

Product adoption follows a typical pattern: awareness, interest, evaluation, trial, and purchase. However, not every product is adopted by everyone in the same way or simultaneously. product adoption can be affected by various factors, such as age, income, lifestyle, and location.

Here are the most critical product adoption stages:

  1. Awareness
  2. Interest
  3. Evaluation
  4. Trial
  5. Activation
  6. Adoption or Rejection

1 – Awareness

The product adoption process usually starts with awareness. This is when potential users first become aware of your product. The user may see an attractive ad, read a review, or hear about it from a friend.

2 – Interest

Next comes interest. Once potential users know your product, they will show interest in it. They may do this by visiting your website, downloading a demo, or reading more reviews.

3 – Evaluation

After showing interest, potential users will enter the evaluation stage. During this stage, they will decide whether or not your product is right for them. They will compare your product to other similar products on the market and try to determine its value.

4 – Trial

Once potential users have evaluated your product, they will either decide to try it or reject it. If customers choose to try it, they’ll use it for a short period to see if it meets their needs. If they like it, they will move on to the activation stage. If not, they will reject it and may never use your product again.

5 – Activation

The activation stage is when potential users become paying customers or active users. They have decided that your product is valuable and worth using regularly.

6 – Adoption or Rejection

Finally, there is Adoption or rejection. Once potential users have tried your product, they will either adopt it as their main product or reject it in favor of another product. Many factors can influence this decision, such as price, features, and customer support.

Product Adoption Examples

Product adoption can happen when a product is new to the market or already established. For example, product adoption rates were high for the iPhone 6 when it first came out because people wanted to try the latest and greatest technology. But product adoption rates were also increased for the iPhone 5s because it was a newer version of an existing product.

Product adoption can also happen when a product is less expensive than similar products or has features that appeal to a specific audience. For example, product adoption rates for e-readers like the Kindle are high because they’re relatively inexpensive and best suited for someone who wants to read books electronically.

Product Adoption Curve: 5 Types of Adopters

The product adoption curve is a graphical representation of how people adopt new products. There are typically five adopters: innovators, early adopters, early majority, and late majority. The laggards are those who are the last to adopt new products.

1 – The Innovators

Innovators are the first people to try a new product. They are usually early adopters as well. They adopt new products because they want to be the first to try something new.

2 – The Early Adopters

Early adopters are the second group of people to adopt a new product. They want to be early to have the effect before it becomes mainstream.

3 – The Early Majority

The early majority are the third group of people to adopt a new product. They wait until a product has been proven before they embrace it.

4 – The Late Majority

The late majority are the fourth group of people to adopt a new product. They wait until a product is widely accepted before they embrace it.

5 – The Laggards

Laggards are frankly the last group of people to adopt a new product. They are skeptical of new products and only adopt them when everyone else does it.

6 Key Metrics to Measure Product Adoption

As a product marketer, you are always looking for ways to measure the success of your product. One way to do this is by measuring product adoption. Here are some key metrics to keep in mind when measuring product adoption:

  1. Adoption Rate
  2. Time-to-value (TTV)
  3. Customer Engagement Score
  4. Customer Lifetime Value (CLV)
  5. Product Qualified Leads (PQLs)
  6. Product Activation Rate (PAR)

1 – Adoption Rate

The adoption rate is the percentage of people who adopt your product out of the total number of people who’ve been exposed to it. To calculate your product’s adoption rate, divide the number of new users by the number of total potential users.

A product’s adoption rate can vary depending on its industry and target market. For example, a new messaging app will have a higher adoption rate in areas with high smartphone ownership and usage rates.

2 – Time-to-value (TTV)

Time-to-value is the time it takes for a customer to get value from your product. This metric is important because it measures how well your product meets customer needs. To calculate TTV, divide the number of days from first use to product value by the number of total users.

3 – Customer Engagement Score

A customer engagement score is a metric that measures how engaged your customers are with your product. To calculate your product’s customer engagement score, divide the number of active users by the number of total potential users.

Engaged customers are more likely to continue using your product and recommend it to others. Therefore, a high customer engagement score is an indicator of product success.

4 – Customer Lifetime Value (CLV)

CLV is a metric that measures the total value that a customer brings to your company throughout their relationship with you.

To calculate CLV accurately, you need to know three things: the average customer lifespan, the average customer value, and the churn rate. The average customer lifespan is the average length of time a customer remains a customer.

The average customer value is the total revenue divided by the number of customers. The churn rate is the percentage of customers who stop using your product within a given period.

5 – Product Qualified Leads (PQLs)

A product-qualified lead is a lead that has shown interest in your product and has the potential to become a paying customer. To calculate the number of PQLs, divide the total number of leads by the conversion rate.

6 – Product Activation Rate (PAR)

Product activation rate is the percentage of people who use your product out of the total number of people who’ve been exposed to it.

To calculate PAR, divide the number of active users by the total potential users.

Product activation is an important metric because it measures how well your product meets customer needs. A high product activation rate indicates that your product provides value to customers.

10 Effective Tips to Improve Product  Adoption

You can work smartly and enhance product adoption rates within your customer base. Below are the tips that we at Chasm believe can make a significant impact:

  1. Improve your churn rate
  2. Community & Support
  3. Introduce upcoming features
  4. Monitor & engage low-key customers
  5. Listen to customer feedback
  6. Don’t give up on canceled subscriptions
  7. Offer an in-app checklist and milestones and offer rewards
  8. Improve your onboarding experience
  9. Improve layout and product walkthroughs
  10. Engage customers within and outside of the app

1. Improve your churn rate

Churn is the enemy of any product company. If customers are constantly canceling their subscriptions or leaving for competitor products, it’s a clear sign that something is wrong. Here’s how to improve your churn rate:

  • Onboard new users quickly and effectively
  • Keep existing users engaged
  • Get feedback from users

2. Community & Support (setup community, dedicated live chat support, helpful user guides)

A great way to improve product adoption is to set up a community for users. This gives them a place to ask questions, get help, and connect with other users.

Another way to improve product adoption is to offer dedicated live chat support. This way, users can get help when they need it, and they won’t have to wait for a response.

Another great way to improve product adoption is to create helpful user guides. These guides can show users how to use the product, and they can answer any questions that users may have.

3. Introduce upcoming features

Keep your customers excited about upcoming developments and features by letting them know what’s in the pipeline. This will help them see the value in staying subscribed to your product. Here are a few things to keep in mind:

  • Make sure you communicate the benefits of the new feature. What problem does it solve? How will it make users’ lives better?
  • Be clear about when the feature will be available. Will it be a gradual rollout or a sudden change?
  • Get feedback from your team and users to see what they think about the new feature
  • Educate your in-house team on how to use the new feature

4. Monitor & engage low-key customers

It’s natural for some customers to be more active than others. However, if you notice that a particular customer is not using your product as much as they should be, reach out and offer them help. This could be a demo, user guide, or simply finding out where they’re stuck and helping them overcome that hurdle.

To monitor and engage these customers, do this:

  • Check-in regularly
  • Offer incentives
  • Get them involved

5. Listen to customer feedback

A great product is constantly evolving based on customer feedback. Devise a strategy for collecting customer feedback and use it to improve your product. It can help understand how well your product is being received, identify areas for improvement, and make necessary changes to enhance product adoption.

Here are some tips:

  • Be sure to collect feedback from a variety of sources
  • Take the time to analyze and understand the feedback you receive
  • Use customer feedback to inform product decisions and make improvements
  • Regularly communicate with customers about product changes and update

6. Don’t give up on canceled subscriptions

You might feel discouraged when you see many canceled subscriptions. However, always remember that every customer is different, and there may be a variety of reasons why they decided to cancel. Rather than giving up on these customers, reach out to them and see if there’s anything you can do to help them better adapt your product.

Here’s how:

  • Reach out and ask why they canceled
  • Offer a discount
  • Provide more value
  • Make it easy to use
  • Be responsive

7. Offer an in-app checklist and milestones and offer rewards

If you want to improve product adoption, offer users an in-app checklist with milestones and rewards for completion. This can give them a strong sense of accomplishment as they use your product and encourage them to keep using it. You can also offer credits that can be redeemed for prizes or discounts on future purchases. Whatever exciting incentive you offer, make sure it is valuable to your target audience.

You can help new users get familiar with your product and its features by offering a checklist. They will appreciate being able to track their progress as they learn how to use your product. Offering rewards for completing milestones is a great way to keep users engaged and motivated to continue using your product.

8. Improve your onboarding experience

One of the essential things you can do to improve product adoption is to improve your onboarding experience. The overall onboarding experience is the first impression users have of your product, so it’s essential to ensure it’s as positive and informative as possible.

There are a few key things you can do to improve your product’s onboarding experience:

  • Make it personal
  • Be clear and concise
  • Be helpful
  • Get feedback

9. Improve layout and product walkthroughs

One way to improve product adoption is to improve the layout of your product. This can be done by ensuring the product is easy to understand and use. Another way to enhance product adoption is to provide product walkthroughs. These can be done by providing step-by-step instructions on using the product.

Doing these things can improve product adoption and make it easier for people to use your product.

10. Engage customers within and outside of the app

Make sure you are highlighting customers that have been successful with your product. This provides social proof for other potential customers and gets them excited about what is possible. You can do this through case studies, blog posts, or even video testimonials.

It’s essential to get feedback from customers to improve your product continually. Make it easy for them to leave feedback by having a prominent place for it on your website or within the product itself. You can also make it fun by offering rewards for those who give feedback.

Enhance Adoption Strategies for Best Results

First off, not every product enjoys instantaneous success. Even the best products can take time to catch on with consumers. However, if you follow the proper steps and measure key metrics, you can improve your product’s chances of adoption and growth.

Adoption strategies are crucial to getting your product in the hands of the right people, and at Chasm, we’ve helped countless startups and enterprises design successful adoption plans. Our team can help you position your product correctly in the market, do rigorous market research to understand your target segments inside and out, and craft messaging that resonates with each segment. Let us help you get your product adopted by the right people for maximum success. Ready to take the next step? Contact us today!

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Edwin Kooistra - Product Marketer & Founder

Technology can be a huge differentiator but leveraging emerging technologies can be challenging. After my degree in Business Information Technology I decided to work on the provider side of Technology, because I believe Technology providers play an important role in guiding enterprises on their digital journey. Besides helping tech businesses to optimize their growth and go-to-market strategies, I also like to write about the topic. I hope you find it useful!

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