4 ideas to increase SaaS user engagement through CEI

Learn how to use the customer engagement index to measure your users activity

    On this blog post, you'll learn:
  • Why you need to measure user engagement;
  • How to use the Customer Engagement Index (CEI) to create engagement strategies;
  • Actionable ideas to increase user engagement

You may think that user engagement is a somewhat subjective metric and, most of the time, it is. But there are ways to measure how active your users are in your app and I'm not talking about Daily Active Users (DAU) or Monthly Active Users (MAU). It is an actual engagement data like what have your users done in your app and for how long. Even better, you can rate their activities and create your own index.

But do you have any idea why is so important to own this data and rate these activities? Well, in a world where customer evaluates your offering at their own pace and can cancel their subscription at any time, the best way to maximize your business potential is to make sure users are seeing value in your offer. So, if you are able to monitor how and for how long your users are in your app there is room for change and improvement on an ongoing basis.

In fact, lack of usage is the number one cause of churn between SaaS users.

Drivers of churn

(source)

Measuring your engagement correctly can help different teams and tasks, such as:

  • Improve the product’s value to customers.
  • The sales team can focus on more important trial accounts
  • The customer-success team is able to proactively manage paying-customers.
  • Marketing teams bring more qualified leads.

Of course, the definition of engagement varies from company to company. For example, in websites, engagement means the number of pages visited and how long those visits took. If it is on Facebook, engagement means clicking on the like or share buttons, commenting posts and so on. For Youtube, it’s watching videos, sharing content, the number of sessions and etc. So, you've got the idea.

That's why you need to define what is an engagement for you. The best way to do so is to establish a list of actions that your user need to do, in order to be considered "active". You can even define a scale for activity. For example, lightly active, highly active and so on.

With a Customer Engagement Index you're able to assign different values for every kind of interaction, events and users’ triggers in your app, very much alike a lead scoring system. These events can be anything you want: from a user’s login to the execution of a very specific action.

Using the Customer Engagement Index as a guide to create engagement strategies

With all your user's data in hands you can segment them and create strategies according to their level of engagement. We have selected 4 actionable ideas to help you increase user engagement. Bare in mind that your customers decide if and when to communicate. Your job is simply to give them the right tools to smooth and facilitates the communication.

1)Easy onboarding:

Engagement starts with the user's first interaction with your app. This means the onboarding process. In fact, an effective onboarding has been shown to increase user lifetime value by up to 500%. So make it as simple as you can and don't forget to communicate your product's value as soon as possible. Focus on educating users about the benefits of your app. The users need to understand how the app will solve their problems.

2)In-app surveys:

This can be a great strategy for low engaged users. Let's suppose your users have only signed up a few occasions and haven't spent enough time on your app.It's important to find out what is going on with them. Are they having troubles with the app? Finding it difficult? Or it's just the case that they haven't figured out the proposed value of it? Send in-app surveys with specific questions for your lower engaged segment and you may come out with good tips on what to do next to improve your product or service.

Note that in- app messages are also a great way to draw users back into your product. They can be tailored and customized in any way you want, what makes them more relevant. You can target devices, platforms, users who have performed certain actions, and more.

3)Build a communication channel:

A solution for lightly engaged users is the creation of a communication channel. This kind of network tend to connect people with the same interests and it's a good way for users to share experiences. It's very likely that your customers have a lot in common (job roles, sectors, used tools and etc), a Slack community gives your company a personal touch and allows them to blend ideas.

4)Keep your power users closer:

Of course, there are different ways to do that. A good tactic is to nurture them along the way. Don't be quiet for too long: announce new features and improvements regularly, keeping those highly active users on the vanguard of news. You could actually invite them for trials of that new feature, involving them early in the process and using their feedback to perfect your product.

When you start your engagement strategies have a goal in mind, whether it's improving your product or nurturing loyalty and increasing sales. Remember that engagement will flourish most when the users have a great experience. Know your users and your personas before starting your strategies.

Converting users to loyal long-term customers will help increase average lifetime value (LTV) and generate more revenue for your app.

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