Why You Need to Measure User Adoption for New Product Launch 

You’ve just launched a new sales enablement and product configuration tool. Let’s call it Build-O-Matic. Your distributed sales team now has the ability to drag and drop to create a visual remodeling plan for your customers, and close the sale in real-time.

But unknown to your team, there was a small change in a state’s building requirements that is not addressed in the configuration experience. Because that state is a key sales area for one of your largest channel partners, the salespeople in that state have stopped using Build-O-Matic. Now that channel partner is evaluating other tools. All you know is that there was a drop in Build-O-Matic usage last quarter.

Also, your direct salespeople are having trouble closing business because of a gap in the Build-O-Matic promotions and financing features. Calls back to the regional manager are slowing down the sale, and many salespeople are going out of process (decreasing per project revenue and increasing errors) to get the close. So Build-O-Matic is seen as a tool that isn’t doing what you need it to do, and your management team is now considering a large investment to replace it.

If you knew what the problems were earlier, you could solve them right away with an incremental investments. This is why measuring user adoption is vital. Accurately measuring user adoption, particularly over milestones funneling into actual sales, should be the mainstay of any revenue enablement effort.

The takeaway

Without meaningful and actionable user adoption intelligence, your organization is at the mercy of anecdotal feedback and second hand information. Market leaders use adoption metrics to forecast revenue, troubleshoot customer lifecycle issues, and manage their sales channels.

Using a handful of adoption KPIs, you can make sure you understand the true nature of your product deployment.

Why You Need to Measure User Adoption for New Product Launch

Defining & Measuring User Adoption for Your Home Improvement/Renovation Sales and Product Configuration App

Market leaders ask the following questions to drive their user adoption strategy:

  • What is successful adoption by sales teams, distributors, and channel partners?
  • What is successful internal company adoption?
  • What needs to be tracked in order to provide actionable insights?
  • What is the frequency of measuring and analyzing adoption?
  • Who will be accountable for analysis and recommendations?

While not exhaustive, the following list provides KPIs to consider when defining user adoption in the home improvement and innovation vertical.

1. Rate of Adoption (RoA)

The Rate of Adoption (RoA) can be measured as the number of adopted users over the total number of users.

Number of Adopted Users
_____________________
Total Number Of Users

If you have 100 users and 25 of them have adopted your product, your adoption rate is 25%.

Defining an Adopted User

For this to be a useful metric, your team must be aligned on the definition of an adopted user. For example, is an adopted user someone who has logged in to the tool, or done something in the application that indicates use such as creating a configuration or a proposal.

Rate of Adoption Trend Analysis

In order to make decisions regarding RoA, trend analysis is critical.

  • Over what period of time and with what frequency will you evaluate RoA? Is reviewing adoption weekly meaningful, or is a monthly or quarterly review more useful?
  • Are there seasonal considerations that drive usage? For example, will usage of a gutter configuration feature decline during the winter months in the midwest?
  • What is a reasonable benchmark for onboarding for new users? In other words, what is the expectation of time to adoption?

2. Daily/Monthly Active Users (DAU/MAU) 

Analyzed in combination with your rate of adoption, this metric provides a window into activity. You may have a high percentage of the sales team logging in to the tool and periodically viewing a product catalog, but a low number who use the application every day.

Low DAU/MAU is often an early indicator of adoption issues or attrition. This insight provides an opportunity for training on key features or activation programs to drive engagement and usage.

3. First Key Action Completion Rate

This metric measures the rate of users to complete a first key action on your app. This might be viewing a critical sales or training asset, creating a configuration, or sending a proposal to a customer.

With this information, you can determine onboarding or training issues, problems with a feature or interaction, and/or process and accountability gaps.

What is a salesperson action that is critical to the business? What do you need them to do that will accelerate the sales cycle?

4. Time to First Sale

This metric is pretty straightforward. It measures the amount of time it takes users on average before they close the first deal on your app. This KPI can also take a more generic form, and another key customer action could replace the sale. For example, It could also be the number of clicks over product configuration.

5. Time Spent Using a Feature

Let’s say your company has incorporated new features for your in-home selling distributors in the basement renovation subsector. You could incorporate an insightful user adoption metric tracking the amount of time such distributors spend using these new features. Then you could define a KPI as the amount of time spent over sales dollars. If that number is too high, the feature has likely been harder to use for most users. If the value is too low, it may not look attractive enough. In fact, how comfortable would you be adding a new feature without knowing how your customer base was using it?

Measuring User Adoption Leads to Better Decisions

Sales enablement and product configuration solutions are critical for enterprise revenue enablement. The investment of time, resources, and capital in developing and managing these tools is substantial. Without meaningful and actionable adoption intelligence, your organization is at the mercy of anecdotal feedback and second hand information. Market leaders use adoption metrics to forecast revenue, troubleshoot customer lifecycle issues, and manage their sales channels. Using a handful of adoption KPIs, you can make the impossible inevitable.

Want to learn more? Talk to one of our strategists today.