The ultimate growth guide to grow your product fastest 2: introduction to activation
Posted: Wed Dec 04, 2024 6:48 am
Hello! This time, we will explain in detail about the second part of "The Ultimate Growth Guide" provided by homula Inc., an introduction to activation. This guide is a valuable source of information for those who want to accelerate the growth of their own products (EC/SaaS/social apps). If you haven't seen the first part yet, please check it out here:
The Ultimate Growth Guide 1: Overview
Target audience for the guide
This guide is intended for:
Business managers who want to increase their company's EC sales
Product managers who want to increase their SaaS MRR/ARR
Marketing managers who want to increase the number of users of their social apps
Managers facing the above challenges
Retention Rates Matter: Why Retention Creates Category Leadership
In the previous article, we explained how sri lanka b2b leads important the retention rate is. To briefly review, retention is an important element along with product/service creation, monetization, and customer acquisition.
High retention improves key business metrics:
Customer acquisition: The more recurring customers you have, the faster your customer acquisition loop will be, enabling faster growth.
Monetization: Increased user LTV (lifetime value) and upselling opportunities.
Viral effect: Increased viral touch points such as word of mouth will lead to more customer acquisition.
If your retention rate is low, it will be difficult to increase sales no matter how much you invest. On the other hand, if your retention rate is high, your customers will pile up and the more you invest, the faster your growth will accelerate.
The key to improving retention rates: Activation
One way to dramatically increase retention rates is to create an appropriate activation process. Activation means letting customers experience the true value of the product and making continuous use of the product a habit.
Even if you spend a lot of time, effort, and money on product development and marketing, there is still a big gap before customers can touch the product and feel like "this is amazing!"
Only by creating a proper activation process can customers experience the true value of your product.
Components of the Activation Process
The activation process consists of the following elements:
Sign-up: Customer's first interaction with the product
Setup Moments: Preparing to Experience Core Values
Aha moment: The customer experiences the product's core value for the first time
Habit Moment: Establishing a habit of using the product
Continuous use: Regular use of the product
A common mistake is to build the activation process in the order of the customer experience, starting from sign-up. However, you need to think "backwards" when building the activation process. Since the original purpose is to lead the customer to make the core value prop a habit, you need to build the activation flow by working backwards from the state you want to reach.
Steps for building an activation process
Customer Success Hypothesis Building
Identifying and defining habit formation moments
Identifying and Defining Aha Experiences
Identifying and defining the setup
Customer Retention Canvas
Define Customer Success qualitatively with the Customer Retention Canvas.
Use Cases
assignment
Persona
Product Value Prop/Reward
Alternative Products
Frequency of product use
summary
This guide provides very useful information for companies aiming to grow their EC, SaaS, and social apps. In particular, it focuses on the importance of retention rates and building activation processes, and is full of practical advice. If you are struggling with the growth of your own product, be sure to refer to this guide.
In the next article, we will explain how to create habit-forming moments.
The Ultimate Growth Guide 1: Overview
Target audience for the guide
This guide is intended for:
Business managers who want to increase their company's EC sales
Product managers who want to increase their SaaS MRR/ARR
Marketing managers who want to increase the number of users of their social apps
Managers facing the above challenges
Retention Rates Matter: Why Retention Creates Category Leadership
In the previous article, we explained how sri lanka b2b leads important the retention rate is. To briefly review, retention is an important element along with product/service creation, monetization, and customer acquisition.
High retention improves key business metrics:
Customer acquisition: The more recurring customers you have, the faster your customer acquisition loop will be, enabling faster growth.
Monetization: Increased user LTV (lifetime value) and upselling opportunities.
Viral effect: Increased viral touch points such as word of mouth will lead to more customer acquisition.
If your retention rate is low, it will be difficult to increase sales no matter how much you invest. On the other hand, if your retention rate is high, your customers will pile up and the more you invest, the faster your growth will accelerate.
The key to improving retention rates: Activation
One way to dramatically increase retention rates is to create an appropriate activation process. Activation means letting customers experience the true value of the product and making continuous use of the product a habit.
Even if you spend a lot of time, effort, and money on product development and marketing, there is still a big gap before customers can touch the product and feel like "this is amazing!"
Only by creating a proper activation process can customers experience the true value of your product.
Components of the Activation Process
The activation process consists of the following elements:
Sign-up: Customer's first interaction with the product
Setup Moments: Preparing to Experience Core Values
Aha moment: The customer experiences the product's core value for the first time
Habit Moment: Establishing a habit of using the product
Continuous use: Regular use of the product
A common mistake is to build the activation process in the order of the customer experience, starting from sign-up. However, you need to think "backwards" when building the activation process. Since the original purpose is to lead the customer to make the core value prop a habit, you need to build the activation flow by working backwards from the state you want to reach.
Steps for building an activation process
Customer Success Hypothesis Building
Identifying and defining habit formation moments
Identifying and Defining Aha Experiences
Identifying and defining the setup
Customer Retention Canvas
Define Customer Success qualitatively with the Customer Retention Canvas.
Use Cases
assignment
Persona
Product Value Prop/Reward
Alternative Products
Frequency of product use
summary
This guide provides very useful information for companies aiming to grow their EC, SaaS, and social apps. In particular, it focuses on the importance of retention rates and building activation processes, and is full of practical advice. If you are struggling with the growth of your own product, be sure to refer to this guide.
In the next article, we will explain how to create habit-forming moments.