Your golden nugget metric for product adoption

how to discover your magic metric?

Author

Rasmus Rikken
April 04, 2023

Read time: 2 minutes 58 seconds

Hey there! Here you’ll find cool shit about marketing & actionable insights.
Simple tools, resources, and frameworks to make you a better marketer.

TL;DR of today’s newsletter:

  • your magic metric for product adoption

  • three useful marketing links of the week

Let’s dive right in.

Your golden nugget metric for product adoption 🥚 

I always love to talk about the example of Slack and how they discovered their “magic number” – the number of messages it takes for a customer to fully integrate and start using Slack in day-to-day work. 2000 messages.

Once a team sends 2000 messages, they’re likely to become long-term Slack users.

“93% of customers who hit that 2000 message threshold still use Slack.” 

This metric is usually called the “Moment of Value Adaption”.

Here’s a good visual by Ramli John, an expert in product-led onboarding:

The Moment of Value Adoption, in simple layman's terms, by Ramli:

“Once new users have used the product enough times, they’re more likely to continue using it going forward.” 

Okay, so how to discover this metric with your product?

🤔 Analyze user behavior and engagement patterns

Dive into your product usage data and identify the key actions or milestones that correlate with long-term user retention. Find patterns in the behavior of your most engaged users.

🔎 Example Case: 

A project management software company notices that the teams who create at least 5 projects and invite >3 team members within their first 7 days are more likely to continue using the software in the long run.

Google Analytics is the standard tool for marketing analytics, but if you have the opportunity to use tools like Mixpanel or Amplitude, they will make your life a lot easier when running experiments like these.

🏃 Run experiments and iterate

Once you have a hypothesis about your Moment of Value Adoption metric, test it by running experiments to see if nudging users toward that milestone actually increases retention. Rinse & repeat.

🔎 Example Case: 

The project management software company identified a hypothesis (5 projects & 3+ team members in the first 7 days). To test this, they run an experiment in which they send targeted onboarding emails and in-app notifications that nudge them towards creating more projects & inviting more team members during the first 7-week period.

At the end of the experiment, they compare the retention rates of this test group with a control group that did not receive extra onboarding emails and in-app notifications. If the test groups show better retention, they can incorporate it into their onboarding strategy.

Three links of the week

  • Marketing for hotels, travel agencies, or similar companies? New Google Search tools help you research hotels, confidently book plane tickets and discover things to do while on vacation. Check it out here.

  • What’s the difference between digital strategy and tactics? Read all about it here and learn about 15 ways your digital strategy can fail.

  • Apple revealed their Apple Business Connect interface that’s designed to make it easier for small businesses to get listed on Apple Maps. Read more on why you should list your business on Apple Maps.

What the fuck I’m up to?

I’ve started to consistently hit the gym again in addition to finding a decent sleeping schedule. And my productivity has started to grow again – I can feel it and see it in my daily output.

I’m also close to a 2-month milestone of writing a personal journal daily. There have been multiple ups and downs, but I am glad that I’ve stuck to it. There may come a day when I will start publishing them for anyone to read, but that day is not today. 😄 

And that’s a taco. If you made it this far, thank you!

If you liked this newsletter, send it to your 1 marketer friend – and catch up with them, you probably haven’t spoken for a while. 😏

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