The short answer is that it’s important because eliminating friction will grow your business, the long answer is more complicated. The world has become more and more accustomed to having instant access to whatever they want.
Here are a few examples:
Well, humans have been trained to get things now! The bar has been set extremely high and as a result, your customers enter your product experience with equally high expectations.
This is the first factor that you need to take into consideration when building your product experience. Instant access has become the norm.
The second thing you need to be aware of has to do with the power of choice. The rise of cloud services and SaaS has reduced the barrier to entry, resulting in a more competitive and product-rich landscape … in other words, people have more choice than ever.
In addition to SaaS reducing the barrier to entry for new products and services, it has also made it significantly easier for consumers to “change their mind” once they have made a decision. Winning a deal is no longer good enough, the changing landscape demands that businesses work to continuously keep their customers engaged and productive.
Friction is anything that gets in the way of your customer accomplishing their goals. It could be a tiny speed bump, a toll booth, or full on traffic jam; all of these obstacles have an effect on your customer experience.
To understand where friction comes from we need to circle back to understanding your customer. The better you understand your customer, the more efficiently you can get them from point A to point B.
We design products to solve problems for our target audience (not the whole world) but as you might imagine even our target audience has varying goals and objectives. Every assumption you make about your customer impacts the experience they will have with your product which is why understanding their intent is so important.
Getting this wrong results in friction.
Humans also have a tendency to over complicate problems and solutions, and in doing so unintentionally introduce friction into product experiences. This can happen when we try to please existing customers by building custom features, it can happen when we lose sight of the overall objective, and it can happen when we have varying opinions on how to solve a particular problem.
Ok, now that we’ve identified some of the ways friction gets introduced to our product, let’s explore some techniques for identifying and eliminating friction.
There are a number of tools in this category, too many to name so I’ll run through a few of the tools I’m most familiar with and whenever possible name some of the alternatives.
MixPanel – when it comes to product analytics this is a great place to start. MixPanel has a number of features, but the core value is in-app event tracking. You can use MixPanel to add event tracking for the key moments in your customer experience (e.g. activation, value, key feature usage, paid upgrade, etc).
Some alternatives to MixPanel would be Google Tag Manager, HeapAnalytics, or Segment.
Appcues – they brand themselves as the product led growth platform, as bold claim that has some truth to it. Their product is a leader when it comes to personalized onboarding, driving feature adoption, and collecting in-app feedback.
Some alternatives here would be WalkMe, and Pendo.
FullStory – record user sessions and collect a lot of engagement data using FullStory. This is a powerful tool for really digging in and analyzing user experience. Recorded sessions deliver tons of insights into areas of confusion and friction, providing much more color than typical conversion metrics. Record sessions, define funnels, build segments, filter by device, etc. It’s a powerful tool, check it out.
Other tools that are similar include HotJar, CrazyEgg, and MouseFlow.
These tools provide a wealth of data and a strong foundation for understanding and improving your customer experience. This is not intended to be an exhaustive list. Every SaaS business is going to have unique requirements and priorities. The 3 categories above will provide you with enough intelligence to operate with confidence and as your growth stack matures you can fill in the gaps to meet your specific needs.
The first thing you need to do is define your funnel and some of the key metrics associated with your customer experience. The main things to focus on here are activation, value, and key feature usage.
In order for your customers to begin using your product there is a certain amount of setup required – this is referred to as activation. This is going to be different for every product, so it’s up to you to define what constitutes the bare minimum required to begin using your product. Once you define that moment in your app, trigger an event using (mixpanel, segment, or google tag manager) when customers reach that milestone.
Once you have the event firing you’ll then want to pay attention to:
Activation Rate = the % of your customers that reach activation
(Total Activated Accounts / Total Accounts Created)
Time to Activate = how long does it take for your customers to reach activation. (Activation TimeStamp – Account Creation TimeStamp)
Once you’ve gone through the process of defining what value looks like in your app, take the same steps you did with activation and fire off an event when customers reach your defined threshold for value.
Once you’ve defined value and have the event firing you’ll then want to pay attention to:
Value Rate = the % of your customers that reach value
(Total Accounts Achieved Value / Total Accounts Created)
Time to Value = how long does it take for your customers to reach value
(Value TimeStamp – Account Creation TimeStamp)
Understanding key feature usage can help you understand a range of things about your customers and your product. The data can help you understand if you are attracting the right customers, if you’re prioritizing the right development work, if your approach to onboarding is working, and what features are more likely to result in paid accounts, to name a few. The key here is to tag your key features (maybe all features depending on the number) with event tracking so you have the data to analyze as questions arise.
Once you define your key events and have the event(s) firing you’ll want to pay attention to:
Overall Key Feature Usage – % of total accounts using each feature
Key Feature Usage = (Total Accounts Using Feature X / Total Accounts Created)
Active Users – this one requires you to define an active user. Your definition should include some level of key feature usage so you can be sure the activity is value driven and not simply a login. One word of advice, creating a soft measure for value will cause the remainder of your funnel to suffer. Don’t cheat, hold your product accountable.
Active Users = (Active users per your definition (daily, weekly, monthly))
Using this guide you should provide the information you need to put in place a plan to identify friction within your customer experience, measure the key customers touch points and interactions, and track your progress towards eliminating friction.
Eliminating friction is a key component to building a successful SaaS business. To learn more techniques read The Beginners Guide to Product Led Growth and learn how to plan, execute and measure a product led growth strategy for your SaaS business.
Previously published at https://saasplg.com/guide-eliminate-saas-friction/