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User Activation Build a Better Product Strategy

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Page 1: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

User Activation

Build a Better Product Strategy

Page 2: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Content

What is Activation?1

Why is Activation Important?

2

How to MeasureActivation in Heap

3

How Heap used Heapto improve User Activation

4

Product Roadmap(Informed by Activation)

5

Q&A6

Page 3: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Intro to Activation

Page 4: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Growth Metrics

User Activation – Build a Better Strategy, August 2019 4

AcquisitionCustomersSigning Up

ActivationFinding Value

in your product

RetentionContinue to come

back over time

RevenueRenewals, up-sells,

cross-sells

ReferralCustomer advocates

on your behalf

Page 5: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Growth Metrics

User Activation – Build a Better Strategy, August 2019 5

Acquisition Activation Retention Revenue Referral

“We just topped 1

million signups!”

“We have a 42%

DAU/MAU ratio”

“Our D7 retention is

64% and our D30 is 39%”

“We have $40m ARR and $7,000 CAC”

“We got 13,987 likes on our customer’s

tweet”

Page 6: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

“Activation is the moment your customer derives value

from your product”

Lincoln MurphySixteen Ventures

User Activation – Build a Better Strategy, August 2019 6

Page 7: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Why Does Activation Matter?

Page 8: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

How to Measure Activation

User Activation – Build a Better Strategy, August 2019 8

Page 9: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

How to Measure Activation

User Activation – Build a Better Strategy, August 2019 9

Page 10: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Start Tracking User Behavior

User Activation – Build a Better Strategy, August 2019 10

1 2 3 4 5

Page 11: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Define what Active Means to You

User Activation – Build a Better Strategy, August 2019 11

2 3 4 51

Adding 7 friendsin first 10 days

Following 30 usersin your first week

Running a Querywith a GroupBy

2

Page 12: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Identify the Ideal CustomerJourney to Activation

User Activation – Build a Better Strategy, August 2019 12

2 3 4 51 3

Page 13: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Implement Experiments and ChangesTo Improve Activation

User Activation – Build a Better Strategy, August 2019 13

2 3 4 51 4

Page 14: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

User Activation – Build a Better Strategy, August 2019 14

Repeat!

2 3 4 51 5

Page 15: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

How to Measure Activation

User Activation – Build a Better Strategy, August 2019 15

5

4

3

1

2

Start Tracking User Behavior

Define what Active means for you

Identify the Ideal Customer Journey to Activation

Take action to improve ActivationReduce Friction • Customer Nurturing • Re-engage users

Repeat

Page 16: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

How Heap Measures Activation

Page 17: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Heap on Heap

User Activation – Build a Better Strategy, August 2019 17

Page 18: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Evolution of our Definition of an Active User

2017 2018 2019

User Activation – Build a Better Strategy, August 2019 18

Has done Sessions in past

30 days

Has done Sessions and

Saved a Report

Has done Sessions and:

● Defined an Event● Identified Users● Ran a Query● Saved a Report● Created a Dashboard● Taken a Heap University

course

Page 19: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

What Heap told us

User Activation – Build a Better Strategy, August 2019 19

When someone activates in their first experience, this form of engagement results in a 2x user retention rate that is stable starting in their first week throughout their

lifetime as a user. No other activation event hypotheses had the same effect.

Page 20: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

What Customer Needs Have We Had to Address?

User Activation – Build a Better Strategy, August 2019 20

How can Heap be less of a blank slate?

What business questions I can ask and how can I formulate those questions in Heap?

How can I more easily share analysis in a Dashboard with colleagues?

How can I more easily define events in Heap?

Page 21: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Cross-Functional Team Actions Taken

User Activation – Build a Better Strategy, August 2019 21

Product Customer Success Marketing

Activation focused features Standardized Trainings Retention Marketing

● Home Dashboard● Dashboard Email Reports● Suggested Reports● Path Analysis● Event Definition QA

Features

● Admin vs. Data Consumers● Heap 101 & Heap 102

● New User invite Flow

In-App Guides

● Walk-Me

Page 22: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Customer Data Maturity Curve

Sophistication

Act

ions

Ava

ilabl

e

Level 1: Measure

Level 2: From measurement to

action

Level 3: Optimize Engagement, Conversion, Retention

Level 4: Centralizing

Customer Data

Level 5: Automated Decisioning

User Activation – Build a Better Strategy, August 2019 22

Page 23: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

What Heap Told Us

User Activation – Build a Better Strategy, August 2019 23

When someone uses a group by in a query, this form of engagement results in a 2x user retention rate that is stable throughout their lifetime as a user.

Page 24: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

The Heap Customer Success Journey

User Activation – Build a Better Strategy, August 2019 24

Activation Expansion Retention

Day 60 Day 275 Day 365Day 1

Page 25: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

We define an “active” event as a defined event that has been queried in the Heap UI or synced to a warehouse in the last 30 days

If account < 30 days old, Customer Health level is always Green

If account is 30-60 days old, Customer Health is Yellow if there are <= 10 active events, otherwise it is Green

User Activation – Build a Better Strategy, August 2019 25

If account is > 60 days old, Customer Health is Red if there are <= 10 active events, otherwise it is Green

Optimizing for Value in the Activation Phase

Page 26: Produc t Strategy Build a BetterIntro to Activation. Growth Metrics User Activation – Build a Be t ter S trategy, August 2019 4 ... Lincoln Murphy Sixteen Ventures User Activation

Thank You.Learn more at heap.io.