Product Engagement Tools – The What and The Why

Previously, product managers could not track individual user behaviors and activities on their Web-based products, but this is changing. New vendors, such as Pendo, Walkme and UserIQ, are specifically focusing on this business need. SiriusDecisions calls this new category “product engagement.” To date, we have seen product engagement tools used in two primary ways:

• Gain real-time feedback. Similar to a heat map that looks at user behavior on a Web site, product engagement tools track individual user behavior within your product through detailed analytics. Because the tools can track and report on such detailed behavior and activities, product managers can use them to understand the activities and usage patterns of users who are very engaged, along with the frequency with which each feature in the product is used overall (or by particular types of users).
• In-application engagement. Because they can track detailed user behavior and activities, product engagement tools help with product guidance and can intervene based on certain activities. For example, if your company has a 30-day trial and you know that prospects are more likely to purchase when they sign up for two email alerts in the first week, you can proactively prompt users to sign up for those alerts within the application. Product engagement technologies also can be used to train users. For example, if you add a new feature in your product, you can surface interactive guides and training opportunities in the application or, more specifically, in that section of the application.

The key benefits that SiriusDecisions sees this technology driving for B2B organizations include:

• Increased usage, improved user satisfaction and renewal rates. Product engagement applications help organizations understand user behavior and allow the encouragement of activities leading to higher levels of product engagement and adoption.
• Reduced time/costs for product training and onboarding. Product engagement tools can shorten onboarding time and, in some instances, even eliminate the first tier of training support.
• Improve customer experience. Understanding the specific activities in which your customers or prospects are engaging gives product managers the power to take action by improving the user experience, building more of what matters and targeting the right people with the right message.