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Best Practices for Setting up Product Adoption Milestones

What are Product Adoption Milestones?

The core purpose of Product Adoption Milestones (PAMs) is to track the key milestones & thus understand how much value realisation has been done by the Product. Think of this as breaking down the journey of a new customer starting out on your platform till the time they become a successful/live customer. While the PAMs are especially important in the onboarding/learning phase of a customer they can also be used to define key milestones later in the lifecycle stage as well.

What are the key SaaS Metrics that PAMs influence?

Since product adoption is one of the most important indicators that define the success of a customer with your product, PAMs tend to influence every SaaS metric in one way or another. To name a few:

  1. Customer Health: This goes without saying, in order to ensure good production adoption health, key milestones in the process should be met.

  2. Time to First Value: PAMs define the key features or areas of the platform that the customer should be adopting. Depending on the time it takes your customers to reach each of these milestones will give a clear indication of how much time it takes customers to realise value.

  3. Onboarding Completion Time: Most companies struggle with clearly defining when a customer has successfully been onboarded. With PAMs you can use data to clearly define the end of a successful onboarding process for your customers.

  4. Renewal Rate: The importance of PAMs also directly correlates with the successful renewals. Customers who have met all key milestones have more chances of renewing their contract/subscription.

Recommendations for setting up PAMs

Define PAMs based on Customer Segments: The basis of segmenting customers is that each customer behaves differently and has different definitions of success. Hence, it's obvious that the milestones that they encounter in their journey to success would be different. Here are some examples of how segments can be used to define PAMs

  1. Product/Plan Based Segments: When you have multiple products/plans that you offer to customers. The obvious step is to have different PAMs based on the different list of features included in each product or plan.

  2. Lifecycle Stage Based Segments: In the different stages of the customer life cycle the expectations and goals of a customer are entirely different. Hence you would want to customise your PAMs based on these stages. For example,
    • Onboarding Stage: PAMs would be heavily regulated in this stage. The goal in this stage is to get the customer to adopt the product. Therefore, the PAMs in this can be defined based on the initial key features that the customers should use on the platform in order to get value out of it.

    • Renewal Stage: Once a customer is on the renewal stage, the assumption would be that they’ve met all their key initial PAMs. Hence the PAMs used in this stage would be a combination of more advanced features depending on the use cases presented by the customer.
  3. Business Outcome Based Segments: Different customers purchase your platform with different intentions and objectives. Customers having similar objectives can be grouped together in segments and have similarly defined PAMs. Let's take an example of a CRM platform, two different customers have purchased a subscription with two different objectives:
    • Increase Lead Generation: For this use case, you might want to define PAMs to help them improve lead generation by focussing on specific features such as: Leads Created, Lead Updated, Leads Converted etc.

    • Improved Visibility into Sales Cycle/Funnel: In this use case, since the focus is more on reports and visibility, the PAMs would revolve around specific features such as: Create Custom Reports, Reports Downloaded, Reports Viewed.
  4. Define PAMs based on Pricing Model: While looking at the entire SaaS ecosystem, companies can largely be divided into two types: User Based Pricing Model, Usage Based Pricing Model.
    • User Based Pricing Model: When you bill your customers based on the number of users or licenses purchased, it is important to keep a track of usage across licenses. For new customers, we would want to break down the PAMs to ensure a healthy increase in License Utilization (Number of Active Users vs the Total Number of License purchased)

    • Consumption Based Pricing Model: When your pricing is based on the amount of usage/consumption the customers makes, your PAMs can be defined as follows: If a customer has a limit of 5000 transactions, you can set usage targets as your PAMs
      • Total current translation is 5% of total transactions allotted
      • Total current translation is 15% of total transactions allotted
      • Total current translation is 50% of total transactions allotted
  5. Define PAMs based on User Personas/Profiles: We all know that different user personas have different usage patterns on your platform. Similarly, PAMs can be defined in a way that keeps in mind these different patterns exhibited by users. Let’s again take an example of CRM company, here are some of the possible personas:

    User Persona

    Key Objectives

    Possible PAMs

    CEO/Founder

    View Key Metrics - Leads generated, converted
    Review sales cycle, pipeline
    Reports viewed > 5 in last 7 Days
    Sales Head

    Manage the sales pipeline for all sales managers
    Customise Pipeline
    Salesperson

    Update Pipeline & deal properties
    Update stage of the deals

Contact Us

In most cases, you would have a dedicated Customer Success Manager who will be your point of contact for any queries or assistance. You can always:

  1.  Initiate a chat directly from within your CustomerSuccessBox. Use the Chat option from the Chat icon on the top right side of the navigation bar.

  2. Create a conversation from here.

  3. Send an email to the Support team.

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  1. Deepshikha Chakraborty

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