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Instagram Co-founder Keven Systrom’s original product was Burbn, an app that was meant for people to check into locations, share photos and make plans. While the app did attract a bit of attention, there were just over a thousand customers in total. That’s when he and the other co-founder, Mike Krieger decided to dive into their customer insights.
They found out that while very few were using all the app features, most customers were sharing a lot of photos. They then changed course and created a prototype solely for photo sharing. The rest is history!
At the time, Keven & Mike probably didn’t know their decision (to act on customer insights) would impact over two billion people, in just over a decade. But that’s how powerful having a ‘customer insights-led’ model can be. It can take your product and brand to heights you didn’t think were possible.
In this blog, we take a look at why customer insights are important, and how MoEngage gives you the right insights. These insights will help you make course-altering decisions and take your product where it deserves to be.
In a typical growth team, the functions are quite well defined: some look at increasing revenue, some focus on customer acquisition, a few look at driving stickiness, and others are tasked with deriving the best LTV. But everyone is ultimately focused on driving a good customer experience, and this synergy is crucial to avoid any churn.
But it’s also important that growth teams have a continuous understanding of customer behavior—what they like, what they don’t, and what makes them stay.
Going back to Kevin Systrom of Instagram, this is what he had to say about product development: “The lesson I’ve learned is that you need to make sure always to cut what doesn’t work, what isn’t popular and continually improve your product and your focus. If you just play the psychologist a little, and you listen to your customers, and you see what they’re focusing on and what they’re ignoring…good things can happen.”
The traditional approach considers a lifecycle between zero and twelve weeks. It then places customers at different points in this journey based on their interactions with the product, and then acts based on that information.
Often this is a manual effort and involves combing through usage data. Arriving at a plan to address drop-offs can take a while, which closes the limited window to nudge a customer to come back to the product.
Such traditional methods are hypothesis-driven, trial and error-based, and customer unaware. This often leads to a lot of unwanted notifications, bad timing, or confusing experience. This is because of one-way communication with your customers without uncovering their interests, purchase patterns, and expectations.
You need to understand your customers at a personal level. And to do this, you need to answer questions about their behavior and the patterns they demonstrate. For example, for an E-commerce platform, those questions will look something like this:
Answering such questions about their behavior can help improve products and deliver a better customer experience. That’s where MoEngage’s Behavior Analysis comes in—it gives you the data to be able to answer those questions.
Consider the example of Adda247, a vernacular test prep platform, where using Behavior Analysis led to 72% time saved on manual intervention.
Behavior Analysis helps you slice and dice customer data and visualize it for better understanding. It enables you to analyze how customers interact with the brand and view key metrics such as DAU, WAU, revenue, etc. This helps you to identify your most valuable customers and prioritize them.
MoEngage’s Dashboard lets you choose any particular event you have set—app or site opens, notifications received, promos clicked, etc. and analyze it on the behavior chart in several ways.
One such analysis is the Aggregation Distribution chart which shows you a percentile split of any criteria you have chosen. Let’s say you pick customer spending—the aggregation distribution chart will help you see what percentile of customers spend how much.
You can also filter out customers based on property, behavior, or segment. This helps you analyze the data for a specific cohort of customers. Additionally, you can find out the number of unique sessions, to understand how many interactions it takes for a conversion to happen. These are just some of the key insights that Behavior Analysis gives you to fine-tune your product.
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While marketers use funnel analysis to analyze their campaigns, product managers use it to understand the product’s performance. Needless to say, a funnel analysis is crucial, and MoEngage’s dashboard gives you a comprehensive funnel analysis that helps all stakeholders make decisions.
The funnel analysis helps you compare conversion performance across geographies, product categories, customer cohorts, etc. Such analysis provides you the opportunity to perfect your onboarding process—measuring the conversion rate for onboarding, identifying what’s causing the drop-offs, and optimizing campaigns.
This lets you identify the channels, regions, and categories from where your high converting traffic comes from, enabling you to reach out to them for your promotional campaigns. You can apply multiple filters to the funnel chart and also exclude certain events from it.
Online tutoring platform Vedantu found that 90% of its customers were abandoning their customer journeys at multiple stages. They solved this problem with MoEngage’s advanced analytics, corrected several issues, and saw a 44% growth in the topline business.
Summing up, customer insights are probably the most important statistic that can make or break your product and brand. While they are easily available, it is important to process them the right way for you to derive actionable insights. How fast you process and act on them also has an impact on the customer’s journey. The sooner you derive these insights and act on them, the more ahead of the curve you will be. Using tools like MoEngage’s Push Amplification™ Plus will help you make this process a lot more scientific, faster, and efficient.
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