*This video is from the 2019 ProductLed Summit. Watch the video of our presentation or read the original post. Either way, you’ll find the information of utmost use for your modern SaaS business.
Creating a product engagement score is the first step to generating recurring SaaS revenue. See how Sherlock can help
Product engagement = The key to recurring SaaS revenue
The entire SaaS business model is dependent on people consistently using and getting value from your product over time. That means your success depends on how customers are engaging with your product.
This is why creating a method for scoring product engagement is essential for every SaaS business. Without a proper way to score the engagement of your users and accounts, it’s pretty much impossible to know what the hell is going on with your business.
- As a Founder/CEO, how many times have you asked, “How are our accounts doing?” or “How’s engagement this month?”, only to be met with blank stares from your team?
- As VP of Product, how many times have you wondered if your recent releases were helping to drive overall engagement, only to realize that you don’t actually have a good way of determining that?
- As a Customer Success Manager, how many times have you wished for a simple way to prioritize your outreach to maximize recurring revenue for your SaaS business — an easy way to determine which accounts are thriving and which are struggling — only to give up and waste the day sending a bunch of random “just checking in” emails?
- As an AE, how many times have you wished you could easily see which trial accounts are ready for a call and which ones you shouldn’t bother with — only to give up and refresh your Facebook feed a few more times?
Thankfully, all of these issues can be solved with a good product engagement scoring system. By scoring engagement, you can create essential visibility for every part of the organization that cares about recurring revenue, i.e. everyone.
Wish all of this were easier? It is – with Sherlock
Quick Summary: Four steps to creating a Product Engagement Score
Step 1: Define what product engagement means to you
Step 2: Start tracking product engagement activities that will inform your score
Step 3: Weigh each product engagement event based on how much it should affect your score
Step 4: Give it all some context by normalizing raw product engagement scores
Step 5 (Bonus round): Apply the product engagement scores to make them actionable