Don't sweat the small stuff | Better Proposals' Adam Hempenstall
Nov 3 2021
Better Proposals can get obsessed with the numbers just like every other company or individual out there. However, they do focus on a few key metrics to help determine when to worry and when to reel in the anxiety. Trial sign-ups, traffic, churn, new customers... those are the numbers Adam and co. look after. "As long as they aren't disastrous," as Adam puts it, "we're all good."
On today’s episode of Retention Talk, I speak with Adam Hempenstall, Founder & CEO at Better Proposals. We talked about combatting overthinking on big decisions, ingraining experimentation into your culture, and rallying the team around a key set of metrics.
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Key points discussed in the episode
These are numbers that are important to us: trial sign-ups are important, traffic is important, churn is important, [the] number of new customers we do a day is important... And as long as those numbers are kind of generally looked after and they're not completely disastrous, we're all good.”
– Adam Hempenstall
Combating overthinking on big decisions
There's a lot to focus on when it comes to retention. Trying to focus on everything at once can be a bit of a system overload. Stay on top of churn early in a customer’s journey and everything else will fall into place.
Ingrain experimentation into your culture
Adam talks about how Better Proposals has a culture and framework to experiment at a rapid pace. Don't underestimate the impact that a weekend hackathon can have on your retention.
Rally the team around a key set of metrics
Nothing else matters if you don't measure success. Rally the team around a key set of metrics to make sure you're monitoring the health of your business.
Metrics are incredibly important to track—anything from the health of your business to the movement of customers. There are several categories of product metrics that can provide helpful information about various aspects of your business. While we offer a free comprehensive product that puts all of your subscription reporting in one place, here are the most common product metrics you can track:
Most common product metrics you can track
Product acquisition metrics
Product acquisition refers to your company's ability to sell a particular product in the first place. These metrics let you know if your company is on track as far as producing products and preparing them for sale.
Designing and releasing a quality product that will make your customers' lives better does not mean they will automatically know it exists or have any interest in purchasing it. Product adoption describes the process your customers will go through from first learning about your product to building interest in it and ultimately making a purchase. This process typically consists of four stages: the awareness, interest, evolution, and conversion phases.
Product engagement metrics
Product engagement describes the various ways in which customers can interact with your product. Keeping track of these actions gives you an understanding of how to adjust your actions toward them to affect that behavior. Analyzing the steps your customers are taking over time can help you determine which products customers are sufficiently interested in, and which ones you may need to increase your promotion of or consider discontinuing.
Customer satisfaction metrics
Although your company will receive the same profit from a specific purchase regardless of your customer's level of satisfaction, customers who are highly satisfied with their product, customer service, and ordering process are much more likely to become repeat customers than those that are not. This means that tracking customer satisfaction metrics can give you an idea of which customers may be among the most likely to continue to place more orders and increase your revenue over time.
Customer/user retention metrics
Retaining as many customers as possible is key when it comes to increasing your overall revenue. Tracking which customers have placed multiple orders, and factors that may be related to their decisions to do so, can help increase your ability to create a customer experience that results in an overall customer retention rate that is as high as possible.
Tracking and analyzing your revenue is key when it comes to determining how well your business is doing overall. Although your revenue and sales can be broken down into several of the above metrics, studying your overall revenue and comparing it to that of past quarters and years, is one of the most important steps you can take to gain a complete picture of your current business.
If you’d like more insight into your own retention—or even a free retention audit where we can benchmark you with actual relevant data—reach out to me at firstname.lastname@example.org.
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