Customer Experience, Product Success | 6 MIN READ

What Is Product Experience (PX) and Why Does It Matter

Product Experience is the part of the customer journey that allows for churn reduction and improves revenue. Read how to build a Product Experience strategy

Niyathi Rao
Niyathi Rao
Dec 22, 2020

Product-Experience

What is Product Experience (PX)

Product experience is a part of the entire user experience. It focuses on the journey within the key product itself. Think of it as user experience within the walls of the product. It is essentially an experience the customer feels from the time they log in to the time they quit using the product. Since product-led growth is touted to be the most sustainable way to propel customer retention, product experience has assumed new importance. Customers like trying products to get aware of how they work. For companies who are moving to a customer-centric mindset, it is important to embrace a product mindset. Product experience is achieved through features, quality control, and design.

Product Experience is the part of the customer journey that allows for churn reduction and improves revenue. An orientation towards PX helps companies become modern and data-driven.

How does PX differ from CX?

Product experience is the narrow band of a customer experience. Product experience is based on engagements with the product. When customers get Onboard, they care the most about the product. In B2B companies specially, the product is the main flagship as it contributes heavily to customer experience. Product experience is the perception of customers to your product, its features, and more based on their engagement with it.

Why is Product Experience important?

Customers want personalised solutions. Intuitive product experiences are raising expectations on companies. Customers who are now unsatisfied with the brand are moving to other solutions. Now having a great user experience is not enough. Customers want good products that adapt to their needs, engage them, and serve their purpose.

Having a product experience strategy will allow information to be distributed in a way that best suits customers.

Who is involved in PX?

Mastering product experience goes beyond a simple team function. It includes all interactions about the product internally and across departments.

Company-wide Effort : Product teams alone are not responsible for PX. It requires efforts of customer-facing teams, marketing teams and more. Since products are constantly changing, it is necessary for teams to equip themselves. CS teams and product teams need to work closely to get immediate value for any development.

The four teams that are responsible for a holistic PX strategy include-

Customer Success

For customer onboarding, training, upselling, and renewals while engaging with them. Developing workflows that keep them retaining and measuring them via renewal rate, NPS and more is important.

Product

For product teams, they need to have a product vision and strategy while creating strategies that will encourage feature adoption and drive product usage. The metrics that dictate include customer lifetime value, DAU, and MAU.

Sales

For sales teams that conduct demos to push users further down the funnel, they need information. Conversion rates are a metric to get an idea of how teams are performing.

Marketing

Generating content or creating campaigns that drive product awareness makes marketing teams responsible for product experience. This effort is measured in CAC, trial signups, and MQLs.

How to build a Product Experience strategy?

Product Experience strategy

To facilitate a product-led growth strategy, it is necessary to track engagement, analytics, feedback. These are the three components of a PX strategy.

Analytics

With the right data, it is possible to offer a better experience to users. When product experience is backed by insights, it is possible to deliver the best experience. With data analytics, you can

  • establish how efficient your users are while using your product
  • identify where users drop off while navigating across the product
  • understand upsell opportunities
  • check revenue and feature adoption stats

Engagement

Every user who visits your products will not be engaged for the long run. Every customer needs to be re-activated and engaged after multiple efforts. Reaching out to customers will improve the prospects of product adoption and reduce churn.

  • User onboarding needs to be segmented to provide a personalised product experience
  • Using in-app guides and messages can help users get better awareness and experience
  • Increase awareness with email engagements about the product

Feedback

Customers expect a lot. Everyone wants a better version of yesterday every day. It is also important to gather feedback about your customers.

  • NPS can help get the overall sentiment of customer health
  • The right feedback can influence product upgrades
  • Segmenting surveys can improve response rates and details

Scaling Product Experience with Technology

To create the best product experiences, you need the right technology to power it. With analytics, engagement, and feedback, it is necessary to get the right technology.

Better features, better experience

Product developments and features are key in customer retention. Promote product-led development by getting better insights. Better experience means more chances for customers to stay happier with the company.

Products are crucial. Depending on its specifications, it is possible to make customers advocates and drive new growth. To measure product usage, you need to target the right customers and upsell in a relevant manner.

Customer-centric alignment

Product leaders need to work with teams on developing a customer-centric mindset. Customer success needs to have the right data to show stakeholders the direct impact of the product on them.

To use technology, you need the right tools. The SmartKarrot Customer success platform enables companies to understand how users feel when they use the product. Keeping in mind the increasing rates of churn, a set of powerful tools can guide companies ace in customer retention.

Bottom Line: Product Experience is Crucial to Growth

Your product is your biggest asset. With your product, you can navigate and make a positive impact on the lives of customers. Companies who have understood product experience as the central force of customer relationships are leveraging its power. PX strategies will help companies strengthen their hold on their own product formulation to propel growth. With a powerful tool like the SmartKarrot Customer Success platform, companies can now understand aspects like product adoption, user engagement to stay ahead of the curve. Real-time alerts and account intelligence can provide deep insights into each customer’s account so as to offer a personalized PX.

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Originally Published December 22nd, 2020, Updated December 22nd, 2020

Niyathi Rao

Niyathi Rao

Niyathi is an experienced content marketer with a love for SaaS tech products. She reads a lot (mostly fiction) and is a huge news junkie. Niyathi loves exploring different forms of inbound marketing and taking on challenges.

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