Connected?… So what Reduce customer churn & build a better connected product with IoT user [...]
Connected?… So what
Reduce customer churn & build a better connected product with IoT user engagement analytics
Advancements in technology – in the form of smaller chips, faster and more reliable networks, larger and cheaper data storage and more sophisticated analysis have accelerated the number of connected devices entering the market. While these advancements have decreased the barriers to entry, many companies are struggling to find their place in this new ‘connected ecosystem’.
As everyday products transition into small computers, product managers must look for new ways to engage users and distinguish their brands. Data from connected products can reveal a lot about how they are performing and being used. It is more important than ever before to look at product data to guide everything from development, to customer service and support. IoT data insights can help product managers anticipate and fix quality problems and malfunctions, as well as develop new products and services to fill unmet customer needs.
User engagement is frequently used to measure the perceived quality of the user experience. Motivated by the observation that successful products are not just used, but are engaged with, it is a key metric in the design of connected products.
Measuring engagement (and its key benefits)
Measuring engagement is not a concept new to the IoT. But traditional tools either focus on web events or mobile events, whereas purpose-built IoT analytics combine these with events and timeseries from IoT products to produce a holistic view of engagement. As a result, some of the unique benefits include:
Reduce Customer Churn
Products compete on design, functionality and perceived benefits to get off the shelf and into the customer’s basket. But once a purchase has been made, the battle is not over. With an average churn rate of three months for consumer products, engagement is important for avoiding attrition.
By monitoring customer data, product managers can understand when (and why) customers churn. Clustering allows product managers to aggregate individual usage patterns (eg: usage for the thermostat, security panel, door lock, etc) into a single metric. Analyzing per object engagement as well as overall engagement and its incremental impact on churn, product managers can pinpoint behavioural triggers that lead to attrition.
Build Enhanced Features
Often times features are developed as a means to differentiate a product and/or increase user engagement. But once a feature has been built and deployed, how can you measure their performance?
IoT analytics can be used to derive a ‘LifeCycle’ metric that analyzes:
- How many people are actually using the new features
- When they start using them
- Why they never use them
- How the new features are being used
- Whether the introduction of new features influences the engagement of previous features
- Etc …
Improve Overall Customer Experience
Data from connected products enables ‘lifecycle insights’ that empower product managers, sales, marketing and operations with visibility on product performance and usage data. Aftermarket service programs can be optimized once the customer’s engagement and interactions are understood.
With IoT analytics, engagement can be automatically analysed. For instance,
- Show me the distribution of product registrations/updates
- What is the average time-to-activation
- What are the various levels of use over time and by location
- Compare usage behaviour to customer churn
With more data-driven, real-time insights, product managers can gather detailed information about customer usage behaviour and provide targeted services that meet their needs in more personalized ways.
Real-time feedback about how things are being used improves product development, helps predict problems and creates a more seamless and valuable customer experience. mnubo’s SmartObjects is the first solution to include out-of-the box engagement analytics tailored specifically to connected product manufacturers.
Interested in applying engagement analytics to your product data? Schedule a demo with mnubo today!