Product Survival Skills for Tech Founders
The second article in a series for founders. The first is here: Amplifying Growth through PLG, UX, and HCD
Understanding the connections between Product-Led Growth (PLG) strategies, User Experience Research (UXR), and Human-Centered Design (HCD) is not merely a strategy; it’s a survival skill.
Consider the stories of Bubble and Zapier, platforms that defied odds and skepticism to create a market presence. These are not just tales of success; they are blueprints in resilience, creativity, and survival.
But survival doesn’t end at awareness. Barriers like resistance to change, difficulty in use, and the elusive quest for a perfect market fit can turn innovation into obscurity. A staggering 70% of customers will abandon their shopping carts based solely on bad user experience, never to return to the website in question. Every decision you make becomes a calculated move in a high-stakes survival game.
Why Tech Founders Find It Hard to Connect PLG, UXR, and HCD
1. Complexity of Concepts: PLG, UXR, and HCD encompass various aspects of product development, marketing, user behavior, and design thinking. The multifaceted nature of these concepts requires deep insights that go beyond basic knowledge.
2. Resource Constraints: Especially in startups, tech founders often operate with limited resources. Balancing the demands of product development, marketing, user research, and design can hinder a cohesive approach.
3. Rapidly Changing Landscape: Keeping up with the latest trends, tools, and methodologies in PLG, UXR, and HCD is a continuous challenge in the fast-paced technology industry.
4. Misalignment of Goals: Short-term goals, such as immediate revenue generation, may conflict with the long-term benefits of investing in UXR and HCD, leading to confusion and hindrance in integrating these vital concepts.
Strategies for Survival
Each strategy is a tool in the arsenal of tech founders, and here we will explore them in detail. For each strategy, we will present the concept, describe how it’s measured using UXR, and provide a real-world example.
1. Free Trial or Freemium Model
The allure of a free trial or freemium model lies in its ability to attract users without immediate financial commitment.
How to Track Success
Qualitative Metrics: User satisfaction and feedback on limitations can be assessed through user interviews.
Quantitative Metrics: Tracking the number of free users and conversion rate to paid subscriptions using analytics tools like Google Analytics.
Example: Spotify’s freemium model, allowing free access with ads, led to a significant conversion of free users to premium subscriptions.
2. In-Product Onboarding and Tutorials
Guiding new users through functionalities via interactive tutorials ensures a smooth transition.
How to Track Success
Qualitative Metrics: User feedback on the onboarding experience can be gathered through surveys.
Quantitative Metrics: Completion rate of tutorials and retention rate can be measured using tools like Mixpanel.
Example: Slack’s interactive onboarding tutorial helps new users understand the platform, leading to higher engagement and retention.
3. Customer Self-Service and Community Engagement
Community forums empower users to seek answers and share insights.
How to Track Success
Qualitative Metrics: Engagement and satisfaction with self-service options can be gauged through community feedback and forums.
Quantitative Metrics: Active community members and resolved queries can be tracked using community management tools.
Example: Adobe’s Community Forum has successfully resolved user queries, fostering a sense of community and reducing support costs.
4. Personalized User Experience
Personalization enhances user engagement by delivering relevant content.
How to Track Success
Qualitative Metrics: Satisfaction with recommendations can be assessed through user surveys.
Quantitative Metrics: Click-through rate on recommended content can be measured using analytics tools like Adobe Analytics.
Example: Netflix’s personalized recommendations, based on viewing history, have significantly increased user engagement and watch time.
5. In-App Upselling and Cross-Selling
Strategic upselling can generate revenue without disrupting the user experience.
How to Track Success
Qualitative Metrics: Perception of value and relevance of offers can be assessed through customer interviews.
Quantitative Metrics: Conversion rate and revenue from upselling can be quantified using e-commerce analytics tools.
Example: Dropbox’s offer of additional storage for a fee successfully upsold to a substantial portion of free users, contributing to revenue growth.
For first-time tech founders, the synergy between PLG strategies and UXR is a lifeline in a sea of competition. By intertwining user-centric features with measurable metrics, founders craft products that resonate with users. The fusion of qualitative insights and quantitative data guides continuous improvement and innovation, turning survival tactics into triumphs.
Take action now
I’ve created a 10-day, one email lesson per day, course for founders who want to understand the user experience process better.
https://www.transmitterstudios.com/courses/understanding-ux-for-founders/
