Wondering how to measure Martech’s success? Not sure what metrics you should use? You’re in the right place, because that’s exactly what this article covers. Let’s dive right in!
Martech success can be defined as the ability of the product to satisfy customer needs and drive business goals. One way to measure your Martech product success is by using benchmarks to compare its performance to similar products. Here are metrics you can use, along with their averages for Martech companies from Userpilot’s SaaS Product Success Metrics Report 2024:
– Average customer activation rate: 24%
– Core feature adoption rate: 27.9%
– Onboarding checklist completion rate: 12.5%
– Time-to-value (TTV): 1 day, 20 hours, and 47 minutes
– Net Promoter Score (NPS): 41
– Month 1 retention rate: 44.7%
Understanding Martech Success
Martech SaaS product success is all about how well the tool helps customers achieve their goals and drives your business objectives. Key components include:
– Product adoption and user engagement.
– Customer satisfaction.
– Product performance and reliability.
– Ongoing innovation.
– Market penetration and brand visibility.
– Profitability.
Key Metrics for Measuring Martech Success
Here are six essential metrics for gauging the success of your Martech product:
– Product activation rate: The percentage of new users who reach the activation milestone. For example, if you have 2000 new users in July and 700 of them reach the activation point, the activation rate is 35%. The average activation rate for Martech tools is 24%.
– Core feature adoption rate: This measures how many users regularly use the product’s key features. For instance, if 10,000 users signed up and 5,653 use the core features, the adoption rate is 56.53%. The average for Martech companies is 27.9%.
– Onboarding checklist completion rate: To calculate this, divide the number of users who completed the onboarding tasks by those who started them. For instance, if 10 users start but only 2 complete it, the rate is 20%. The average is 12.5%.
– Time to Value (TTV): This is the time needed for a user to realize the product’s value. Martech tools typically have a TTV of 1 day, 20 hours, and 47 minutes. Lower TTV reduces user drop-off rates and indicates ease of use.
– Net Promoter Score (NPS): This metric measures customer satisfaction and loyalty. It’s based on a survey asking customers how likely they are to recommend the product on a scale of 1 to 10. The average NPS for Martech products is 41.
– Month 1 retention rate: This is the percentage of new sign-ups still using the product after a month. Calculate this by dividing the number of returning users after a month by the total number of new users. The average rate for Martech tools is 44.7%.
How to Measure Martech Performance
To measure your Martech product’s performance, follow these steps:
– Set specific business objectives, like “improve MRR by 24% by the end of the year.”
– Identify relevant key performance indicators (KPIs) such as those mentioned above.
– Choose the right tools to measure success, making data analysis easier.
– Establish data collection methods, like event tracking for quantitative data and in-app surveys for qualitative insights.
– Analyze the collected data and compare it with industry benchmarks.
– Report findings and optimize performance by visualizing data on a dashboard and strategizing to improve weaker metrics, such as enhancing user onboarding.
Conclusion
The Martech market is highly competitive, with numerous products vying for customer attention. It’s crucial to guide potential customers to experience value quickly to prevent them from moving on to other tools. Tracking your product’s performance is vital for success.