Businesses must set clear, reasonable, and quantifiable goals to boost their chances of product launch success.
Make sure you read the first two parts before moving on to the third.
If you have already, it’s time to look into the post-launch KPIs to assure the success of your product launch.
Product trials for Product Launch Success
Product trials are an excellent tool to promote and measure brand awareness and perception.
Many companies offer trials and demos when they launch a new product so that people may discover what the product is all about. Trials essentially lead clients through the product step-by-step and explain its benefits.
Product trials are frequently booked from a website via a call to action (CTA) button, and their clickthrough rate is an important measure to track.
For example, a low CTR could mean that the CTA is not in the best place or needs to be changed entirely.
Product trials are more effective when a brief survey follows them to assess the value of the engagement.
Net promoter score for Product Launch Success
This proven metric measures customer experience, predicts business growth, and is the main measurement for customer experience management programs worldwide.
It usually comes in the form of a single survey question that asks people to rate how likely they are to recommend a product or service to a friend or coworker. One of the essential parts of running a successful business is being able to get helpful feedback from customers and keep making your products and services better.
Based on the results, you get a good idea of how happy and loyal your customers are with your product and whether you need to make any iterations.
Assume you ask 100 people how likely they are to recommend your new product on a scale of 1 to 10, with 1 being highly unlikely and 10 being very likely. Once you have all the answers, you can divide them into three groups:
Detractors (people who answered 1-6)
Passives (people who answered 7-8)
Promoters (people who answered 9-10).
To figure out your final NPS score, take the percentage of detractors and subtract it from the percentage of promoters.
For example, if 10% of respondents are detractors, 20% are passives, and 70% are promoters, your NPS score would be 70% minus 10%, or 60.
Retention rate for Product Launch Success
The retention rate determines how many customers stay with your product over time. You can base your estimates, for example, on the number of yearly membership extensions or product purchases.
Many businesses spend a lot of time and energy trying to find new customers. But it’s much cheaper to keep an existing customer happy and sell them than to get new ones.
In addition, people who already buy from you often buy more things and even tell their friends and family about you—all without costing you anything. So, keeping customers should be a big part of how you run your business.
Calculating your CRR is simple, and you may calculate it using the following formula:
Customers after the specific period – new customers at the beginning of the specific period x 100.
It’s important to mention that while the retention rate concentrates on loyal consumers, the churn rate shows how many customers stop doing business with a company over a given period of time.
Revenue Growth for Product Launch Success
Revenue growth is a KPI that measures how sales increase or decrease over time. By tracking your total revenue, you can determine your product’s success and whether you can afford to hire more team members to assist you in the next step.
It is determined by dividing income earned during one period by revenue generated during the following period, subtracting one, and multiplying by 100 to get a percentage. Companies typically calculate revenue growth yearly, quarterly, or monthly.
Make sure you measure them quite often to know exactly where you are at any given time, but also look to your industry to determine if your revenue growth is in line with others in your industry.
Revenue growth is frequently used to forecast future sales too. The revenue growth rate will provide a trend to reflect the direction and intensity of the company’s revenue growth month after month, year after year. You can forecast better by using this trend and understanding the industry and the companies’ positions within it.
To assess the success of a product launch, you must first determine which metrics are most important to you.
Following that, you must establish the appropriate processes and monitor the metrics that will indicate your progress and whether changes are required.
As previously stated, each industry and product has its own KPIs, but the ones we listed cover a variety of scenarios, so there are undoubtedly some that you can – and should – examine.