CES, aka the Consumer Electronic Show, is the world’s largest and most influential consumer technology trade show known to set the agenda for the year to come. Like any in-person show or event, the COVID pandemic impacted the attendance and logistics of recent years. But this year the event was back in full swing,  ready to connect the biggest brands and sharpest innovators once again. The event certainly made a splash, with a 70% larger footprint than 2022, hosting more than 3,200 exhibitors and over 115,000 attendees between January 5th and January 8th. Attendees, speakers, brands, and observers all felt the anticipation of discovering what new innovations may be unveiled. As the tech industry continues to evolve, we see some trends sticking around and some emerging with each new year. Here are five of the most notable trends from CES 2023: 

 

  1. Sustainability: One of the key trends at CES the past few years has been sustainability in tech. As global brands continue to make sustainability a priority, many expected to see sustainable elements within this year’s exhibitions. But in 2023 the sustainability theme came stronger than ever.  From a John Deere robot planter that is designed to reduce chemical use and Bosch’s next generation of MEMS sensors that are more power-efficient than their predecessors and will reduce the environmental footprint of smart technology, to electric speedboats and avocado scanners that can assess ripeness, the list goes on. While sustainability has been a touchpoint at CES for years, the prevalence at this year’s conference indicates that companies are taking the issue more seriously and that consumers are starting to take more interest.
  2. Growth in Streaming: 2022 was a transformative year for streaming services, between Netflix and Disney+ launching ad-supported tiers and Thursday Night Football’s move to Prime Video. As consumers continue to shift their attention to streaming, CES attendees are following suit. Leading the charge, Roku is planning to bulk up its streaming service that originally launched in 2017 (yes, Roku has a streaming service), as well as introduce two new lines on Smart TVs: Roku Select and Roku Plus. But while traditional streaming will continue to innovate to maintain viewership, we’re starting to see streaming enter the conversation in some unexpected ways. From streaming inside autonomous vehicles to Delta’s plans to launch free streaming on flights, the possibilities are endless.
  3. Cars and Tech… Tech and Cars: Speaking of cars, with each year, CES has increasingly turned into an auto show. Now more than ever top automakers are vying to prove that they are innovating as quickly as any other tech company. This year, we also saw a number of consumer electronics companies trying their hand in the auto space. Samsung pitched their new ICX technology, which prioritizes driver safety with Ready Care by responding to changes in the driver’s condition, such as drowsiness and distraction. Meanwhile, competitor LG showcased their Cockpit Computer, also focusing on improvements to the driving experience, stressing that cars should be both a living and a working space. In another notable partnership, Sony and Honda teamed up on the Afeela electric vehicle, which is a prototype focusing on the 3 A’s: autonomy, augmentation, and affinity. With each year, we will see the lines between tech and auto companies continue to blur.
  4. A Practical Metaverse: This year, the metaverse took a bit of a back seat compared to previous years. Although there were fewer metaverse-focused booths, overall, those focusing their efforts on VR seemed to take a step back to the more practical. After all, you have to walk before you can run. OVR Technology introduced another iteration of their scent-focused VR experience, which can be used for anything from marketing a fragrance to immersing yourself in a virtual spa experience. Boston-based Xander brings another practical use to the table: smart glasses that show real-time captions of what other people are saying for those who are hearing-impaired. As the interest in the metaverse continues to decline, it will be interesting to see if more practical applications will bring renewed interest.
  5. Inclusivity in Beauty: While beauty products and technology may not seem to go together, beauty and skin care brands joined the ranks at CES again this year alongside autonomous vehicles and avocado scanners. Companies like L’Oréal have specifically been focusing on inclusivity, unveiling a motorized lipstick applicator called HAPTA that will allow users with limited fine motor skills to apply lipstick with confidence. Korean-based Amorepacific was the CES Innovation Award winner for the fourth year in a row for two products which focus on hyper-personalization. Their Authentic Color Master by TONEWORK uses an algorithm that analyzes 3,448 areas of the face and recommends an ideal makeup color. Slightly more approachable, the COSMECHIP can be used from the comfort of your home, and allows you to create skincare products on the spot to fit your needs. Both of Amorepacific’s products indicate that the beauty industry is moving away from a one-size-fits-all mentality and instead prioritizing individuality and inclusivity. 

So what can we take away from CES 2023? Well, technology is certainly trending and shows no sign of slowing down. New industries are constantly joining the tech sphere by enhancing existing products with new features. Hot topics from previous years will continue to command attention, only with active efforts to shift from promises to practice in the coming year. In 2023 the world will continue to be wowed by manufacturers, developers, content, technology delivery systems, and more. Here at Bluetext we are excited to watch emerging technologies yet to come this year, and how the world’s business leaders and pioneering thinkers continue to address the industry’s most relevant issues.

In this digital age, the bar is constantly rising in expectations of user experience. It’s no surprise to any company that it’s crucial to make sure your website stands out from the competition, and this often requires taking steps beyond aesthetics of the design and clear calls to action. Sure, it’s still important to get the basics right (looks nice, load speed, etc.) but this doesn’t guarantee depth and engagement.

A great way to capture attention and stand out from the pack is by utilizing immersive website design, which takes users on an interactive journey that leaves them wanting more. Immersive design is a user experience term used to describe website design that focuses on providing an interactive experience to visitors. By creating a visually stimulating environment, designers can create a more engaging and enjoyable online experience. This often combines elements such as animation, graphics, videos, and sound with traditional web elements including text and links.

Let’s take a look at how you can create a truly immersive website experience for your users, ranging in complexity from simple to showstoppers.

1. Use Visual Cues To Guide The User Through Your Site

Visual cues like arrows, lines and icons can be used to direct users’ attention and guide them through your site in a subtle, non-invasive way.  This type of visual hierarchy helps create an intuitive navigation system without overwhelming users with too much information or options at once. It’s sort of like a nudge to guide them towards key conversion points and avoid drop-off. A common way to incorporate these cues is through microanimations, the short, concise animation that conveys an idea or message quickly and effectively. These can range from simple fades and hover states to more complex transitions between different elements on a website.  Additionally, using contrasting colors and bold font sizes can also helps draw attention to important elements or sections of your site.

2. Incorporate Interactive Elements

Interactive elements like sliders, pop-ups, animations and scrolling effects make your website more engaging and memorable for visitors. However, it’s important to remember that these features should not impede navigation or interfere with the user’s overall experience; they should enhance it! For example, incorporating subtle animation into page transitions can make the website feel more alive and organic.

3. Parallax Scrolling

Parallax scrolling has been around since the 1980s, originally pioneered 1980s, game designers working on Super Mario Bros. used parallax graphics to create a sensation of depth.  But this faux-3d technique has recently become popular again due to its ability to leverage optical illusions to create an incredible user experience. Adding parallax scrolling effects can further draw visitors into the content on each page with less effort than traditional clicks. Parallax scrolling is a popular web design technique that involves the use of multiple layers of images and text that move at different speeds when the user scrolls down the page. Utilizing smooth transitions from one layer to the next creates an 3D effect as users scroll down the page, because the background image moves slower than the foreground elements—such as text and images— to create a sense of depth and perspective. This global cleanup landing page by All Together is a great example of well timed imagery and text to create the parallax scroll effect.

4. Immersive Scrolling

Whereas parallax scroll is often used for storytelling, immersive scrolling goes a step further to change the experience from observer to participant. Immersive scroll techniques are designed to feel like they’re inside a game or other application. This type of scrolling is characterized by long-form content, visuals, animation, and other elements that draw the user into the site’s story. It also allows users to move through the content at their own pace and in own order. Immersive scroll websites sites have been designed with extra attention to detail paid to the presentation of the content and strategic use of video, photos, and other rich media to create a seamless experience. This is often suited to a single narrative, as the page should be focused on one goal or topic, such as this 2℃ Earth page that uses rich media to communicate impacts of global warming in a compelling narrative. (Be sure to try the left/right slider for full immersion!)

 

Immersive website designs are becoming more and more popular as tactics to make make businesses to stand out from the competition. By utilizing visual cues, interactive elements and intentional scrolling effects within your website design strategy, you can create an engaging user experience that will keep visitors coming back for more—and convert. If you’re looking to level up your website user experience in small or significant ways, contact Bluetext to learn about our UX design & development services.

 

 

Search Engine Optimization, or SEO, has obviously been an important factor for website performance for well over two decades. However, with increasing refinement and understanding of Google’s (and other alternative search engine) algorithms, website managers have gotten wiser and more strategic about the deployment of their SEO strategy. To rank ahead of the competition, modern SEO implementation methodology must be quite nuanced, and frequently updated to keep pace with ever-evolving algorithms and updates. In this article, we’ll talk about how website schema will be a key differentiator for organic search.

Traditional Methods of SEO Alone are Insufficient

Traditional methods of search engine optimization, like metatext optimization, H1 headings, and backlinking are by no means non-essential nowadays. In fact, it is quite literally the opposite – they are the mere table stakes that every single website should have to be considered even operational in 2022. However, what once was the complete focus of organic search strategies has evolved to the foundational building blocks. Though true optimization, or distinguishing your website from the rest, takes far more complex and nuanced forms. In 2023 we will see a noticeable shift and prioritization of schemas. 

2023 – Year of the Schema?

Website schema isn’t a brand new concept – Google has offered “Rich Results” or “Structured Data” since the 2000s. What has changed, however, is the importance these displays are to organic performance. As existing SEO methods become commonplace, the remaining distinguishing factors will become increasingly important factors.

If you aren’t familiar with structured data markup, you’ll be surprised to know that you likely interact with them every day. Structured data markup is simply website information formatted in a specific, “structured” schema (as outlined by Google’s engineers) that feeds Google’s Rich Results — these Rich Results displays are the interactive elements (that aren’t sitelinks) that you see on the Search Engine Results Page (SERP). Some common ones include:

  • Articles
  • Events
  • Job Postings
  • Related Images
  • Related Videos

Visual Density Search Can Improve Clickthrough

What role does the schema of structured data markup play with regards to SEO? For one, the most critical factor is that of density and representation. A hallowed rule of SEO has been one link per domain (unless you’re lucky enough to get a sitelink sitemap). Rich Results is a clear break of that rule — there’s no limit to how many Rich Results one site can return. More results simply mean more opportunities for viewers to click through to your site organically. 

Furthermore, vertical density is an important consideration. Without rich results, if a prospect scrolls past your sitelink in the SERP, it’s very unlikely that an individual is ever going to interact with your link ever again. In contrast, Rich Results can be inserted at any point through the SERP — meaning that a site can have multiple points for visual interaction through the SERP.

How to Implement Website Schema on Your Website

It is incredibly important to understand that structured data website schema cannot and will not happen accidentally — website managers need to spend time and significant effort to ensure any provided data matches what Google is looking for. Even a single error will mean Google will largely ignore the whole provided schema; Google isn’t looking to do any fuzzy logic or favors for website schema.

Thankfully, Google provides an easy-to-reference listing of ALL the possible Rich Results and their expected schema. Traversing the whole list is daunting, but it is vital to realize that structured data schema, unlike traditional SEO strategies like metatext or image optimization, is not a cookie-cutter, one-size-fits-all solution. Before embarking on updating your website data to meet Google’s schema requirements, identify what your website’s strengths and priorities are, and then match them with a similarly minded structured data requirement.

For example, a site heavily devoted to recruitment would certainly be interested in adding the Estimated Salary and Job Posting schema items — both would be a big driver for interested applicants. A site with a focus on video could leverage various Video layouts to encourage prospects to click through in a visual way not possible through metatext alone. Websites with more complex service offering could leverage Q&A and How-tos to convince and coax wary end users. Don’t bother trying to implement every schema — instead focus on what is most relevant for your website. 

Google doesn’t do all this schema creation by themselves. Much of these definitions are defined by a consortium of web stakeholders through an organization called Schema.org. Schema.org offers comprehensive documentation of their data structures online. Above all else, however, it is important to note that both Schema.org’s and Google’s structures are quite fluid. Web needs constantly shift, and both organizations are very much in deep conversations with web users at large to identify what would be relevant changes and schema updates. Bluetext would recommend adding the Schema.org changelog as a bookmark, and referencing once a quarter. It may be deep in the weeds, but it also acts as a bellwether of what schema and data structures are being actively updated and worked-on — a good sign of increasing relevance for that data structure.

Finally, no task is complete without verification. Thankfully, Google has made that easy as well with the Schema Markup and Rich Results testers. You can easily validate website data against what Google’s crawlers see, to ensure your work did not go to waste.

SEO is no longer a paint-by-numbers game. People have gotten too smart and traditional monolithic strategies are simply insufficient by themselves to propel your website to the top of the rankings. Schema and website markup offer a way for dedicated and driven website managers to distinguish their organic results and secure a stake of organic traffic away from lackadaisical competitors.

If you want some help in identifying opportunities for your website to leverage Rich Results and website schema, come talk to us here at Bluetext.

Word on the street is there is a new AI program that may mean big changes for many business models. ChatGPT, a new product launched by OpenAI, is a revolutionary API model designed to optimize artificial intelligence. But that’s what every AI company promises right? Sure, yet those currently in use by the public still serve up half relevant, overly robotic and not always so helpful responses. And that’s where ChatGPT differs. It’s specifically designed to interact in a conversational way, not the ‘by the book’ technically correct manner that doesn’t always fit the user’s needs (ahem, looking at you, Siri). This product can be applied to any language task, with the capacity to  serve millions of production requests each day. The dialogue format makes it possible for ChatGPT to answer follow-up questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests. So…like a person? Kind of! ChatGPT was created using Reinforcement Learning from Human Feedback (RLHF), meaning real live human AI trainers provided conversations in which they played both sides—the user and an AI assistant, to provide comparison data to refine responses. 

This new product has generated a powerful buzz across businesses of almost any industry. Companies of all shapes and sizes are eager to explore its capabilities and hypothesize how it may change their industry. 

So let’s test it out, as Bluetext was curious too. 

Hey ChatGPT, can you “tell me how chatGPT will change business models in a Snoop Dawg voice”? 

“Yo, what’s good? It’s ya boy Snoop Dawg here comin’ atcha with the scoop on how ChatGPT is gonna change the game for business models.

First off, let me just say that ChatGPT is a straight-up beast of a language model. It’s been trained on a ton of different text, so it knows how to generate all kinds of crazy-realistic sounding text in a variety of different styles and dialects. And that’s where things get interesting for business models.

See, with ChatGPT, businesses can train the model to understand and generate text in their brand’s unique voice and tone. This means that they can use ChatGPT to automatically generate all kinds of content, from social media posts and customer service responses, to sales copy and marketing materials.

And that’s just the beginning. With ChatGPT, businesses can also automate a whole range of other tasks, like answering FAQs, providing product recommendations, and even conducting market research. This frees up time and resources that can be spent on other, more valuable activities.

But the real game-changer is the way that ChatGPT can help businesses connect with their customers on a more personal level. By training the model to understand and generate text in the same dialect and style as their customers, businesses can create a more authentic and engaging experience for their customers. This can lead to increased customer loyalty, higher levels of customer satisfaction, and ultimately, better business results.

So there you have it, folks. ChatGPT is the future of business models, and it’s gonna change the game in a big way. Stay tuned for more updates from ya boy, Snoop Dawg. Peace out!”

Impressive, we must say. Our request was met with an informative and relevant response that even nailed a super specific spot-on the tone of voice. Let’s try again and get some more insight.

Hey ChatGPT, “tell me about ChatGPT’s effect on marketing”

“ChatGPT is a powerful language model that has the potential to greatly impact the field of marketing. By understanding and generating text in a variety of different styles and dialects, ChatGPT can be trained to understand a brand’s unique voice and tone. This allows businesses to use ChatGPT to automatically generate a wide range of marketing materials, such as social media posts, sales copy, and email newsletters.

In addition, ChatGPT can be used to automate tasks such as answering frequently asked questions, providing product recommendations, and conducting market research. This can save businesses time and resources that can be redirected towards more valuable activities.

Furthermore, ChatGPT’s ability to understand and generate text in the same dialect and style as a brand’s target audience allows businesses to create a more authentic and engaging experience for their customers. This can lead to increased customer loyalty and satisfaction, which can ultimately result in better business results.

Overall, the potential impact of ChatGPT on marketing is significant. By providing businesses with the ability to automate a wide range of marketing tasks and create more authentic and engaging customer experiences, ChatGPT has the potential to greatly enhance the effectiveness of marketing efforts.”

ChatGPT said it best. New developments in A.I. could have major impact on marketing strategies across industries, as many are now able to leverage artificial intelligence to confidently adopt a “work smarter, not harder” approach. Time will tell how businesses adopt A.I. products and how consumer trust levels react, but one thing is for sure: 2023 will be the year to test these new technology strategies and take big strides towards the future of digital marketing.

You’ve heard the rumblings, accepted the cookie banners and been warned by that one friend who swears by Duck, Duck, Go that privacy laws were coming…but is now finally the time? Over the past year state legislatures have introduced an array of comprehensive data privacy bills, successfully passed by both Connecticut and Utah. As of 2023 these two states will join California, Virginia and Nevada as the five privacy protectorates with enforceable data privacy regulations in effect as soon as January 1st. As 2022 winds down to a close, many businesses are scrambling to assess whether these laws apply to them, and if so how to comply by this year’s ticking clock deadlines. Bluetext is no stranger to data privacy, as we are well versed in the variety of cookies and tracking techniques used across websites and relied upon by the digital-aged marketers. So let’s break down what this legislation means, who it applies to and more importantly how you can comply. 

First, let’s dispel some legal myths and legends. You have all probably heard of GDPR (General Data Protection Regulation), which is the EU’s extensive data privacy protection program, which defines a set of laws enforced universally across all European Union nations. So who do these laws apply to? How does it impact American companies? The impact is much more significant than one would think, because GDPR applies to both companies within the EU and any company offering services or tracking behaviors of individuals within the EU. So if your company is already complying with GDPR guidelines, you’ve got a great head start to 2023 updates.  

So does the United States have equivalent laws?

Short answer: no, long answer: yes. Here’s why: European and American philosophy around privacy and individual’s rights are very different. While the European legislature honors an individual’s right to privacy as a basic human right, the American Constitution leaves these topics purposely vague and open to state wide interpretation. But as digital behaviors are becoming more visible and accessible than ever before, many states are taking the cue from the EU to establish privacy laws of their own. Most recently Connecticut and Utah joined California, Colorado, and Virginia, to create a complex patchwork of state privacy laws, with fast approving compliance deadlines of January 1st, 2023. 

What’s new in 2023? 

Here are the recently enacted laws & upcoming deadlines: 

Effective January 1st, 2023:

Effective July 1st, 2023:

Effective December 31st, 2023 

California Privacy Rights Act (CPRA) – Effective Jan 1, 2023

The new CPRA amends the previous California privacy law to expand beyond the right to privacy notice, deletion of data and opt out of selling data. The new provisions include rights to:

  • Correct their data
  • Opt out of sharing their data for targeted advertising
  • Port their data
  • Limit the use and disclosure of sensitive personal information

The most significant impact to the digital marketing industry is expanded opt-out provisions. California consumers could already opt out of the sale of their data. But starting in 2023, consumers will now be able to opt out of the sharing of their data. This significantly clamps down on marketers ability to serve up cross behavioral advertising, or targeted advertising, as this hinges on the aggregation of user’s behavioral data across multiple platforms and contexts to serve a targeted ad.  Businesses will need to post links on their website so consumers can opt out of both the selling and sharing of their data. 

The new law also includes some other critical changes that businesses must comply with: 

  • Equivalent rights to employees and business contacts the same rights as any other California resident
  • Expanded look-back period for businesses responding to data requests in California beyond the previous twelve months (which was the look-back period under the CCPA) (for any personal information processed on or after January 1, 2022)
  • Regularly submitted Data Protection Assessments,  known as “risk assessments,” which will need to weigh the benefits and risks to various audiences with the goal of restricting processing if the risks to the consumer outweigh the benefits to all stakeholders

These updates will be applicable to any companies (regardless of HQ state) which:

  • Process the data of 100,000+ California residents OR
  • 50% of their business revenue is derived from the sale/sharing of California residents’ personal data OR
  • Have $25 million+ worldwide revenue

Virginia Consumer Data Protection Act (VCDPA) – Effective Jan 1, 2023

Compliance with Virginia’s privacy law is generally broad and a bit simpler for businesses than the CCPA; however, it is stricter on a few key issues. Like the CCPR, the law protects six main tenants of data privacy: the right to access, opt-out, correct, delete appeal and portability. But some key differences include exemption of all organizations subject to HIPAA or Gramm–Leach–Bliley laws, as well as non-profits and higher education institutes (while exempt from VCDPA, strict requirements do apply).  Virginia’s law also excludes protection of employee personal data businesses collect and process under the law’s applicability. The sale of personal information is more tightly defined as “the exchange of personal data for monetary consideration by the controller to a third party.” Monetary consideration is the key phrase which the California equivalent CPRA lacks. 

Virginia’s privacy law applies to any business which:

  • Control or process the personal data of 100,000 or more Virginia residents in a calendar year
  • Control or process the personal data of 25,000 or more Virginians and derive over 50% of gross revenue from the sale of personal data

Starting on Jan, 1 2023 fines for violation can be up to $7,500 per violation (plus attorney fees). There is a 30-day cure period for businesses to fix any violations. 

How Should Digital Marketers Prepare?

With the new year quickly approaching, many businesses are scrambling to determine if these new laws apply to them, and if so how they can comply. For businesses nationwide, compliance means increasing the transparency of their data collection process, not necessarily the complete elimination of these practices. Online web users need to be presented with cookies and tracking notices at the very start of their digital interactions, and given a clear opportunity to opt-out if they desire. Bluetext can help you implement all of the right tracking technology, collection settings and front-end user notices to make your business compliant with the changing privacy landscape. And even if you’re not yet applicable to the CPRA or VCDPA, regulations are only expected to rise. Over time more and more states are expected to get on board with recent data privacy protections with the goal of setting a universal expectation of ethical data collection practices within the United States. Bluetext’s recommendation? Regardless of whether 2023 privacy laws are applicable for your business, you may want to get ahead of the curve and implement smart, ethical and compliant practices across your website. Contact us today to learn how we can help.

Since Bluetext’s founding in 2011, the agency has experienced stellar growth in size, expertise, and creativity. So much so that our brand and logo were beginning to feel tight and outgrown. Some healthy self-reflection left us realizing an evolution was necessary. 

Watch our brand evolution

With our clients, we often consult on the pros and cons of a brand evolution vs. revolution. For Bluetext an evolution meant keeping the core aspects that defined our brand, like the name, logo symbolism, and obvious color choice. Anything other would run the risk of appearing like an IHOB-level stunt. We love the name and meaning behind Bluetext. Just as when you apply a link to text the color changes to blue, applying Bluetext to your brand becomes the digital doorway to your brand. It highlights our digital focus and positions the agency as ambiguous to the multitude of services and specialties we offer. Aside from that, the name “Bluetext” is internally joked to be rooted in our project managers’ love and developed muscle for hyperlinking, which we cannot confirm nor deny. 

Even with the core ingredients solidified, so many elements were up in the air for modernization. Bluetext’s creative director, Kevin Galligan, led the charge with a redesigned logo to inspire the complete CVI & eventual website design.

Some key principles to remember during any sort of brand development are: 

  1. Be associated with something 
  2. Protect your identity 
  3. Consistency is key 
  4. Never say no to evolving 

For Bluetext, our brand identity centered around our logo icon, which previously formed the lowercase ‘b’ and ‘t’ of the wordmark. We had become associated with this symbol, often adopting a shorthand abbreviation of BT, diving into the straightforward angles as a reminder of our values. But as the agency has grown, we felt it only fair the logo should grow up too. In this evolution, we were careful to guard our brand’s identity and legacy, but apply stylistic tweaks to elevate the core designs. The lowercase style was replaced with a sentence case and a new font. The logo icon was upgraded to symmetrical angles that matched the new custom lettering, but still preserved origins within the ‘B’ and ‘t’ angles.   

Minimal doesn’t mean simple. The evolved logo is intentional down to every angle, which becomes leveraged throughout the pattern systems of the CVI. Leaning into our core logo symbol, the outlined shape became a pattern system repeated across our website & collateral.  The most noticeable change to the brand was the color shift from a light blue to a rich cobalt blue. In the spirit of consistency and honoring the name ‘Bluetext’, a blue-based palette was adopted. But monochromatic does not mean monotone. Our creative team took this rebrand as an opportunity to surge new energy into the secondary color palette choosing energetic aquas and navy tones, complemented by cream, white or black.

As a brand development agency, our evolved brand identity has made us all the more energized for the coming new year, and inspired to do the same for our clients. Could your company’s brand use a little glow up too? Whether you’re ready for an evolution or full revolution, check out what Bluetext can do for you.

So far in this series, we have examined PLG as a concept, how it can be cross functionally implemented and why – when done right – it can be the right go-to-market strategy for your business. However, without a way to measure the success of your product led growth strategy, there is little to be learned and applied to your strategy moving forward. This is why establishing key short term and long term metrics and achievable KPIs is a crucial step in your PLG strategy. You are likely already tracking at least a handful of following key metrics, however establishing standard goals and benchmarks for your team to strive for when wading into the waters of PLG will provide valuable insights and allow you to make adjustments down the line to enhance your go-to-market strategy. 

David McClure outlines the key metrics in his model known as AARRR or the term he coined, Pirate Metrics. This simple model evaluates each step in the user journey to identify any opportunities in the user lifecycle and finely hone in on where improvements need to be made. 

  • Acquisition: First thing’s first – you have to drive users to the product. Whether it’s an app or a website, developing a strategy to get users in front of your product through tailored channels is the first step to reaching revenue. Typically the channel strategy at this awareness stage varies by audience. For example, while it may be best to focus on social or SEO optimization for B2C audiences, B2B audiences may expect and prefer to see content marketing – also with a focus on SEO – or Event marketing at specific conferences or trade shows where they can be introduced to your brand and your product. 
  • Activation: Once you drive traffic to your product, the next challenge becomes making the conversion. This is where content and UX come together to drive users to take action. There are endless possibilities for how you can target even the most niche audiences – this is why collecting data through A/B testing of specific copy, design or landing pages can aid in the pursuit of a higher conversion rate. 
  • Revenue: there are various ways to track revenue, like average contract value (ACV), monthly recurring revenue (MRR), average revenue per user (ARPU). The revenue phase of the Pirate Model can also include upsell strategies for premium product features or add ons. 
  • Retention: User conversion is immediately followed by the retention phase – you want the user to continue to come back to use your product and take additional actions. Staying in touch with your users through various CRM channels and retargeting strategies can keep users engaged in the product and remind them to continue that relationship with your product. At the end of the day, in a PLG strategy, the product itself should drive retention by delivering an excellent user experience. 
  • Referral: Your current users can be your greatest asset in the pursuit of new users. Not only can they tell you what you need to know in terms of their behavior and interactions with the product in the user lifecycle, but they can also be a bridge to other users similar to them. Referrals from existing users can be a powerful tool particularly when there are incentives to bolster referrals.

In addition to the phases in the AARRR model, there are many other metrics that can be leveraged to evaluate your product and the user journey. 

  • Stickiness: The rate at which users return to the product. This helps to examine the value you are delivering by looking at how often users come back. 
  • Product Adoption Rate: This measures the rate at which users transition from new to recurring users. A high product adoption rate is encouraging, as it confirms that users are not only trying the product, but continuing to use it. 
  • Churn Rate: This is one the most important metrics to take note of when it comes to PLG – it evaluates the number of users that essentially quit your product. Keeping the churn rate as low as possible should be the utmost priority of a product led company. 
  • Product Qualified Leads (PQLs): A PQL is a user who has interacted with your product and taken an action indicating they will return to the product again and will continue to be a likely customer in the future. Becoming a PQL requires an action/conversion point and A/B testing can be a valuable tool in establishing the most effective strategy for those desired actions.  
  • Customer Lifetime Value (CLV): this refers to the expected revenue to be made on a customer and their lifetime interaction with your product
  • Time to Value (TTV): The TTV is the amount of time it takes from the first interaction with your product to the moment the user is able to understand and reap the benefits of the value your product delivers. A higher TTV can result in a higher churn rate as users want to quickly get to the benefit of what you are offering. 
  • Expansion Revenue: Any of the revenue made from a user beyond their first purchase can be considered expansion revenue. Upselling your users on additional premium features is a way to grow your expansion revenue. While growing your user base is crucial, your existing customers are a massive opportunity when it comes to cross selling and upselling products.

 

Product led growth relies on the intrinsic value that your product delivers to its users and an effective GTM plan to make sure it is put in front of the right audiences. Even the best products require some strategic thinking when it comes to driving users down the funnel to take action at that conversion point. Having the ability to evaluate and track users in their interaction and lifecycle with your product is essential for a successful launch and a successful future. Being armed with insights through these powerful metrics will help to fine tune the user experience and enhance revenue generation down the line. Learn more about how Bluetext can support and track your PLG strategy.

Product-led growth (PLG) strategy is at the forefront of a massive shift in the software purchasing process. Read our most recent blog in this series, PLG Series: Product User POV, to determine if your company is ready to put end users in the driver’s seat. For companies looking to make this shift, consider the steps it will take to get there, which will require two major stages of transformation: the evolution of the product, and the evolution of the organization. 

Steps to Becoming a PLG Company

Evolution of the Product

PLG strategy hinges on end users being thrilled by the product the company offers. How can organizations create a thrilling software experience? While it may seem like an oxymoron, thrilling software is possible. It starts with prioritization of design, empathy, and frictionless touchpoints with a combination of user journey mapping, user testing, and intelligent data implementation. The end-user experience is what sets a working product and a great product apart. The product needs to serve as a solution to the user’s troubles, not just a jumble of benefits and features. The user journey is top of mind for pioneering PLG-focused companies, rather than the specs and selling points of the product itself. 

A good example of this is the onboarding process for new users. In demonstrating software products, the demo should be focused on helping the user achieve their goals, not showing off features of the software it’s trying to sell. Product-led growth really means user-led: anticipating their needs, reducing their friction, and providing ongoing support to create a joyful, exciting user experience with the product. In the PLG model, product enjoyment leads to subscription sales, additional referrals, and customer retention. When shifting to a product-led growth strategy, companies must create sticky products, which capture user interest by delivering consistent value and compel users to use them more regularly. 

Evolution of the Organization

To become a PLG company, the organization must first be willing to turn away from sales-led and marketing-led growth strategies. Instead, the business structure has to support the ability to move faster, more collaboratively, and with more complex dynamics. Collaboration and inclusivity are more than industry buzzwords; they actually can make or break internal strategies. To pull off the rate of product improvement necessary to keep pace with competitors, a PLG-focused company has to run as a democracy, taking input from a diverse group of stakeholders from a variety of different teams. Marketing, sales, CS, design, and engineering teams, for example, will all need to weigh in to make decisions that result in the best product and end-user experience. 

The resulting company structure is often at first more difficult and complex than legacy structures, but it has proven the best way to organize a company that prioritizes the quality of the product for the consumer experience. When scaling, the first thought may be to attempt to grow teams through hiring to accommodate for better, quicker, product improvements. That process tends to be time-consuming, costly, and inevitably leads companies to fall behind their faster, leaner competitors who are prioritizing employee growth, flexibility, and collaboration. As a step toward this organizational transformation, it’s important to break down silos to stay communicative, informed, and aligned across teams.

After going through the transitional phases outlined above, the real work of a product-led growth company begins in harnessing value from the Freemium to Premium chain. 

Capitalizing on the Freemium to Premium Chain

For a PLG-focused enterprise, after creating the best possible product and putting the organizational systems in place to support the development of increasingly spectacular products, the value in the product-led growth model comes from encouraging the following: Product adoption, Customer Loyalty, and Advocacy. This growth can be reaped from the Freemium to Premium chain, composed of three stages: 

A frictionless entry point for users, leading to customer acquisition. 

The user’s first interaction with the product should be personalized, delightful, and convincing. A free trial or demo experience allows users to self-educate about the benefits of the product and its ability to solve their needs, rather than having to deal with a salesperson or middleman to handle the transaction. This freemium experience can come in a couple of different forms: a reduced features version, a reduced capacity or usage version, or a reduced support version. 

There are a few reasons as to why the free trial method is the best entry experience for customers seeking software solutions. First, the software is an intangible object and can be difficult to adequately describe with marketing lingo; it’s better to give users a hands-on experience that shows (rather than tells) the product’s benefits. Second, free trials reduce the fear of committing to a purchase, so users can explore the software offerings without concerns about getting locked into a subscription. Lastly, observing or collecting data during a demo experience allows you to gain valuable feedback on the product at hand. By seeing how end users experience the product designed for them, you can get a realistic sense of their positive reactions and friction points in order to continue improving the product offering. 

Features located behind a paywall, leading to expansion. 

The free trial leads the process by introducing the user to a must-have technology (where they’re reaping actual value), and the paywall follows by scaling up the pricing for the software as usage or benefits increase. After an opt-in free trial, a good conversion rate should be around 25%, and that rate jumps to 60% for opt-out free trials.

The product-led growth strategy for conversion is simple: freemium users are enticed to subscribe to premium accounts when they enjoy the product. To encourage subscriptions, it’s important to remind users of the benefits and product features. In addition, putting a clear time limit on the length of the trial creates a sense of urgency for freemium users to switch to premium subscriptions. Trial period expirations can help push users to take action, for fear of losing out on the benefits that they’ve come to appreciate while utilizing your software throughout the demo period. 

Valuable integrations, leading to retention.

While gaining initial subscriptions is important, PLG strategy necessitates that these users continue coming back to the product. Ideally, each time the user utilizes the product, they should have a better and better experience. The PLG model will not work successfully if the company’s product becomes outdated or uncompetitive. Users must not only fall in love with the product but stay enamored. This can be done by continually improving the existing user experience, or by building out additional features and benefits to the product. However, if exploring the latter, keep the user journey segmented so that different audiences are still able to find the most relevant solutions quickly. As the product grows to encompass more features, the UX designers should ensure that the additional capabilities don’t cloud the interface to make it confusing or overwhelming. 

For companies in the software technology space, shifting to a product-led growth strategy could lead to a better experience for customers and keep the enterprise at the front of the competitive edge. If you are interested in learning more about how Bluetext could use marketing tactics to help reposition your brand as a PLG-focused business, contact us.

Companies are able to expand with efficiency using the product-led growth (PLG) strategy. In a PLG model, the product is the main vehicle for acquiring, retaining, and expanding customers, and these end-users are now in the driver’s seat. This means the road to success is paved by the experience your product provides. 

The PLG strategy sets new standards and expectations for companies based on customers’ wants and needs. Consider a PLG model for your company as you strive to meet the following characteristics: 

Your product offers a fast, unique, and effective solution.

It is crucial to think about how your product can not only become a leader in conversations but also garner positive experiences for your customers. The focus should be on real people, with real problems so you can promote active solutions that help customers achieve daily tasks. In today’s world, there is no shortage of companies creating products. That means there is a lot of competition out there, and customers have no problem ditching your product if they can get a faster, more efficient solution to their problem somewhere else.

The user quickly realizes the benefit of the product.

People want immediate gratification and will give up quickly if a product is more work than help. So, meet users where they work. A customer should be able to understand and integrate your product into an existing workflow without any major hurdles. Your product should deliver real value that has strong viral potential, and continue to bring value to its users.

Your product is flexible and customizable.

Your product needs to provide metrics that allow you to adapt to user behavior to provide continuous added value. Customers want their lives to be as easy as possible, so it is important to continue innovating and adapting. Enabling users to get creative and adjust the product to benefit how they work, will prompt continued internal optimization of your product and provide limitless growth opportunities.

Develop a strong user community.

Connect with your users, but also provide an environment and positive experience that will prompt users to build their own communities within their workforce through self-serving promotion. This free promotion of your product is a highly effective way of getting additional users to adopt your product. They have a foundation of trust with their peers and fellow co-workers that translates to the product and fosters long-term, loyal relationships. As more and more people test out and use your product, it becomes essential to run those users’ businesses.

Monetize after you deliver value.

Be strategic with your pricing and how you present high-value features. Users need to trust that it will benefit them and improve their workflow before they pay. Being flexible with pricing and basing it on usage will also make it easier to scale.

PLG creates happier, more satisfied customers, who in turn become promoters for your product. This cycle both benefits your business and the customers as it pushes constant innovation and optimization for your product. 

If you’re looking to take your business performance to the next level, contact Bluetext.

The way that users engage with technology has dramatically changed in the last decade. As SaaS companies are stepping up their game to meet these demands, users are met with an abundance of software available at their fingertips to fulfill their every need. Tech-savvy people are seeking software that is more beautiful, more powerful, and more affordable than ever before. The patience for dealing with clunky designs or a challenging user experience has completely dissolved. Now more than ever, businesses are recognizing the value of leading with a great product and user experience in order to generate growth. Enter Product Led Growth.

Product Led Growth

Product Led Growth is a business strategy for companies to use their product as the primary driver for customer acquisition, retention, and expansion. Imagine a pancake house that is famous for its pancakes. You hear about the pancakes, try them, love them, and tell all of your friends to try them as well; thus, the cycle repeats itself. The restaurant’s main goal is to create an unforgettable pancake that keeps customers coming back; they don’t have to prove or tell anyone that they have amazing pancakes because the product speaks for itself. Businesses that have adapted Product Led Growth strategies are thinking about how they can put their product at the forefront of every step of the customer journey–the foundation is having an amazing product with exceptional focus on the user. People hear about it, they test it out, they start using it, and all of a sudden it becomes a necessity to run their business. This type of strategy fosters company-wide alignment across teams around the product as the single most important source of long-term, scalable business success.

Product Led Growth allows for a significantly lower cost to acquire customers because existing users are promoting and selling the product simply by enjoying using it. Unlike sales-led businesses, which aim to get a customer from point A to point B in a sales cycle, product-led businesses turn the typical sales paradigm on its head by allowing customers to try their product for free, through a freemium or free trial that eventually becomes a subscription or an add-on purchase. Some of the most successful companies implementing the Product Led Growth approach are Slack, Dropbox, and Zoom, just to name a few.

A diagram explaining Products lead to user acquisition, expansion, conversion, and retention.

Slack

Perhaps one of the greatest examples of a company that has mastered the PLG strategy is Slack. By creating a completely new way for teams to communicate with each other, Slack leads with a product that is widely beneficial to almost any business, unique in its offerings, and initially free. Customers start with a free sign-up process with frictionless onboarding and are met with a superior customer experience throughout usage. Slack swiftly slides in premium plans for users to expand the scope of the platform after they’ve already started using it.

The company boasts over 12 million active daily users, with 156,000 businesses subscribing to the app and a profit of $292 million in 2021. They’ve also uniquely branded themselves with quirky and fun features that cannot be found on traditional messaging or communication platforms. By bridging the favored aspects of modern communications, like the iPhone emoji, the swift speed of the classic IM, and even conferencing abilities of Zoom, they’ve made a one-of-a-kind product that adopters find irreplaceable. It’s the kind of app that sells itself; you hear about it, you try it, and soon enough you’re using it every day. Slack is an excellent example of a company that leverages product features and usages as its main driver for acquisition and retention. 

The homepage of slack.com

Dropbox

Next up, we have Dropbox. With sales that have surpassed $1 billion in less than ten years, Dropbox has a clear and undeniably successful product-led growth strategy. Dropbox’s product-led strategy succeeds in two crucial areas. First, Dropbox has developed a user-friendly product that satisfies market demands by making file sharing simple and convenient for end users. For users, the platform is intuitive and easy to set up, and accessible for recipients regardless of subscription status. Second, the platform encourages users to convert non-users by passing along a referral link that subsequently increases their storage credit. This recommendation strategy has allowed Dropbox to gain new clients while improving the satisfaction of current ones. 

The homepage of dropbox.com

Zoom

Last but certainly not least, we have Zoom. Unbeknownst to us at the time, a global pandemic created the ideal environment for Zoom’s product strategy to become a master class of the Product Led Growth model. Zoom continues to distinguish itself from its well-known competitors by putting the needs of its clients first and keeping its promise to offer a straightforward connection. By expanding on its PLG model, Zoom makes many of its essential capabilities freely accessible, putting Zoom in the hands of millions of customers who connect for work meetings, educational purposes, workout classes, and book clubs. Other premium features are further accessible through a paid subscription.

The homepage of zoom.com

The bottom line is, Product Led Growth strategy is here to stay. It is challenging the traditional sales-driven growth model of software companies and transforming the way customers are acquired and retained.  If you are interested in learning more about how Bluetext could use marketing tactics to help reposition your brand as a PLG-focused business, contact us.