Here’s the typical SaaS story.

You’re getting leads coming into your SaaS trial. They liked what they read on the ad enough to click through and input their email. Maybe they’re trying a few things, but for the most part they’re just not doing the actions you need them to. So they leave. And never come back. No bueno.

What if there was a proven strategy to guide your users towards completing those all-important tasks? Well, let’s get into some of the psychology of user engagement and how you can leverage it to explode the adoption.

I’d think that nearly every parent has promised their kid ice cream if they finished their dinner. Why? It usually works. Do something, get something.

Turns out that same principle works wonders in the SaaS world. We're talking about the investment-reward loop, and it's how to get users hooked on your product.

Here's how it works:

  1. User invests time/effort into your product (eg. Setting up their account)
  2. User receives a reward (eg. Personalised dashboard with tasks relevant to them)
  3. User feels accomplished and is motivated to invest more (eg. Taking that next step within your product by adding a code snippet on their website)

It's a simple concept, but when executed well, it's pure magic for user engagement.

Also important, is not stopping at just one interaction- consider this across the whole product journey.

With onboarding, you want to get the ball rolling for your customer action and keep it moving. Start with small, easy-to-accomplish tasks that provide immediate value. As users complete these initial steps, they'll build momentum and be more likely to tackle bigger tasks down the line.

Let's look at some real-world applications of this ‘investment- reward loop’ principle:

  1. "Send three quotes, get your win rate and percentage" This is brilliant because it's specific (three quotes) and offers a clear, valuable reward (win rate and percentage). It's like saying, "Hey, do this small thing and we'll give you powerful insights in return."
  2. "Complete a week of exercise to win your first 7-day streak" This one's all about gamification. The investment (daily exercise) is broken down into manageable chunks, and the reward (7-day streak badge) taps into our love for achievements and progress tracking.
  3. "Add this code to your website to immediately see your analytics" Talk about instant gratification! This approach minimizes the investment (just copy-paste a code snippet) and maximizes the reward (immediate access to valuable data). It's the SaaS equivalent of "insert coin, get prize".

Putting It All Together: Your A.C.T.I.O.N Plan

So, how do you apply these principles to your SaaS product? Here's your A.C.T.I.O.N game plan.

  1. A: Assess key actions: Identify the onboarding customer journey that drives user towards ‘adoption’.
  2. C: Chunk it down: Break it down into a clearly defined number of high value benefits.
  3. T: Treat users: For each of these high-benefit steps, Consider the reward or ‘treat’ users gain by completing actions.
  4. I: Investment- reward loop: After considering the benefit-driven steps and reward, wrap them up in well-considered loop that guide users to becoming ‘power users’.
  5. O: Openly communicate: Don't be shy about telling users exactly what they'll get for their efforts upfront.
  6. N: Note and optimise: Keep a close eye on which actions users are completing (and which they're not). Use this data to iterate and constantly improve the experience.

By implementing these strategies, you're not just asking users to take action - you're creating an experience where taking action feels natural, rewarding, and maybe even fun.

It’s not about ‘tricking’ users into doing what you want. It's about aligning your product's success with your users' success. When you nail that alignment, you'll find users aren't just willing to take action - they're keen to do so.

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