What is Product Experience Management [+Use Cases]

What is product experience management?

Product experience management (PxM) is a discipline that focuses on leveraging product data to deliver superior product experiences—making them personalized, engaging, and customer-centric.

It encompasses every aspect of a product’s interaction with its users, from initial discovery through onboarding, daily use, and beyond—all to retain users.

Why is product experience management important?

Product experience management is not just about providing a product or service—it’s about crafting an experience that fosters loyalty and drives business growth.

It not only sets your company apart but also brings different benefits including:

• Enhancing customer satisfaction: Tailored experiences make users feel understood and valued—leaving them satisfied with your product.
• Increasing user retention: Engaging product experiences reduce churn by keeping users interested and invested.
• Driving product adoption: Personalized onboarding and usage guides make learning and adopting your product easier.

Product experience management (PXM) vs. product information management (PIM)

Although PxM and PIM play different roles, PxM requires product information in order to function.

That said, here’s what sets them apart:

1. Focus: PxM focuses on the user’s experience with the product, including engagement, usability, and satisfaction. In contrast, PIM deals with managing product data across various sales channels to ensure consistency and accuracy.
2. Outcome: The primary goal of PxM is to enhance user engagement and retention by creating compelling customer experiences. PIM, however, aims to streamline product information management, sales, and marketing.
3. Tools and processes: The technology stack of PxM includes analytics, feedback systems, and user segmentation to create personalized experiences. PIM focuses on data integration, quality control, and even marketing automation tools to manage product information.

Common product experience management use cases

Now, let’s explore the most common product experience management use cases:

Offer personalized interactions across customer touchpoints

According to a McKinsey study, 76 to 78% of consumers are more likely to purchase, recommend, and make repeat purchases from companies that personalize the customer experience.

To apply this, you can track in-app behavior through feature tagging and segment users based on their in-app interactions, survey responses, and activity. Then, design in-app prompts that guide users based on their stage in the user journey, past interactions, and sentiment toward your product.

Analyze customer data to identify upselling opportunities

When done well, adding more upselling prompts can drive more sales and increase your customer lifetime value.

But instead of bombarding users with upselling messages, monitor product usage with feature tagging and event tracking. Then, prompt users to upgrade their plan only when it adds value.

For example, if a customer reaches the usage limit of a feature during their free trial, you can trigger a targeted upsell message to encourage the user to upgrade:

Study product data to improve customer experience

With high-quality data, you can identify friction points in the user journey and improve them. This process can involve tracking user behavior, mapping out the customer journey, and paying attention to key engagement metrics like churn rate, session length, and user activity.

For instance, you can perform path or funnel analysis to identify stages where users are experiencing friction. This way, if there’s a substantial drop in engagement during the onboarding process, for example, you can immediately know that you need to streamline your onboarding flow to make it more user-friendly or interactive.

Act on customer feedback to increase retention

A use case for PxM is to use product management tools (like Userpilot) to tag and analyze responses from NPS surveys.

This way, it’s possible to identify common issues and get a deeper understanding of how users feel about your product.

For example, if there’s a group of users who expressed that your product is missing a feature, you can trigger a support flow that follows up with them to offer further, personalized assistance with the product.

As a result, detractors will feel heard and understood (which equals lower chances of churning), and your product team can get direction on what type of features can meet customer expectations.

Conclusion

Product experience management is not just a nice-to-have—it’s about crafting customers’ experiences that create an emotional connection and build loyalty.

By focusing on personalized interactions, leveraging data for upselling, and continuously improving the user journey based on product data insights, you can ensure your products not only meet but exceed customer expectations.

Interested in seeing how PxM can transform your product? Book a Userpilot demo to experience how you can enhance the product experience without coding.

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