{"id":11555,"date":"2024-02-27T01:15:42","date_gmt":"2024-02-27T01:15:42","guid":{"rendered":"https:\/\/userpilot.com\/blog\/product-usage-segmentation\/"},"modified":"2026-04-14T06:30:03","modified_gmt":"2026-04-14T06:30:03","slug":"product-usage-segmentation","status":"publish","type":"post","link":"https:\/\/userpilot.com\/blog\/product-usage-segmentation\/","title":{"rendered":"Product Usage Segmentation &#8211; A Short Guide For SaaS"},"content":{"rendered":"<p>What is product usage segmentation? How can you harness product usage data to improve user segmentation and <a href=\"https:\/\/userpilot.com\/solutions\/product-led-growth\/\" rel=\"noopener noreferrer\">boost the growth<\/a> of your SaaS?<\/p>\n<p>You\u2019ll find answers to these questions below.<\/p>\n<p>This guide will help you get a basic understanding of different types of usage data and how you can use them to improve your product and user experience.<\/p>\n<h2>Summary product usage segmentation<\/h2>\n<ul>\n<li><a href=\"https:\/\/userpilot.com\/blog\/product-usage\/\" rel=\"noopener noreferrer\">Product usage<\/a> data refers to information gathered from user interactions with a product or service, offering insights into <a href=\"https:\/\/userpilot.com\/blog\/customer-behavior-analytics\/\" rel=\"noopener noreferrer\">customer behavior<\/a>.<\/li>\n<li>It&#8217;s crucial for informed decision-making in <a href=\"https:\/\/userpilot.com\/blog\/product-development-process\/\" rel=\"noopener noreferrer\">product development<\/a>, marketing, and user experience enhancement.<\/li>\n<li>Product usage segmentation involves categorizing users based on how they engage with your product.<\/li>\n<li>This segmentation allows for personalized marketing strategies and targeted communication tailored to specific user groups.<\/li>\n<li>Segments can be based on actions, achieved goals, retention rates, feedback, and more.<\/li>\n<li>Each segment provides valuable insights into user behavior and preferences, guiding targeted efforts for retention and conversion.<\/li>\n<li>Segment users based on engagement levels, user journey stages, and collected feedback.<\/li>\n<li>This segmentation enables personalized communication and tailored strategies to improve customer retention and convert trial users into paying customers.<\/li>\n<\/ul>\n<h2>What is product usage data and why is it important?<\/h2>\n<p><a href=\"https:\/\/userpilot.com\/blog\/product-usage\/\" rel=\"noopener noreferrer\">Product usage<\/a> data refers to the information collected from users&#8217; interactions with a product or service.<\/p>\n<p>This data encompasses various metrics such as frequency of usage, duration of usage, features utilized, actions taken within the product, and patterns of engagement. It provides insights into customer data from your app or site.<\/p>\n<p>Product usage data allows SaaS product managers and developers to make informed decisions about <a href=\"https:\/\/userpilot.com\/blog\/free-and-best-product-roadmap-tools\/\" rel=\"noopener noreferrer\">product roadmaps<\/a> and product lifecycle.<\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/product-usage-analytics-saas\/\" rel=\"noopener noreferrer\">Product usage analytics<\/a> is superior to other sources of customer behavior information such as surveys because they provide objective quantitive data on how the users really engage with the product.<\/p>\n<p>Without such data, product and development teams would be left groping in the dark and trying to guess what the customers may need, which is particularly hard if they often don\u2019t realize that themselves.<\/p>\n<p><!-- Main container for the Product Usage Segmentation Quiz --><\/p>\n<div id=\"userpilot-quiz-container\">\n<p><!-- Progress Bar --><\/p>\n<div id=\"progress-bar-container\"><\/div>\n<\/div>\n<h2>What is product usage segmentation?<\/h2>\n<p>Product usage describes the interactions of users with your product, service, or feature.<\/p>\n<p>Data about how, when, and for how long a customer uses the product. This type of data is generated whenever the user interacts with the product and is used to enhance informed decision-making.<\/p>\n<p>Product usage segmentation is all about building very specific user segments based on how your users engage with your product, using the product usage data you\u2019ve collected.<\/p>\n<h2>Different types of product usage segmentation data<\/h2>\n<p>There are lots of types of product usage data you could collect data on and use to build specific segments.<\/p>\n<p>Depending on what you are trying to achieve and how different groups see your product, some of them are more relevant than others.<\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/product-manager-role\/\" rel=\"noopener noreferrer\">Product managers<\/a> are interested in data on what user does within the app and whether they get the job done. That\u2019s why they may be interested in looking at:<\/p>\n<ul>\n<li>Actions: What users do after they log into the product.<\/li>\n<li>Achieved goals\/completed tasks: If users accomplished what they originally intended, or if they finished an action after they started it.<\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/best-user-retention-tools-and-software-to-keep-more-customers\/\" rel=\"noopener noreferrer\">Retention<\/a>: If they return to use the same features of the product again, and how many subscription payments they didn\u2019t miss.<\/li>\n<li>Feedback: If they complete any surveys or interact with the support team while using the product.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/userpilot.com\/blog\/product-usage-analytics-saas\/\" rel=\"noopener noreferrer\">Product usage analytics<\/a> can provide insights into a range of things, including:<\/p>\n<ul>\n<li>What the most popular features are.<\/li>\n<li>What issues do your users face?<\/li>\n<li>How \u201csticky\u201d a feature is.<\/li>\n<li>How <a href=\"https:\/\/userpilot.com\/blog\/feature-adoption-101\/\" rel=\"noopener noreferrer\">adoption <\/a>differs between different user <a href=\"https:\/\/userpilot.com\/blog\/product-user-segmentation\/\" target=\"_blank\" rel=\"noopener\">segments<\/a>.<\/li>\n<li>What the <a href=\"https:\/\/userpilot.com\/blog\/friction-points\/\" rel=\"noopener noreferrer\">friction points<\/a> are and where do the customers need an extra push?<\/li>\n<\/ul>\n<p>With all of the collected data, you can easily perform:<\/p>\n<ul>\n<li><a href=\"https:\/\/userpilot.com\/blog\/market-segmentation\/\">Market segmentation<\/a><\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/what-is-behavioral-segmentation\/\">Behavioral segmentation<\/a><\/li>\n<li>Geographic segmentation<\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/psychographic-segmentation\/\">Psychographic segmentation<\/a><\/li>\n<li>Product segmentation<\/li>\n<\/ul>\n<h2>How to perform product usage segmentation<\/h2>\n<p>Customer segmentation is the main reason for tracking product usage.<\/p>\n<p>Dividing the users into segments allows the development team, <a href=\"https:\/\/userpilot.com\/blog\/how-to-build-saas-product-marketing-team\/\" rel=\"noopener noreferrer\">marketing team<\/a>, or <a href=\"https:\/\/userpilot.com\/blog\/category\/customer-success\/\" rel=\"noopener noreferrer\">customer success team<\/a> to take more meaningful actions.<\/p>\n<h3>Segment customers based on in-app engagement<\/h3>\n<p>Users who engage with your product regularly require a different approach from those who don\u2019t.<\/p>\n<p>By looking at key metrics such as <a href=\"https:\/\/userpilot.com\/blog\/customer-health-score\/\" rel=\"noopener noreferrer\">customer health score<\/a> or <a href=\"https:\/\/userpilot.com\/blog\/customer-engagement-score\/\" rel=\"noopener noreferrer\">customer engagement score<\/a>, you can segment your user base into those two groups. Once you know which users have the highest usage and which lowest, you can engage them more effectively with your messaging.<\/p>\n<p>You can also track the engagement frequency of your core features and build user segments of your highly engaged users or the opposite, disengaged users who are at risk of churning. Once you have these, you can reach out with personalized messages to each.<\/p>\n<figure style=\"width: 1415px\" class=\"wp-caption alignnone\"><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2022\/03\/disengaged-users-segmentation-engagement-dashboard.png\" alt=\"Create segments code-free with Userpilot\" width=\"1415\" height=\"767\" \/><figcaption class=\"wp-caption-text\">Create segments code-free.<\/figcaption><\/figure>\n<h3>Segment customers based on the user journey stage<\/h3>\n<p>Another way to <a href=\"https:\/\/userpilot.com\/blog\/saas-behavioral-segmentation\/\" rel=\"noopener noreferrer\">segment <\/a>your users is by the milestones they reach in their <a href=\"https:\/\/userpilot.com\/blog\/user-journey-analytics\/\" rel=\"noopener noreferrer\">user journey.<\/a><\/p>\n<p>Where your user is in their journey will have an impact on what type of marketing message will be most effective for them.<\/p>\n<p>Track milestones using goals- a set of custom events or in-app engagements or simply build segments tracking when specific events happened altogether, meaning the user has reached a specific milestone.<\/p>\n<figure style=\"width: 1895px\" class=\"wp-caption alignnone\"><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2022\/03\/new-user-segmentation-customer-retention-automation.png\" alt=\"Create segments code-free with Userpilot\" width=\"1895\" height=\"672\" \/><figcaption class=\"wp-caption-text\">Create segments code-free.<\/figcaption><\/figure>\n<p>The groups that are stuck at a particular stage may need help and the communication should aim to help them move on.<\/p>\n<p>Messages introducing advanced features, on the other hand, may be completely lost and possibly even frustrating to users who haven\u2019t started using the app (aka engaged with its main key features).<\/p>\n<p>Conversely, the users who have swiftly and fully explored the core product features may benefit from <a href=\"https:\/\/userpilot.com\/blog\/in-app-messaging\/\" rel=\"noopener noreferrer\">in-app messages<\/a> introducing more advanced functionalities.<\/p>\n<h3>Segment customers based on collected feedback<\/h3>\n<p>The final way to <a href=\"https:\/\/userpilot.com\/blog\/needs-based-segmentation\/\" rel=\"noopener noreferrer\">segment the users<\/a> relies on the <a href=\"https:\/\/userpilot.com\/blog\/best-customer-feedback-tools-saas\/\" rel=\"noopener noreferrer\">feedback <\/a>collected from users.<\/p>\n<p>For example, you could use the <a href=\"https:\/\/userpilot.com\/blog\/net-promoter-score-nps-saas\/\" rel=\"noopener noreferrer\">NPS score<\/a> or survey responses to divide them into two main groups: loyal customers and detractors.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2022\/03\/segmentation-survey-responses.png\" \/><\/p>\n<p>Next, the first group can be contacted for a more detailed review.<\/p>\n<p>The latter group, on the other hand, could be offered a helping hand so that they don\u2019t <a href=\"https:\/\/userpilot.com\/blog\/reduce-churn-rate\/\" rel=\"noopener noreferrer\">churn<\/a>.<\/p>\n<h2>How to use product usage segmentation to improve customer retention<\/h2>\n<h3>Create marketing strategies for different customer groups<\/h3>\n<p>Begin by analyzing product usage data to uncover patterns such as frequency of use, <a href=\"https:\/\/userpilot.com\/blog\/feature-adoption-101\/\">feature adoption<\/a>, and engagement levels. This analysis will help you identify different segments of users, such as power users, occasional users, and <a href=\"https:\/\/userpilot.com\/blog\/dormant-users\/\">dormant users<\/a>.<\/p>\n<p>With a clear understanding of each segment, tailor your marketing strategy to resonate with their unique <a href=\"https:\/\/userpilot.com\/blog\/predict-customer-needs\/\" rel=\"noopener noreferrer\">needs<\/a> and motivations. Create separate marketing campaigns that highlight the benefits and value propositions most relevant to each group.<\/p>\n<p>Focus your marketing efforts on designing targeted offers, promotions, and incentives to encourage desired behaviors within each segment.<\/p>\n<h3>Identify and duplicate positive trends to improve activation<\/h3>\n<p>Looking at your most active users (based on <a href=\"https:\/\/userpilot.com\/blog\/saas-metrics-101-ltv-lifetime-value\/\" rel=\"noopener noreferrer\">LTV<\/a>) can help you understand which parts of your product are driving value.<\/p>\n<p>For example, let\u2019s imagine that user segment A uses the product to complete JTBD no 1 and consistently uses features X-Y-Z.<\/p>\n<p>If you understand this, you can reach out to other users who are only using features X and Y and use <a href=\"https:\/\/userpilot.com\/blog\/in-app-guidance-saas\/\" rel=\"noopener noreferrer\">in-app guidance<\/a>, as the <a href=\"https:\/\/userpilot.com\/blog\/how-to-create-tooltips\/\" rel=\"noopener noreferrer\">tooltip<\/a> in the example below, to help them discover feature Z that will bring value.<\/p>\n<p>That will translate into greater <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-strategies\/\" rel=\"noopener noreferrer\">user retention.<\/a><\/p>\n<figure style=\"width: 706px\" class=\"wp-caption alignnone\"><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2021\/10\/tooltip-modal-ui-examples.png\" alt=\"Create tooltips code-free with Userpilot\" width=\"706\" height=\"621\" \/><figcaption class=\"wp-caption-text\">Create tooltips code-free.<\/figcaption><\/figure>\n<h3>Convert trial users to paying customers<\/h3>\n<p>For <a href=\"https:\/\/userpilot.com\/blog\/how-to-grow-active-users\/\" rel=\"noopener noreferrer\">active users<\/a>, focus on reinforcing positive experiences with targeted communication and loyalty rewards. Offer usage-based incentives to encourage continued engagement and provide comprehensive <a href=\"https:\/\/userpilot.com\/blog\/product-education\/\">product education<\/a> and onboarding resources to maximize value.<\/p>\n<p>Craft retention-oriented messaging that emphasizes the long-term benefits of your product, using targeted communication channels preferred by each segment. Continuously monitor customer behavior and <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-rate-metrics-saas\/\" rel=\"noopener noreferrer\">retention metrics<\/a> to track effectiveness and optimize strategies.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2021\/12\/loyalty-program-increase-user-engagement.png\" \/><\/p>\n<h3>Remove friction and improve customer satisfaction with proactive guidance<\/h3>\n<p>It\u2019s not only the trial users that get stuck but also the paying ones, and they all need your attention if you don\u2019t want to lose them.<\/p>\n<p>Product usage data tells you which users and what part of the product they find hard to use.<\/p>\n<p>Armed with that knowledge, you can <a href=\"https:\/\/userpilot.com\/blog\/interactive-walkthroughs-improve-onboarding\/\" rel=\"noopener noreferrer\">build interactive guides <\/a>to help them engage with the relevant features for the first time.<\/p>\n<p>Would you like to see a good example? Have a look at how <a href=\"https:\/\/userpilot.com\/blog\/rocketbots-aha-moment-case-study-userpilot\/\" rel=\"noopener noreferrer\">Rocketbots guides their users to Aha! moment.<\/a><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/wp-content\/uploads\/2021\/01\/rocketbots-interactive-walkthrough-customer-retention-analytics.gif\" \/><\/p>\n<h3>Upsell relevant features to different customer segments<\/h3>\n<p>Using product usage data lets you create segments and identify the users who would benefit from specific premium features.<\/p>\n<p>Next, you can use the usage data to contextually trigger appropriate <a href=\"https:\/\/userpilot.com\/blog\/in-app-messaging\/\" rel=\"noopener noreferrer\">in-app messages <\/a>to <a href=\"https:\/\/userpilot.com\/blog\/account-expansion-saas\/\" rel=\"noopener noreferrer\">drive your upsells<\/a>.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/loom-upgrade-modal_a55527b5693ebb0454859f62a0b976e3_800.png\" alt=\"Loom\u2019s modal offering an upgrade to the paid version\" \/><\/p>\n<p>Loom\u2019s modal offering an upgrade to the paid version<\/p>\n<h3>Collect feedback from power users to improve your product<\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/saas-behavioral-segmentation\/\" rel=\"noopener noreferrer\">Behavioral segmentation<\/a> allows you to identify the most loyal groups of users, who can be a source of invaluable feedback.<\/p>\n<p>Having identified the users with positive <a href=\"https:\/\/userpilot.com\/blog\/essential-customer-success-kpis\/\" rel=\"noopener noreferrer\">KPIs<\/a>, you need to ask them about the changes and improvements they would like to see in the product. <a href=\"https:\/\/userpilot.com\/blog\/customer-satisfaction-survey-saas\/\" rel=\"noopener noreferrer\">Satisfied customers<\/a> are more likely to provide in-depth feedback that you can use to guide further development.<\/p>\n<p>Just don\u2019t take them for granted and make sure you offer them some incentive to take part in your <a href=\"https:\/\/userpilot.com\/blog\/user-feedback-survey-saas\/\" rel=\"noopener noreferrer\">surveys<\/a>.<\/p>\n<p>Access to beta features or a gift voucher could be a good start, and with time you could develop a comprehensive loyalty program.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2022\/03\/user-interview-empathy-in-ux-design.png\" \/><\/p>\n<h2>Conclusion<\/h2>\n<p>Product usage <a href=\"https:\/\/userpilot.com\/blog\/data-tracking-saas\/\">data tracking<\/a> gives you a chance to make informed decisions about product development, marketing, and user experience.<\/p>\n<p>If you would like to see how <a href=\"https:\/\/userpilot.com\/\">Userpilot<\/a> could help you leverage product usage data to improve user experience, <a href=\"https:\/\/userpilot.com\/userpilot-demo\" rel=\"noopener noreferrer\">get a demo<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Product usage describes the interactions of users with the product, service or feature. It consists of quantitative data about how the customer uses the product, how long for and when.<\/p>\n","protected":false},"author":51,"featured_media":172587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[82],"tags":[52,572,514],"class_list":["post-11555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-growth","tag-product-experience","tag-product-usage","tag-user-segmentation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Product Usage - A Short But Detailed Guide For SaaS<\/title>\n<meta name=\"description\" content=\"Product usage segmentation is about using user engagement data to drive meaningful in-app conversations that drive growth. Learn how!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/userpilot.com\/blog\/product-usage-segmentation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Product Usage - A Short But Detailed Guide For SaaS\" \/>\n<meta property=\"og:description\" content=\"Product usage segmentation is about using user engagement data to drive meaningful in-app conversations that drive growth. 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