Attention chief product officers and product managers: If you aren’t aggressively using your application’s data to gain insight into customers’ experiences with your product, then you are setting the stage for churn, market share loss, and slower growth. None of these are desirable outcomes.
With all the information out there – 2.5 quintillion bytes a day, by one count – it is no surprise that it’s a struggle to classify, organize and govern user data created by applications, let alone turn it into actionable insight.
The importance of product analytics
While good marketing and effective selling can attract a new SAAS customer, only a good product can retain existing customers. Product analytics can help you get there.
While analytics has always been an integral part of marketing or sales, it has not always been the case for product management teams. But the current competitive business environment makes this a necessity.
In simple terms, product analytics is the process of collecting and interpreting usage data out of a software application. The exercise is critical to gaining insight into customers’ experiences with your product – and uncovering its strengths and weaknesses.
For example, SAAS providers get insights about customers’ interaction with their products. Product managers can collect data and analyze how customers interact with various features of their products. Product leaders can make data-driven decisions for a smoother product development process, enhancing customer experiences.
Customers are demanding more
Customer expectations change and evolve rapidly – and are demanding more than ever. You might have a perfectly designed product, but you cannot expect customers to stick to it unless you upgrade it regularly.
In SAAS, your business is your product. You cannot afford to shoot in the dark and expect everything to work fine. Product analytics help understand every aspect of your customers’ behavior concerning your product.
Reliable, objective feedback
A satisfied customer is your next future addition to your loyal customer base. Product analysis gives you insight into whether customers are satisfied or not.
Supported by tools, major categories of insight are:
- Product engagement. Learn how often the users use any specific feature of your product or how much time they spend with your product. Get detailed insights into the frequency of visits by customers as well as their interaction with specific features of the product.
- User behavior. Track and collect user behavior data, i.e., how users are utilizing the product, what features they spend more time on, etc. Perform analysis on various parameters as location, age, and behavioral patterns of the users.
- Product performance. Discover which features of your product are attracting more customers and which features are turning away the traffic. Identify users’ pain points or the point where customers are getting stuck, and the business is losing customers.
Many roles benefit from product analytics
Product analytics is a process that benefits everybody starting from the product development stage to the end consumer. It is useful for persons involved in the product creation process, sales and marketing processes, developers, and UX designers.
Product managers or designers need to understand customers’ needs and expectations to create a product that will sell.
People involved in sales and marketing are able to design their marketing strategy very well when they know about customers’ behavior. They can create a more appealing sales pitch.
Designers and developers can easily solve the issues in their design if they know the productivity pain points of customers. They don’t have to rely on the hit-and-trial method for creating a seamless design.
Customers get products that suit all their needs and fulfill their expectations. Product analytics is much helpful in enhancing customers’ experience with a product.
Lots of product analytics tools are available
Many different tools support the product analysis process. But different tools have different strengths, which you need to match your specific requirements. People who design products need to understand what customers want and expect, so they can create something that will be successful.
The first thing you need to do is to understand your needs precisely. Jot down your specific requirements and then search for a tool that can fill the gap. A well-used product analytics tool can take your product and your company from good to great.
This list of tools should help get you started: Google Analytics, Amplitude Analytics, Mixpanel, Heap, Pendo, FullStory, Glassbox, Auryc, Indicative, LogRocket and UXCam.
Outside help can provide guidance and support
Vendors with project management and technical program management expertise – like us – can help. Whether it’s as simple as extra contingent staff or a complete team with a mix of specialties, we can help in three ways:
- Contingent staff resources so you can get your product analytics initiative off the ground fast without having to secure incremental internal headcount.
- Consulting expertise in the event you need more support to develop a product analytics strategy and practical implementation plan.
- Staff augmentation to extend an existing internal team with a strategy and plan in place and functioning effectively.
The case for action
The cost of not having a product analytics plan – and executing against it consistently – can vary from stagnation to business viability. But this doesn’t have to be the case.
The business case for taking action should consider the benefits of reducing churn, lowering customer acquisition costs, or increasing market share. Plus the many benefits mentioned above.
Learn how we can support your product analytics program by starting a conversation.