According to Tim Berners-Lee, founder of the World Wide Web, “Data is a precious thing and will last longer than the system themselves.”
Today’s world is considered as startups oriented. Every startup begins with a belief that its concept helps to serve the world. But for convincing the audience, every startup needs facts and figures. Here is the need for data analytics comes into the picture.
Today, data analytics is booming due to the ever-evolving technology and tools.
As per the World Economic Forum, “in 2020, the data analyst career comes under the top eight demanding careers that every enterprise is looking to hire for.”
Data Analytics allows the organization to study raw data to discover trends and eventually draw conclusions about the data that they possess.
Data analytics plays various roles as per different business needs like to determine the concept viability, E-commerce operations often use it to study and enhance their customer experience, software development companies analyse data coming from their app to make product development decisions, etc.
How Product Analytics Enhance The User Experience?
There is no easy answer to the question- What defines the success of a digital product?
Various factors can impact the performance of your product. Therefore, to ensure the performance of your product, you need to have insights into how customers associates with your product. This is where product analysis comes under the light.
Product analytics lets the product team of an organization measure the performance of the digital product by giving critical insights like usage, engagement, feature sets, and retention. The product incharge can use this information to optimize the performance of the product, boost the user experience and KPI’s like revenue, retention, activation, etc.
Who Uses Product Analytics?
Anyone who is looking to assess the performance of their digital product and explore ways to make it more beneficial can use product analytics.
Mainly product managers and product teams can use these insights to know about the performance, why & what features require improvement, etc.
Why Analysis Matters?
Product analysis plays a key role in improving product-related metrics like revenue, retention, activation, conversion, and referrals. These metrics define the success of a product. It helps the product team to measure performance and identify the factors that affect product performance.
Customer Interaction With Product
With path and funnel analysis, you can see how users progress through your product and what actions they choose to make an essential step for your product. This enables you to understand where they succeed and where they fail, which eventually gives you a better understanding of the digital practice.
Channels That Boost The User Engagement
By using a product analytics tool, you can see why users began communicating with particular features. You can observe how sign-ups and feature activations were obtained, and obtain conclusions accordingly. This permits you to update your products for the most growth.
Decrease User Churn
User churn occurs because businesses contribute huge sums of funds to customer acquisition, and with every customer loss, there is a waste of that capital. Product analytics can assist you to boost retention by providing you passage to valuable information that you can utilise to know which features direct to great retention, increase user experience, and concentrate on providing more valuable skills within your product and services.
Conversion Rate
People signing up for your product is itself a success for your business, but it does not yield much value to you until and unless the sign-up process is transformed into a purchase. Many digital products first give free trials for a limited period of time to their customers to get users hooked to their products.
A genuinely thriving sign-up is when the buyer remains with the product even after the completion of the trial period. Product analytics allows you to know your conversion rates, what encourages sales, and presents you essential insights into increasing revenue.
Identify Common Buyer Characteristics
The most reliable customers are the ones who always remain with your products and also refers other buyers to your product. With product analytics, you can determine which type of consumers are more engaging with your product and then utilise that data to categorise your userbase. This eases track various KPIs for different customers and concentrates on targeted product and retailing efforts for each section.
Conclusion
To stay up in this extremely competitive world, the only choice is smart work. If you wish to win, you also require quantitative, data-driven tools and methods. If applied properly along with your business aims, product analytics tools facilitate product managers and teams to create data-informed conclusions.
