Product analytics is an excellent tool for analyzing the behavior of visitors to your website. The tool will also allow you to improve the experience of your customers. The collection and management of data are automated and provides product designers, developers, and team leaders with valuable data that will guide their decision making. Studies have shown the use of product analytics improves the bottom line of the companies that make use of the tool.
What can Product Analytics Provide?
Product analytics will provide you with valuable information regarding the interaction of customers with your business platform. You and your team will be able to track the footprints of visitors as they navigate your company website, digital platform, or software. This will provide you with the ability to determine what caught the attention of users and what they ignored. This will help you to devise strategies to encourage engagement and return visits from customers and users.
Websites and applications are not designed to produce reports on themselves. Product analytics provides reports in a detailed and organized manner that will facilitate a higher degree of product management for your business.
Are They Actually Using My Service?
Product usage analytics record what consumers actually do when visiting your website or application. This is more beneficial to you as a business owner than the stated interests and behavior of consumers on surveys and interviews. This data is known as ‘revealed behavior’ and is extremely useful to business owners and marketers alike. Analytics will provide your marketing team with a predictor of customer behavior on which they can depend.
Better decisions can be made by you and your team once you are armed with high-quality data leads that product analytics will provide to you. In one study, business owners were polled and reported they were more than twice as likely to outpace the competition in their markets once they began taking advantage of product analytics.
How do I Use Product Analytics?
There are two main characteristics of every product analytics platform that provides business owners with the information they need. The first is data tracking. This involves acknowledging and recording events, visits, and actions. The second function is data analysis. This will allow you to view the data that is captured on a dashboard and through detailed reports.
The data that is captured and tracked through product analytics provides business owners with the information needed to answer the following questions:
- What are the demographics of our website users?
- What behavior is typical for users that access your website or app?
- How do we reduce churn?
The answers to these and many more questions are available to product analytics users and provide insight to guide the decisions that may ultimately determine the overall success or failure of your business.
Product analytics will help you accomplish the following goals:
- Better product retention
- Identify visitors that represent the most potential profit
- Identify where marketing dollars should be spent
- Gain an understanding of how visitors use your app or website
- Discover problems for users
- Churn reduction
Your production team will be able to use the available data to have real-world theories proven or disproven. Examples are the thought a pop-up will increase website subscribers or if icons will speed up the navigation time for visitors. You and your product team will be able to build up a group of solutions that are backed by the evidence you gain through product analysis.
As you and your product team accumulate more data, the more capable you will become at identifying and quantifying your marketing and product development needs. This situation that will be created is a constant cycle of data accumulation, testing, and product improvements that will result in more products that score high marks for usability.
Different product analytics platforms will provide different tools to you and your team. But some features that are common across the board include:
- User Tracking – Events that take place inside your website or application is tracked automatically.
- Segments and Profiles Users – Determine who the visitors to your site are and divide them by things like the device they use, region, time, and behavior.
- Send Notifications – Establish communications with visitors and send notifications to you or your product team.
- Observe the Marketing Funnel – View customer navigation and conversions.
- A/B Test – Test messages and features.
- Dashboard Access – View organized data through templates or detailed reports.
- Measurements – Measure the engagement for each website feature.