What is Product Analytics?
Product analytics is an extremely valuable asset for product managers and teams because it allows them to see how well their digital experiences are performing. Product analytics provides essential data that can be used to improve performance, identify issues, and determine how customer behavior affects long-term value.
Product analytics is extremely powerful as it can tell you everything you need to know about what is happening in your product and how users are behaving. This includes critical information and valuable insights such as who is using your product, which features they use and don’t use, where they experience difficulties, how to reduce churn, personalize interactions for users, and much more. Product teams can use product analytics to their advantage to improve the product experience for all users.
Why is Product Analytics important?
Products are complex, and there are a million decisions to make when building them. It can be hard to know which choices are wrong and which are right. And of all the correct choices, how do you know which one is superior?
In the heyday of retail, product marketing claimed to be scientific. But John Wanamaker’s quote from that era tells a different story: “Half of my ad budget is wasted—the problem is I don’t know which half.” Now, light years later, companies are still measuring the effectiveness of their software with speculation and guesswork.
How do Product Analytics platforms work?
A product analytics tool helps you track user behavior on your site, so you can see what’s working and what isn’t. The best product analytics tools will have the following features:
- Automatic Data Capture
- Data Visualization
- Customizable Reporting
- User Segmentation
- A/B Testing
How should I approach implementation?
When it comes to product analytics, don’t treat your strategy as set in stone. The implementation process should be constantly evolving along with every new insight, sales target, business goal, website feature, change to the product, or a new idea that’s generated through experimentation. Review your plan regularly to update goals, metrics, and reports. This will be much easier to do if you select a product analytics system with maximum flexibility when it comes to events and tracking. Choose a provider that takes care of the engineering for you so that you can fast-track your implementation and avoid any delays in seeing results.