Table of contents:-
- What is Product Analytics?
- What is the importance of Product Analytics?
- How to use Product Analytics?
What is Product Analytics?
Product analytics involves gathering information that can benefit product managers and development teams in order to analyze the effectiveness of their products.
It evaluates the user experience and provides critical feedback for improvisation, optimize performance, identify problems, and improve the overall efficacy of the product.
Product analytics are a mechanism of constructive criticism that allow developers, engineers, designers, and product managers to acquire crucial insights about the most popular features and weigh which problems affect engagement the most. Thus, it enables prioritization of tasks.
What is the importance of Product Analytics?
Product analytics gives a competitive advantage to companies who are assessing the market reach of their product. It provides a deep understanding of consumer psychology with respect to your product and demonstrates the user experience of the customer on a daily basis.
We observe that customers are often reluctant to provide feedback via questionnaire and survey. As a result, there is a gap between the predicted efficacy of the product and the actual efficacy of the product. In such a case, Product Analytics comes handy where the company can understand customer needs better and thus, cater to those needs just as equally.
It also becomes important to sift through the features producing the highest engagement and those that are producing very low engagement. In order to identify and eliminate unnecessary crowding of features, product feedback becomes necessary. This creates competitive leverage for the developers and designers while working on improving existing products or creating new ones.
Without Product Analytics, it becomes difficult to understand what the needs of the audience are and leaves the team relying on guesswork. Thus, there is a huge compromise on adapting, refining, and eliminating.
How to use Product Analytics?
Following are the steps that companies must incorporate in order to implement product analytics and use it effectively:
- Outline the Goals
Firstly, the product teams should be clear on the reasons for creating a particular product. Next, it is important to understand what the business objectives are meant to be achieved through this creation and what the gathered information will indicate about the product performance, type of audience, and potential adaptation that would be required in the future.
Outlining product analytic goals allow risk management by preventing the team from investing their time and resources into the process without knowing what they are trying to learn.
For instance, there could be a glitch in accessing the page where your audience can buy the product. Thus, they could be deprived from your product that is actually made to meet their needs and slow down the reach of your product. However, with product analytics and outlining goals, this feedback can be provided to the developing team and they will know where to focus their energy and effort.
- Accurate Data Tracking
The data that is gathered for product analytics is divided into ‘events.’ These events denote one particular action of the user; for instance – using a feature or buying a product, etc.
The team’s important task is to decide which events in particular are needed to be tracked. This needs to be done on a common document so that everyone can access it and have clarity on the crucial milestones in the user’s journey.
Once the data is collected, the tasks need to be pre-assigned to the team members as to who does what with the data that is acquired.
Additionally, it is important to cover all the crucial milestones and not miss out even on the slightest detail because that can affect the user experience negatively and hamper the product’s success.
- Using the best tools available
There are a lot of tools which offer reports on the user experience. Some of the popular ones are Google Analytics, Amplitude, Kissmetrics, Mixpanel, etc. These are just a few options, but as per the common trend, companies and developing teams are likely to sign up on various platforms to acquire a variety of data that provides distinct insights.
Often, one source might suit the needs, goals, and working progress of a particular team better than others. In such cases, it is good to stick with those platforms for product analytics in order to save resources.
Although, remember to keep an open mind to others as well and do not be bound by a single platform because there is a wealth of insights from every platform targeting differing populations.
The integration of the product analytics with your development and management tools is necessary to create a full-blown impact. If the systems don’t compliment each other well enough, it slows down the growth and you could be possibly losing out on pivotal feedback.
Make sure you research well before using particular product analytics and based on that choose the one that suits your resources the best. This way, you can make the most out of the product analytics as well as your investment.
Q: What are some of the best product analytics tools?
A: Some of the best product analytics tools include Amplitude, Google Analytics, Pendo, Mixpanel, Smartlook, Kissmetrics, etc.
Q: Why are product analytics tools important?
A: Product analytics tools help to go over the user experience journey step-by-step and help the developers understand how the users are engaging with their product. It provides critical feedback for improvement and future adaptation.