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by Seven Peaks on Oct 20, 2023 12:16:31 PM
Analyzing your product's performance goes beyond just counting the number of users; it encompasses understanding user engagement metrics such as active rates, retention, and trial conversions.
Recognizing the Life Time Value (LTV) of consumers who actively engage with your product is essential in satisfying your CFO and bolstering business health.
Driving Decisions with Data
Often, product roadmaps are influenced by the upper echelons of management, like CEOs and COOs, or are based on speculative assumptions.
Instead, they should be driven by hard facts and analytical data. Quality product analytics can empower product owners to make informed decisions that resonate with C-level executives by substantiating the business impacts of various directions with quantitative evidence.
Customer Satisfaction is Paramount
A robust marketing plan won’t suffice if your product fails to meet user expectations, leading to customer frustration and attrition.
The advent of review-centric platforms allows users, especially the new generation, to voice their experiences, potentially making or breaking a product's reputation.
Hence, having a precise product analytics strategy is imperative to swiftly understand and improve customer journeys, ensuring customer satisfaction and loyalty.
What to Expect from Product Analytics?
Effective product analytics should deliver quick and valuable insights, allowing teams to identify what works and what doesn’t, thus aiding in prioritizing features and improvements.
It should foster a supportive environment where teams are unencumbered by data-related bottlenecks, enabling a smooth exploration of the impact of new features and user behaviors.
Harnessing the "A-ha" Moments
Successful products often have defining moments of realization or "A-ha" moments, like signing a document swiftly on Docusign or initiating a new conversation on Rakuten Viber.
Identifying and aiming for such moments is instrumental in enhancing user satisfaction and engagement.
Innovation and Competitive Advantage
In an era where products are continuously reviewed and rated on various platforms, staying ahead of the competition is crucial.
Utilizing Business Intelligence (BI) and Marketing Analytics tools can expedite gaining insights, but they may fall short in delivering in-depth analysis needed for substantive product decisions.
Optimizing Analytics Tools
Choosing a product analytics solution that minimizes dependency on data teams while offering ease of use is vital.
Solutions like Mixpanel can seamlessly integrate into your data stack, offering user-friendly interfaces that decrease the workload on analytics teams and expedite insight generation.
A Forrester Total Economic Impact Study Commissioned by Mixpanel Inc. 2018. Benefits and costs calculated over three years, they reckon that:
- 298% ROI by improving the customer LTV
- US$465K productivity savings with self-servicing
- US$1.1M as minimum cost in-house data analytics solutions
The State of Product Analytics Report, 2020 shared that if you use dedicated Product analytics platform your KPI :
- 31% Improvement in conversion rate
- 32% Improvement in user engagement
- 30% Improvement in user retention
Strategizing for Success
Comprehensive tools and strategies, ranging from cohort analysis and impact assessment to user flow and retention, can illuminate clear facts, eliminating guesswork.
They can uncover avenues to enhance user interactions, customer loyalty, and overall user experience.
We hope to continue acting as a space for industry experts to come together, share their insights and experiences, and build their professional networks.
Driving User Engagement
Gleaning insights from product analytics isn’t the endpoint; it's about leveraging these insights to enhance user engagement and experiences.
Identifying areas that require improvement or increased engagement allows for strategic campaigns that improve retention and accelerate conversion.
Cost-Effective Analytics
A judicious approach to analytics involves considering cost-effective solutions that provide substantial ROI. Payment models should be aligned with business growth and success, ensuring that companies can derive maximum value from their investment in analytics tools.
If you need help getting your company out of the harbor and headed in the right direction, the Seven Peaks team is here to support your journey. Find out more about our expert Data & Analysis solutions here.
Damien Velly,
VP of Data and Analytics at Seven Peaks
Damien is a strategic innovator and digital product development leader with 8+ years of experience working in the intersection between business, technology and design. As an expert in data and analytics, Damien has developed 20+ products and services, with 15M+ USD total in documentable benefits.