Today the term Product Analytics is not a well known word in the industry. When I talk about Rakam, a product analytics tool, I can see the confused faces in front of me. Let me enlighten you in this subject and also to save myself from seeing the confused faces. Also,I will try to give you a better insight on product analytics.
In simple words, analytics that allow you to understand how your users behave while using your product is Product Analytics. This works best with the digital products as it is easier to track and analyze customer event data with digital footprints. Analyzing your customers behaviour can lead to finding why your customers are churning, converting or coming back to your product.
What Industries Benefit Most From Product Analytics?
In my previous article I mentioned the industries that benefits most from the analytics. Companies which has a mobile or web application can benefit the most from utilising product analytics. Data driven companies are dependent on consumer behaviour. For better understanding of user behaviour, conducting analysis such as funnel, retention and segmentation is a must. Insights gathered by these analysis could be used to provide better experience for your users. Having data on user level can help companies to have an advantage in today's competitive business environment. From our customers we've learnt that they've achieved increased return on their profits by user event tracking to see these returns, one need to have an understanding of product analytics and use it efficiently.
What Can You Get From Product Analytics?
Product analytics is often confused with marketing analytics. But unlike marketing analytics, product analytics is focused on a product. It allows you to track and analyse your user events to make your product better. As the names suggests, the focus is on your product. Data gathered from using product analytics features is used by product managers, growth managers and UX designers to make improvements on their products.
By using Product Analytics you can ask questions like;
√ What can we do to reduce the churn?
√ Where is the bottleneck point in our sales funnel?
√ What percent of our users return to our app after initial usage?
√ What characteristics do our most loyal customers have in common?
√ How many of our users are completing a key event for our company?
√ Which feature gets the most usage?
What Are The Most Commonly Used Report Types?
There are 3 most commonly used reports and these are funnel, retention and segmentation. You can do all of these using Rakam.
A well structured flow of actions on your website is important. For example actions like, visit site, registration, execute search, add to basket. In short we can define funnel analysis as, the actions your users take before reaching the goal you designed, at the end of the funnel.This helps in understanding, at what point of a certain process your users abandoned the process and churned.
A metric that, helps you to understand how often users return to your app/website after their first usage. You could have a nice looking app which could attract new users but you need to understand if your new customers will stay as a long term customer. Retention data is formed by the two events, which are First event and Returning event. This can be charted daily, weekly or monthly.
By segmenting the data you can discover hidden gems in your data and get useful insights such as the common characteristics of your best customers. Using this feature will allow you to get detailed segmentation on your user level data. For example you can segment your best customers to see what characteristics they share.
I hope that this has article has given you some understanding of the Product Analytics. Not every business can see a benefit from using it, but companies having a mobile app or web app should definitely consider to invest. If you have not used product analytics features before it could take some time to learn and adopt to it, especially for the people who do not have a technical background. But hey, if you are one of these people don’t worry because our tool is here to make your job easier.
Feel free to check out Rakam from here!!!