Product Analytics: What Every Product Manager Should Know

To use product analytics to its full potential, product managers need to understand the different types of customer behavior and the tools that are available. The data collected by these tools are useful for understanding customer behavior and determining which initiatives will have the biggest impact on users. Once these metrics have been determined, a product manager can create actionable insights that will improve the product’s success. Let’s take a closer look at it!

Product analytics functions

If you’re working with product analytics tools, you should know their functions. These are:

  1. Tracking. This tool is used to check the way a site’s visitor interacts with the product, and what should be improved or removed.
  2. Segmentation. This tool helps to divide visitors into groups. These groups depend on where and when the clients come to the site.
  3. Funneling. This tool helps to visualize the processes and stages that clients go through on the site.
  4. Usability measurement. This tool demonstrates the relationship of clients with elements of a product or site itself.

But to use each function properly, you have to learn about their objectives.

Tasks and objectives of product analytics

Mainly, product analysis tools have several tasks and objectives. They depend on who uses the tools. We can differ:

  1. Product managers who get all the data about user behavior on the website. 
  2. Development team leaders who see issues, fix them and tweak features by analyzing website visitor behavior. 
  3. UX designers observe how clients manage the interface, which buttons are convenient and which are not. 
  4. Development managers who analyze visitor engagement, identify their needs and optimize customer retention strategies. 

Types of product analytics 

While product managers are known for their passion for analytics, this field also has its share of challenges. As a product manager, you want to understand the behavior of your customers and create a product that meets their needs. Product analytics helps you achieve this, as it can provide you with useful data. Software tools track user behavior through embedded sensors that are found in digital products. This information is then used to identify customer-facing shortcomings, optimize your product, and improve the overall experience.

Depending on the type of data you have, event properties can help you understand specific attributes of tracked interactions. Event properties can include time, duration, count, device, software version, geography, user demographics, and element characteristics. They can also be boolean or customized. You can use event properties to improve your analytics tools. In addition to this, you can track how users interact with your products. For example, a product may have a feature that makes them more likely to purchase it.

Product analytics tools 

Product managers must know about product analytics tools. Insights into user behavior can help them make changes that will improve the user experience. For instance, they can find weak spots in the product management process and offer real-time insights into customer needs. Ultimately, product managers are responsible for creating a great customer experience, so it is imperative they know about the right tools to help them in this task. Let’s take a look at them!

Google Analytics 

If you’re a product manager, you should understand how to use Google Analytics to measure your product’s success. This tool helps webmasters measure traffic to their websites, and it can help product managers analyze visitors’ behavior and improve conversion rates. By understanding how your product’s metrics work, you can identify which campaigns are generating the most traffic and increase conversion rates. Not only that, but Google Analytics also helps you understand your customer and improve your product.

2. Amplitude 

Amplitude is a product analytics tool that offers an interactive user interface and enables you to explore the paths of the users within your product. You can aggregate paths based on different metrics and view the percentage of sessions that follow each path. With this feature, you can identify behavioral personas and identify areas where your product needs improvement. 

This powerful data platform can be overwhelming for non-analysts, so it’s important to be sure that your team can manage it effectively. While Amplitude offers plenty of data slicing options, its integration with common data storage is limited. Additionally, Amplitude can be difficult to integrate with common BI tools, so companies with limited technical stakeholders may want to explore alternatives.

3. Mixpanel 

If you’re a newbie product manager, you may not understand the importance of using a tool such as Mixpanel to track metrics. It can be overwhelming to track data and find out what’s working. Rookie product managers often create a huge list of metrics and evaluate each one equally, which can give them a false sense of how active their users are and how valuable their input is. Instead, focus on one or two key metrics and gauge how well they’re performing against each other.

If you want to understand the effectiveness of your product or service, you need to know what’s working and what’s not. Fortunately, using Mixpanel can help you to do that. 

4. Snowplow 

Snowplow is a data collection platform that helps users collect and enrich events and other data from a website. The platform also includes a processing pipeline that captures information from an HTTP endpoint and transforms it into structured data and queryable databases. It also comes with tracking utilities that generate HTTP calls based on user actions. Users can configure these utilities to capture data at a granular level. After that, they can combine it with other data sources and aggregate it into smaller data sets.

The platform is also great for product teams looking to improve sales and profitability. It enables them to make better decisions by better analyzing customer behavior across a digital estate. In addition, it delivers data in real-time to a data warehouse. The data collected by Snowplow can power business-critical applications, analytics, and reporting. Because it runs on its cloud environment, it gives users complete control over their data. 

5. Segment 

Marketing professionals have long recognized the benefits of segmentation in product analytics, and the use of multiple methods can be used to target specific customer segments. This is particularly important for the product marketing team, as the analysis of consumer behavior can help pinpoint a product’s appeal and attract new customers. Several methods of segmentation are available, including customer age, demographics, and purchase history. All of these factors can help determine which products appeal to a particular group of consumers.

Comparison of product and marketing analytics

If you’re looking to build a successful business, you need to know the differences between marketing analytics and product analytics. With the use of these two different types of analytics, your business can better understand the performance of its products and improve the way users engage with them. Marketing analytics, for example, focuses on tracking how users interact with your campaigns and whether they’re returning to purchase more. Product analytics, on the other hand, focuses on how your customers behave and engage with your products.

While marketing teams are primarily concerned with optimizing marketing spend to acquire new customers, product teams typically have a larger user base. By understanding product usage and behavior, businesses can identify their most loyal users and turn them into vocal advocates. At the same time, they can identify struggling users and offer them different experiences to reduce churn. In addition to identifying user behavior, product analytics can help you measure the success of your marketing campaigns, allowing you to better target your marketing efforts.

Guest Author Daniel Howard

Daniel Howard Journalism guru, professional blogger, and author of many articles for the StudyCrumb blog. An author who knows exactly how to create useful and interesting content for readers.

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