Product development works through phases, each phase strives to make the product much better from the previous version. How to significantly improve the product in the long run? The intelligence gathered through analytics is crucial to understand the finer details of the product, user experience and business objectives
Analytics has the power to give actionable insights at every stage of the product life cycle. The data on the flow of information, review of growth parameters and user actions are valuable for decision making. A product development team utilizes the inputs from analytics to expand the depth of the offerings and deal with complexities.
The analytical parameters delves deeper into the user behavior and actions. The product team could understand the hidden abstractions and how services truly work in the real world. Further, the team could explore more than the obvious, to uncover myriad of connections, behavior, complexities that interact together.
Five Analytic Metrics that Can Improve the Product Life Cycle
Every product has a goal. This could be solving a problem, enhancing the user experience or increasing revenue. Further the goal is tracked usings KPIs (key performance indicators). Each of these KPI are evaluated using various metrics.
We have listed five key analytic metrics that can be used to track the performance of the product.
The division of users by the characteristics they share, such as location, age group or purchase behaviour helps to create segments. Some segments would have 2X engagement compared to average, while the other segment might give you 5X revenue. A product team shall have segment wise priorities to achieve your goals.
An analyst could create dashboards to analyse multiple segments, so the team could use data-driven decisions to improve the product by aligning top segments for your growth.
Retention is analysed by repeated actions made by the user. The common method is to analyse the user visits, but it might vary depending on your goals. For example, a SaaS product might analyse subscription renewal as the parameter to calculate retention, while a news portal might stick to user visits.
The daily and monthly average active users give many insights on the product. A feedback from these users helps to optimize the product, improve acquisition channels and formulate retention plans.
Most of the products are part of a solution basket. The users with the help of these products solve a problem. Understanding the user segment and products that are used in combination is crucial to improve the user experience. It’s even more important to integrate similar products to prevent possible switching from your application.
The analytics pertaining to integration with third-party applications can provide you stunning insights. For example, users might be using another app to avail a simple feature that you could have built with minimal resources. The retention analytics for integrated systems usually shows improved outcomes.
Business parameters such as revenue growth, profitability and user growth are tracked realtime through analytical platforms. The companies produce these parameters for fundraising, resource allocation and feature releases. Each of the business objectives is tied upon a measurable parameter that could be easily tracked. The MIS report often use these metrics to evaluate the business performance in modern organizations.
A growth-oriented product team always ties their development activities based on the insights gained from the users. Thus the data gained from the analytics channels is crucial to sustain the business in the long run.
Pricing is often determined by the competitors. But sometimes pricing does not match with the business model. The price might break at scale, and user acquisition gets challenging. The analytical parameters often help you to set optimal pricing. Companies can introduce variable pricing for different modules of the same product.
Data-driven pricing gives the product team to provide competitive rates while achieving the business objectives. The optimal pricing where user retention is on peak could be determined only through continuous analysis of multiple parameters.
Netstratum has extensive experience in building analytical solutions. Talk to our analytics team to learn more about offerings.