Why Product Managers Need a Product Analytics Tool?
Being data-driven is a must in today’s competitive business environment. As we transform from a manufacturing economy to a service economy data replaced the oil as the most valuable resource. With the rise of the data-driven companies, different types of analytics started to emerge as well. One of them is the Product Analytics.
Consumer-driven economies require companies to have an understanding on their customers, and this is where product analytics comes in to help product managers to have an insight on their users’ behaviors to ship the right features for their products.
Why Do Businesses Need a Product Analytics Tool?
As mentioned earlier its critical for companies to understand their users’ behaviors. This is especially important for the newly emerged businesses which utilize technology in every part of their organization. Online B2C companies benefit the most from the product analytics because it is easier to collect user event data from the digital footprints.
With the product analytics you can figure out the key metrics which play a huge role in making your product great, and you can understand what action leads to increase in signups, retention, engagement and so on. Once you figure out these things, you will have a better vision to pursue.
For example, let’s say that you have a mobile app you have no problems with getting new users to sign up, but you have a problem with keeping them as a customer. Without the help of the product analytics, it would be tough to figure out why you can not retain your users. To solve this, you need to have an understanding of what metrics makes your product good. Once you figure this out, you can boil down your metrics into a single one, and this is your North Star Metric. You can unite your teams to focus on your North Star metric to drive growth in your company. But none of this could be done without having an understanding of your users’ behavior and for that, you need to utilize the product analytics.
As a Rakam we exist to give you a better understanding of your users’ behavior in a most efficient way. We are currently in beta feel free to check us out from here.
