Product analytics is the process of understanding and answering questions related to customers' behaviors when they interact with products. Product analytics software tools use embedded sensors within digital products to track user actions, whether its features users spend the most time with, how often they return to the product, or the paths they take to conversion. Information gathered about user behavior is then used to identify shortcomings, optimize the product, and improve the user experience.
- Product analytics help you to anwer questions like: How is my product used? How many power users do I have? Where and why do users drop off? What types of users have the best retention?
- Product analytics lets you connect your events data with other data sources in your data warehouse, such as sales and marketing data, to obtain holistic insights into the end-to-end user journey, all the way from viewing an ad, to landing on your website, to completing the 10th order.
- Product analytics facilitates A/B testing and experimentation. You can create controlled experiments to test different variations of your product, such as UI changes, pricing models, or new features. By measuring the impact of these variations on user behavior and outcomes, you can make informed decisions about what works best for your users and your business.