Why You Need Product & Marketing Analytics to Drive Revenue
By Scuba Insights
Data is essential to any successful business. From retail to tech, intelligent business decisions are driven in large part by data–and can be the difference between profit and loss. But how do you harness and leverage data to meet or surpass revenue goals? The answer is simple: product and marketing analytics.
Product and marketing analytics provide businesses with the power to track customer journeys, retention and churn, and product performance. In turn, these analytics provide critical insights that can be used to better serve customers, understand and develop innovative products, and increase retention. In fact, 84% of companies that took measures to improve their consumer experience saw revenue increases.
There are key differences between product and marketing analytics, and to get a truly holistic view of customers, brands need to invest in both. Here’s why you need product and marketing analytics, and how leveraging them can increase your company revenue.
What is marketing analytics?
Marketing analytics provide insight into the first step of the user journey: acquisition. This type of data keeps track of basic marketing KPIs and user interaction with campaigns and strategies. This includes click rates and session lengths in order to help a business form effective marketing strategies and optimize advertising dollars for the best ROI.
Marketing analytics can be used to determine which marketing campaigns drove the most traffic and weed out the ones that weren’t as successful. A business may use marketing analytics to find that the majority of their customers are discovering them for the first time through social media (first-touch attribution). Or it may be used to track how long users are staying on a specific webpage. Some of the KPIs marketing analytics provide include:
- Traffic sources
- Click rates
- Website visits
- Session length
- Bounce rates
Although the average spend on marketing analytics has dropped, its use in business is still widespread–in 2021, it ranked fourth in top priorities for marketing leaders, accounting for 11% of the average CMO’s total budget.
But marketing analytics only tell one piece of the story. In order to get a holistic view of customer insights, a business needs to have data that also focus on user retention and engagement. Without it, brands lose opportunities to improve their product and drive revenue. This is where product analytics come in.
What is product analytics?
Product analytics track the other components of the user journey–where users go after their initial touchpoint, how they interact with a product, and whether or not they retain or churn. From recording repeat purchases to following movements between devices, product analytics is a more complete and granular picture of how users are interacting with a product. By seeing the exact steps a prospect goes through when viewing a product demo, product managers can learn whether the process is too drawn out, confusing, or whether an area of the product itself doesn’t work as planned.
The demand for product analytics is growing: the $9.6 billion market is expected to hit $25.3 billion by 2026. And it’s easy to understand why. By leveraging this data, businesses can improve their product, understand how users engage with the product, and why users are acting a certain way.
These insights are key to elevating end-user experience–and increasing customer retention and overall revenue. According to one study, it’s 5 to 25 times more costly to acquire a new customer than retain one. And on the flip side, a single bad experience will cause 32% of customers to abandon a brand.
Some important metrics product analytics offer that marketing analytics tools don’t always have the capacity for include:
- What’s causing retention and churn amongst users
- Behavior within different user segments
- How product changes affect user behavior and desired outcomes
- Tracking conversion rates
One example of how a business can use product analytics is to find where users are getting frustrated or stuck and dropping off. Another use case could be dividing users into cohorts and tracking where those groups are spending the most time, then using that information to deliver a product better curated to specific or relevant interests. Product analytics can also provide data on a user’s journey over time, such as what they did upon returning to a product after having previously completed an action and exited.
Marketing analytics and product analytics have distinct purposes, and both offer advantages for enterprises looking to increase their revenue.
To drive revenue, brands need both product and marketing analytics
Marketing and product analytics work in tandem, and utilizing them enables brands to get a comprehensive understanding of how products and marketing initiatives are performing.
With the KPIs marketing analytics provide, businesses are better equipped to understand how they acquire users and fine-tune their customer acquisition efforts through data-driven marketing strategies. Meanwhile, product analytics help businesses retain users and improve products by tracking behavior throughout the customer journey and product analysis.
Marketing and product analytics have a symbiotic relationship and work together to:
- Provide a comprehensive analytics view of marketing efforts, customer journeys, and product usage, both broad and granular
- Help marketing teams better target and implement successful campaigns
- Provide granular insight into product usage and user interaction with products
- Give actionable data on user behavior to inform product development & innovation
- Capture and unify siloed data to create a comprehensive analysis
- Help acquire and retain users, and reduce churn
All the analytics you need in Scuba
Scuba Analytics’s continuous intelligence platform provides marketing and product analytics without access or scale limits–in real-time. Scuba unifies siloed data to provide the most comprehensive analysis of a customer’s journey, product usage, retention, and more. Scuba simplifies accessing and analyzing data–with no-code queries, data is available to all stakeholders in a business.
From customer journeys and retention analytics to behavioral data insights at scale without SQL, learn more about how Scuba Analytics’ comprehensive solution can help put marketing and products data to work faster.
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