Today, companies hold a wealth of customer data that can provide the insights they need–and they are turning to product and marketing analytics to unlock them. Whilst these two types of analytics processes generate specific insights, used in conjunction they become a revenue-driver. Let’s take a look at what they each deliver and how to use them together.
A positive customer experience is crucial to a company’s bottom-line, and 84% of firms that invest in it enjoy revenue increases. To achieve this, businesses must understand the customer journey, retention, churn, and product performance.
Using Marketing Analytics for Acquisition
Marketing analytics gather and present insights on user interactions with a campaign, which when tracked against marketing KPIs can be used to optimise acquisition and ROI. Dependent upon objectives, typical marketing KPIs include click-through rates, session lengths, bounce rates, traffic sources, and impressions.
Through marketing analytics businesses can uncover vital insights on how users discover them for the first time, behave across channels and engage with their website, which can then be used to optimise their PPC, CPC and social media campaigns.
For example, by investigating traffic sources, a business might discover that their social media campaign brings in most of their prospects, but a high bounce rate on a landing page indicates the traffic it drives loses value.
Through marketing analytics, the business would then know to A/B test the landing page to improve conversions, while adjusting the social media campaign to reduce spend wastage.
While marketing analytics help businesses to acquire customers, they also need to understand how to engage and keep them–this is the vital insight product analytics unlocks.
Using Product Analytics for Retention and Product Development
With the acquisition of a new customer 5 to 25 times higher than keeping one, understanding the customer’s interaction with a product post-acquisition and what drives retention is business critical.
Product analytics provide insights into the performance of a product and the customer’s engagement with it. By analysing the full customer journey, across all interactions, product analytics help companies understand retention and churn, the behaviour of different user segments and impact of product changes on them, as well as conversions.
The depth and breadth of analytics required depends on a company’s goals and the data the product provides. For example, Telecom companies have live and historical data and need to understand onboarding, churn rate and customer service interactions.
Whereas a company offering single-use products will have less extensive data and is focused on conversion, delivery, and repeat purchases.
Using Marketing and Product Analytics Together
While marketing analytics provide the insights businesses need at the top of the funnel, product analytics shine a light on the acquired customer. Although both serve their respective departments well, their power is truly harnessed when used alongside one another.
Successful businesses will use both to create the granular view of the customer journey, their marketing efforts, and product usage–which is critical to driving revenue.