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Use Product Analytics to Improve User Experience

Featured Article

As long as you have a product to sell, you have the job of determining how your users are interacting with that product - so you can then improve upon that product and give your users better and better experiences. Rinse and repeat. And on and on we go until the end of time. Or at least for as long as you have a product to sell.

This post explores the process of product analytics, why it’s important, who uses it, important metrics to track, and the tools that help you do so until the end of time, or at least for as long as you have a product to sell.

What Is Product Analytics?

Product analytics is the process of capturing and analyzing quantitative data and qualitative data through embedded tools that record how users interact with a product. A much less complicated way of saying this is: product analytics is the process of measuring, analyzing, and understanding user behavior in order to optimize customer experience and enhance product performance.

This usually includes data on the most frequently accessed features of a product, pain points, user actions, use cases, user flows, the average time users spend taking a specific action, and a map of each user’s journey through the product.

The best part is that everybody involved in the process benefits:

  • The product manager
  • Developers and UX designers
  • Product marketers
  • Customers

Why Is Product Analytics Important?

The process of obtaining product analytics data is important for two main reasons:

  • It gives direction to product development and product design
  • It builds better customer relationships and customer success

Most traditional methods of gathering customer feedback— such as surveys and customer interviews—require self-reporting from users and are based on their memories and perceptions. Product analytics, by contrast, represents definitive and objective data because the organization is tracking actual customer behavior within the product. It can uncover important insights that help organizations improve functionality and design new product features.

This means that product analytics benefits not only product managers and their companies but customers as well, enhancing customer lifetime value.

Types of Product Analytics Metrics To Track

Even though certain people enjoy doing this, or pretend to, there is no reason to gather and analyze every scrap of data you can get your hands on. Instead, pick the metrics that matter to you. Here are some of the top metrics a product analyst looks at:

  • Business goals
  • Engagement
  • Product usage
  • Customer satisfaction
  • Customer journey
  • Customer retention

Top Product Analytics Software To Use

Common features of product analytics tools include:

  • User tracking
  • Measuring
  • Segmentation
  • Cohort analytics
  • Notifications
  • Funnel analytics
  • A/B testing
  • Display dashboards

Below are some of the product analytics software we use here at Shortcut:

Amplitude

Amplitude is an product analytics platform for measuring and monitoring product analytics and for A/B testing. Amplitude’s metrics help us understand our users, make better product decisions, drive conversions, and increase engagement, growth, and revenue.

Calendly

We use Calendly for easy scheduling when customers want to talk to us.

Chameleon

We use Chameleon to manage and validate our in-product engagement: user onboarding, user experience, feature discovery, customer support, friction points, and feedback.

Discord

We use Discord to engage with our community of users.

FigJam / Miro

With FigJam/Miro, we can cater to different learning and working styles by sharing our ideas with visuals while communicating them.

Google Sheets

We use Google Sheets for cranking out spreadsheets when the need arises for product planning. The beauty of the Shortcut + Google Sheets integration is getting real-time updates of Shortcut data in a connected Google Sheet.

Gong

We love Gong for recording and sharing customer interviews and clips.

Looker

Looker captures our data: our MQLs, PQLs, our ARR, and other web traffic and signup rates. Our product managers work closely with our marketing team in Looker to optimize wherever we can.

Docs

Docs is Shortcut's very appropriately named documentation tool, a new way for you to create Docs for your team that works seamlessly with the rest of Shortcut.

Looking for the Best Project Management for Your Software Team?

At Shortcut, we use Shortcut for task management and to track workflows. It’s where we keep our product Roadmap and track our Epics, Stories, Milestones, and sprints.

With kanban boards, reporting, and much more, it’s a powerful project management tool without all the management for product management teams and development teams.