Data has become the inevitable need of businesses these days and there is no doubt about this. If businesses want to be successful and attain the desired results, then the best they can do is get more data.
Much more importantly, they also need accurate solutions to interpret that data to make their organization stand apart from the rest. The marketing agencies tend to work with a lot of customers in their daily routines which makes it crucial for them to keep a note of the data.
The best thing about having the data is that it makes you aware of the things that are working in favor of you and what’s not so that accordingly, you can fix it. Consequently, the best way to gather the data is by way of tools.
Let’s have an insight into the product analytics and market analytics to know which one is better between the two in the post mentioned below.
Product Analytics
Product analytics refers to the process of gathering data concerning the customer experience and how often they engage with your product. For instance, assume that your product has a feature that assists your customer in exporting files from one medium to another.
No doubt that this feature is helpful but there is no option of selecting the multiple files together. Consequently, product analytics will figure out the problem and also provide its solution. Let us learn more about product analytics by learning its features in the sections mentioned below.
Features of product Analytics
Some of the features of product analytics include funnels, segmentation, cohorts, and many more to go. Businesses making use of product analytics should be familiar with these concepts before moving ahead with them.
Here’s an insight into the renowned features of product analytics in the sections mentioned below.
Funnels
Do you know the purpose of creating the funnels? The sole purpose of creating the funnels includes a better understanding of the user’s journey. The funnels are nothing but a series of events that your users should know.
With the help of the funnels, you can find the users stuck up in the middle or fail to go to the final step. You can quickly identify the reasons behind and accordingly make desired changes by tracking critical insights like the dropping rate of users on each step.
Cohorts analysis
The next best feature of product analytics is cohort analysis. It does not consider the users as one but divides them into several groups which are known as cohorts. Cohort analysis is behavioral analytics where it takes into consideration two different events.
Along with the user properties, you can set up actions. It lets you track the number of days it took your users to complete the second action and also provides simplified information in charts. When the information is simplified in charts, the charts separate the data as the first time, recurring and additional users.
Analytics segmentation
Analytics segmentation is the next best feature of product analytics. The segmentation provides a better overview of the set of events and also gives you the freedom to choose the properties that matter to you the most.
In addition to this, it also gives detailed demographics of the individual events which are otherwise displayed in charts such as bars, lines, and pies. Consequently, you need to choose from the date range and equip yourself with the desired results.
Product Analytics Tools
The widely available products in the market assist you to accomplish certain aspects of the product analytics and reach your end goal. But let us shortlist the best product analytics tools for businesses.
Mixpanel
The Mixpanel revolves around monitoring your customer engagement with the help of mobile applications and making use of the data to improve customer engagement. The tool is the best fit for product management.
Hotjar
Hotjar assists you in tracking how visitors engage with your website. Besides this, it also lets you know the right means to acquire feedback from the clients. Some of the popular features of Hotjar include NPS surveys, session recordings, polls, and heat maps.
VWO
The next popular product analytics tool is VWO. VWO allows you to run A/B tests and also carry on the optimizations to improve conversions. This product analytics tool is beneficial for improving your product interface and onboarding sequence. Its A/B testing system assists you in testing multiple AI-suggested copies which in turn will improve the conversions.
Market Analytics
Digital marketers are often in a dilemma while understanding product analytics vs market analytics. The reality is both are equally significant for businesses. The market analytics data assist in creating specified marketing campaigns for the users based on their demographics such as name, age, and location.
The market analytics tools assist in monitoring marketing campaigns and help you to make better investment choices for the future. Some of the well-known market analytics tools include:
- Google Analytics
- Adobe Analytics
Product Analytics vs Market Analytics
Now that you have understood the concept of product and market analytics, it’s time to figure out the differences between the two to decide which one is better. Let’s have a closer look at some of the differences between these.
Usage- The foremost difference between product analytics vs market analytics is the usage. The product analytics tool is used for product improvement purposes whereas market analytics is used for marketing purposes.
Decision-making- When it comes to decision-making, product analytics tools facilitate better decisions so that you can improve your product by analyzing user behavior. The market analytics tools provide you with an insight into the marketing campaigns to refine your marketing strategies accordingly.
Work- The product analytics tool gives you insights and also the entire record of users in one place. All this assists you in understanding the users better. Besides this, the marketing analytics create specified marketing campaigns based on the name, age, and location to set targeted marketing campaigns.
Users- With the help of the funnels and retention, you can get to know your users who are dropping off on a path. Consequently, you can track conversion rates for each event. Whereas in marketing analytics, you need to find out which marketing channel works out best for your business so that you can accordingly spend each dollar as effectively as possible.
Wrapping Up
Both product analytics and market analytics are crucial for businesses and might serve their purposes. But at some point in time, the businesses might need to make the difficult decision of choosing the one between these two. Keep in mind your business requirements and choose the best for yourself.