According to McKinsey, data-driven organizations are 23 times more likely to acquire customers. They also are six times as likely to retain customers, and 19 times as likely to be profitable as a result.
In order to be data-driven, one has to carefully consider the product analytics tools he is using. However, there are so many vendors on the market that it can easy to lose track of which tools are worth consideration.
We did comprehensive research to help you understand what requirements you should look for when comparing product analytics tools, and we’ll show you the best tools on the market.
What is a Product Analytics Tool?
Product analytics tools measure and summarize user interactions of software applications. This includes applications for both web and mobile devices. The analysis of your product can lead to insights in the fields of onboarding, retention, or churn.
Industry-standard capabilities of a product analytics tool are the abilities to capture events and user journeys. The tool should provide relevant insights for this on the dashboard.
Advanced product analytics tools automatically capture all interactions that users take without the need for an event setup. Those tools can use the additional set of data to e.g. generate heatmaps or session replays.
Industry-Standard Product Analytics Features
The following features are common in most product analytics tools.
- Automatic data capture
- Detailed user segmentation
- Detailed session segmentation
- Ability to add and analyze events
- Custom segments and reports
- Data Funnels
- Key KPI dashboards
- Date-based data filtering
- Ability to attach user properties
- Ability to customize the dashboard
- Sankey diagrams for user journeys
- User journey drill down
Here’s the reason why these features are needed: With your product analytics tools, you want to be able to analyze your product in 3 layers.
The first layer is the big picture of the product. Here are the top-level KPIs and the average users’ flow.
The second layer concerns specific funnels. User flows such as onboarding, conversion, or engagement funnels are highlighted here.
The third layer drills down into individual user journeys. Understanding user behavior will enable you to improve the UX of your product.
Product Analytics Types
Product analytics tools come in different forms. Some tools just offer analytics, while others also provide related toolsets to e.g. capture customer feedback.
There’s also a difference between qualitative and quantitative product analytics tools. Qualitative analytics tools concern themselves with user behavior, while quantitative analytics tools focus on numerical data.
The difference between technology for web and mobile causes the fact that no product analytics tool will be the same for both web and mobile. Therefore, it makes sense to use separate tools for each.
It’s also possible to build your own product analytics tool in-house. This comes with additional development costs and a certain level of risk. We recommend a cost-benefit analysis here.
Product Analytics Implementation Process
We recommend that you take 5 minutes of your time to watch analytics thought-leader Christian Eckhardt explain how to properly set up a product analytics tool:
Top Product Analytics Tools (2020)
The following tools are the best product analytics tools on the market.
We included the average review on Capterra to prove that. We also try to give you information about the pricing for these tools, however, keep in mind that all premium players on the market will have a custom pricing model that depends on the circumstances and usage volume of your product.
UXCam is the market leader for dedicated in-app product analytics. The tool is exclusive to mobile apps.
Reviews: 4,7 out of 5, based on 16 reviews.
Pricing: The first 100k sessions are free on the trial, Pricing upon request.
UXCam’s selling points:
- Reveal user frustrations automatically
- Quickly understand the full user journey
- Spot concealed bottlenecks
- Know where and why users drop off
- Automatic element tagging
UXCam’s clients have reported higher conversion and retention rates since they began using the service. You can start using UXCam for free.
Reviews: 4,4 out of 5, based on 77 reviews.
Pricing: According to Capterra, Mixpanels’ pricing starts at $89.00 per month.
Mixpanel’s selling points:
- User Timeline
- Predictive analytics
- Custom dashboards
Reviews: 4,4 out of 5, based on 153 reviews
Pricing: According to this article, pricing starts at $100,000. Adobe Analytics doesn’t disclose pricing.
Adobe Analytics’ selling points:
- Custom Analysis and visualization
- Intuitive interface
- Powerful segmentation
Reviews: 4,5 out of 5, based on 40 reviews
Pricing: Gainsight doesn’t disclose pricing.
Gainsight PX’s selling points:
- Behavior tracking with and without custom events
- Product Guide
- User Feedback
Reviews: 4,4 out of 5, based on 36 reviews
Pricing: According to GetApp, Amplitude is free for up to 10 million monthly events. Amplitude’s business plan starts at $995/month, Enterprise pricing is available upon request.
Amplitude’s selling points:
- Custom Dashboards
- User Profiles
- Real-time event stream
Effectively implementing a product analytics tool requires comprehensive research and clarity of the objectives that you want to achieve. A clear understanding of the requirements and benefits of each tool will help you in your further research.
We hope this guide is useful to you in the search for the best solution for you.
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Why are Product Analytics Tools Important?
Product Analytics tools enable businesses to see how customers engage with their software. Product analytics track digital footprint of users to uncover opportunities for improvement.
What are Product Metrics?
Product metrics track the success of a software product. Product metrics examples include retention rate, recurring revenue, or daily active users.
What is a Product Analyst?
Product Analysts analyze data to determine marketing and business strategies for a product.