How To Analyze Product Performance
Analyzing product performance is a critical component to understanding how your customers are responding to your product. It also aids in identifying areas where you could improve the customer’s buying journey, product offering, or marketing choices. Therefore, it’s important for any business to learn how to analyze product performance.
Analyzing product performance is typically done via the collection and analysis of particular product performance analytics. These analytics help businesses see the buyer’s journey from start to finish, with a view to identifying and removing any roadblocks customers might be meeting. Analyzing product performance via these key metrics should help a company improve both sales and product operations.
Product performance analytics usually involves several categories: conversion funnel, product activation, and customer retention.
- Conversion funnel: These analytics help companies better understand their sales funnel and are based on tracking metrics like unique website visitors, trials started, ebooks or other collateral downloaded, and registrations for events like webinars. These metrics give managers a better understanding of how their conversion funnel is operating with regard to the product offering.
- Product activation: Measuring whether customers are engaged with your website is another way to analyze product performance. These analytics include metrics like time spent on the website, the number of pages viewed, email subscriptions, and the number of clicks.
- Customer retention: Customer retention also plays a large role in how successfully your product is performing. This involves measuring referrals, repeat purchases, and repeat visits to the website, among other metrics.
Companies will also need to analyze data on how often products are abandoned in customers’ carts without making a purchase, how many times a customer views a product page, and how often products make it into customers’ carts. These metrics will help companies determine product performance and enable them to make changes or adjustments as necessary.
