Data-Driven Decision Making: Leveraging Analytics for Product Management Success - Part 1
I started by taking small notes. Based on the notes I took I gradually progressed towards writing extensive texts while simultaneously compiling research topics. And here I am now, greeting you once again, dear readers of Medium!
I had already titled my second article before I even published my first. I knew and experienced the importance of data-driven conversation. Therefore, the subject of my second article was already clear to me.
In this article, I will share information under six headings, focusing on data analytics and user-centric decision-making processes. However, I know that these topics are not easy. Therefore, I will publish my article in two parts. In the first part, I will focus on the power of user analytics, conversion rates, and identifying user problems.
It’s quite exciting to share my experiences and research with you here. let’s begin.
What is Product Management?
Product management is the process of making strategic decisions that enable a product to be successfully designed, developed, and marketed. It is a long-term journey. Product managers play a role in various stages of a product’s lifecycle and ensure that the product provides value to the target audience, meets user needs, and supports company goals.
Data is a valuable resource throughout the product management process, aiding product managers make informed, data-driven decisions. The ability to correctly analyze and interpret data is critical to the success of a product.
The Power of User Analytics: Uncovering Insights to Drive Product Innovation
User analytics is essential in helping product managers improve the user experience and make their products more effective. Analytical tools that focus on user behavior can help identify how users interact with a product and which features are most valuable to them. For instance, the frequency with which users use a particular part can identify areas where a product can be improved or focused.
User analytics also facilitates the emergence of new ideas in product innovation. (I would like to open a parenthesis here, as an idea eventually develops or contributes to the development of another idea. End of the parenthesis)
User feedback gives product managers essential insights into what needs improvement or fixing. This feedback can trigger innovative ideas, such as product improvements, adding new features, or optimizing the user experience. As a result, it makes a significant contribution to our roadmap. And it helps us to explore.
Sure, let’s clarify that. “What are user analytics tools?” I sensed that you asked this question. Let’s address it right away.
Google Analytics (GA) and Amplitude (from my research) are pretty good in this regard. While I had the opportunity to gain extensive experience with GA, I can say that I am at the beginning stages with Amplitude. Of course, it’s the beginning for me. I can’t say the same thing about Amplitude.
Both tools offer different advantages. For GA, notable features include tracking how users visit the website and mobile apps, which pages they view, their interaction duration, and conversion rates. You can also create custom reports for the metrics you want to track in addition to using their ready-made templates. I frequently use GA to monitor version rollouts and the features I’m following on my product.
As for Amplitude, I have yet to have the chance to use it extensively, but from what I’ve seen, it appears to be a platform more focused on user analytics and product analytics for mobile apps. It might help track user behaviors, evaluate product performance, and conduct segmentation.
In conclusion, user analytics tools provide product managers with vital information to understand users’ actual needs and expectations and determine their moves on their products. User analytics is the cornerstone of data-driven product innovation, and I believe it is an essential element for successful product management.
PS: Working with data is sometimes like looking for a needle in a haystack. When all is well, all of a sudden, your metrics might be X2, X3, and it surprises you. But calm down champ; I’m here. I’ll do my best to fix the bugs!
Optimizing Conversion Rates: Making Data-Backed Decisions for Higher Conversions
What is the conversion rate?
Conversion rate is a metric that expresses the likelihood of achieving a goal. It is commonly used in marketing activities to measure success for a specific period or related activity. Product managers who work closely with marketing teams pay attention to conversion rates.
Making data-driven decisions plays a critical role in increasing conversion rates. For instance, user analytics tools can help identify problematic areas, such as abandoned items in the cart or issues during account sign-ups. These data provide valuable insights to address these problem areas and focus on improving conversion rates. Another example is when users download your app but don’t register. At this point, you can employ push-supported approaches to win them over. Encouraging registration with value propositions or personalized content can incentivize users to sign up. Making the user feel valued can strengthen the initial bond you establish.
When increasing conversion rates, what do users notice on the relevant screens or pages? Do they abandon the cart because of the products or security concerns? Is it because of insufficient guidance or lack of information that users cannot purchase a tour package on a travel website? Both information deficiencies and problems with directing users to the correct step can occur.
In conclusion, design a flow to track areas where users encounter issues. Strive to meet your users’ expectations and enhance your conversion rates.
PS: Let’s work some magic on this conversion rate together! Here’s a good conversion formula: Good content + Impressive design + Easy usability = Increased conversion rate!
Identifying User Pain Points: Using Analytics to Enhance User Experience
This topic will be pretty similar to the conversion rate.
Identifying the problems users encounter is a crucial step in improving the user experience. Monitoring and measuring user interactions in your product is of critical importance.
How do we track users? This is where analytics tools or custom-built tracking/reporting tools within your company come to the forefront. In a previous job, I used to prepare queries in SQL in BigQuery for critical events related to my product and frequently monitored click/view rates.
For example, you created a component for the fashion category on the product detail screen and introduced it to users. How many categories will this be displayed, and what is the average number of visitors? Did users click on the component and come back? What is happening there?
Another important tracking step is gathering feedback. Simple forms added to your contact pages, app store reviews for mobile applications, small focus groups, beta users, etc., all provide valuable insights to product managers for identifying processes where users may experience discomfort, disappointment, or get lost in your product.
PS: To identify user problems, you need to dance with them. What are your plans for the weekend? Dance, dance, dance! :) See you in the next part 🥳
I aim to be a lifelong learner.
Thank you.
