The Rise of User Analytics
The way we see analytics is constantly changing and evolving. The current way in which companies utilize data is around page views and website to increase customers. The next wave of analytics will be about enabling businesses to unify granular level data lying in silos across various channels to better understand individual users and increase their lifetime value.
Today, organizations use dif¬ferent tools for marketing automation, CRM, customer service software and so on. Anything less than a full picture of a user’s activity across all of those tools is a fragmented view of that person or account and businesses are fine tuning their analytics strategies to focus on the user.
Digitization has helped organizations interact with their customers in a more effective manner. At the same time, companies are flooded with data which they should use to tailor their products according to user preferences.
The initial phase of analytics was centred around page views and click-through rates which although is an improvement from the previous era but offers limited insight into a customer’s relationship with a product or brand. With the emergence of new platforms and devices like apps, cloud, IoT – having the tools for understanding customers across these platforms becomes really important.
That’s why new user analytics strategies need to be developed to make sense of the combination of data acquired via social media, email campaigns, web traffic, mobile and web applications, online advertising and more.
User Analytics tools like Adobe Analytics help organizations unify data across customer lifecycles. This results in a coherent understanding of why users do what they do. Companies can now track and have a unified view of online and offline data across various products. They can also make sense of raw data which is lying in an app or website and utilize the knowledge to know which parts of products are essential for user retention and upsell and which users are most likely to churn.
The first step is to record each customer action as a time-stamped event and then track the set of properties to capture context around the events. The last step is to render visualizations and let companies act on the data. Another important thing is the tools can examine user actions in historical context by tracking important events from a date in the past like the number of users who made the payment during a particular period.
This is a great advantage for companies which earlier had to rely on surveys and interviews.
ADVANTAGES OF A STRONG USER ANALYTICS SOLUTION
Marketing analytics is generally about measuring the efficiency of various marketing channels, activities and campaigns. User Analytics on the other hand offers a more complete picture about the experience of each individual user of a product — from marketing interactions all the way to usage in a product that leads to retention over time.
It also takes into account the user touch points across your organization which helps companies understand how their users move through their products.
The other main advantages a strong user analytic solution gives you include KPI reporting, ad-hoc product analysis, anomaly detection, ability to take action on data based on experimentation, unified view of each user and a deeper understanding of user behavior and cohorting to create predictive models of users likely to convert or churn.