The difference between product analytics and marketing analytics

The difference between product analytics and marketing analytics

As a advertising and marketing company targeted on serving to clients use information smarter, we work with many shoppers who’re attempting to succeed by way of information “progress hackers.” It is a good technique: decide which of them are efficient and which of them are ineffective, after which redouble your efforts, lower it, or repair it.

However relating to utilizing information for product innovation, most of the time, there’s a mismatch between the software groups use and the info they want. Corporations usually need to use Google Analytics, a advertising and marketing analytics answer, as an alternative of a product analytics answer (like Mixpanel) to grasp person conduct—and it virtually by no means works.


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Right here’s how the story sometimes unfolds:

Firm A hopes to broaden their data-driven mindset from advertising and marketing into product improvement. We suggest implementing a product analytics answer. Regardless of our advice, they transfer ahead with Google Analytics as a result of it’s already broadly used and liked by the advertising and marketing staff—why wouldn’t it work for the product staff?

Utilizing a tag administration answer, we hack up a workaround to trace particular person actions throughout the product. Some information on what number of instances and the way usually these particular actions are carried out begin rolling into Google Analytics. It’s a begin, but it surely’s not sufficient; the info isn’t actionable. 

Six months later, the staff nonetheless doesn’t have the solutions they want about person conduct to make data-informed selections for product innovation, and we’re again to sq. one. 

It’s not that Google Analytics isn’t a precious answer. It’s that it’s not the proper answer for product groups to trace and perceive person conduct. Google Analytics, by commerce, is a advertising and marketing analytics answer that’s constructed for entrepreneurs to grasp the primary a part of the person journey (the place customers are coming from). It’s not, nonetheless, a software designed to reply questions on how customers are partaking with a selected product.

For this, groups want a devoted product analytics answer that’s designed to trace, measure, and analyze person conduct by way of out-of-the-box capabilities like customized occasion monitoring, cohort evaluation, person path comparisons, and versatile segmentation.


What’s the distinction between Google Analytics and a product analytics answer?

Google Analytics

Google Analytics is undoubtedly the king of selling analytics options. Ask any firm and the bulk can have leveraged it sooner or later.

Google Analytics could be break up into three completely different product choices:

  • Google Analytics: That is the usual, free model of Google Analytics that the majority companies and entrepreneurs are aware of.
  • Google Analytics 360: That is the paid tier equal of Google Analytics, providing extra superior options corresponding to integrations with Show & Video 360, Marketing campaign Supervisor, Bigquery integration, and removing of sampling.
  • Firebase: Google’s answer for app monitoring.

No matter which product providing you utilize, they’re all designed to offer entrepreneurs insights into which advertising and marketing initiatives are serving to to drive the specified consequence. Their main goal is to assist entrepreneurs optimize visitors streams, and adapt their advertising and marketing budgets, efforts, and actions in direction of the implies that drive most outcomes—also referred to as attribution.

Google Analytics helps entrepreneurs observe KPIs like bounce fee and classes, in addition to first-touch attribution (the place customers are coming from).

As you may see from the instance above, the info and insights from Google Analytics are targeted on visitors sources and acquisition, and “conduct” data is centered round reasonably generic metrics like bounce fee, classes, and common session length.

Google Analytics merchandise present very sturdy reporting on advertising and marketing KPIs corresponding to variety of web page views, time on website, and completion of targets and transactions, however not almost sufficient on product KPIs like engagement, retention, and conversion.

Along with the 2 variations of Google Analytics, Google has just lately launched a brand new property sort referred to as App + Net that mixes app and internet information for unified reporting. Sounds promising—particularly for firms with app-based merchandise. Right here’s the catch.

Whereas the most recent App + Net beta launch is a step in the best path for getting a unified view of exercise throughout two platforms, it’s nonetheless behind relating to delivering on product analytics wants. It’s lacking some key capabilities round reviews, and accessing retroactive information and insights. The general public product roadmap for addressing these gaps is unclear.

Fortunately, there’s already an answer obtainable out there.


Product Analytics Options

Product analytics options, like Mixpanel, present insights into how customers are literally utilizing the web sites and purposes product groups are constructing. They reply questions like:

  • Who’re your energy customers? And the way do their behaviors differ from different customers?
  • Why do some customers convert, whereas others don’t?
  • How does retention differ by person cohort? Is it increased or decrease when folks interact with a selected function?
  • What are the highest drivers of person engagement and retention?
  • Did that new function launch trigger the specified change in conduct?

All these questions are very exhausting—generally inconceivable—to sort out utilizing Google Analytics. Why? As a result of it’s not constructed for offering that granular stage of measurement. The one largest distinction between Google Analytics and a product analytics answer is that the previous depends on anonymized visitors information, and the latter makes use of an event-based monitoring mannequin designed to trace particular actions customers take inside a product.

Product analytics instruments are designed to gather all of those occasions and properties and hyperlink them to a single person ID, offering insights on how every internet or app person is shifting by way of the client journey.  

Product analytics options use an event-based monitoring mannequin to trace actions customers take inside a product, like signups and downloads.

This straightforward—but highly effective—distinction is what permits product analytics options to reply deep questions on person conduct, and what makes them a way more appropriate answer to gas product innovation. In any case, you may’t construct or enhance merchandise with out understanding how customers are behaving within the first place.

With a full arsenal of out-of-the-box capabilities like person cohort traits, simply customizable occasion monitoring, a robust segmentation engine, and on-demand deep evaluation on person conduct, product analytics options are designed to assist product builders drive product innovation.


Google Analytics and product analytics: do you want each?

The brief reply is “sure.” Hopefully, by now, it’s clear that the 2 instruments are basically completely different—constructed to serve completely different groups’ wants and goals.

Google Analytics is a wonderful software for advertising and marketing groups who need to analyze and optimize visitors to enhance advertising and marketing KPIs. Product analytics are one of the best answer for product groups who need to perceive person conduct, which is essential to product innovation. One can’t substitute the opposite, and in reality, they stay in a symbiotic relationship.

When each groups are geared up with the best instruments, it creates a cycle of sustainable constructive progress for your complete group. Advertising groups optimize advertising and marketing spend to amass new clients, which supplies product groups a bigger person base to search out new methods to enhance engagement, conversion, and retention. Companies can then establish energy customers to market to and switch them into vocal advocates, serving to gas the advertising and marketing machine. Equally, they will establish ‘struggling’ customers to whom they need to supply a unique set of product and advertising and marketing experiences to scale back churn.

Completely happy clients, undoubtedly, create extra glad clients. However it takes a product analytics answer to offer the insights wanted to grasp the behaviors that drive it.

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