Guide To SaaS Product Analytics

In this article, I will talk about what product analytics is, by who it is used for, why it is important for SaaS and some tools that you might use to smoothen your product analytics process.

In a rush? Check out SaaS product analytics dashboards!

What Is Product Analytics?

The term product analytics refers to the way your product interacts with your customers or potential customers. This will allow you to analyze the marketing aspect of your product. These sorts of analyses will allow you to reduce your churn rate, increase user activation and have a better user experience overall.

Product analysis is vital for any company in 2022 and especially to the SaaS companies that need to keep track of how their customer base behaves to increase their reach. This is mainly caused by the competitive and fluid nature of the SaaS sector.

In addition to helping you with fluctuations, product analytics help you with comparing existing metrics and following your process. In this way, you will be able to figure out what sorts of applications in your marketing strategy would prove useful for you. You can achieve this way of analyzing by utilizing dashboards that are created for this very purpose.

Who Uses Product Analytics?

Here are some of the roles that can use product analytics

  • Product Managers
  • Marketers
  • Engineers
  • Analysts
  • UX/UI Designers and Researchers

One common thing among these people is that they all deal with content-heavy products. Product analytics tools allow these users to deal with the excessive data they have to handle in their daily work life.

In addition to specific people that deal with product analytics, here are some of the sectors that mainly deal with product analytics :

  • B2B
  • Consumer tech
  • E-commerce
  • Fintech
  • Media

These sectors are some of the most data-intensive sectors in the market. Thus, the way data is analyzed, or how often it is analyzed, matters a great deal to these sectors. You should consider using a tool for your product analytics if you are operating in one of the abovementioned sectors.

In addition to using tools for product analytics, you might want to check out Hockeystack blog for more articles about these businesses mentioned above and how to manage your data. Knowing how to utilize your tools is as much as important as having the right product to analyze your data.

Why Is Product Analytics Important For SaaS?

As I have talked about, utilizing your product analytics the correct way is perhaps most beneficial for SaaS businesses. In this section, I will talk about why product analytics is especially important for SaaS businesses.

According to multiple estimates, between 50 and 60 percent of people never return to a service provider if they have a bad experience with the said provider. This means that around half of your user activation rate is falling if your customers are not satisfied with your product, let alone the external reasons.

For this reason, you have to materialize your product in such a way that it enables you to not only draw the most amount of customers but makes sure that your customers stay satisfied with your product. In this matter, analyzing important metrics is vital for understanding how to achieve both. This can only be achieved by product analytics tools.

In addition to all of these, you must consider that most SaaS businesses draw customers that are fluid, meaning their subscription or how they use the services you provide can change on a whim. This is why even one of the largest SaaS companies like Netflix, can see a drastic fall in their numbers if they fail to meet the expectations of their users.

However, what you can get from your SaaS business is not limited to losses. This flexibility regarding your customer base also means that you are able to draw a great number of customers in a short period. However, this sort of number is not to be expected easily, and you will need a SaaS analytics tool like HockeyStack to take the initiative when you have the chance.

These are all the reasons why you should consider product analytics as an integral part of your SaaS marketing strategy. I would further recommend you use HockeyStack to better understand and utilize your product analytics potential.

Here is a shortlist explaining why product analytics is important for SaaS to sum up everything I have talked about so far:

  1. It allows you to increase your user activation rate.
  2. It helps you to make sure your customers are satisfied with your product.
  3. It allows you to follow the trends happening in your industry.

Metrics

In this section, I will talk about some important metrics you need to track so as to maximize the efficiency you get while working on your product analytics journey.

1. Conversion Rate

Conversion rate refers to the number of people that go through a specific point in one of the points in your marketing scheme. This can be subscribing o your newsletter, subscribing to your product, or simply watching a video for a certain amount of time.

Conversion rate is vital for calculating how active your users are. If you are trying to figure out how engaged your potential visitors are with your product, this is the metric for you. You can calculate this metric more easily and accurately by using a product analytics tool. Utilizing a software tool like HockeyStack will also enable you to compare this metric with other metrics listed in this article.

2. Customer Acquisition Cost

Your average customer acquisition cost is the average amount you spent to gain a new customer. The higher this number is, the more you spend on gaining a new customer. Naturally, you want this number to be as low as possible. Calculating your customer acquisition cost will enable you to decide whether you want to retain your already existing customers or want to reach new groups.

Naturally, this number fluctuates from industry to industry or from website to website. Thus, you need to calculate it often, most of the time either weekly or monthly, to get a better picture of how your product works.

3. Lifetime Value

Lifetime value (or average lifetime value) refers to the total value you get from a customer throughout their entire life journey. The higher this value is, the more value you extract from a customer. This metric often correlates to user activation rate, meaning they are sometimes used interchangeably.

You can consider the lifetime value of a success metric like conversion, meaning you can use this metric to calculate how successful your business is doing. As you will see below, this is one of the most basic metrics that can be calculated by the HockeyStack software tool.

4. User Churn

User Churn often referred to as User Churn Rate, refers to the number of customers that shy away from using your product. This metric is the opposite of your user activation rate. This means that for your user churn to go down, your user activation needs to go up.

User churn is often fluctuating, meaning it will change depending on the certain period you operate in. You will need a reliable tool to calculate it often. This is where product analytics tools come in.

5. Active Users

Active users refer to the number of people that use your product at any given moment. This metric can be considered a simplified version of your user activation rate. In addition to this comparison, the number of active users you have goes hand in hand with your user activation rate and customer acquisition costs.

As you can imagine from the simplistic nature of this metric’s name, you want your active users to be as high as possible. The more active users you have, the more brand awareness your product has. Having brand awareness for your product and having a customer base with brand loyalty is vital for your growth.

In the later parts, I will talk about how HockeyStack and other different software tools calculate and compare your active users to improve your marketing efficiency.

6. Net Promoter Score (NPS)

Your net promoter score calculates how much your customers are loyal to your product. This term is in direct relation with your brand awareness and brand loyalty. An increase in your net promoter score will also go hand with an increase in the brand loyalty of your customers.

This means that an increase in your Net promoter score will also make it easier for you to retain your existing customers. If you are looking to increase your user activation rate, you should start by increasing your net promoter score.

Naturally, as you can deduct from the abovementioned statement, there is a strong connection between your net promoter score and user activation rate, meaning you are often required to make a comparative analysis of these metrics. Once again, HockeyStack can help you to make your analysis process easier and much more efficient.

7. Bounce Rate

Bounce rate refers to someone who visits one of your web pages and simply goes on to check out another web page. Naturally, you should want your bounce rate to be as low as possible. Although your ideal bounce rate depends on the type of industry you operate in and the type of website you have, the general rule is that an average good bounce rate is often between 25 and 40 percent, meaning you should strive for anything between these numbers.

Your bounce rate is fluctuating, meaning you need to keep a track of it often to figure out any possible problems that you can face. A software tool like hockeystack can create alerts and notifications for you to constantly track your bounce rate. In this way, instead of constantly checking out and calculating your bounce rate, you will be able to get automated results how often you want or how often you need it.

8. Time Spent on Website

Another self-explanatory term like Active Users, Time Spent on Website, allows you to track how much time an average visitor spends while they are on your website. The more time an average visitor spends on your website, the more it is possible for them to become activated users. Thus, you should strive to make your visitors spend as much time as possible on your website.

This can be achieved through multiple methods. You can add interactive features to your websites, release the content of different kinds, spend more on advertising and finally do A/B testing. No matter which method you employ, you need to make sure that what you are doing is working. Thus it is vital for you to calculate how the methods you employ determine the average time spent on your website.

Tools

In this section, I will talk about SaaS product analytics tools that you can utilize for your product analytics process. These tools will be Fullstory, Indicative, and June. In this section, I will mainly talk about the capabilities of these tools and how to utilize the best for your SaaS business.

1. HockeyStack

HockeyStack is a no-code analytics & revenue attribution platform for SaaS. It tracks and unifies marketing, sales, product engagement, and subscription revenue data with no code, so SaaS businesses can easily answer questions such as:

“Marketing channels that yield the most revenue,” “Sales playbooks that bring the most engaged customers,” or “customer support team’s effect on expansion revenue, and more.

We do this by collecting all data retroactively from a script on the website, the payment provider, and the CRM. Users can then create reports without relying on technical skills.

You can check out pre-built product analytics report templates later in the article!

HockeyStack Pricing

HockeyStack has a free forever plan and 3 paid plans. Paid plans have a 14-day trial with a 30-day refund guarantee.

You can check out the pricing page here.

HockeyStack Integrations

  • Paddle
  • Stripe
  • Hubspot
  • Crisp Chat
  • Mailchimp
  • Intercom
  • Pipedrive
  • Chameleon
  • Salesforce (coming soon)
  • Zapier (coming soon)

HockeyStack Summary

The unique benefit of HockeyStack is its ability to unify your marketing, revenue, sales, and product data using no code. This allows you to uncover unique insights that you wouldn’t be able to by using multiple tools as they cause you to have fragmented data.

  1. You can integrate with Stripe, Paddle, Hubspot and other SaaS platforms to build every single dashboard that you can think of, using all sales, marketing, revenue, and product metrics.
  2. You can create funnels, goals, and surveys, which are rare to get with other tools on this list.
  3. You don’t need any developers, tracking is cookieless, and the script is small, so it doesn’t increase your site loading time.

2. Fullstory

Fullstory is an analytics company founded in 2014 aimed at making your product analytics process easier and more efficient. According to Crunchbase, Fullstory was founded by Bruce Johnson, Joel Webber, and Scott Voigt, making it one of the oldest companies listed in this article.

Fullstory has a rating of 4.5 out of 5 in G2 and a rating of 4.6 out of 5 in Capterra. These scores make fullstory one of the most solid tools in its field.

According to their website, Fullstory provides its users with a general overview of their website and how they relate to one another. This is a bold claim; nevertheless, Fullstory achieves delivering what it claims to deliver.

Here are some of the features provided by Fullstory.

  • Providing an overview of your website.
  • Streamlining your data capture.
  • Analyzing your DX data.
  • Reviewing user sessions.

In addition to the many features it has, the number of credentials fullstory has also interesting. Fullstory has worked with companies like Segment, GNC, and Forbes, making it one of the most reputable companies in its field.

3. Indicative

Indicative was founded in 2014 in New York, United States. It was founded by Andrew Weinreich and Jeremy Levy. They claim that Indicative is directed at making comparisons between your individual metrics to understand the bigger picture. Although these claims are up to debate, one must admit that indicative brings fresh insight into the table.

According to G2, Indicative has a rating of 4.4 out of 5 in G2 and a rating of 4.5 out of 5 in Capterra. Although these ratings are not as good as FullStory’s, they are solid and must be taken into account.

Here are some of the features Indicative has:

  • Multipath Funnel
  • Track Journeys
  • Segment your user base
  • Create Dashboards
  • Automated Reporting

4. June

June is a company founded by Enzo Avigo and Ferruccio Balestreri in 2020. This makes June one of the newest software tools in its field. On Capterra, June has a rating of 5 out of 5; however, there are not many reviews, so one could argue that this score is less than reliable.

June markets itself as a tool for founders and project managers, and it specifically excels when it comes to marketing. Currently, June has a total of 16 Dashboards; although this number can seem like a lot, the way June interprets the existing data in the field is seriously lacking.

The main problem with June’s dashboards is not that they are not reliable, but the fact that there is a lack of interaction and comparisons between the different metrics. This is a great problem as you can imagine that a proper product analytics process is dependent on making comparisons between individual metrics. Without proper comparisons between your metrics, there is no possibility of the proper interpretation of your metrics.

Here is a shortlist of some of the dashboards June has:

  • User Retention
  • Top Feature Users
  • Active Users
  • Activation
  • New Users

Here are some examples regarding how June presents its templates. The first one is about the popularity and frequency of your web pages:

From JUNE

This graph is about a given website’s user retention rate.

From JUNE

Pricing

June offers three different packages for its users. They are titled Free, growth, and enterprise. If you decide to make an annual subscription, you can get a 20% discount on your product.

From JUNE

Dashboards

In this section, I will give you product analytics dashboard examples.

As an end-to-end SaaS analytics tool, HockeyStack unifies your marketing, revenue, product, and sales metrics, so that you can answer inter-departmental questions, such as which blog posts bring users that are more likely to churn, which ad brings the highest revenue, are users brought by affiliate programs more likely to expand their accounts than users brought by whitepapers, and more.

The most important thing with this dashboard is that it allows you to make a cross-sectional analysis of all your metrics mentioned above. You can compare them according to date, as you can see the dates as you slide your mouse over them, which can prove beneficial while trying to figure out seasonal trends in your industry.

🤓

Pro Tip:

Click on any image to see it live!

Product + RevOps Dashboard

Conclusion

In this article, I have explained what Product analytics is, why it is important for SaaS businesses, some important metrics that can be of use for your SaaS business, and some examples from different product analytics software tools, including HockeyStack.

FAQ

What does a product analytics manager do?

A Product analytics manager calculates the metrics that are important for a company, group them according to their relativity, make comparisons between them, and give suggestions regarding what should be done to increase the marketing quality of a company.

What do we derive from product analytics?

We derive from product analytics about what are some of the shortcomings in a marketing strategy and what can be done about these shortcomings to better increase the reach of a marketing campaign.

What is the role of a product analyst?

A Product analyst creates strategies for companies to employ. They are vital for the marketing teams and marketing departments of a company.