Stay focused on your mission and realize durable growth with product analytics
Multi-product companies have a lot going for them. They’re dynamic organizations that increase their addressable market with every new product offering. And the more they expand, the more use cases, products, and people come under their umbrellas.
But with opportunities come new challenges. Additional products shift company focus. Teams often organize as independent business units, impeding communication. And the idea of being product-led becomes more abstract: how can a company align holistic growth around the ways users interact with each product? A big umbrella is a significant management task.
Enterprises need a straightforward strategy that recognizes the unique challenges of a multi-product approach. Product analytics can help by tracking users’ actions and behaviors over time, uncovering opportunities for the enterprise to grow while staying focused on its core vision. Luckily, 58% of companies already track product-based analytics. Though less than 60% of those companies are using this data strategically, there are plenty of ways they could.
We’re breaking down the challenges of the multi-product environment and the benefits of using product analytics to keep organizations on track.
Houston: We have no mission
Company mission statements rarely describe aligning new products with the market and organizational capabilities. Instead, they focus on company values and why the company does what it does. But to move forward, organizations need clarity both on products and on the fundamental values that drive the company and set the tone for its culture.
As companies expand, they naturally pursue more activities that dilute the clarity of their original goals, making the company mission unfocused. This “mission creep” is commonplace for organizations that have multiple stakeholders or, in this case, multiple products pulling them in many directions.
The result? Intuition drives new product suggestions, existing customers become alienated because they get less support, and product managers spend their time fielding potentially contradictory feedback from coworkers, executives, and users. Churn increases. Product roadmaps overflow with suggestions, making future planning increasingly difficult.
Product analytics helps companies grow
Corporations can harness product data to fuel strategic plans for the future and stay attuned to a single organizational mission. Using product analytics lets companies see where their users derive the most value, so they can focus on expanding those areas. Companies can also see which products, features, and activities drive less value, which provides insight into areas that need improvement. This approach helps product-led growth organizations grow twice as fast as their competitors.
Here are some ways product analytics spur enterprise-level growth:
- By keeping a tight focus on users’ goals, products align with one another. Congruence provides a better customer experience (CX), which is crucial to market share. That leads to less churn. It also leads to higher customer lifetime value, a measure of profitability over the period of a customer relationship.
- Great CX also promotes faster growth. In fact, 87% of business leaders cite CX as their foremost growth mechanism when customers are increasingly prioritizing their experiences with brands.
- Prioritizing CX pays off with lower customer acquisition costs. As companies increase engagement, newcomers and unpaid users are more likely to convert into paid users, saving companies ever-growing acquisition costs.
- Product analytics drive efficiency in upsells. More personalized consumer information reduces the need for high-touch sales teams. And 90% of companies can increase revenue in upsells by including product data.
Product-led companies can quickly gain insight into their product analytics and deploy changes for strategic, durable growth. That helps them scale using lean processes rather than high-touch marketing, sales, or lead generation. And it helps them stay true to their core mission and users, aligning all products for the best user experience possible.
Get mission-critical insight with Gainsight
A company’s mission can be a consistent North Star that leads everyone in the right direction. But multi-product companies find their journeys complicated. They focus on qualitative data and instinct to propel them forward. Without analytics across their product lines and a strategic mindset, they risk losing sight of their mission altogether.
Aligning with product data keeps the focus on users and their experiences. That way, the entire organization can move forward together with a clear roadmap, keeping their sights set on a common growth goal. Learn more about how to leverage product analytics to build a more efficient roadmap for your enterprise organization by downloading our new ebook.