Building a product is not easy. Brands spend years on research and invest millions of dollars to create products that people love. A company is known for the products it builds. Hence, products decide the reputation and trust a business has in the market.
There are several challenges that product managers face to build products for the future. Product insights play a crucial role in identifying the challenges, fixing the issues, forecasting the trends, testing what works best for the users, and delivering an experience that converts a beta product to a consumer choice product.
Similarly, consumer insights help interpret how users feel about a product or a service. Companies can take the required steps to identify the user journey’s challenges and fix them to deliver an exceptional product experience.
This product insights guide for product managers and marketers will cover all the basics of product insights and consumer insights to build a product that customers will love for years to come.
What are Product Insights?
Product insight is an interpretation of how users feel when they use the product. It analyzes user behavior and aims to solve the problems that the users face while using the product.
Insights are more than just data; it leverages emotion analytics to identify features that users like/dislike the most. It also forecasts the success ratio of the product when entering a new market.
Businesses should use the power of product insights to learn more about how the product is performing or will perform in the market. It is crucial to building the product of tomorrow that is up to the user’s expectations.
What are Product Analytics?
Product analytics are tools that allow product managers to understand what users do with their product. It also provides product marketers to uncover the reasons that are driving higher conversion rates for increased product sales.
Product analytics is a dashboard where you can run tests related to product performance and experience. It lets you eliminate issues and fine-tune the product features as per the expectations of the users.
What is Customer Insight analysis?
Market research is necessary for product evolution. Customer insight aims to understand the customer’s mind and behavior. It lets you decide what to sell, when to sell them, and how to sell them.
Customer insights analytics captures data at all points in the customer journey and presents it in the form of a dashboard to plan campaigns and strategies to increase product profitability.
Insights help to build stronger customer relationships by gathering the right data from the right sources and interpreting them in real-time. It uncovers market trends, customer pain points, and behavior.
You have the power to mold your product or strategy in the right direction based on data. Hence, effective analysis is the key to business success.
Product Insights Examples
Here are some of the best examples of product insights from some of the leading brands of this world:
Netflix decided to build interactive content for kids. The Netflix product insights team spent a lot of time in the lab bringing in kids and showing the product to them.
The idea was to understand how the users would feel when they use the product in the real-world. The team helped them know what the product does and also engaged them with various designs.
Conducting experiments like this helped Netflix figure out the best product experience before they launched Puss in Book.
Envelopes is a leading eCommerce site for buying different kinds of envelopes. They wanted to find out what change they can do in their marketing strategy to generate more conversions.
They thought of sending follow-up emails to all the customers who joined their website, adding products to their cart, but didn’t purchase them. The idea was to persuade customers to buy the product.
They needed the insight to find the best time to send the email to sell their products. Hence, they ran an experiment and sent two emails at two different times, one in the morning around 11
AM and the other 48 hours after the cart abandonment.
They found that the email sent 48 hours post cart abandonment delivered a conversion rate of 40%, while the one sent in the morning had a conversion rate of 28%. They found the answer to sell their products faster.
Combining Product Insights With Customer Insights
Insights help you take the best step to uplift your business. Suppose you know the truth about your customer. In that case, you can make changes in your product strategy, launch new features in your current product, upgrade your marketing strategy, and use a combination of automation tools to reach the customers during their moment of need.
You should always rely on the combination of data acquired via product insights and customer insights. It lets you uncover the preferences and motivations that are crucial to making customers buy your product.
Data acquisition methods like surveys and focus groups are not enough to understand today’s customers. You need the next-generation tools that automatically captures feedback using several channels like user comments and reviews posted on different sites and presents you a real-time dashboard where you can see the products that customer like the most, why they like them the most, what features the product is missing, which features are the favorite, which brands are trusted in that niche, and several other similar questions.
Tools like Revuze let you combine the power of both product insights and customer insights and present a holistic view of the customer. It leverages both quantitative data and qualitative data and uses emotional analytics to offer you a clear picture of your customers’ likes, dislikes, and needs.
As a product manager, you must understand your product’s value proposition, and product insights help you take a balanced approach to build great products that customers would use.
Product designers, managers, marketers, and customers all speak a different language. When you combine the power of product insights and customer insights, you can better understand the mindset of people building your product and using your product. The focus should be on the customers, but you shouldn’t neglect the ideas of your employees.
Remember what Henry Ford said, “If I asked people what they need, they would have asked for faster horses”. Hence, listen to your customers by analyzing customer insights but don’t ignore product insights. The key to building a great product lies in analyzing data.