Using an analytics tool is probably the most popular quantitative method for gathering information about behaviour. We can collect, measure and analyse several metrics in order to understand user behaviour and optimise the product performance and usability.
The most common metrics we measure it the conversion rate, which allows us to see how our visitors converts in a commercial context.
Why use analytics?
- To discover issues worth investigating
- To measure how visitors convert
- To measure different metrics and KPIs
- To run experiments: [[A/B testing]]
How to use analytic research and measurement
To get good analytics, we need to set clear Key Performance Indicators (KPIs). KPIs allow us to objectively measure the performance of the business.
To set KPIs, We'd recommend setting goals first. Goals are broader targets that you want to hit. You will set our KPIs to align with these goals. Here’s an example:
Goal 1: Increase sales by 10%. Possible KPIs:
- grow site traffic
- reduce cart abandonment rate by X%
- reduce bounce rate by X%
- improve reordering rate by X%
Goal 2: Decrease churn rate by 10%. Possible KPIs:
- boost net promoter score
- increase customer satisfaction by 5%
- quicken support response time by 10%
- decrease subscription cancellation
Make sure you have both engagement (time on site, session duration) and commercial (conversion rate, return rate) KPIs--both help you push towards your goal.
Keep in mind that the most important thing with KPIs is to easily benchmark the performance of your product. You should design and work around the goals to hit them.
Google Analytics is the most wide-spread solution for web analytics. It is easy to implement and use and you can track the most important metrics easily:
- Bounce rate
- Average time on page
- Average visit duration
Mixpanel & KISSmetrics
Mixpanel and KISSmetrics are slightly different than Google Analytics. They allow you to track only what we want to track and build custom metrics. It also have some marketing automation built in.