Product & Startup Builder

Are you using the right analytics?

Added on by Chris Saad.

There's a big difference between the analytics that are most useful for business decisions and the analytics that are most useful for product decisions.

Business analytics tend to focus on absolute numbers and growth rates.

They typically answer questions like...

  • "How many active users this month?"

  • "How much revenue this month?"

  • "How many new leads in the pipeline?"

The Product team should be interested in these kinds of questions, but they are not actionable at the product ideation and management level.

Instead, the product team needs to answer questions like...

  • "What is the conversion rate of users that do action A, to the users that perform action B?"

  • "Which conversion bottlenecks are most likely to have the biggest impact on the business objectives?"

  • "What is the number 1 reason, more people are not being more successful with my product, more often"

That last one is my favorite.

For these kinds of questions, funnel analysis is best.

Make sure you use the right analytics for the job.

Make sure you're asking the right questions and getting the correct answers!