If we go back by some 50 years, the concept of Analytics was just non-existent in the daily affairs for any business owners or company managers. The cross-functional need of Analytics and Product management was not even part of any organization or for that matter, product developers didn’t have anything to do with it. But with time and changing business needs, this loophole has altered.
Now analytics is seen as something crucial for the improvement and ultimate success of product management.
Well, let us understand the very basics and then establish a relation.
What does a Product Manager Do?
The role of a product manager is quite interdisciplinary than it may originally sound. Their job role starts with figuring out why a product needs to be built, what it needs to look like, when it needs to be built and most importantly, what should not have to be built.
These set of tasks is crucial to enabling development teams to get from the initial idea to launching a product that is actually being used and delivers value. Thus, product managers are also act as a “bridge” between the technical teams and non-technical teams. They usually have some degree of technical expertise and insight into the product and how it works. More essentially, they also have a firm grasp of the target personas, market conditions, and buying behaviour.
What is Analytics?
Analytics was derived from the Greek word analytika, which means “science of analysis”. In business terms, it is the analysis of often large sets of business data, through statistics, mathematics and, nowadays, computer software and applications.
Business Analytics is to study past performance in order to gain valuable insights into the current state of the company, and make decisions based on historical data. In regard of product management, the goal is basically the same, although the application of analytics is more precise.
So, how are both the terms related?
When Analytics is used in product management, it measures the current state of the product, and how the customers are responding in respect to it. For it to properly qualify on basis of analytics, it must involve a series of measurements.
Let us understand with an instance that the business has a large chunk of data generated. However, it has poor analytic tools. This means that all that data will be rendered useless since the management cannot act on the large amount of information that it has. Therefore, it is not enough to have the data on hand; what you do with the data afterwards is what matters as it is the real game-changer.
One chief reason why analytics is deemed to be an important aspect of product management: “Improvement”. Without proper measurements, there is no way for a product team to know whether the product actually meets the needs of the users or not. Analytics in Product Management will also enable to make informed decisions on whether they should make changes on the product or keep it as it is.
Some Highlights what role does analytics play in product management?
- It aids in understanding user and customer behavior
- It is used for measurement of product progress in the market
- It is used in order to prove product ideas’ sustainability
- It enables decision-makers in making informed product decisions
- It also provides further stimulus for product work
However, the adaption of analytics by product teams still stays bit blurry and complicated. The major reason is it involves data, numbers, statistics but does that mean the product managers have to know their math, as well?
At first, it does look that way. However, things are changing. There are quite many analytics tools that business can choose from. So even if product managers don’t know math, that’s fine; the tools will do the math.
It appears that developers of these applications and software are designing them from the point of view of the users, the product managers, so they are user-friendly. Some tools are straightforward and very easy to install and use.
Below listed names are some of those tools:
- Google Analytics
Analytics is as critical for product managers as they tell you what is going on with your product. Before launching and implementing a platform to measure data, the plan needs to be measured and understood. This forms the criteria for choosing how to measure the data, which helps to stimulate your team to ask “why is it that happening?”!!
Kanan is a fine writer with over 2 years of exposure in all processes of SEO, with strong analytical skills and a customer focussed outlook. She is a people’s person and believer that problems can become opportunities when the right people come together. She loves reading success stories and wishes to publish a book!