The COVID-19 pandemic has boosted the digital economy around the world.
IDC forecasts “65% of global GDP [will be] digitized by 2022 and will generate more than $ 6.8 trillion in direct DX investment from 2020 to 2023 ”and by 2023,“ 75% of organizations will have complete roadmaps for implementing digital transformation (DX), up from 27% today, which will drive true transformation across all facets of the business and society.
These predictions may seem exaggerated to some, but for people who have moved their “Real Life” (IRL) activities online due to pandemic lockdowns and travel constraints – most have. us – they’re not exaggerated.
Additionally, the new digital economy has opened up a whole new opportunity for companies who are able and willing to analyze how people use their products.
Online consumer activities provide a treasure trove of valuable data on user behavior and preferences if businesses know what questions to ask and what to look for.
What is product analysis?
To find out the answer to that question, this writer spoke to Natalie Kouzeleas, EMEA Sales Director at pioneer and innovator of product analysis software Mixpanel. The company is headquartered in San Francisco, with additional offices in Austin, New York, Seattle, Barcelona, London and Singapore.
“Analytics automates the collection and management of data,” Kouzeleas explained. “Product managers, growth marketers, data analysts and designers use product analytics to make data-driven decisions about how to create better products. In short, product analysis allows companies to fully understand how their users behave to engage, convert and retain more customers. “
Product analysis platforms are built around two main functions: tracking users’ digital footprints step by step and analyzing what users like and dislike and what causes them to engage with a product. , come back for more or unsubscribe (abandon).
“Analytics is an essential part of modern product management because most applications and websites are not designed to generate detailed reports on themselves,” she said. “Product analytics makes user engagement data useful for businesses by integrating all data sources into one organized view. With data that has been tracked and organized into dashboards and reports, businesses are free to research user demographics, the typical behavior flow that users adopt on a site or app, and opportunities to reduce the churn rate.
The goal is to create and improve digital products and services that consumers will enjoy and therefore buy over and over again.
Why don’t tech companies just ask their users?
If only it were that easy, Kouzeleas said.
“Product analysis shows companies what their users are actually doing, not just what they say they do,” she explained. “These are revealed behaviors and they are very revealing. Product analysis enables product teams to go beyond surveys and interviews with users prone to human error.
Kouzeleas said it is very easy to make objective decisions using data, which is why all businesses should use Marketing Analytics and Product Analytics. Quantitative data is accurate and tells the real story, and it can be supplemented with qualitative data; they are not mutually exclusive.
“The point is, hyper-detailed data drives businesses to more profitable decisions,” she said. “According to McKinsey, companies that use product analysis report outperforming their competitors in profit almost twice as often as companies that don’t.”
Connection with Israel
Israel represents a key market for product analysis as it is a technology hub and is home to some of the most important start-up and scale-up companies in the world.
Using savvy product management tools to inform profitable business decisions is especially important for startups and scale-ups, which aim to build loyal customers, achieve brand recognition, and achieve corporate status. full-fledged business.
“Israel already has advanced knowledge of product analysis,” Kouzeleas said, citing the firm’s list of Israeli clients, which includes CWT, eToro, Fiverr, Gett and the AI-based insurance broker founded. in Israel (now based in New York) Lemonade.
The insurtech pioneer exemplifies the win-win synergy that occurs when a startup uses product analytics to evolve into a profitable, growth-oriented business.
According to a San Francisco Business Times article published in 2018, “Lemonade saw the number of new policyholders increase by 500% in the first 15 months after the company started using the information from Mixpanel. Today, Lemonade has more than a million policyholders and has spread to France, Germany and the Netherlands.
The Silicon Valley Mixpanel success story began in 2009 when Suhail Doshi (then 20) partnered with American tech startup accelerator Y Combinator to meet the online business world’s need for software. analysis of fast, reliable and nuanced products.
In the age of intuition-driven digital design inspired by Steve Jobs, Doshi’s insight was to offer businesses a data-driven, user-behavior-driven approach.
Mixpanel helps its customers to delve into the way people interact with their digital products. The company calls its analytics model “event-based tracking,” which is based on three key concepts: events, users and properties.
For example, a customer (i.e. a “user”) takes an action (i.e., the “event”) by purchasing a coffee through an app. In Mixpanel terminology, the type of coffee and its price are the “event properties” and the user’s name or age or even their most frequently ordered items are the “user properties”. The Mixpanel software tracks all the details of the interaction in real time.
Mixpanel’s exploration features include user profiling and segmentation into cohorts; communicate with users via notifications and send alerts to the product team; visualize marketing funnels (a customer’s journey on their way to purchase); test user response to variations in messaging or functionality; visualize data with modeled or personalized reports; and measure user engagement by functionality.
In the words of CEO Amir Movafaghi, “We are the only company focused solely on enabling the world’s most innovative companies to integrate data into their daily workflows and provide immediate feedback loops for find out if their product changes are successful. “
The proof is in the data. Mixpanel’s customer list includes more than 6,000 paying customers, from the largest startups to the most innovative in the world. Over the past 18 months, Mixpanel’s main metrics – registrations and active users – have traced spikes that directly translated into revenue growth. Signups grew 57% per month, NPS (an indicator that measures customer loyalty and satisfaction) has tripled, customer retention has improved 150%, and weekly active users have increased 72% since early 2020.
In November 2021, the company raised $ 200 million in Series C investments from Bain Capital. In his remarks announcing the investment, Movafaghi pledged to stay true to Mixpanel’s real-time, self-service design model and described his vision for the future: “The majority of the market is on track for Leverage cloud data warehouses to centralize, join, cleanse and operationalize data, and we are building Mixpanel’s rapid interactive analysis with that inevitable future in mind.
Israel as a hub for digital transformation
According to AI Magazine, citing data presented by Stock Apps, “The global market for big data and business analytics (BDA) was valued at $ 215.7 billion in 2021. This figure is expected to increase by 27% to over $ 274 billion by the end of . “These predictions suggest that our long-awaited post-pandemic world promises a jazz era for digital product designers and for in-depth product analysis services that help designers know and better serve their customers.
Startup Nation entrepreneurs are ready. Their savvy strategy of applying product analysis to business decisions will benefit not only Israel, but our trading partners as well.
Israel’s location at the geographic and commercial crossroads of Europe, Asia and Africa perfectly positions its digital activities for international growth.
This advantage has become even more promising since the signing of the Abrahamic Accords in September 2020. At that time, the United States Chamber of Commerce said that the agreement would “unlock tremendous potential between these economies and create new opportunities. of trade and investment across the Middle East. East.”
Figures recently released by Israel’s Central Bureau of Statistics (CBS) confirm this forecast, showing around $ 610 million in trade between Israel and the United Arab Emirates for the period January to July 2021.
The era of digital transformation has arrived, as has the era of Israel-based businesses using product analytics. A win-win indeed.
To learn more about Mixpanel, click here to visit their site.