5 Best Product Analytics Tools of 2022

Top 5 Product Analytics Tools of 2022

Best 5 Product Analytics Tools Comparison (Features, benefits, pricing, reviews, customer testimonial, case-studies)“Only move forward with creating a product that will be ‘above the bar.’” – Brian Lawley, CEO, and founder of the 280 GroupCreating better products requires data – data about what customers want, their engagement with the product, customer behavior, product usage data, etc. And how can a business get access to such data?Through product analytics tools!The users of product analytics tools like the product teams and GTM teams often reach crossroads trying to experiment with different tools. They invest in many product analytics platforms trying to find out the best fit. So, to help you make an informed product analytics investment decision, we identified the top 5 tools of 2022.Check out the list and decide which ones would be a part of your stack!

What is a Product Analytics Tool?

A product analytics tool is an application that measures, summarizes user interactions, and provides businesses insights on the same. It helps SaaS companies to collect and analyze data about how customers engage with their product features. The insights gained from product analytics tools help companies to make better-informed decisions for subsequent product developments. Thus, it also helps in enhancing the overall customer experience.

Important Features To Look Out For In The Product Analytics Tool

Most of the product analytics tools have similar functionalities and features. So, here are a few features that you should look for in the product analytics tools before investing.

Automatic data capture

A must-have feature in product analytics tool, automatic data capture records every customer move automatically. From every click, pageview to sign-ups, this feature tracks customer actions minutely.Automatic data capture is an improvised version of manual capture. With manual data capture, the chances of incomplete data recording are more. So, for advanced tracking, choose the tools with automatic data capture.

Direct data access

This functionality in a product analytics tool enables different teams to access the same data at a time. The data is usually stored in a centralized location to ensure that the data users can stay aligned around the information and take coordinated action.

Real-time insights

The product analytics tool you invest in must provide real-time insights. Some tools can take 24 hours (or more!) to deliver customer behavior data. This can be problematic if you want to take immediate action.

Custom interaction tracking

Also known as custom event tracking, this feature enables the product analytics tool to track any user-product interaction. The ‘event’ or interaction data includes metrics like sign-ups, clicks, page views, average session time, etc.

Segment analysis

This feature allows a business to segment users based on demographic characteristics or behavior. It helps you identify the different actions taken by each customer segment. Thus, according to the customer behavior in each segment, you can position your product to optimize conversions.

Tracking trends

While companies learn about user trends through surveys and interviews, you can also use product analytics tools to track user behavior. Analytics tools with the trend tracking feature can capture the user behavior in your product and send alerts to the respective teams when the behavior changes.

Integrations

Integration with third-party sources makes the product analytics tools much more beneficial. With the integrations feature, you can take instant action on the information collected. For instance, integrating the product analytics tool with CRM software can let the GTM team share information about the high-value accounts with the customer success team. As a result, the customer success team can take immediate action to retain the customers.

Retention reporting

Retention is the best measure of product-market fit. It measures the extent to which your product can bring back customers over time. A product analytics tool must have the retention reporting feature that can help you identify the customer actions that indicate retention. Also, the feature will enable you to identify the workflows that result in users taking those specific actions. Thus, you can devise strategies to retain customers in the long run based on their actions.

Top 5 Product Analytics Tools in 2022

1. Google Analytics

If you think Google Analytics is out of the race, it’s not so!The product analytics tool is still going strong as the development team continues to put efforts into improving its functionalities. One of the best aspects of Google Analytics is that you can start with the basic version (which is free!). Further, you can upgrade to the premium version for leveling up your product management process.

Why Should you use Google Analytics?

Google Analytics brings out useful information that can help you shape your business strategy. The tool discovers things that you would probably never know about your product/ website users. Using Google Analytics, you can;

Measure the internal site search that reveals what potential prospects look for on arrival at your website.
Measure the bounce rate – a metric indicating the percentage of people leaving a website after visiting a single page.
Get valuable user information – age, interests, gender, location, and device. You can determine the channels that drive most of the traffic.
Build custom reports using Google report templates
Identify the social media platforms to target the most for driving traffic
Track your content performance - views and shares

Google Analytics is, therefore, one of the best tools to understand user behavior and deliver incredible customer experiences.

Benefits of Google Analytics

The basic version is free
Automatic data collection
Understand user behavior
Easy integration and user-friendly dashboard
Improve SEO and content marketing

2. Amplitude Analytics

Amplitude analytics is one of the most used product analytics tools. It is a beneficial tool for modern businesses with digital needs. The tool has several incredible features like;

real-time analytics including funnels and revenue analysis,
cross-platform tracking,
behavioral analytics, and
enterprise-level data security, that attracts several digital marketing giants.

Why Should you use Amplitude Analytics?

Amplitude Analytics is a great tool for product teams. The platform helps organizations track visitors using collaborative analytics. The tool automatically captures user data and helps you to personalize your digital products and optimize the product value. With the help of this product analytics tool, you can;

Understand how users navigate through your product
Identify features that engage users the most
Slice information in different ways to dig deeper with the help of charts
Track individual user’s journeys to understand their underlying behavior
Set up dashboards reflecting your team’s success metrics
Predict user behavior indicating retention and drive user growth
Analyze user behavior and compare the behavioral data of engaged and churned users
Learn to improve long-term user retention

Benefits of Amplitude Analytics

Provides a comprehensive view of user behavior
Allows businesses to analyze data on their own
Tracks user engagement using behavioral analyses – helps identify potential personas that can convert to long-term users.
The free version offers several features like unlimited data retention, user seats, core analytics, and tracking up to 10 million user actions per month.

3. Mixpanel

Mixpanel is a great tool for product managers. It is a self-serve product analytics tool that helps product teams to analyze how and why users engage, convert, and retain with the help of real-time data. The tool offers a wide array of customization options for the specific segmentation needs of different businesses.

Why Should you use Mixpanel?

Mixpanel tracks every user action inside a product or application. With the help of these insights, product managers and customer success teams can optimize user experiences. They can identify the reasons why users have stopped using the product. As a result, the product team can make product improvements to reduce the churn rate.The tool lets you;

Track the clicks, scrolls, page views, product usage, and feature activation
Analyze feature launches and use A/B tests for measuring the effectiveness
Analyze data by device, account, or other entity that fits your business needs
Set up filtered data views for different teams
Create customized web dashboards to keep all your product metrics organized and easily accessible.

Benefits of Mixpanel

The product analytics tool can track user behavior for websites and digital products
A complete and comprehensive view of users’ journey
Easy user journey visualization in the form of funnels
Allows product experimentation, hypotheses testing based on the collected data, and product personalization for different customer segments.

4. Pendo

This product analytics tool is great for product managers looking forward to proactive customer engagement to understand product usage. The tool offers both quantitative and qualitative insights on user experience that are crucial for the product teams to deliver optimum value.

Why Should you use Pendo?

Pendo is beneficial for product-led organizations (both small and enterprise-level) as it provides comprehensive data on how customers interact with products. The tool offers an in-app message feature to guide users through their journeys.Further, Pendo also provides businesses with powerful insights that can help them;

Determine the features customers like and the ones they ignore
Understand how customers navigate through the product portfolio
Take faster actions (with the help of the in-app messages feature)

Besides, Pendo also makes it easier to collect customer feedback and prioritize feature requests. It ensures maintaining the feedback loop by updating the request status as planned, in progress, or completed.

Benefits of Pendo

The product analytics tool offers a complete view of product usage and behavioral data
Captures customer feedback
Easy integrations
In-app messaging feature
Allows setting up of custom user groups for effective targeting

5. Heap

Heap is one of the top-rated product analytics tools. It is incredibly efficient in identifying the blind spots where users struggle to move or drop off in their digital journey. Thus, the tool is excellent for product and marketing teams that look forward to making impactful improvements to the product.

Why Should you use Heap?

Heap has several features that make it an important product analytics tool. If a business wants to make product improvements to move forward and enhance customer experience, then Heap is a great choice. The product analytics solution lets you;

Capture user behavior data automatically and measure each interaction's effects
Combine user profiles across various devices and platforms using the virtual users' feature
Identify conversion and drop off rates, measure effectiveness, and capture data on A/B tests automatically, with the help of funnels
Generate graphs and reports based on real-time analytics

Benefits of Heap

Automatic data collection
Easy access to historical data
Low code setup
Real-time report generation

In Conclusion

When it comes to searching for the best product analytics tool, there are several equally good options. You can find different tools with different strengths. All you need to do is find the tool that perfectly fits your specific business needs. Make sure that the features of the tool align with the business goals. Hence, understanding the business goals and specific requirements is the topmost priority.

List of the Best 5 Product Analytics Tools in 2022 [Features + Benefits]