How to measure product usage?

To measure product usage, track digital adoption metrics like how many users are active, which features they use most, how often they use the product, and how long they spend on it. Tools like analytics and behavior tracking help collect and analyze this data for insights on product engagement.

What is product usage segmentation?

Product usage segmentation means dividing users into groups based on how they use the product. This could be by how often they use it, which features they prefer, or their behavior patterns. Segmenting helps understand different user needs, so products can be improved and marketed effectively.

What is an example of usage data?

An example of usage data is tracking how many times a user clicks a feature, how long they stay on a page, or how often they return. The information shows how people are interacting with the product and helps identify areas to improve.

What is target market product usage?

Target market product usage is about understanding how the specific group of customers a business wants to reach uses the product. By analyzing how this group engages with the product, businesses can make adjustments to features, pricing, and marketing to attract and keep these customers.

What is product usage?

Product usage is the data which shows how customers use a product or service, serving as a key indicator of successful product adoption across an organization. Analysing the information helps businesses to understand how often people are using it, which features are popular, how much time is spent on it, the number of people actively using it and the percentage of customers who continue to use it over time. Understanding these metrics helps businesses make changes that meet customer needs and keeps them happy.

The information is gathered from various sources, such as in-app tracking, CRM systems, web analytics, A/B testing platforms, user surveys and interactions with customer support. It is particularly useful for software products, digital tools and apps, which can gather large amounts of product usage information.

Product experience platforms can be useful in analysing product usage, as they collate data from these sources and offer dashboards and reports that highlight key metrics for quick understanding.

Why is product usage important?

Product usage data helps companies understand the customer experience, including any problems they face. The information allows businesses to make improvements and fix issues to keep customers coming back.

It also improves the quality of the product, enhances the user experience, and helps create marketing strategies that better match customer needs. A focus on user engagement directly contributes to product stickiness, helping ensure customers continue using the product over time.

For tech providers, usage data can support advanced strategies. Ron Burns from Gartner notes that tracking unexpected usage can help product managers create flexible pricing options to avoid surprise charges that upset customers and cause them to leave.

Despite its benefits, only 26% of software companies collect usage data “very well,” and just 52% of those can see if customers use their product at all. This shows the need to improve data collection to remain competitive and satisfy customers.

What are the goals of product usage?

The goals of product usage include improving the customer experience, making the product better and helping the business to grow.

Let’s look at these objectives in more detail:

Making the customer experience better

Shows how customers use the product and spots popular or hard-to-use features.
Helps decide what to fix or improve to make the product easier to use.
Tracks what customers need to keep the product useful for them.

Improving the product

Finds features that aren’t being used and need changes.
Helps create new features based on what customers like.
Provides guidance to make the product work better overall.

Helping the business grow

Keeps customers by solving problems early.
Builds loyalty by responding to customer needs.
Offers insights to create flexible pricing and better marketing to boost revenue.

Who is involved in product usage?

Understanding product usage requires input from many internal and external stakeholders. These groups help gather, analyze, and act on data to improve the product and keep customers happy.

Internal stakeholders

Product managers: Lead efforts to collect data, prioritize improvements, and plan product updates.
Engineering teams: Build tracking tools, fix issues, and develop new features based on insights.
Marketing teams: Use data to create campaigns and highlight features that matter to customers.
Customer success teams: Track feedback and solve problems to keep customers satisfied.
Data analysts: Study trends and provide insights to help improve the product.

External stakeholders

Customers: Share feedback through how they use the product, showing issues and preferences.
Partners or resellers: Provide insights on customer use in different regions.
Industry experts or consultants: Give advice on using product data effectively.
Third-party providers: Offer tools and services for tracking and analyzing data.

What is required for product usage success?

Achieving product usage success requires a clear focus on key areas. By addressing these effectively, organizations can improve products, satisfy customers, and drive growth.

Collect data from every source

Set up systems to track how customers use the product. Implementing robust product analytics tools can help gather data from multiple sources for a full picture of user behavior. Monitor key interactions like feature usage, time spent, and any issues faced. Ensure the data is accurate, complete, and easy to access.

Turn data into clear actions

Analyze usage data to find trends and patterns. Use these insights to decide what to fix or improve. Focus on solving common customer issues and enhancing popular features. Use the data to guide updates, plan new features, and adjust marketing strategies. Ensure every insight leads to a clear and actionable plan.

Act on feedback quickly

Respond to usage trends and customer needs as they happen. Fix issues quickly to keep customers happy. Update the product regularly to stay relevant and useful. Involve all teams, including product, engineering, and customer support, to ensure fast action. Create a process to keep improving based on customer feedback.

Why do product usage projects fail?

Product usage projects often fail because of common issues that block progress or make data difficult to use. Understanding these problems helps organizations avoid failure and achieve success.

Poor data collection systems

Many organizations lack the right tools to track how customers use their products. Without complete and accurate data, it’s hard to spot patterns or fix issues. When data sources don’t connect properly, it creates gaps that make decisions harder.

Not acting on insights

Even with good data, some teams don’t use it to improve the product. Without clear steps to prioritize fixes, decisions can be delayed. Poor communication between teams or unclear goals can cause valuable insights to be ignored.

Ignoring customer feedback

Failing to listen to customers is a major issue. When feedback is overlooked, customer trust is lost. Delayed responses or a lack of teamwork can result in a product that doesn’t meet user needs, leading to customer loss.

Product usage use cases

Product usage data helps businesses improve their products, satisfy customers, and grow. Different industries use product usage in various ways to meet their specific goals.

Here are three examples of how product usage can be applied in real business situations.

SaaS (Software as a Service)

Scenario: Users abandon a key feature in the platform.

Method: The company looks at the data to see where users drop off and makes the feature easier to use.

Outcome: More users engage with the feature, and customer retention increases.

Retail

Scenario: Users leave their shopping carts without buying anything.

Method: The company sees that most users exit at checkout and adds a one-click payment option.

Outcome: Fewer carts are abandoned, and sales grow.

Healthcare

Scenario: Patients often miss their appointments.

Method: The company notices patients ignore appointment reminders and adds text and push notifications.

Outcome: More patients attend their appointments, and platform usage goes up.

Product usage