What are Analytics and its Concepts?
We may define analytics as the science to measure the overall growth of the product. It determines the state of the product about how it is performing. Is it being liked or disliked by the customer and other such scenarios?
The aim of analytics is simply to study the previous performance so that valuable insights into the growth can be measured. This helps in making current decisions in the company based on the past performance.
We know a collection of measurements as analytics. Analytics holds a great importance in the business. As for businesses, it is very important to know whether a firm needs any improvement. Because if you don’t measure, you don’t know what to improve.
Without knowing the present state of the business, it is almost impossible to change or introduce any new strategy. Analytics is how you will get a proper analysis of whether the strategy applied to the business is working in the right direction or not.
Analytics Concepts
Analytics works on some prime concepts which help you understand better to which metrics to be used for a particular system. The concepts are:
Data points
Segmentation
Funnels
Cohorts
What are funnels?
A funnel comprises the measurement of the key event at each step of the flow or user journey. Funnels can measure that where the user has stopped using the particular task or product, we term this thing as leakage. You can also follow the flow of the user’s action using a funnel. You can understand this thing by a common example.
For example, you own an ecommerce website selling various goods. A user or a customer visited your web page and added the particular product in the cart. But suddenly, because of any reason, he stopped this action of his. The reason can be the mode of payment. Maybe he was not comfortable with it.
So the funnel tracks all these activities by the customer. As funnel can determine or measure the number of people quitting a particular action on the website.
Why are Funnels crucial to gain insights for improvements?
The question of this answer is somewhere connected with the example given above. As being a product management, it is his/her responsibility to know why a customer is quitting a particular task on the website. As after knowing the reason, we need a solution which is thus given by the product manager.
If the problem determined by the funnel is the above example, only that is the mode of payment is not suitable for the customer. Then the product management team can look into how we can rectify or improve this, such as offering more modes of payment.
Similarly, there are many more cases. The product management team reviews the leakage via funnel and can get some valuable insight into what they can do to prove those user journeys in order to have more users and thus can complete the tasks they set out to do.
Let us take one more example: you define a funnel in order to know how many people sign up to your website and then continue to the second page. So the first thing was to define a funnel which you already did here. So the next thing is to analyze the funnel in which you need to take care of two things, which are:
What is the present conversation rate of the customer on your website?
And similarly, what is the present or current drop off rate of them?
At every stage of the funnel, it might happen that you lose several people visiting your web page. It is obvious because many people would only complete the first step of sign up and choose not to continue further. The drop off can also be at the download page or registration page, that solely depends on the customer.
With funnel, you can constantly keep a track of the drop off rate. You might find a possibility that there’s one page with an 80% drop-off rate that is killing the engagement on the web page. After finding that out, you can start testing variations of the page and watching your drop-off rate and conversions.
How to fix the drop off?
To fix the drop off rate, you need to think according to the customer’s point of view. You need to figure out at which point of time or page the customer is mostly quitting your system. If you get success in identifying the major drop off, then for you to increase your retention of the customers.
There are some possibilities for the cause of drop off
Does your web page require registration mandatory?
Is the design of your web page incorrect or a little absurd?
Besides this, there may be other reasons as well. You also need to check whether the unwanted advertisement is annoying the customer? If this is so, then you can apply some immediate effects to improve the service.
A customer is about to checkout or about to click on any important link on your web page and, because of advertisements, we could not complete the action. So it is important to remove distractions at the critical points in your funnel, and to make the desired action the easiest to take.
Conclusion
“Build funnels to see where your users are saying goodbye.. And be rest assured to say hi to them again”
Smart usage of a funnel is the best way to boost engagement on your web page. It is important to measure the above things from drop off rates to conversation rates.
As after knowing all these things, only you can take the right step to improve it. Constant tweaking and measuring proves to be the ideal way to improve your number of conversions with the customers.
Image by Stock Snap from Pixabay.
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