10 Types of Product Analysis you Should Know
There are different types of product analysis. But first, we will define this concept in three essential points that describe what exactly this activity is about:
- Product analysis is a process in which it is studied, visualized and analyzed how a product interacts with the user and develops in its environment.
- The purposes of product reviews are often multiple, but the primary purpose is to study customer experiences with those products.
- When a product is launched on the market for the first time. It is when an analysis of the product in all its dimensions can be carried out.
Once the above points have been clarified, we can explain what those types of product analysis are, and at the end of this article, we will explain how to carry them out.
Trend analysis is a type of product analysis that involves studying the adoption of features and functions of a given product over time.
It is an analysis applied to digital products since these trends -how a product is used- are measurable with software and tools.
When performing trend analysis, you should focus on specific points in the consumer journey.
An example of this type of analysis would be a web application that reviews the configurations its users make after registering. It is likely that in said configuration, its users make some changes which are a trend since they are executed similarly and massively among most users or segments.
Thanks to the trend analysis, you will be aware of the changes that consumers usually make at some point in their journey in the interaction with your product.
A cohort is a group of individuals who have a factor in common. How are we talking about types of product analysis because a cohort here is simply a group of consumers or clients we have segmented according to a characteristic?
This analysis will allow you to group your clients or users according to shared characteristics.
For example, you can create groups of users by their actions when they buy your products or register for your services.
However, you can carry out this segmentation according to the characteristics that are useful to you, such as:
The moment they buy your product, the purchase motivators of each one, those clients that come from a particular sales channel, etc.
This analysis is essential throughout a company since many factors change as it evolves and progresses over time. So it is essential to analyze how these cohorts interact with these changes.
When analyzing cohorts and their interaction with products, it is necessary to use metrics to make said analysis more objective.
Similarly, comparing the behaviour with each other when these changes are made is quite helpful.
The attribution analysis focuses on studying those users who have completed the customer journey and deals with the reverse analysis of the actions of each of the points completed.
Customer journey means the entire path a prospect takes from picking up your service to becoming a user.
This is useful for detecting factors that drive the customer to convert during the journey.
For example, an app like Spotify can analyze the conversions of its users from the free version to the premium version. This study will reveal important information about your users and their interaction with your products, which will be key to improving conversions.
Beyond analyzing the journey from a prospect to a customer, this study also focuses on the user’s interaction with the product.
When a user purchases your product, the journey does not end; instead, it continues until he stops using it or finishes consuming it.
It is especially worth analyzing how the client meets the objectives that led him to acquire the said product.
This is what Coca-Cola does with its drinks, which they have analyzed very well to detail the steps of the customer, even that moment when the bottle is opened. This way, details such as the sound of the gas coming out of the bottle are perfected to improve the user experience.
Another type of product analysis used is conversion analysis. The main idea of this study is to analyze those users or consumers who complete all the stages of their sales funnel.
A comparison is also usually made with non-converted users to improve this procedure and better understand this process.
Customer retention can also be a reason for analysis because some products are continuous use.
An example is any digital tool we need in the company we tried for the first time.
Retention represents all those users and customers who continue to consume or purchase our product constantly.
However, not all customers return, and many of them only try our product once. That is why it is essential to carry out a retention analysis to determine and understand those factors contributing to customer retention.
For this type of analysis, these defined cohorts are usually used since, in their interaction, they are usually similar.
Through an analysis of milestones, we will study that sublime moment in which the user is convinced that your product is what he was looking for. This moment occurs once he has used your product and has been satisfied with it.
This analysis aims to detect critical factors, both of your product and of the client, that leads to that milestone moment. In this way, you can improve these characteristics or even communicate them better through advertising.
This type of analysis is usually performed before the production of a product. Although it should also do it after that; since it is only when the product is brought to market and an attempt is made to market it, that we know its actual cost.
This study can also be carried out throughout the product’s life cycle since costs change and do not remain static.
The packaging of a product is a part of it and significantly impacts the user experience. So it is necessary to analyze said product packaging to improve the interaction with the client.
Another type of product analysis usually carried out today is sustainability analysis. This type of analysis studies the environmental impact of a product.
The reason why this analysis is carried out is due to the new environmental policies that are emerging around the world.
Also, users are becoming more aware every day of the impact that the products they consume have on the environment.
How to implement a product analysis
We have mentioned the most used types of product analysis; there are many others, although they are not so related to the analysis of user behaviour.
Now, we will cover everything about how to perform a product analysis correctly.
Determine the end goal
The first step is to determine what the ultimate goal of your analysis will be.
Do you want to improve the quality of your products compared to the competition?
- Are you simply looking to improve the design of your product?
- Do you need to reduce costs compared to today’s design?
- Are you going to improve user interaction with your product?
If you define precisely the objective of the type of product analysis that you will carry out, it will be easier for you to get the right questions and, with it, the answers to carry out said analysis.
Develop the Methodology of your Analysis
Well, you have already defined the object of your product analysis; now, you need to develop a methodology to carry it out.
First of all, you must define which user data will be used to carry out the types of product analysis you require.
Once you have defined them, you must look for the best alternatives to collect such user data.
In addition, it is important to define when the information is collected.
Prepare the report
With the information and data collected, the last step will be to make said the report, which will provide concise answers for each area in which the questions exist.
Important Tips for types of Product Analysis
- A product management department should only implement these types of product analytics after the product has reached a certain number of users or customers. This amount is the one that is believed convenient when it comes to throwing solid data.
- On the other hand, it is necessary to be selective with the collected and studied types since collecting data that is not so necessary only leads to cost overruns in the analysis. So it is essential to define the metrics with the most significant impact in our studies.
- Remember to also learn from the competition. Indeed this has solved some of the challenges you have in mind. Remember that your competitors may be outside the market you operate.
- It’s also a good idea to chat with customers and listen to what they say about our products. This information will provide the data necessary for your analysis.