In the graveyard of failed applications, you’ll find plenty of perfectly useful apps that bombed simply because their users didn’t keep coming back to them again and again.
Apps today must not only be valuable. They also need to have an addictive element that makes users want to keep interacting and never leave.
One of the best ways to increase the stickiness of an application is by embedding analytics. Consider consumer apps like Fitbit, Amazon, and Netflix: They all infuse analytics into the user experience, wrapped up in a sleek user interface.
In a recent webinar, we asked Wayne Eckerson, analytics consultant, author, and founder of the Eckerson Group, why embedded analytics has become a go-to for developers who want to make their apps addictive.
“It’s pretty clear that in this day and age, data and analytics has become differentiators for products out there in the market—not just for software vendors, but for vendors in almost every industry,” Eckerson said. “It shows that we’re no longer in an industrial economy. We’re in an informational economy where information is a core asset.”
In the 2016 State of Embedded Analytics survey, application providers said they use embedded analytics for three primary reasons:
- Driving revenue (93%)
- Increasing customer satisfaction (92%)
- Differentiating their products from the competition (92%)
In addition to these benefits, nearly all of the respondents—93 percent—said that after embedding analytics in their apps, they were able to charge up to 24 percent more than their initial core offering. That’s up from 15 percent just two years ago.
“The more you can provide your customers and partners actionable information, actionable dashboards and reports, and operational analytics, the more that you’re going to cement your ties to them,” Eckerson said. “It’s a great way to increase customer satisfaction and customer stickiness. It’s also a way for independent software vendors to increase the value of their applications, and even up-charge customers for using certain types of analytics.”
Due in large part to the long list of benefits, embedded analytics has gone from a tactic for organizations to being an important strategy. People are thinking about the use of analytics differently: It’s now essential to every application, instead of being a nice add-on.
How to See Even More Results from Embedded Analytics
It’s not always enough to add embedded analytics on top of your application. To see the most value, organizations are realizing they need to embed analytics as deeply as possible—infusing it into the fabric of their apps.
“Infused analytics is going to deliver a lot more value to the organization,” said Eckerson. “Really, it only makes sense, because we’re tying transactions, time, and analytics together into a single environment, whereas for the last 30-40 years, we’ve kept them very separate.”
As application providers embed analytics deeper, the value from each of the three core benefit areas—driving revenue, improving customer satisfaction, and differentiating from competitors—goes up significantly. If you want the best results, you need to consider how to embed analytics even deeper. It’s not just about getting the information; it’s about creating an experience that’s easy for users, that meets their skill levels, and that’s tailored to their roles and how they want to use analytics. At this level, businesses are going to see some pretty impressive results.