Today, anyone working on an application is tasked with optimizing it for end users. It doesn’t matter whether you’re an IT manager overseeing an internal application for employees only, or an OEM development team releasing a commercial product. If your application fails at engaging users, growing adoption, or proving its value with a positive ROI, it risks extinction.
For the past 5 years, many application teams have seen the benefits of embedded analytics in improving their user experiences while increasing end-user adoption and growing revenue. Unlike standalone BI solutions, embedded analytics keeps users in the applications they use every day and puts data in the context of the solutions people already use.
In the new 2017 State of Embedded Analytics Report—the fifth annual trend report on the subject—Logi surveyed over 500 product managers, software engineers, and members of application teams. According to the report, embedded analytics has never been more pervasive: 93 percent of respondents are currently embedding analytics in their applications. That’s up from 78 percent last year.
Why is embedded analytics so popular? Because users want insights in context, not in separate applications. According to a survey on adoption of analytics solutions released earlier this year, 84 percent of business users want access to analytics within the applications they’re already using. But 66 percent of users say they found themselves switching from their usual business apps to separate analytics tools to get the data or analysis needed.
When users have to leave their usual applications to analyze data in a standalone analytics tool, those analytics simply won’t be used. That’s one of the primary reasons embedded analytics is so appealing.
These five trends highlight some of the key benefits of embedded analytics:
Better Adoption than Traditional BI. Where adoption of standalone self-service tools has hovered around 20 percent for the past three years, adoption of embedded analytics is higher than ever this year—60 percent. Whether a company is releasing commercial software or an internal application for employees, they know that embedded analytics solves the adoption challenges that have plagued standalone data discovery tools.
Increases Time Spent in the Application. What’s the ultimate gauge of engaging users? Measuring time spent in the application. After embedding analytics, 84 percent of respondents say time spent in application went up.
Adds Value to the Application. What percentage of the overall value of their applications would respondents assign to embedded analytics? This year, they estimated the value of embedded analytics at 54 percent—up from 45 percent last year. This growth demonstrates the value that both users and product teams are realizing from embedded analytics.
Improves the User Experience. Nearly all companies agree that a successful application starts with a great user experience. When it comes to embedded analytics, 95 percent of respondents say it improves their customer satisfaction and 98 percent agree that it improves the overall user experience for their application.
Contributes to Revenue Growth. Ninety-eight percent of respondents said embedded analytics contributed to revenue growth. It also helped application teams improve their win rate (96 percent) and differentiate their solutions from competitors (94 percent).
“What always resonates best is when information is presented in context and can be turned into action towards some purpose or goal,” writes Chris Butler, Senior Product Strategist and The Product Guy’s “Best Product Person” of 2016. No surprise, then, that application teams are quickly replacing traditional BI tools with embedded analytics capabilities.