The world of analytics is constantly evolving. To remain competitive, companies have to—at a minimum—embed analytics features in their software. But now more than ever, this isn’t enough. “By 2020, 80 percent of enterprise application vendors will compete on the sophistication of advanced analytics offered in their solutions,” notes Gartner in a new report, 5 Best Practices for Choosing an Embedded Analytics Platform Provider.
In fact, the gap between applications that have embedded basic analytics features and those offering cutting-edge capabilities is already beginning to widen. In order to gain (or maintain) a competitive advantage, companies must evolve their analytics platforms and capabilities—or risk being left behind entirely.
Here’s why you can’t afford not to evolve your analytics:
User Experience Effects
Whether you like it or not, you’re stacked against your competitors. Companies that give their customers sophisticated analytics features already see a competitive advantage over applications that stick to the basics.
As we saw in our 2018 State of Embedded Analytics Report, embedding sophisticated features improves user satisfaction and increases adoption. We see a clear difference in the abilities of applications with sophisticated capabilities to satisfy users, as compared to applications with basic features.
As shown in the State of Embedded Analytics Report, applications with sophisticated functions have a solid advantage over basic applications. They’re more able to differentiate their software, reduce customer churn, and increase overall revenue, among other business benefits.
Modern features such as embedded analytics set your application apart and make it nearly impossible for competitors to catch up. Not only will innovating your analytics help you gain (and retain) more customers, but as customers increasingly rely on your application, you can justify premium pricing tiers.
Don’t Wait to Evolve Your Analytics Platform…
When embedding analytics, application teams can choose to include a range of capabilities—from interactive dashboards and data visualizations all the way up to embedded workflows and predictive analytics. Innovative features usually take more time to deliver than basic ones, but they’re also the capabilities that will deliver substantial business benefits.
Companies that want to use embedded analytics as a competitive advantage or a source of revenue can’t afford to put off updates. Don’t wait until your features start to lag behind. In this case, you’ll be forced to upgrade just to catch up. And if your customers have started to churn, you’ll be faced with the overwhelming task of winning back frustrated customers or winning over new ones. Depending on your industry, this can be anywhere from five to 25 times more expensive than retaining an existing user.
To learn more about the importance of evolving your analytics, read our ebook: 5 Early Indicators Your Analytics Will Fail >