What is Product Intelligence?
Understanding what product intelligence is and how it works is key to improving your product development processes. These insights enable you to develop better products and improve customer satisfaction for overall success.
Read on to discover the answer to the question, “What is product intelligence, and how does it impact business success?”
What is Product Intelligence?
Product intelligence is the process of analysing data on how consumers view and interact with your products. The data collection process uses both consumer data and operational data to identify market trends, improve product performance, and build an understanding of consumer needs.
How Does Product Intelligence Work?
Product intelligence focuses on using consumer data to inform product decisions. It helps businesses effectively tailor product development processes to their target audience.
Here are some of the key product intelligence measures.
Research & Data Collection
The product intelligence process relies on in-depth research and product analytics tools. These collect product intelligence data, including consumer feedback and key product metrics.
Product Intelligence Data Analysis
Consumer and product data analysis examines how and why consumers interact with and experience certain products. This facilitates a better understanding of consumers for enhanced business intelligence.
Informed Decision Making
Comprehensive insights about consumer behaviour enables you to make informed product decisions. These decisions relate to multiple product development phases, including product design, development and marketing.
Benefits of Product Intelligence
Product intelligence solutions offer numerous benefits for any business. These solutions revolve around product research and development teams. They also involve a shift towards consumer-centric product development.
Here is an overview of how product intelligence and business success go hand-in-hand.
Gaining Valuable Consumer Insights
Product intelligence involves gathering robust quantitative and qualitative data about your consumers. This is achieved via product analytics, focus groups, interviews and more.
Robust consumer data provides valuable insights into your consumers’ wants, needs and expectations. A comprehensive understanding of target consumers gives businesses a competitive advantage as they can tailor products to the consumer’s needs.
Tracking Product Development Metrics
Product intelligence tools are also ideal for measuring product development metrics. Sometimes called product key performance indicators (KPIs), these metrics can help monitor product performance and quality.
For example, churn rates provide insight into both customer engagement and customer retention. This product usage data is useful for identifying shortcomings in your product development process that may otherwise be overlooked.
Data-Driven Product Development
Reliable user behaviour and product analytics data help to gain insights into how users interact with and perceive your product. Product managers can use this knowledge to guide an innovative product development strategy.
This process helps create targeted and intuitive products that better align with consumers’ needs and deliver a more satisfactory consumer journey.
Increased Business & Customer Success
Enhanced product development can help improve product quality and consumer experience. This, in turn, will result in a higher customer lifetime value (the total profit earned from a single customer) and an increased business ROI (return on investment) for overall success.
Who Can Benefit From Using Product Intelligence?
Product intelligence provides insights for various teams within a business, especially those in the SaaS industry whose consumer interaction is mostly digital. Product management teams can use it to identify areas of improvement to enhance product experiences and gain a competitive edge.
Here are the key groups that benefit from product intelligence platforms:
- Product Managers: Product managers can benefit from using insights to guide the implementation of new features and update the company’s products.
- Product Designers: Designers and developers can use product intelligence to deliver great product experiences. They do this by using product analytics to build new products. For example, by analysing data, SaaS developers can improve on UI features or remove features that aren’t used.
- Product Marketing Teams: Product marketers use product intelligence to understand how consumers feel about their products. This, in turn, helps them come up with new and impactful marketing tactics.
- Sales Teams: Sales teams use behavioural data to understand consumer pain points. These data points steer effective upsell conversations and increase customer retention.
Now that we’ve discussed the benefits of using product intelligence, let’s identify the main features of a good product intelligence tool.
Features of A Good Product Intelligence Tool
The effectiveness of your product intelligence solutions depends upon the tools you use to develop them. When choosing a product intelligence tool for your business, these are a few things you should consider.
Advanced Segmentation
Vypr’s advanced segmentation helps empower businesses to enhance their analytics by targeting specific groups. The platform helps users gather data by segmenting audiences based on different demographics and behaviours, promoting improvement in product experiences.
By combining attributes, segmentation can target users based on exact criteria, leading to more effective strategies for businesses. Integrating customer data platforms and conducting enhances this method, providing internal teams with comprehensive insights into consumer behaviour.
Data Reliability
To make effective data-driven decisions about your product development process, you need to have robust insights from reliable consumer data platforms. Several factors influence the reliability of your data, including your sample groups and research methodologies. You need to ensure your groups include.
Representative Sample Groups
It is essential to have a sample group that is representative of your target audience. Without this, the consumer intelligence data you collect will not provide valuable insights for your product development process.
When you sign up with Vypr, you gain access to our proprietary Vypr Community, which consists of over 75,000 vetted members. To ensure data reliability, we conduct rigorous consumer profiling and validation testing and remove users with low integrity scores. This enables you to effectively drive product development with trustworthy insights.
Comprehensive Research Methodologies
Consumer research and product development are closely linked. Comprehensive research methodologies are essential for reliable product data and enable product designers and developers to make more informed decisions. The most reliable consumer insight can only be achieved through a combination of qualitative and quantitative research methods.
Modern product intelligence innovation has also led to an increased focus on consumer behaviour data. By gathering behavioural data, businesses can better understand the reasons behind consumers’ actions.
At Vypr, our qualitative and quantitative research is backed by behavioural science. Our intelligence platform tests rapid, System 1 responses to gain a more accurate representation of buying behaviour.
Agile Product Development
Agile innovation is one way to accommodate the ever-evolving nature of market and consumer trends. An agile approach, such as the one facilitated by Vypr, involves testing your product throughout the entire development process.
This enables you to consistently validate your decision-making at all stages of product development. An agile methodology also increases overall efficiency, helping to facilitate a lean product development life cycle that avoids costly changes during later stages.
Product Intelligence Vs Business Intelligence
Product intelligence and business intelligence are both essential to improving business operations. However, there is a clear distinction between them.
Product intelligence prioritises gathering and analysing qualitative data concerning consumer interactions with specific products. This process aims to enhance consumer experience and boost product innovation. Product intelligence aims to provide actionable insights that guide product development and refinement.
Business intelligence focuses on the broader perspective by analysing overall company performance metrics so decision-makers can make informed strategic choices. Business intelligence is mostly used by higher management, such as executives and managers, who need operational data to gain a better understanding of company performance.
Make Better Decisions With Vypr’s Product Intelligence Solution
Vypr is the world’s leading product intelligence platform that enables businesses to understand changing consumer behaviour through fast, cost-effective consumer insight.
You no longer have to wonder, “What is product intelligence?” Sign up with Vypr to start reaping the benefits of robust product intelligence data backed by behavioural science.
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