How to Use Product Analytics for Growth
Product analytics transform gut feelings into evidence-based decisions. But drowning in data is just as dangerous as having none. This guide focuses on the analytics that actually drive growth, not vanity metrics.
Define your key metrics
Choose 3-5 metrics that directly relate to business outcomes: activation rate, feature adoption, retention, NPS, and expansion revenue.
Build a growth model
Map how users progress from signup to activation to retention to expansion. Identify the conversion rates between each stage.
Track onboarding funnel completion
Measure step-by-step completion rates for your onboarding flow. Each step where users drop off is an optimization opportunity.
Analyze feature usage patterns
Identify which features correlate with retention. Users who adopt these "sticky" features should be your onboarding focus.
Segment analytics by cohort
Compare metrics across signup cohorts to measure improvement over time. Aggregate metrics hide whether your product is actually getting better.
Set up automated alerts
Create alerts for metric drops that indicate problems: declining activation rates, rising churn, or dropping NPS scores.
Pro Tips
- Focus on trends and rates, not absolute numbers. Growth rate matters more than total users.
- Compare engaged user metrics versus all user metrics to understand your ceiling.
- Use product analytics to validate the impact of onboarding changes with before/after analysis.
- Share a weekly metrics dashboard with the team to maintain growth focus.
Conclusion
Product analytics are only valuable when they drive action. Build a small set of key metrics that map to your growth model, track them consistently, and use the insights to prioritize your onboarding and engagement experiments.
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