Product Managers Need Embedded Analytics—Here’s Why

Software as a service (SaaS) products should always empower users with insights, which is why analytics aren’t just another feature. Without robust multi-tenant analytics, your customers are left in the dark and unaware of all the growth opportunities they need to leverage.

Embedded analytics is critical to unlocking this potential, transforming a product from a simple tool to an intelligent solution. It eliminates the never-ending saga of building imperfect multi-tenant analytics by turning to a purpose-built platform, such as Qrvey, that allows your team to ship self-service analytics capabilities faster than ever.

As a result, analytics functionality becomes a competitive advantage for your SaaS product. Customers and end users feel empowered by the insights you uncover, and your team doesn’t get bogged down, which allows for continued investment in core features that demand attention.

But simply providing data isn’t enough. Go beyond basic dashboards and reports to empower users by providing an interactive, customizable, and easy-to-use analytics experience that seamlessly integrates with existing workflows. This is where embedded analytics comes in, offering a powerful solution to meet the growing demand for data-driven decision-making in SaaS.

5 Key Embedded Analytics Benefits for Your SaaS Product

Building analytics functionality into your SaaS product is a game-changer, empowering users to make data-driven decisions and gain deeper insights from their own data.

But let’s face it: Developing a robust analytics solution from scratch is complex and resource-intensive. It requires specialized expertise, significant development time, and ongoing maintenance, all of which strain you, your team, and your budget.

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Seriously, it’s not worth building multi-tenant analytics yourself. You’re already limited in resources in terms of time and money. Building analytics functionality requires far more than you realize, whereas an embedded analytics solution takes on the heavy lifting—including long-term maintenance—at a fraction of the cost.

Here are the benefits you need to know about embedded analytics for your SaaS product.

#1. Deliver actionable insights, instantly

Imagine your customers accessing real-time data visualizations and personalized dashboards without ever leaving your product. Embedded analytics makes this a reality, eliminating the need to switch between platforms or export data to external tools.

It’s a seamless integration providing immediate access to critical information, enabling users to:

• Identify trends and patterns: Spotting emerging trends allows users to proactively adapt their strategies and capitalize on new opportunities.

• Diagnose issues and troubleshoot problems: Quickly identify the root cause of problems and take corrective action, minimizing downtime and maximizing efficiency.

• Track key performance indicators (KPIs): Monitor progress towards goals, identify improvement areas, and demonstrate your product's value.

Empowering users with readily available, actionable insights enables them to make data-driven decisions faster and with greater confidence. This fosters a more proactive and agile approach to business challenges, allowing users to seize opportunities, optimize performance, and gain a competitive edge.

Overall, delivering actionable insights to your customers empowers each user to become active participants in their own success and move closer to accomplishing their goals. And you’ll see higher adoption and engagement, which leads us to the next key benefit.

#2. Improve customer retention (and grow revenue)

Embedded analytics enhances customer satisfaction (CSAT) and loyalty, too. You create a ‘sticky’ product that users are reluctant to leave.

Along with improved customer retention, you also benefit from:

• Increased user engagement: Users who can easily access and understand their data are more likely to interact with your product regularly.

• Reduced churn: Satisfied users who find value in your product are less likely to switch to competitors.

• Increased customer lifetime value (CLV): As users become more engaged and reliant on your product, their lifetime value increases, leading to higher revenue generation.

Offering advanced analytics also opens the door to premium upsell and cross-sell opportunities, introducing new revenue streams to cater to users with more sophisticated data needs. It allows you to segment your customer base and offer tailored solutions, such as advanced reporting features or predictive analytics capabilities, to further enhance the value proposition of your product and drive revenue growth.

With premium options, you not only meet the diverse needs of your users but also create a tiered pricing structure to monetize analytics effectively.

#3. Earn a high net promoter score

Without needing to switch tools, embedded analytics in your SaaS product provides insights into performance and trends so that users can optimize their strategies in real time.

It’s an ease of use and access to valuable information that leads to increased CSAT and a higher likelihood of recommending your product, suggesting a high net promoter score (NPS).

Investing in embedded analytics proves that you’re committed to providing users with the capabilities they need to succeed, and this doesn’t go unnoticed by customers.

#4. Increase profitability

While implementing embedded analytics requires an initial investment, the long-term payoff outweighs the costs. By optimizing user engagement, reducing churn, and increasing revenue, you significantly improve your SaaS product’s profitability.

• Reduced customer acquisition costs (CAC): High customer retention rates translate to lower customer acquisition costs, as you spend less on attracting new customers.

• Increased upselling and cross-selling opportunities: Offering advanced analytics as a premium feature allows you to generate additional revenue from existing customers.

• Improved operational efficiency: By empowering users with self-service analytics, you reduce the burden on your support team and free up resources for other critical projects.

Ultimately, embedded analytics contributes to a more sustainable and profitable business model by fostering deeper engagement, stronger loyalty, and increased revenue through premium offerings and efficient resource allocation.

#5. Expedite conversion rate from trial to paid

Your analytics can be a powerful tool for converting trial users into paying customers, and providing access to insightful data during the trial period demonstrates the value of your product and encourages users to upgrade.

Expanding on that, here’s what embedded analytics does to convert trial users:

• Showcase the power of your product: Allow trial users to experience the full potential of your product by unlocking access to key analytics capabilities.

• Drive user engagement: Motivate trial users to explore your product and discover its benefits through interactive data visualizations and dashboards.

• Provide personalized insights: Tailor the analytics experience to the specific needs of trial users, highlighting the value of your product for their unique use case.

Better experiences during a trial lead to a higher conversion rate, and you’ll significantly increase the likelihood of conversion to paid subscriptions after demonstrating the tangible benefits of your product’s embedded analytics during the trial period.

Transform Your SaaS Product with Embedded Analytics

As a product manager, you’re constantly seeking ways to enhance your SaaS product and deliver exceptional value to customers. And in a world overflowing with data, the ability to extract meaningful insights and make informed decisions is no longer a luxury—it’s a necessity, which is precisely why embedded analytics has become indispensable.

Of course, there’s a great debate between building multi-tenant analytics functionality in-house or buying an embedded analytics solution that can meet the needs of multi-tenancy.

Building seems attractive at a glance, especially for early-stage startups. But the reality is that building in-house takes an unpredictable investment of time and money to launch—let alone maintain. However, embedded analytics is fast to implement yet massively scalable to keep pace with the growth of your business.

Embedded analytics in SaaS products is more than just another feature, and it’s certainly not a trend. It’s a strategic asset that carries benefits for both your customers and your own team.

Readily-available, actionable insights enhance user experience, improve customer retention, and drive revenue growth for SaaS products that prioritize analytics. As the competitive landscape in SaaS continues increasing, embedded analytics stands out as a differentiator that sets your product apart and solidifies your position as a market leader.

By embracing embedded analytics, you’re not just adding a feature. You’re investing in a transformative solution that empowers your users, drives customer satisfaction, and fuels growth.