How to Deliver Better Data-Driven Marketing with Product Analytics

4 min read

Learn how to leverage product analytics to understand user behavior and personalize marketing campaigns to retain more users.

Frank L.
Frank L.
Published November 16, 2021 Updated November 17, 2021

How to Deliver Better Data-Driven Marketing with Product Analytics

How to Deliver Better Data-Driven Marketing

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Data is the product marketer’s best friend. Leveraged correctly, it gets rid of any guessing on the motivations of your target user, so you can launch and test marketing campaigns that deliver the best possible ROI. And what better data to use than the insights of your existing user’s behavior?

Product analytics is an essential data source the marketing team can use to convert more users in the funnel. It helps you better understand your target user’s behavior and expectations in their journey, making marketers better able to sell your product.

By using your product analytics data, you’ll be able to deliver better data-driven marketing campaigns that are not only more personalized but also target the right kind of users to your platform. Here’s how to do it.

Find User Conversion Patterns Through Cohorts

Your best customers offer great lessons on what influences conversion in your funnel. By understanding how your most loyal users behave and what leads them to become paying customers, you can set up strategies to replicate similar results. That’s where behavioral cohorts come into play.

In marketing, behavioral cohorts segment users into different groups based on the different actions they take within your product. They identify the specific user patterns that lead to KPIs, such as conversion, churn, or revenue.

For better data-driven marketing, use cohorts to segment your user base between those who converted into paying customers and those who didn’t. It helps you understand the specific steps each user took before becoming a paying customer, which you can then duplicate in your marketing funnel. For example, what features did they engage with the most before signing up? What type of messaging did they come across?

As meal-delivery company Blue Apron was looking to improve their conversions, they used cohort research to analyze their users. They noticed that high-converting users would frequently visit their recipe page before signing up for their platform. That’s when they decided to update their recipe page with CTAs and showcase more recipes customers could pre-use.

The result? They were able to boost their conversions by 5.5%.

Leveraging technology can help a lot when it comes to setting up and understanding behavioral cohorts. A practical tool to launch this is Amplitude, whose cohort feature allows you to divide users based on different criteria and analyzes their behavior over time.

Data-Driven Marketing Amplitude

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Identify Sources of Friction in the User Journey

Another effective use of product analytics is to identify friction in the user’s journey so you can make changes in your marketing funnel and address these issues. That way, you can win back lost customers who didn’t convert.

For example, it’s possible users sign up for your product and email newsletter but don’t know what to do next. Or users frequently get halfway through the onboarding process only to leave and not finish it.

If you don’t know these problems are occurring, you can’t find ways to solve them. Product analytics can point out these problems, so you can convert more lost leads.

To identify these sources of friction, you need to use a platform that identifies these bottlenecks in the user journey and where you’re losing these leads. ActiveCampaign’s site and event tracking feature identifies the last action of your users to determine exactly where they drop off in the funnel.


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It saves you time and headaches from manually trying to pinpoint where you’re losing users. With this essential data, you can better understand user challenges and tweak your marketing strategy through different A/B tests.

Integrate User Data into Your Marketing Tools

Many marketing tools allow you to implement your user cohort data for more personalized, data-driven campaigns. This ensures you’re sending the right message to the right person each time, regardless of the channel you’re using.

For example, let’s say you have cohort analysis data of your most loyal customers with paid memberships. You can integrate this data into Facebook Audiences to run targeted ads and drive more qualified traffic to your landing page.

Many email marketing platforms such as Mailchimp automate email campaigns to target users based on their behavior and come with the possibility of integrating your cohorts. By integrating your existing user data within the email automation tool, you’ll nurture leads by personalizing each email based on where the user is in the funnel.

Identify Upsell and Upgrade Opportunities

Use product analytics to identify upsell and upgrade opportunities to reach the right user with the right upsell offer via various channels. It allows you to generate more revenue per user by offering them upgrades and perks to maximize their product experience — all in exchange for a higher fee.

For upselling to work, you must reach out to users at the time they’re most likely to benefit from an upgrade. Without correct timing, you risk coming across as pushy rather than helpful, thus decreasing your chances of conversion.

One of the best times to reach out to customers for an upsell is when a user has reached a new milestone, such as completing onboarding. At this point, they see the value of your product (since they got a glimpse of how it works to solve their challenges), and you can then explain to them how your recommendations can help them reach their next win. Product analytics can help you identify when a user is approaching a milestone so you can be prepared with your upsell.

Another ideal time to target users with upsells is when customers have reached their usage limits since it prevents them from getting the most out of the product. You can use product analytics to identify users who’ve exceeded their quotas or storage capacities or who can’t access essential features and target them with upselling.

Engagement data such as Daily Active Users and Monthly Active Users are also important product analytics metrics to evaluate before you target users with upsells. The more engagement the customer has with your product over time, the more likely it is they’ll be interested in upgrades.

Convert More Users with Data-Driven Marketing and Product Analytics

Leveraging product analytics in your marketing campaigns helps you drive more qualified leads and convert more users into paying customers. That way, you’ll have a more successful product for stakeholders and reduce churn.

To get started, invest in a product analytics platform like Mixpanel, Amplitude, or Pendo. Then use the platform to analyze your customer’s behavior each quarter with your marketing team and use the insights with your future campaigns.

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