Embedded analytics is everywhere. From consumer gadgets, intelligent things, and applications to the rapidly expanding Everything as a Service (XaaS) subscription economy, analytics has been ubiquitously embedded into all areas of our lives. In a digital era fueled with data and automation, analytics has evolved from an afterthought to a necessity.
Embedded Analytics Drives the Bottom Line
I’ve seen the power of embedded analytics in my own experience working for one of the largest technology firms in the world. Our company was making a shift to the cloud. Perpetual, boxed software models were being replaced with modern subscription Software as a Service (SaaS) models. With our move to a subscription-based business, product teams needed to become user and usage focused. We had to build “sticky” cloud SaaS apps that delivered more value with every interaction to ensure user retention and continued growth.
To deeply understand our users and SaaS app usage, we embedded analytics into the foundation of our app. It proved to provide unprecedented, invaluable insights to guide our development backlog. Product team, customer success, technical support, marketing, and our delighted subscribers all reaped continuous rewards from relevant weekly releases. I can’t imagine how we would have ever survived without embedded analytics.
Embedded Analytics Today
I’m honored to reveal Logi Analytics, a leader in embedded analytics sixth annual State of Embedded Analytics Report for 2018. This study covers the top embedded analytics benefits and latest trends. More than 500 development teams participated in the survey. The results are thought-provoking.
Among the most fascinating findings this year, survey respondents reported that more than half of an applications’ value comes from embedded analytics. What’s more, 96 percent say embedded analytics has helped them increase overall revenue and 68 percent say they’re able to charge more for their products because of the value embedded analytics brings.
“Survey respondents reported that more than half of an app’s value comes from embedded analytics.”
This year’s survey also reflects accelerated speeds to market and intensifying competition. Respondents expressed building home-grown analytics is no longer a realistic option for long-term app success. In a cloud world of weekly releases, new capabilities are being integrated (and commoditized) faster than ever before. There is enormous pressure to deliver more features, faster. Missing or late-to-market capabilities today become liabilities tomorrow.
Another key study insight was development teams that took a combined approach when embedding analytics were 19 percentage points more likely to increase revenue than those that opted for a “bolt-on” approach. A combined approach was cited as supporting a better differentiated product, improving win rates, reducing customer churn, and boosting overall revenue. According to this year’s survey, 92 percent of respondents that opted for a combined analytics approach reported an increase in competitive differentiation, 90 percent reduced customer churn, and 91 percent improved win rates.
“92 percent using a combined approach reported an increase in competitive differentiation, 90 percent reduced customer churn, and 91 percent improved win rates.”
Last year we unequivocally saw the relationship between embedding analytics and improving app adoption rates – it is the industry’s best kept secret to app adoption. This year respondents shared how embedding analytics is improving the bottom line. The results were shocking. The top lesson learned this year, never underestimate the true value of embedding analytics into your app.
“The top lesson learned, never underestimate the true value of embedding analytics into your app.”
For More Information
To learn more about current embedded analytics industry trends, please download and review the entire report from Logi Analytics. Download 2018 State of Embedded Analytics Report