Product analytics is top measurement of digital success: Harvard study

Around 92% of respondents say now is a unique opportunity to capitalise on digital acceleration.

Product analytics is now the number one measurement for digital success over legacy measurement sources such as web analytics, marketing attribution analytics, business intelligence tools and surveys, according to a study released by digital business operating system Amplitude.

The research, conducted by Harvard Business Review Analytic Services, shows that the digital-first era is set to remain as 78% of executives surveyed said digital adoption has accelerated, with customers having formed new and lasting digital habits.

Around 92% of the respondents also said now is a unique opportunity to capitalise on digital acceleration.

Meanwhile, 58% of executives cited a focus on user engagement as the number one indicator of a digital product’s long-term success. It highlights the shift from measuring metrics such as ad clicks and website traffic, to measuring how customers are realising value within the digital product as the new benchmark for digital success.

The study also reveals that data culture is a differentiator, as 43% noted the lack of a data-driven culture as the top challenge to a digital-first business. Nearly 40% also cited the inability to analyse their customers’ full experience across devices and products as a key challenge.

Digital businesses will have to rethink how they deliver customer value in the new era of digital, as 81% believes user expectations for a great digital experience have never been higher.

"To survive in this new digital-first era, companies need a fundamentally new approach to understanding digital customer behavior, predicting which behaviors translate to business outcomes and adapting digital experiences to maximize business outcomes,” Amplitude chief marketing and strategy officer Jennifer Johnson said.