Companies that haven't embraced Product Intelligence as a business growth strategy are leaving revenue on the table, with most companies saying they don't have the proper tools in place to understand and act on customer data, said The Amplitude Product Intelligence Report.
With the pandemic accelerating digital transformation from years to weeks, even days, there is increased urgency for companies to conceive and create exceptional digital products and experiences that attract and retain customers. The report, built from research conducted by Adience and directed by Amplitude, surveyed C-level executives, VPs, directors, and managers overseeing business and product teams to understand how businesses are adapting to their digital-first reality. While nearly every respondent agreed digital is a top priority, the report uncovered that businesses have several customer blind spots and are struggling to connect their customer insights into action, resulting in lost growth.
"Customers are forming new habits every minute, and when every interaction counts, instinct no longer cuts it," said Spenser Skates, CEO of Amplitude.
"Digital is the defining competitive edge and our research shows a clear connection between business performance and a data-driven understanding of the user experience. Companies can no longer see digital as an option - it's make-or-break for survival," Skates further added.
Key findings of the Amplitude Product Intelligence Report include:
- Businesses have blind spots when it comes to customer behavior - While 97 percent of businesses say that improving the digital experience for users is a priority, 71 percent said they don't know exactly where to start when it comes to understanding their users' behaviors and 38 percent said they don't know what to do to improve their digital experience.
- Customer retention on digital platforms continues to plague the majority of businesses – 69 percent of businesses said they don't know where to start when it comes to retaining customers on digital platforms.
- Hidden data is costing businesses time and money – 69 percent of teams are waiting a few days to a full week to get responses to simple data questions with 59 percent of organizations saying that if their product teams can't access behavioral data immediately, they move forward based on instinct, rather than evidence.
- Teams are forced to make critical product decisions based on best guesses – 77 percent of product teams rely on best practice and instinct - not Product Intelligence solutions and behavioral data - when building product roadmaps. Only 20 percent of product teams have access to a behavioral data tool that is easy to use.
- Businesses with real-time insight into customers' behaviors are succeeding - Businesses using Product Intelligence solutions were 5.5 times more likely to see over 25 percent revenue growth year over year. Having C-level product leadership also mattered as those businesses were 6.5 times more likely to grow by 25 percent or more in the previous year.