Behavioral analytics are tools that provide a clear understanding of how users engage with digital products, beyond simple metrics like clicks and pageviews. Teams rely on behavioral analytics to make better business decisions around growth, acquisition, engagement, and retention.
Why is Behavioral Analytics important?
Behavioral analytics is important for improving various user metrics across the user journey:
Here are some key benefits of doing behavioral analytics at its various stages
- With behavioral analytics, you can improve your customer acquisition efforts, thus reducing your CAC. For example, it can help you understand why your website visitors are not signing up for your product, or why your trial users are not converting into paid accounts.
- Insights from behavioral analytics, e.g. funnels or user paths, can help you to identify bottlenecks in the conversion funnel and optimize it to boost the conversion rate.
- You can also dive deeper into behavioral analytics to identify where users are dropping off in the onboarding flow. This helps you streamline your onboarding to improve user activation, which in turn, will result in higher retention (especially week 1 retention.).
- Finally, analysing behavioral data will help you understand if your users are using the features of your product that will allow them to derive value from it and prevent them from churning.
Do you need tools for Behavioral Analytics?
One thing is clear – you cannot track your user’s behaviour without proper tools:
To track and analyze user behavior, you need a tool that will allow you to:
- Capture feature usage (ideally without code, with tools like feature tagging) and record all the events happening in-app regardless of the interaction type (clicks, hovers, form fills.)
- Capture qualitative data with e.g. session recordings
- Track feature popularity with heatmaps
- Track user journey and funnel droupouts
What are the best tools for Behavioral Analytics?
Want to start with behavioral analytics but not sure which tool to choose? Here is our list of the best tools in the market that deserve a try.
- Userpilot: best user engagemen tool for personalized in-app guidance and automated onboarding
- Heap: best user engagement tool for in-depth user analytics
- Hotjar: best user engagement tool for heatmaps and session recordings
- Pendo: best user engagement tool for customer feedback and sentiment analysis
- Optimizely: best user engagement tool for for A/B testing
What are the must have features of Behavioral Analytics tools?
1. User Segmentation: Ability to categorize users based on behavior, demographics, and other factors.
2. Event Tracking: Monitor specific actions users take within the application.
3. Real-Time Analysis: Provide analytics data in real-time for immediate insights.
4. Data Visualization: Tools for graphing and charting data for easier interpretation.
5. Integration: Seamless integration with other data sources and platforms for a holistic view.