Importance of Data in Product Management
It’s very important for product managers to be data driven. Understanding data and using it for your products is very important.Data can be used to make important decisions regarding product strategy and designing for your product and to get more insights about your users.Data driven products are the best products.
How important is data for making decisions?
1.Every valuable insights from data helps in making better decisions
2. Helps in understanding what customer needs and what problem they are facing
3. Tracks the entire journey of product and users
4. Helps in making better plans and decisions for product
5. Helps in planning better product plans
6. Decisions taken based on data helps in better forecasting, marketing, business decisions and other core strategic goals.
Data helps PMs in many ways. For eg:
- Understanding your customers: In order to understand customer behaviour, what customers are doing and how they are feeling about the product, you will need a customer journey. Once the product is released, it will start getting data about at which point customers are dropping ,how they are responding to the product, what are their pain points. To understand all these factors, it’s very important to understand data first. Once you understand data, you will exactly know what to prioritise, what are the pain points of the customer and what needs to be improved in the product.Product data provides a larger scale of answers to who exactly your customers are, what they use your product for and what they think about it.
- Make better product decisions : Learning and understanding data helps PMs in making better decisions.Knowing how to interpret the data helps PMs make better decisions while making changes to the product.
- Making better product assumptions: While iterating a feature, data helps in making better product assumptions as well as validating them.
- Determining growth of product : Data helps in understanding growth of product and determining roadmap. It also helps in reducing risks and losses.
Hope you find this article helpful. Keep learning!