What is Product Usage And Why You Should Care

If you are in business, then it is vital to know what is product usage and why you should care. Read on to learn why product usage matters and how it's measured.

Are you wondering what are product usage metrics and how they can help you measure product engagement? Continue reading to find out why they matter and how to measure them!

If you are in business, then it is important to know what product usage is and why you should care. A high usage rate means that people are using your product frequently, so it may be worth investing more money into advertising or improving the quality of the product. 

What is product usage?

Software products, apps, and digital tools offer unique opportunities to collect a wealth of product usage data. Product usage data can tell you about the end user. It includes what they do while using a product, how often they use it, and when.

What is product usage analytics?

Analyzing the data generated by users who interact with a product is called product usage analytics. It is a quantitative measurement of the product’s use and general performance, rather than a subjective observation.

Product usage analytics should be done on a regular basis, especially after a product has undergone a redesign or new product features have been added.

Why is product usage analytics important?

It is invaluable to know how customers interact with your product. These logs of data provide more insight than usability tests, beta testing, and customer interviews. Product usage analytics track how customers use the product in real-world settings in real-time.

This type of data can be helpful to you:

  • Evaluate product performance
  • Find and fix bugs
  • Enhance product quality
  • Improve user experience
  • Increase conversions
  • Keep more customers
  • Craft messages

Customers make products, but they don’t create them. Analyzing product usage data is the best way for a company to get customers on their product development teams.

How is product usage tracked?

Software logs product usage data in a format that isn’t user-friendly and readable. These software usage logs must be extracted, transformed, and loaded into a database before they can be analyzed.

Third-party analytics platforms can simplify the process of tracking product usage:

  • Retrieves data from raw log files.
  • Stores product usage data
  • Transforms data so it can be readable.
  • Automatically generates reports and charts to visualize the data.
  • Provides tools to analyze product usage data.

Although product usage data can be assembled, transformed, and loaded using in-house processes, it requires significant expertise and resources to build the database and configure it. A third-party platform with built-in reporting features is the best option for tracking product usage data.

What are product usage metrics?

What metrics should you look at once you begin digging into product usage data? It’s easy to get lost in the sea of data when it comes to product usage.

Here are some metrics that are used to track product usage:

  • Usage Frequency – Usage frequency tells you how often customers use your product. Customers should use your product on an ongoing basis to show satisfaction and that it is meeting their needs.
  • Time spent using the product – Customers who only use your product for a short time could indicate that the user experience is not optimal. Customers should also be able complete tasks in a reasonable time.
  • Bug Reports – How often do users submit bug reports? A large number of bug reports could indicate that product quality is not up to par.
  • Customer retention – How well you keep your customers is directly related to product quality.
  • Churn Rate – These product usage metrics, which measure the percentage of customers who stop subscribing for a product or service, can be used to analyze product usage. You can reduce churn rates and increase customer lifetime value by getting insight into how your product is being used.

How does product usage influence customer satisfaction?

Analytics experts began to discuss how product usage affects customer satisfaction decades ago. Studies have shown that product usage can have a significant impact on customer satisfaction. Product usage analytics can help improve user engagement,  response, and communication. All of these factors are important in client satisfaction.


So, what is product usage? Analyzing the data generated by users who interact with a product is referred to as product usage analytics. Product usage is important to understand for businesses because it can help them make decisions about where to allocate their resources.

If a product has a high usage rate, then that means people are using it frequently and it may be worth investing more money into advertising or improving the quality of the product.


More Posts:

SaaS, Software-as-a-Service

SaaS: A Comprehensive Guide to Software-as-a-Service in 2023

The world of software has evolved tremendously, and one of the most notable developments is Software-as-a-Service (SaaS). SaaS has transformed how businesses operate, offering a

SaaS Products: Software-as-a-Service is all about the Product

Explore the key fundamentals of SaaS products and common reasons for their failure. Dive into the importance of cultural focus, simplified pricing, and why SaaS is all about the Product.

Send Us A Message