Welcome to 2024!
It’s a new year and full of new beginnings. 2023 had its challenges across the entire B2B SaaS industry and 2024 will see some of those challenges linger. But each new year presents an opportunity to start fresh and evaluate where to make improvements.
At Qrvey, we live and breathe embedded analytics not because we love a good dashboard, but because we know it can have one of the most positive impacts on a SaaS platform. Giving SaaS customers the power to analyze their data right on your SaaS platform within their existing work process is a powerful proposition.
But, too often product leaders wait to start a project upgrading their reporting and analytics features in a meaningful way. They tend to wait until CSAT is falling or revenue growth/acquisition is a challenge. 2024 is a great time to turn that around.
What is embedded analytics?
Embedded analytics is the integration of data analysis and visualization capabilities into your software product. Embedded analytics allows you to provide your customers with data-driven insights and solutions within the context of your product, without requiring them to switch to a separate tool or platform.
Embedded analytics is especially important for software as a service (SaaS) companies, as it can help you improve your product’s usability, performance, value, and differentiation. Embedded analytics can also help you leverage your existing data sources and infrastructure, and open new revenue streams for your business.
In this blog post, we will explore why embedded analytics is important for SaaS software companies, and the five most common signs that a company is ready for embedded analytics within their SaaS product.
Five Signs It’s Time for Embedded Analytics in Your SaaS Product
Sign #1: You want to improve your product’s user experience by reducing customer feature requests for better reporting
One of the main benefits of embedded analytics is that it can help you improve your product’s usability and user experience. By integrating data analysis and visualization into your product’s user interface and workflow, you can provide your customers with the information and insights they need, when and where they need them.
This can reduce the number of customer feature requests for better reporting, as you can offer them a comprehensive and customizable analytics solution within your product. You can also enable your customers to perform self-service, operational, predictive, or prescriptive analytics, depending on their needs and preferences.
For example, if you are a healthcare software company that provides a patient engagement platform, you can use embedded analytics to provide your customers with real-time feedback on patient satisfaction, engagement, and outcomes. You can also allow your customers to create and customize their own dashboards and reports, and share them with their stakeholders.
By using embedded analytics, you can improve your product’s usability and user experience, and increase customer satisfaction and retention. Read more about how embedded analytics helps product leaders exceed their KPIs.
Sign #2: Your homegrown solution is getting out of control
Another sign that you need embedded analytics for your SaaS software product is that your homegrown solution is getting out of control. Many young SaaS companies start by building their own analytics features, thinking that it will be faster and cheaper than buying a third-party solution.
However, as your product and customer base grows, you may find yourself spending more and more time and resources on developing and maintaining the analytics features that your customers demand. You may also face challenges such as scalability, performance, security, and compliance.
Building your own analytics solution rarely outweighs the benefits of buying a purpose-built solution. By using a third-party embedded analytics solution, you can save time and money, and focus on your core product functionality and value proposition.
For example, suppose you are an IT software company that provides an asset management platform. In that case, you can use a third-party embedded analytics solution to provide your customers with real-time data and insights on their assets, such as status, incident reporting, security health and more.
A proper embedded analytics solution like Qrvey will also ensure that your analytics solution is scalable, secure, and compliant with the relevant regulations and standards.
By using a third-party embedded analytics solution, you can avoid the pitfalls of building your own solution, and deliver a better product and service to your customers.
Sign #3: You want to keep customers on your platform rather than have customers export data to use with other tools
A third sign that you need embedded analytics for your SaaS software product is that you want to leverage your platform for data analysis rather than have customers export to use with other tools.
However, if you do not provide your customers with a way to analyze and visualize this data within your product, they may resort to exporting the data and using external tools or platforms. This can result in data loss, inconsistency, security breaches, and compliance issues.
To avoid these risks, you should use an embedded analytics solution that can connect to and process data from multiple sources, and provide your customers with a seamless and secure analytics experience within your product. You can also enhance your data quality, accessibility, and governance, and enable real-time, historical, or predictive analysis.
For example, suppose you are an EdTech software company that provides a management platform. In that case, you can use an embedded analytics solution to provide your customers with data and insights on their student population such as grades and trends, survey responses, attendance and more.
Sign #4: You want to open new revenue streams to increase revenue
Another benefit of embedded analytics is that it can help you open new revenue streams and increase your revenue. By providing your customers with a superior analytics solution within your product, you can charge more for your product and service, and create additional value for your customers.
There are several monetization strategies that you can use with embedded analytics, such as:
- Premium add-ons to existing enterprise agreements: You can offer embedded analytics as a premium feature or service to your existing enterprise customers, and charge them an additional fee for using it. This can help you increase your customer lifetime value and retention, and generate more recurring revenue.
- Raising prices on premium tiers of user licensing: You can also raise the prices on your premium tiers of user licensing and include embedded analytics as a value-added feature. This can help you attract and retain more high-value customers, and increase your average revenue per user.
- Custom dashboard building: You can also provide your customers with the option to create and customize their own dashboards and reports, and charge them for the service. This can help you cater to your customers’ specific needs and preferences, and create a competitive edge over other products that do not offer this feature.
One of the main reasons why customers are willing to pay more for embedded analytics is the value of custom dashboard building. Custom dashboard building allows your customers to tailor their analytics experience to their own goals and objectives, and create personalized and actionable insights. Custom dashboard building can also help your customers improve their decision-making, performance, and outcomes, and achieve a higher return on investment.
By using embedded analytics, you can open new revenue streams and increase your revenue, and create a win-win situation for you and your customers.
Sign #5: You want to enhance your product’s value proposition and competitive differentiation
The final sign that you need embedded analytics for your SaaS software product is that you want to enhance your product’s value proposition and competitive differentiation. Embedded analytics can help you add value and differentiation to your product by providing data-driven insights and solutions to your customers, and helping them solve their most pressing challenges and opportunities.
Some of the examples of how embedded analytics can enhance your product’s value proposition and differentiation include:
- Improving customer satisfaction: Embedded analytics can help you improve customer satisfaction by providing your customers with data and insights using their data.
- Reducing costs: Embedded analytics can help you reduce costs by providing your customers with data and insights such as cost drivers, inefficiencies, and waste.
- Increasing revenues: Embedded analytics can help you increase revenues by providing your customers with data and insights such as revenue drivers, opportunities, and growth.
- Creating competitive advantage: Embedded analytics can help you create competitive advantage by providing your customers with the tools and features to analyze their data within their work process while the competition expects their customers to export data into expensive third-party BI tools.
Bottom line, embedded analytics can help you stand out from the crowd.
Embedded analytics is the integration of data analysis and visualization capabilities into your software product. Embedded analytics can help you improve your product’s usability, performance, value, and differentiation, and provide your customers with data-driven insights and solutions within the context of your product.
We would love to hear from you and help you achieve your 2024 goals with embedded analytics.