Technology spreads and grows every day and because of this, there are new roles and job opportunities that require expertise in various fields. Staying tuned to technological advancements and having the necessary skills can open doors to these roles, one of which is the Product Performance Analyst. While there are people currently working the job, there are others who have no idea what the role is about. 

What is Product Performance Analysis? 

One of the reasons product performance analysis is properly done is because there are product performance analysts who know their onions and can carry out several activities to achieve a great result.

Product performance analysis is the thorough assessment of a product’s behavior across various metrics ensuring its optimization and enhancements. Therefore, Product Performance Analysts are professionals who employ their skills to gather, analyze, and interpret data related to a product’s usage, customer feedback, and other relevant factors. The results inferred from the analysis conducted help organizations and business owners understand what they need to do to refine and improve their products which can redirect the business towards better customer satisfaction and business success. 

Responsibilities of a Product Performance Analyst

If you are wondering what the other responsibilities of a product performance analyst are, here you go: 

1. Setting and monitoring performance goals for a product or group of products. 
2. Researching to compare different product features and changes to see which yielded better results. 
3. Creating reports to communicate results and suggestions to the brand or product board. 
4. Suggest improvements, new features, and fixes based on data results. 
5. Studying products to see how they get competitive and relevant in the market. 
6. Assisting in the formulation of product strategies and roadmaps.

Important Skills for all Product Performance Analysts

• Data analysis
• Data Management 
• Data visualization
• Critical thinking
• Research 
• Business Intelligence
• Excellent communication skill
• Data storytelling

Where can a Product Performance Analyst work? 

• Fintech companies 
• Technology companies
• Commercial banks
• Fashion companies 
• Health and Beauty Companies 
• Food and Drink companies and more. 

How much Salary does a Product Performance Analyst earn Monthly? 

Product performance analysts have different work experiences and render their services to different organizations which means that this can cause a variety in the salaries being paid to each person. A product performance analyst who works for a tech company may most likely earn more than one who works for a fashion company and vice-versa because the organization may have different sizes and financial capabilities. In the same way, a product performance analyst with over 5 years of experience will earn more salary than an entry-level product performance analyst. However, according to Glassdoor, the estimated total salary of a product performance analyst in Nigeria is N1,650,000 monthly with N150,000 being the average salary per month. 

Why are Product Performance analysts important?

Product Performance Analysts are important for several reasons:

Strategic Insights

Strategic insights are critical in guiding decision-making processes by providing valuable information that influences the strategic direction of product development and marketing strategies. This information helps businesses stay ahead of market trends and take proactive steps to meet consumer demands.

Customer understanding

Customer understanding involves analyzing customer feedback and behavior to gain insights into their preferences and pain points. This knowledge is essential for ensuring customer satisfaction and loyalty, which ultimately leads to higher customer retention rates and brand loyalty.

Monitoring market trends

Monitoring market trends is essential for staying competitive in the ever-changing marketplace. By keeping track of market trends, businesses can identify new opportunities, adapt their products or services to meet evolving customer needs and maintain their competitive edge.

Performance metrics

Performance metrics, such as key performance indicators (KPIs), provide objective and measurable data on the success of a product or service. By analyzing these metrics, businesses can assess their performance, identify areas for improvement, and make informed decisions to enhance overall product success.

Data-driven decisions

Data-driven decisions are supported by experts in data analysis who utilize data to make evidence-based decisions. By leveraging data, businesses can reduce the reliance on guesswork, increase the accuracy of their decision-making process, and improve their chances of success in the market.

How to Analyze Product Performance

Analyzing product performance involves a multi-faceted approach to gaining a comprehensive understanding of how a product is performing in the market. Here’s an expanded step-by-step guide to help you effectively assess and enhance your product’s success:

Define Goals and Metrics

Begin by aligning your analysis with business objectives. Identify key performance indicators (KPIs) that are relevant to your product, such as sales volume, profit margins, customer satisfaction, retention rates, and market share.

Data Collection

Gather data from a variety of sources, including sales records, customer feedback, online analytics, social media metrics, and market research reports. This comprehensive data collection process ensures that you have a holistic view of your product’s performance.

Data Analysis

Utilize analytical tools and methodologies to process the collected data. Explore the data to uncover trends, patterns, and correlations that provide valuable insights into the factors influencing your product’s performance in the market.

Customer Journey Analysis

Conduct an in-depth analysis of the customer journey to understand how customers interact with your product at each stage of their experience. This analysis sheds light on the effectiveness of your product in creating awareness, driving acquisition, and ensuring customer retention.

Competitive Benchmarking

Compare your product’s performance metrics against those of key competitors in the market. This benchmarking exercise helps identify your product’s strengths and weaknesses relative to the competition, enabling you to capitalize on opportunities and address areas for improvement.

Reporting

Compile and create comprehensive reports that summarize your analysis findings in a clear and actionable format. These reports should include key insights, performance trends, actionable recommendations, and strategic implications for decision-making.

Decision Making

Leverage the insights gained from your analysis to make informed decisions about product development, marketing strategies, pricing adjustments, distribution channels, and customer experience enhancements. Use data-driven decision-making to drive sustainable growth and competitive advantage.

Continuous Improvement

Establish a process for regularly updating and refining your analysis to track progress, monitor market dynamics, and adapt to changing customer preferences and competitive landscapes. Continuous improvement is essential for staying agile and responsive to evolving market conditions.

Remember, the goal is to find actionable insights that can improve product sales metrics and impact other important KPIs.