According to McKinsey, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years.

This means that software companies – particularly SaaS companies – must look at every advantage possible to stay alive in an ever-competitive market.

Remember it is the small margins that can be the deciding factor as to how successful you are.

Customer analytics can be just one way that gives you that competitive edge.

Whether it is measuring retention, product usage, or on-boarding, SaaS businesses must have comprehensive data collection and usage analytics. This enables them to make agile decisions as to the priorities and direction of their overall solution.

When starting a project, make sure that usage analytics are part of the initial NFRs (Non-Functional Requirements).  Think about: what information do you want to understand and act upon.

Ask your stakeholders what information would they find useful to support their business area so they can offer the best service they possibly can.

Ensure the Architect and development lead build in these analytics from the beginning – you want the feedback at every opportunity.