Data-driven product management via usage analysis
Our customer, a globally operating internet firm, wanted to introduce product innovations to the market. However, the expect workload caused by customers was unsure. niologic supported product management with the analysis and the prediction of customer behavior.
Challenge
In addition to monitoring the market and identifying trend in technology, today’s product management is expected to fully understand the customer. To achieve this, market trends and an evaluation of the current product portfolio are made available. In this case however, our customer wanted to introduce a new technology, which was therefore not included in the portfolio. New technology attracts more customers on the one hand, but requires higher seed funding on the other. This is why it was not sure, whether this particular technology could be introduced in profitable way, when costs, workload and customers are taken into account.
Procedure
niologic initially worked together with special departments to enhance indicators. In this step, the usage of each product was measured accurately. Within a few days, our customers had access to data covering the utilization of each product parameter, in addtition to mere sales and contracting data. The product parameters to analyse, were taken from the product’s service description.
Results and customer value
Our customer’s product management received a prognosis of customer behavior and expected utilization. Comparing the new technology’s workload and costs, expected profit margins could be predicted. Thousands of contracts had been analysed to make the prediction, which eliminated the insecurities existing prior to the technology’s introduction. Meanwhile our customer was enabled to recognise different contract usages, based on the deployment, which lead to further improvement of contract types and the product itself.
By controlling the latest measured indicators, the departments in charge were able to monitor any development concerning the utilization of new products right after their introduction to the market. This introduction turned out to be clearly successful, which is why the market followed.
