Driving product usage and revenue growth with embedded analytics

Most modern businesses know that acquiring a new customer can cost five times more than retaining an existing customer. And it is well established that increasing customer retention by 5% can yield a 25-95% growth in profits. This is why companies are increasingly making retention a critical component of their business strategies.

For independent software vendors (ISVs), customer retention is directly tied to product stickiness. In the "data-is-the-new-oil" era, embedded analytics can play a pivotal role in enhancing product stickiness, as illustrated by the equation below:

    Embedded Analytics x Product Usage = Revenue Growth

Yes, you read that right! Embedded analytics can improve product usage by increasing product stickiness, which ultimately results in revenue growth for ISVs.

Product usage pyramid 

Moving forward, we'd like to propose a model to systematically deepen product usage by leveraging embedded analytics. For reference, let's call it the "product usage pyramid."