Analytics Fundamentals
Analytics transform guesswork into informed decisions. Instead of assuming you know how users interact with your application, analytics show you what actually happens. This data guides everything from which features to build next to identifying problems users encounter.
Why Analytics Matter
Without analytics, you're flying blind. You might spend months building a feature nobody uses while ignoring a simple improvement that would delight users. Analytics reveal patterns you'd never notice otherwise.
Consider a signup flow. You think it's straightforward, but analytics might show that 60% of users abandon at step 3. That's actionable information — something about step 3 needs attention. Without tracking, you'd never know where users struggle.
Analytics also help you measure success. Did that new feature increase engagement? Are users finding the help documentation? Is the checkout process converting better after your redesign? Data answers these questions definitively.
Types of Analytics
Different analytics serve different purposes:
Product analytics focus on user behavior within your application. Which features do people use? How often do they return? Where do they get stuck? Tools like Mixpanel and Amplitude specialize in this.
Web analytics track traffic patterns — where visitors come from, which pages they view, how long they stay. Google Analytics dominates this space, though privacy-focused alternatives like Plausible exist.
Business analytics connect user behavior to business outcomes — revenue, conversion rates, customer lifetime value. These metrics matter most to stakeholders making strategic decisions.
What to Track
Start with the basics before getting sophisticated:
Page views and navigation show how users move through your application. Which pages are popular? Where do users enter and exit?
Feature usage reveals what people actually do. Are they using that expensive feature you built? Which tools do power users rely on?
Conversion events track important milestones — signups, purchases, upgrades. These directly impact your business.
Errors and issues help you find problems before users complain. Track JavaScript errors, failed API calls, and other technical issues.
Balancing Insights and Privacy
Analytics involve a tension between understanding users and respecting their privacy. Collecting more data provides better insights but raises ethical and legal concerns.
Modern privacy regulations like GDPR require user consent for tracking. Many users prefer not to be tracked at all. Privacy-respecting analytics tools prove you can gain valuable insights without invasive tracking.
The key is collecting what you need, not everything you can. Ask yourself: "Will this data actually inform a decision?" If not, don't collect it.