The growing opportunity for product analytics
In the first half of 2017, we opened two new offices: one in Salt Lake City, and our first international office in London. Across these offices and the others in San Francisco, New York, and Seattle, our team has grown to more than 250 employees, and we expect to hire 100 more employees by the end of the year. Along the way, we’ve launched more products and features this year than in all of 2016.
With such rapid expansion, I’ve been reflecting on what has fueled this current wave and what it means for the analytics industry as a whole.
New offices, more Mixpanelers, better products — all of this growth is only possible because of our customers and their hunger to serve their own customers better. Across the board, we see more and more companies becoming fueled by data and building out stellar product teams to drive growth. From the world’s biggest tech powerhouses to longstanding industry leaders, those teams use Mixpanel every day to build great digital products and world-class experiences.
So, how is Mixpanel rising to the opportunity sweeping through product teams across industries? In the spirit of our (in)famous “I am data-driven” t-shirts, here are some data highlights from the last six months and a glimpse of what the rest of the year will bring.
Unparalleled market leadership
The product analytics space continues to grow rapidly, and we’re proud to be recognized as the clear leader in a crowded field. In Forrester’s Digital Intelligence Wave this year, we were the only product analytics vendor to make the cut. Forbes also included Mixpanel as the only product analytics provider in its annual Cloud 100 list of the top private cloud companies in the world.
We currently have more than 20,000 customers across industries all over the world, like Amazon, Betterment, Clorox, DocuSign, The United Nations, Intuit, STARZ PLAY, US Bank, and many more. We’re ingesting hundreds of billions of data points a month, and we’ve seen a 55% increase in growth year-over-year in ingestion between June 2016 and June 2017.
Of course, while we’re thrilled by the progress we’ve made to date, we know there is much work to be done to continue innovating and driving the product analytics space forward (more on that later in the post). If we’ve learned anything in the past eight years, it’s that data is (and will be) every company’s best asset for growth and innovation. And nowhere is this more apparent than in the enterprise.
Powering growth for global organizations
One of the biggest and most exciting areas of growth in product analytics is in enterprise organizations. This development should come as no surprise to anyone who follows the data space more generally. As Gartner has reported, 90% of enterprise mobile apps will be gathering usage analytics, but fewer than 5% of organizations will be using this data effectively. However, the tides are turning, and we see enterprises as the next centers of innovation when it comes to product development.
Mixpanel is now working with more than 15% of the Fortune 500. Since January alone, we added 60+ new enterprise customers, closed 100+ expansion deals upmarket, and saw a 41% increase in average new deal size for this segment.
Our enterprise customers are leaders in the marketplace. Not only do they use Mixpanel to make better data-driven decisions, they also are outperforming their peers. For example, Mixpanel customers see an average of 54% improvement in one year stock returns over the S&P 500 average. It’s early days yet, but the initial indicators are positive.
Building the next generation of product analytics
On the product side of our business, 2017 has been one of technical accomplishment and increased speed-to-market. In the first half of this year alone, we’ve shipped almost twice as many major features and products as in all of 2016. Here are some highlights:
Signal: Signal helps you find user behaviors that correlate to higher retention and engagement, without a lot of complicated math. Within a few clicks, it recommends the actions that’ll have the biggest impact on your retention and engagement metrics.
Insights: Last year, we looked at our most popular report, Segmentation, and asked, “How would we disrupt ourselves?” The answer was Insights. It brings together all the data you have in Mixpanel in a faster and more intuitive UI to help answer new questions about your business that you haven’t been able to answer before.
Smart Notifications: Prioritize messages across email, push, and SMS based on user behavior, without lots of complicated “if-then” logic. With automatically personalized paths, each of your users will arrive at the common goal, such as completing onboarding or two-week retention.
Dashboards: Conveniently access product insights and share them with any member of your team, from product managers to executives. Dashboards display on the web, your mobile app, and even on TVs throughout your office, so the full product team can make informed decisions from wherever they are.
Lexicon: Lexicon is a data dictionary that helps anyone on your team understand what the data in Mixpanel means. It stores event descriptions and surfaces them throughout your reports, so your team can pull the right data and answer product questions with confidence.
Automatic Mobile Tracking: Capture common events in your mobile app, including opens, crashes, and session length, without any additional event tracking setup – simply add the latest SDK and flip a switch.
And on the backend, we’ve made major investments in our infrastructure to be ready for even more innovation and development. We recently moved to the cloud with the Google Cloud Platform, ensuring that we have the most reliable, secure, and fastest querying speeds available in market today.
While we are all proud of these accomplishments, the second half of 2017 is looking to be even more exciting. For starters, we’re building on the momentum of the first half by doubling our engineering team by the end of the year. From creating new products that delight our customers to building the infrastructure to support these products at global scale, we’re investing in every area of our platform.
Within the broader engineering organization, we’re also increasing our machine learning team by 40%. We’re building more and more products that utilize our machine learning technology, the most advanced in the industry. As the Gartner research shows, data is underutilized across the enterprise, and we’re continually finding more sophisticated ways to surface hidden gems you couldn’t find on your own without hours of digging. As the leader in product analytics, we have the volume of data that helps us do this the most accurately and the broad customer base to understand where automation can actually be useful.
Finally, we expect to see large investments in the space as investors realize that the world’s enterprises are discovering that DIY solutions and legacy analytics platforms can’t provide them with the insights to build the products and services they’ll need to bring to market to meet customers demands.
In eight years of being in the analytics business, there’s never been a more critical moment than the one the industry is in right now. Our leadership in the product analytics space would not be possible without our amazing clients and the dedication and passion of Mixpanelers all around the world. I cannot wait to see what the rest of this year brings.
Want to learn from more about the future of product analytics and how data is driving transformation in some of tech’s fastest growing companies? Join us for a special Office Hours: Summer Salon on Thursday, July 27th, at our San Francisco headquarters. The salon will feature a conversation between George Xing, head of analytics at Lyft; Alvina Antar, CIO at Zuora; and Mixpanel’s CEO and co-founder, Suhail Doshi.