How product analytics and EX can fuel explosive business growth

What if the secret to reigniting employee engagement and supercharging business growth has been staring us in the face? Companies that prioritize Employee Experience (EX) are achieving a staggering 1.8x higher revenue growth and 2.3x greater profit margins, per Forrester. As Gartner notes, with 80% of executives now viewing EX as essential to performance, the takeaway is clear: investing in EX isn’t just about solving workplace challenges—it’s the foundation for engagement, innovation, and sustained success.

As new technologies and tools are introduced into the workplace, many employees experience a fragmented digital journey. To make EX truly impactful, businesses need to invest in solutions that enhance the employee experience from onboarding to daily task completion.

The direct impact of EX on company performance

Why does EX matter so much? The answer lies in its direct impact on company performance. Gartner reveals that companies with highly engaged employees see 21% higher profitability. Engaged employees are more productive, stay longer, and drive innovation—all of which contribute to a stronger bottom line. But many organizations struggle to translate employee satisfaction into measurable outcomes like retention, productivity, and profitability.

Employee experience is no longer just a "nice-to-have"—it’s a business imperative. Companies that prioritize EX not only improve internal culture but also enhance their financial performance. By creating a motivated, committed workforce aligned with company goals, businesses can directly improve their bottom line.

Transforming EX with product analytics

A seamless digital journey is key to creating a strong EX. Many organizations adopt new technologies and tools without fully understanding how they impact employee workflows. This can lead to fragmented experiences where employees struggle to adapt, causing disengagement and underutilization of software—ultimately leading to missed opportunities to maximize ROI.

Product analytics helps solve this problem. By offering deep insights into how employees interact with the tools they use, product analytics tracks behaviours, identifies friction points, and helps organizations make data-driven decisions. These insights allow companies to adjust their software, processes, and support systems to better meet the needs of employees, thereby improving engagement and productivity.

Turning data into engagement

Product analytics is not just about collecting data—it’s about using that data to drive proactive decisions that enhance employee experience. According to McKinsey, companies leveraging product analytics see a 25% increase in employee engagement. When employees are more engaged, they are more productive, and also more likely to stay with the company, reducing turnover.

Product analytics enables IT and Product teams to make faster, data-driven decisions. For example, if a particular software feature is causing frustration among employees, Product teams can quickly identify this pain point and begin making adjustments to streamline the workflow. This creates a more seamless experience and reduces frustration, leading to higher employee satisfaction. Product analytics also supports smarter decisions around IT spending. 

By tracking application usage, companies can identify underused software, unnecessary systems, or poorly integrated COTS tools, allowing them to reallocate resources more effectively. This not only optimizes costs but also ensures that employees have the best tools for their needs, enhancing their experience.

The real-world impact of product analytics is undeniable. Takealot, an online marketplace, used Whatfix’s Product Analytics to streamline its seller onboarding process. With product-led onboarding and an analytics dashboard, Takealot tracked seller interactions, feature usage, and onboarding effectiveness. This data revealed areas where sellers faced friction and needed additional support. As a result, Takealot saved $224,000 in one year by improving portal adoption and accelerating feature engagement. The platform reduced seller support queries by 132,000, saving 33,000 hours of support time and cutting onboarding time from 30 minutes to just 5 minutes. These improvements weren’t just cost-saving—they enhanced the overall experience for both the seller team and customers, driving long-term business success.

EX as a catalyst for growth

As the EX winter thaws, a new era of employee engagement dawns. Powered by technology and led by adaptive leaders, employee engagement is set to soar in 2025. With product analytics at the heart of the strategy, organizations can enhance employee experience, which in turn drives better customer engagement, strengthens loyalty, and unlocks sustainable growth. As a result, businesses will not only thrive but build a self-sustaining ecosystem where motivated employees consistently deliver outstanding customer experiences, driving enduring success and competitive advantage.

Vara Kumar

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Vara Kumar is Co-founder & Head of R&D and Solutions at Whatfix.