The 3 best AI tools for product managers to improve conversion

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Product management tools have evolved from simple spreadsheets to specialized tools for every step of the product lifecycle. AI-powered product management tools are emerging and poised to transform how companies build and optimize their products. With AI, product managers can leverage data to gain valuable customer insights, predict outcomes, and make data-driven decisions at scale.

The AI market is booming. It's set to grow from $100 billion now to a whopping $2 trillion by 2030. In fact, product managers are one of the main groups of people who use AI in their workflows. A study by IBM showed that 21% of product managers use AI daily as part of their product development process.

As a PM, you know that building great products requires making many judgment calls based on incomplete data and uncertain outcomes. AI tools can help fill in some of those gaps. This article will highlight the best AI tools for product managers to improve conversion.

Importance of AI tools to Product Managers

Product management tools let product managers work with greater speed and precision to deliver products seamlessly to their users. These tools have evolved from simple spreadsheets and word editors to an array of specialized AI tools for every step along the product lifecycle.

At its core, AI product analytic tools systematically collect, interpret, and analyze user data related to the usage and performance of products. This is like looking into a crystal ball and seeing the future needs and behavior of your users (which is priceless for any product manager).

Let’s look now at some of the best AI tools for product managers. You might’ve heard of some of these, but we hope you also discover some new ones.

Tool 1: Phospho

Phospho is an open-source text analytics platform designed to find trends in product data to enhance the development and deployment of LLM apps. This platform enables teams to monitor user interactions in real-time at scale, detect issues, and extract insights to fuel effective iteration in line with real user needs faster.

The platform is tailored for monitoring, evaluating, and improving the performance and quality of LLM apps, allowing Product managers to identify areas of their LLM app better to focus improvements in conversion rates to higher paid plans.

Phospho Use Case: Improving Conversion Rates

Phospho offers three main features for product managers looking to increase conversion rates for their LLM apps:

• Real-Time Monitoring: This lets you track and log user inputs to identify issues or trends and continuously fine-tune the performance of your LLM app.
• Custom KPIs Extraction: Create your own KPIs and custom criteria to ‘flag’ for, and you can label whether an interaction was successful or unsuccessful.
• Continuous Evaluation: use our automatic continuous evaluation pipeline to keep improving your model’s performance.

Our platform helps obtain qualitative and quantitative insights from end-user interactions. A few lines of code are enough to help product managers and developers quickly sift through an enormous amount of unstructured data to gain visibility into what aspects of the product could improve conversion rates if developed further.

So if you’re a product manager creating an LLM app and want to gain insights from your text data to increase conversion rates, sign up here. It’s as simple as importing a CSV or Excel file!

Tool 2: Amplitude

Amplitude AI is not a traditional project management tool; it provides a more specific use case for user engagement. As a product analytics platform, Amplitude AI tracks user behavior and engagement, allowing teams to gauge how a particular feature or product performs in the market. With this insight, teams can easily track what isn’t working and discard them.

Amplitude best measures user engagement by identifying conversion and retention drivers. You can do this through root cause analysis for spikes or dips in Amplitude’s behavior charts to generate custom content or product recommendations for your users.

Use Case: boosting user engagement

Creating new products requires extensive testing. Amplitude Experiment makes this process easier by simplifying tasks like developing ideas, designing experiments, creating different versions, making changes, and evaluating results. This helps Product Managers effectively test and improve product features for continuous improvement.

Amplitude’s Data Assistant helps to analyze and confirm data, ensuring product decisions are based on trustworthy data analysis.

Product managers also need help with turning business questions into helpful information. But with ’Ask Amplitude’, you can ask complex questions and get data-based answers. This tool makes it easier to get helpful insights from data.

With this information, product managers can spot patterns in user behavior and decide on product improvements that are directly aligned with users, improving conversion rates to higher-paid plans.

This more enriched understanding of user needs and pains from usage data also feeds into adjusting your marketing based on concrete insights to better resonate with the market with your messaging, thereby increasing the likelihood of conversion from your marketing efforts.

Amplitude is a strong tool, but some users mention slow dashboard loading and unreliable triggers, which can be an inconvenience and cause teams to lose important data. Still, it's a top pick for product managers wanting to boost user engagement with data.

Tool 3: Mixpanel

Mixpanel tracks user interactions in real-time and offers insights into user behavior and retention. People often say it serves as a ‘single source of truth’ to help product managers make data-driven decisions regarding your product. Product managers can use it to see patterns in user actions to make improvements to the conversion funnel.

Use Case: optimizing conversion funnels

Product managers use Mixpanel to improve conversion funnels by spotting user patterns. By understanding these patterns, they can make informed changes to increase conversion rates.

Let’s take a glimpse at three features that allow product managers to do this with Mixpanel:

• Mixpanel can track specific actions like button clicks and form submissions. Its AI helps monitor how often users come back, giving product managers a clear picture of user retention.
• Mixpanel also connects deeply with your product and lets you question it as an assistant to get real-time data about how people use your app. You can derive trends, uncover insights, ask questions, and be better informed without using complex data dashboards or SQL queries.
• Tracking Mixpanel events can help product managers understand the pattern of user choices as they interact with the product at various funnel stages.

Mixpanel uses AI to unearth insights based on user behavior, demographics, account types, and several other parameters. So, you can use the data to validate assumptions, beat the curse of knowledge, and reference a single source of truth while prioritizing important decisions without leaving anything to ‘chance’ or ‘luck.’

As an example, data from Mixpanel can help improve user onboarding flows by identifying where users are dropping off and how to minimize churn.

The only major limitations are that the UI can be overwhelming for new users and that support material is hard to find.

Future Proofing with AI Product Management tools

Product management is tricky, and with every business in the race for product market fit, agility and faster time to market really matter.

While very few tools currently offer a one-size-fits-all solution for product managers, AI-powered tools and features can help them streamline essential tasks like customer feedback collection, resource allocation, user segmentation, A/B testing, and stakeholder communication to optimize conversion rates quicker.

We’ve looked at how 3 AI tools in Phospho, Amplitude, and Mixpanel have shown great potential for improving conversion rates, engaging users and streamlining iteration cycles with data to help startups achieve that.

As AI tools continue to appear (and evolve) rapidly, forward-thinking product managers can stay ahead of the curve by researching, testing, and sharing their favorite AI applications with others in the field.

If you want to integrate Phospho into your LLM app, sign up here. We have plenty of documentation to support you as well.