Taxonomy guide

Mar 10, 2025

Have you chosen the right tool to analyze your product events?

If you’ve already selected one, this guide will help you get the most value from your data. If not, we’ll show you why Amplitude could be the best choice.

Before sending data to any event-based analytics platform, the most critical step is defining what events to track. Proper instrumentation is the foundation for accurate, actionable insights. Poor implementation—missing events, unclear naming, or misused properties—can lead to data headaches and limit your ability to extract real value.

Step 1: Define Your Business Goals

What are you and your team working on? What’s the big-picture objective? Common goals Amplitude can help with include:

  • Product strategy development

  • Improving acquisition ROI

  • User segmentation & personalized CX

  • Conversion optimization

  • Boosting retention & LTV

Once your goal is set, identify the key KPIs to track progress. For example, if your goal is optimizing conversion, your KPIs might be:

  • Onboarding conversion rate

  • Checkout funnel completion

Defining these upfront ensures you track the right events and avoid costly data gaps later.

Why Planning Matters

We strongly recommend aligning with your team on objectives before designing your data taxonomy. Skipping this step leads to incomplete or messy data, making analysis harder and less reliable.

Ready to turn your event data into real business impact? 🚀 Let’s make sure you track what matters—the right way.