Product metrics are super important in an era where data is the lifeblood of businesses, and product managers are no exception. They rely on product analytics to make informed decisions, measure progress, and drive product improvements. Let’s look at the top 20 essentials for any product manager.
Table of Contents
User Acquisition Metrics
Measure how users discover your product
| Metric | Description | Real-Life Example |
| Customer Acquisition Cost (CAC) | Cost to acquire a customer | If a marketing campaign costs $10,000 and results in 1,000 new customers, the CAC is $10 per customer. |
| Click-Through Rate (CTR) | Click percentage on an ad | An ad received 10,000 impressions and had 500 clicks, yielding a CTR of 5%. |
| Conversion Rate | Percentage of completed actions | Out of 1,000 website visitors, 50 made a purchase, resulting in a conversion rate of 5%. |
User Engagement Metrics
Track user interactions and engagement within your product
| Metric | Description | Real-Life Example |
| Daily Active Users (DAU) | Number of daily engaged users | A social media platform has 2 million users who log in daily. |
| Monthly Active Users (MAU) | Number of monthly engaged users | A mobile app has 5 million users who use it at least once a month. |
| Session Duration | Average time per session | On an e-commerce site, users spend an average of 10 minutes per session. |
Retention Metrics
Assess user loyalty and long-term usage
| Metric | Description | Real-Life Example |
| Churn Rate | Rate of customer attrition | A subscription service loses 200 customers out of 1,000 in a month, resulting in a churn rate of 20%. |
| Customer Lifetime Value (CLV) | Lifetime revenue per customer | A streaming service customer generates $1,000 in revenue over 3 years. |
| Cohort Analysis | Group-based user behavior analysis | A mobile game analyzes the retention rates of users who joined in January versus those who joined in February. |
Revenue Metrics
Gauge the financial health of your product
| Metric | Description | Real-Life Example |
| Average Revenue Per User (ARPU) | Average revenue generated per user | A SaaS company generates $50,000 in monthly revenue from 500 users, resulting in an ARPU of $100. |
| Gross Margin | Revenue after subtracting COGS | An e-commerce store generates $100,000 in revenue with $40,000 in cost of goods sold, resulting in a gross margin of 60%. |
| Customer Acquisition Payback Period | Time to recoup customer acquisition cost | It takes 6 months for a company to recover the $1,200 CAC through a customer’s $200 monthly subscription payments. |
Customer Support Metrics
Evaluate user satisfaction and support effectiveness
| Metric | Description | Real-Life Example |
| First Response Time | Time to first support response | A helpdesk team responds to customer inquiries within 1 hour of submission. |
| Resolution Time | Time to resolve customer issue | A technical support team resolves 80% of issues within 24 hours. |
| Customer Satisfaction (CSAT) | Customer satisfaction rating | After a support interaction, customers rate their satisfaction as 4.5 out of 5. |
Customer Feedback Metrics
Analyze customer feedback and sentiments
| Metric | Description | Real-Life Example |
| Net Promoter Score (NPS) | Loyalty and recommendation | After using a product, 75% of customers rate it 9 or 10 on the NPS scale. |
| Customer Effort Score (CES) | Ease of product use | Customers rate the ease of resolving issues with the product as 4 out of 5. |
Usability Metrics
Evaluate the ease of use and user experience
| Metric | Description | Real-Life Example |
| Usability Testing Scores | Usability test results | During a usability test, participants rate the product’s ease of use as 8 out of 10. |
| System Usability Scale (SUS) | Usability questionnaire score | During a usability test, participants rated the product’s ease of use as 8 out of 10. |
Qualitative Metrics
| Metric | Description | Real-Life Example |
| Customer Feedback Sentiment Analysis | Sentiment analysis of customer feedback | Analysis of product reviews shows that 80% of customer comments are positive. |
If you are interested in learning about product management, you can also find other posts. The Full series is available here
One of the recommended books is Inspired by Marty Cagan
Disclaimer:
Please note that I don’t make any guarantees about the information supplied in this post. I share educational and informational resources that are intended to help you succeed in understanding product management. You nevertheless need to know that your ultimate success or failure will be the result of your own efforts, your particular situation, and innumerable other circumstances beyond my knowledge and control.
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Good List. Thanks