As a Product Manager I have seen the evolution of Metrics and KPIs From being Just a few to several of them. One thing that has impacted this changes the most are the new business models that are invented by new startups each time. In this article I have put together 10 of my all-time Product Management Metrics and KPIs that every new Product Manager should know:
1. Number of Active Users: The number of active users is an important metric to track as it shows whether or not customers are actually using your product. It is also a good indicator of the overall health of your product. This metric can help you determine if your product is growing or declining in popularity, and it can show you how much engagement your product is getting from customers.
2. Retention Rate: Retention rate is another important metric to track, as it shows how well your product is doing in terms of keeping customers engaged and using your product. If your retention rate is low, it could be an indication that your product is not meeting customer needs or that customers are not finding value in your product.
3. Conversion Rate: Conversion rate is a metric that measures the percentage of customers who take a desired action (e.g. make a purchase, sign up for a subscription, etc.). This metric can help you determine if your product is meeting customer needs, and if it is providing value to customers.
4. Customer Lifetime Value (CLV): CLV is a metric that measures the total value of a customer over the lifetime of their relationship with the company. This metric can help you understand how much value a customer brings to your business, and it can help you determine if your product is providing value to customers.
5. Customer Satisfaction (CSAT): CSAT is a metric that measures how satisfied customers are with your product. This metric can help you understand how well your product is meeting customer needs, and it can also help you identify areas for improvement.
6. Net Promoter Score (NPS): NPS is a metric that measures how likely customers are to recommend your product to others. This metric can help you understand how satisfied customers are with your product, and it can also help you identify areas for improvement.
7. Acquisition Cost: Acquisition cost is a metric that measures the cost of acquiring a new customer. This metric can help you understand the cost of acquiring new customers and can also help you identify areas for improvement.
8. Revenue per User (RPU): RPU is a metric that measures the amount of revenue generated per user. This metric can help you understand how much value a customer brings to your business, and it can also help you determine if your product is providing value to customers.
9. Engagement Rate: Engagement rate is a metric that measures the amount of time customers spend using your product. This metric can help you determine if customers are actually using your product, and it can also help you identify areas for improvement.
10. Cost Per Acquisition (CPA): CPA is a metric that measures the cost of acquiring a new customer. This metric can help you understand the cost of acquiring new customers and can also help you identify areas for improvement.
I believe the most important metrics are Number of Active Users, Retention Rate, Conversion Rate, Customer Lifetime Value (CLV), Customer Satisfaction (CSAT), Net Promoter Score (NPS), Acquisition Cost, Revenue per User (RPU), Engagement Rate and Cost Per Acquisition (CPA).
These metrics are important because they provide insights into how well the product is meeting customer needs, how much value the product is providing, how successful the product is at acquiring new customers and how much revenue is generated from each customer. By tracking these metrics, companies can identify areas for improvement and develop strategies to improve their product and customer experience.
Lawrence Otu is a Product Manager and Blockchain enthusiast
He can be reached on Email: lawrenceotub@gmail.com
