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How can you measure the effectiveness of a product in meeting business goals?

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How can you measure the effectiveness of a product in meeting business goals? This is a crucial question for any UX researcher who wants to demonstrate the value of their work and align their efforts with the strategic objectives of the organization. In this article, we will explore some of the methods and metrics that can help you evaluate how well your product solves user problems, satisfies user needs, and generates positive outcomes for the business.

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Stuti Kathuria

Conversion rate optimization (CRO) pro with UX expertise | Designing websites that convert | 100+ conversion-focused…

1 Define your goals

Before you can measure anything, you need to define what you want to achieve with your product. What are the specific, measurable, achievable, relevant, and time-bound (SMART) goals that you have set for your product? How do they relate to the overall vision and mission of the organization? How do they address the user pain points and expectations that you have identified through your research? By clarifying your goals, you can establish a clear direction and purpose for your product and your research.

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Art Seabra

Multidimensional designer focused on Product, Film, Sound, 3D, Motion, Brand and Web design.
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It's smart to follow SMART goals, but for measuring a product's effectiveness, consider also integrating a feedback loop from customers and stakeholders into the goal-setting process. This approach ensures that the goals are not only SMART but also aligned with real-world user needs and market dynamics. Additionally, benchmarking against industry standards and competitor offerings can provide a broader context for goal-setting.

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2 Choose your metrics

Once you have your goals, you need to choose the appropriate metrics that can help you track and measure your progress towards them. Metrics are quantifiable indicators that reflect the performance, quality, or value of your product. Usage metrics, such as sessions, page views, retention, churn, engagement, and activation can capture how often and how deeply users interact with your product. Satisfaction metrics like ratings, reviews, net promoter score (NPS), customer satisfaction score (CSAT), and customer effort score (CES) measure user satisfaction. Outcome metrics such as conversions, revenue, retention, referrals, and cost savings indicate how well your product delivers the desired results or benefits for the users and the business.

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Stuti Kathuria

Conversion rate optimization (CRO) pro with UX expertise | Designing websites that convert | 100+ conversion-focused websites designed
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Creating reports to understand product contribution in business goals can be taxing. Especially when it needs to be done regularly. You can set up a Looker Studio report linked to your Google Analytics which has a 'Product Name' dimension. This would help you keep a tab on your product performance and monitor metrics like buy-to-detail rate, add-to-cart rate, and revenue contribution. You can compare performance of a product to it's own historical data or to other products easily.

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3 Collect your data

After selecting your metrics, you need to collect the data that can inform them. There are various methods and tools that can help you gather and analyze data from different sources, such as analytics software applications, surveys, interviews, and observations. For example, Google Analytics, Mixpanel, Amplitude, Segment, SurveyMonkey, Typeform, Google Forms, Qualtrics, Zoom, Skype, Google Meet, UserTesting, eye tracking, heat maps, screen recordings and usability testing. These can track user behavior and actions on your product, solicit feedback and opinions from users on your product, elicit insights and stories from users on their experiences and needs with your product as well as observe and record the behavior and reactions of users while they use your product.

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4 Analyze your data

Once you have collected your data, it is essential to analyze it to extract meaningful and actionable insights. Various techniques and frameworks can be used to organize, interpret, and visualize the data. Descriptive statistics can summarize and describe the basic features of the data, while inferential statistics can test hypotheses and draw conclusions from it. Data visualization presents the data in graphical or pictorial forms, such as charts, graphs, tables, maps, and dashboards.

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5 Communicate your findings

Finally, you need to communicate your findings to your stakeholders and demonstrate how your product is meeting or exceeding the business goals. Different formats and channels can help you share your findings, such as reports, dashboards, and stories. Reports are documents that can summarize and highlight the key findings and recommendations from your data, while dashboards are interactive displays that show the current status and trends of your metrics. Stories are narratives that illustrate the impact and value of your product for the users and the business. By following these steps, you can measure the effectiveness of your product in meeting business goals, identify opportunities for improvement and innovation, and inform future product decisions.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you measure the effectiveness of a product in meeting business goals?

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1 Define your goals

2 Choose your metrics

3 Collect your data

4 Analyze your data

5 Communicate your findings

6 Here’s what else to consider

User Research

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How can you measure the effectiveness of a product in meeting business goals?

1

2

3

4

5

6

1 Define your goals

2 Choose your metrics

3 Collect your data

4 Analyze your data

5 Communicate your findings

6 Here’s what else to consider

User Research

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