How do you identify key metrics to track when scaling your product?

These are some important key metrics when we are scaling up a new product: 1. User Acquisition Cost (UAC): - Optimizes marketing spend for new customers. 2. Customer Lifetime Value (CLV): - Guides acquisition and retention strategies. 3. Churn Rate: - Measures customer retention and satisfaction. 4. Monthly Recurring Revenue (MRR): - Provides stable revenue for financial planning. 5. Conversion Rates: - Optimizes sales funnel performance. 6. Gross Margin: - Ensures sustainable profitability. 7. Product Engagement Metrics: - Gauges user adoption and value. 8. Burn Rate: - Manages expenses and assesses financial sustainability.

The worst thing it can happen is to have a great product that no one needs. Often product managers run away from tangible metrics, pushing more towards higher level ones (e.g. net sales). Thats a mistake, in pov. The key is to break down the higher level metrics onto the metrics specific products can effectively influence (which will then roll up to the higher ones as a combined view across different products). Based on those "double-click" metrics, any product strategy should design what is the incremental move towards those...and start from there to plan backwards. If we need X% in 3 months, what is needed to make that happen? What are the jobs to be done? That will likely drive the right behaviors

I find that having a true north metric aligns everyone on the team towards the same goal. It helps prioritize which initiatives will have the most impact and measure our progress towards success. It creates a sense of accountability, as everyone knows what is expected of them and their contribution towards achieving the goal.

Metrics provide valuable insights into various aspects of the product's lifecycle, user engagement, and business impact. Product managers, development teams, and stakeholders use these metrics to make informed decisions, prioritize features, and optimize the product for better outcomes. Product metrics are the compass, the scorecard, and the feedback loop that guide product development, ensuring that efforts are aligned with user needs and business objectives while providing the flexibility to adapt to an ever-evolving landscape.

Metrics are highly important in creating a product that people will use. Metrics will help define what type of features a product will have and it will help drive the product team to create a product that gets people "hooked". An interesting takeaway that Amazon does really well is that they constantly A/B test different small features on their app to gather feedback about how it helps or doesn't help the user to make a buying decision.

Most business models will realize economies of scale. A key metric to track is the cost of implementing and supporting your products, which should go down with scale. Don't forget to measure the success of your automation needed to help you scale. Too often, companies will implement process automation and stop the effort after it's implemented. Without validation through metrics, you may experience that more work is needed to support automation, which is obviously the opposite effect that you want.

Product Management is like business management, we need to track the numbers to decide our next steps. I find categorization as an effective approach to simplify things, I group product metrics in different categories such as: 1. Financial Metrics 2. Development Metrics 3. Usage Metrics 4. VoC metrics The above 4 groups should each have a min of 5 metrics, the micro-level metrics within the group will be finalized based on factors such as the nature of the product, market, and objective example metrics for IT products and FMCG products may differ. The metrics group may have different stakeholders (to report metrics to) and may have different measurement frequencies, the idea is to have 360* coverage.

Choosing the right metrics for your product is a critical aspect of effective product management. The selection of metrics should align with your business goals, product strategy, and the specific stage of your product's lifecycle. ~Identify Key Performance Indicators (KPIs) ~Understand Your Target Audience ~Prioritize a Balanced Set of Metrics ~Ensure Measurability and Actionability ~Regularly Review and Iterate ~Seek Input from Cross-Functional Teams ~Test and Validate Metrics Remember that the right metrics should tell a coherent and insightful story about your product's performance, helping guide decision-making and drive continuous improvement.

Focus on User Experience: Check if users are happy and sticking around with metrics like how satisfied they are (User Satisfaction Scores) and if they recommend your product to pals (Net Promoter Score). Balance Quantitative and Qualitative Data: Mix the hard numbers, like counting active users each month (MAU), with what users are saying in surveys or chats to get the full picture. Monitor Customer Acquisition and Retention: Keep an eye on how much it costs to get a new customer (CAC) and how many stick around versus leaving (Churn Rate) to understand your customer game.

Organizing and visualizing product metrics effectively is crucial for gaining insights, making informed decisions, and communicating the performance of your product. 1. Define Goals and Objectives 2. Categorize Metrics 3. Choose Key Performance Indicators (KPIs) 4. Create Dashboards 5. Customize for Stakeholders 6. Regularly Review and Iterate These dashboards serve as powerful tools for decision-makers and stakeholders, helping them understand the product's performance and make data-driven decisions.

Elevate metric visualization by embracing interactive dashboards. Platforms like Tableau or Power BI enable dynamic, real-time data representation, fostering a more immersive and actionable understanding of your metrics. Implement filters and drill-down features to allow users to explore specific aspects or segments, empowering them to extract insights relevant to their focus. Moreover, consider incorporating data storytelling elements into your visualizations, creating a narrative that guides stakeholders through the significance of the metrics and their implications. This approach ensures that the story behind the metrics is effectively communicated, facilitating informed decision-making across diverse teams within the organization.

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Product metrics and analytics provide valuable insight into user behavior, which can be used to plan product improvements. For example, I was able to use click-through rates, bounce rates, time spent, successful or unsuccessful completion status etc. to identify specific drop points within the product funnel that helped me in curating more personalized experiences to increase user acquisition. By using product metrics as a 360-degree feedback loop, I was able to identify the areas where users were struggling and make adjustments to improve their overall experience.

In my experience, building interactive dashboards through various BI tools has been an effective way to communicate metrics to others. More importantly starting with true north metrics/benchmarks allows for a top-down story telling as every click down of the metric provides more deeper insights