Adoption vs Business Metrics

As you launch your project, you will notice more work to do. There’s a follow-up process of measuring how well the product behaves on the market and how much users are embracing it.

In a nutshell, adoption metrics measure how users engage with a product, while business metrics focus on performance and financial impact. As you may notice, the key difference is that adoption metrics focus on acceptance, while business metrics reflect outcomes and value creation. Remember that these concepts are important because they will help you to enhance your product in future iterations and measure business success.?

Adoption metrics help teams understand and identify pain points in adoption. The most common types are: activation rate (how many users take a key action), retention rate (how many users continue using the product over time), and feature usage (which functionalities see the most interaction).

Business metrics provide financial and operational performance insights, ensuring company goals are met. To mention the most popular: growth, customer acquisition cost, and return on investment (ROI).

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