Product Metrics for Designers: How to Enhance User Experience and Measure Product Success
Hello! In this article, I want to share my experience working with product metrics from a designer’s perspective. Using my project as an example, you’ll learn about the metrics a designer might use when working on a product that heavily relies on user feedback. I will discuss the most commonly used metrics, how to calculate them, and how to analyze the data obtained. Additionally, I’ll provide examples of how these metrics are applied in practice.
Understanding metrics not only helps designers create visually appealing interfaces but also ensures the success of the product. Knowledge of product metrics allows for informed decision-making, ultimately enhancing the user experience. It’s essential to create a product that is not only functional but also user-friendly, engaging, and capable of meeting user needs.
Key Product Metrics for Designers
There are numerous metrics in the world of product analytics. In this article, I’ll focus on the ones our team frequently uses, which help us assess the success of various decisions within the product.
1. CSI (Customer Satisfaction Index)
CSI is one of the most popular metrics in our product. It measures customer satisfaction with a product or service based on surveys and feedback. We often use CSI to assess recent purchases or visits to a store, helping us gauge the overall satisfaction level of users in our retail network.
How to Calculate CSI
To measure the Customer Satisfaction Index, you first need to design a survey where users rate various aspects of the services provided on a scale from 1 to 10. After collecting the data, you can calculate the index using the following formula:
CSI = Parameter Importance × Satisfaction Rating × 100%
Example Calculation:
Let’s say users rated the following parameters:
- Ease of placing an order: Importance — 9, Satisfaction — 8
- Order assembly quality: Importance — 10, Satisfaction — 9
- Delivery quality: Importance — 8, Satisfaction — 8
- Overall app experience: Importance — 9, Satisfaction — 9
The calculations would be:
- Ease of placing an order: 9 × 8 × 100% = 72%
- Order assembly quality: 10 × 9 × 100% = 90%
- Delivery quality: 8 × 8 × 100% = 64%
- Overall app experience: 9 × 9 × 100% = 81%
To obtain the final CSI index, average all the values:
(72% + 90% + 64% + 81%) / 6 = 51%
It turns out that the overall user satisfaction index for orders from our example is 51%.
2. NPS (Net Promoter Score)
Net Promoter Score (NPS) measures the willingness of users to recommend a product to others. It reflects customer loyalty, which is a crucial indicator of user satisfaction.
How to Calculate NPS
The NPS formula is as follows:
NPS = (Number of Promoters/ Total Respondents − Number of Detractors / Total Respondents) × 100%
Example Calculation:
Suppose 1000 people participated in a survey. Of them, 600 gave a rating of 9 or 10 (Promoters), while 400 rated 6 or below (Detractors).
The calculation would be:
(600 / 1000 — 400 / 1000) х 100% = 20%
This NPS score indicates a low level of user loyalty to the product.
3. DAU (Daily Active Users) and MAU (Monthly Active Users)
These metrics measure the number of unique users actively using the product daily (DAU) or monthly (MAU). They are vital for evaluating the product’s popularity and user engagement.
Example Calculation for MAU:
Let’s say your app was downloaded by 10 people. If each of them made at least one order in a month, MAU would be 10. If seven made multiple orders and three didn’t make any, MAU would be 7.
Example Calculation for DAU:
Suppose your app was downloaded by 10 people. On the next day, only four logged in, so the DAU for that day is 4. If none of the 10 users log in the following day, DAU will be 0.
4. Stickiness
Stickiness indicates how often users return to a product and is calculated as the ratio of DAU to MAU. High stickiness suggests a high level of user engagement.
How to Calculate Stickiness
The formula is:
Stickiness = DAU / MAU
Example Calculation:
If the app’s DAU is 5000 and MAU is 50,000, then:
5 000 / 50 000 = 10%
This means that 10% of the audience regularly returns to the product.
5. Conversion Rate (CR)
Conversion Rate measures the percentage of users who perform a target action, such as purchasing a product. It’s a key metric for evaluating the effectiveness of marketing campaigns and user interface design.
How to Calculate Conversion Rate
The formula is:
CR = (Number of Conversions / Total Number of Visitors) × 100%
Example Calculation:
Let’s say you have an audience of 500 visitors, and 40 of them made a purchase.
(40 / 500) х 100% = 8%
This means your Conversion Rate is 8%.
6. Customer Retention Rate (CRR)
This metric shows the percentage of users who continue to use a product after a certain period of time following their first activity. It helps to understand how well the product retains its audience.
How to Calculate CRR
The formula is:
CRR = ((Number of Customers at End of Period − Number of New Customers During Period) / Number of Customers at Start of Period) × 100%
Example Calculation:
Suppose you had 150 new users at the start of the month, and by the end, you had 162, with 18 users leaving and 30 new ones joining.
The calculation would be:
(162–30) / 150 = 0,88 or 88%
It turns out that the share of users using your product some time after the first activity is 88%.
7. CTR (Click-Through Rate)
CTR indicates the percentage of users who clicked on a link or message relative to the number who saw it. It’s an important metric for evaluating the effectiveness of various messages and advertising campaigns.
How to Calculate CTR
The formula is:
CTR = (Number of Clicks / Number of Impressions) × 100%
Example Calculation:
Let’s say your message was seen by 10,000 people, and 200 of them clicked on it.
(200 / 10 000) х 100% = 2%
This indicates that your message’s actual CTR is 2%.
8. Task Completion Rate (COR)
Task Completion Rate measures the percentage of users who successfully complete a specific task within the app. A high COR suggests that the interface is intuitive and easy to use.
How to Calculate COR
The formula is:
COR = (Number of Users Who Completed the Task / Number of Users Who Started the Task) × 100%
Example Calculation:
Suppose you asked users to rate their order in the app. A total of 100 users opened the survey, but only 80 completed it.
(80 / 100) х 100% = 80%
This means the Task Completion Rate for the order rating scenario is 80%.
9. ARPU (Average Revenue Per User)
ARPU shows the average revenue generated per user over a specific period. It’s an essential metric for evaluating product profitability.
How to Calculate ARPU
The formula is:
ARPU = Revenue for the Period / Number of Unique Users During the Period
Example Calculation:
Suppose your app generates $100,000 in revenue from 1000 users per month.
ARPU = 100000 / 1000 = $100
This means the average revenue per user per month is $100.
10. App Store Reviews
This metric collects and analyzes user reviews and ratings in app stores. It’s a crucial source of feedback for improving the product and understanding the user experience.
Often, to influence this metric, in-app surveys are launched asking users to rate the app in the store. For the best results, such surveys should be shown after the user has successfully completed a key scenario in the app. However, in my experience, we once used this tool to intercept negative ratings from users on their way to the app store. As a result, we were able to redirect user complaints to customer support, preventing a drop in the overall app rating in the App Store and Google Play.
Understanding and utilizing product metrics is crucial for any designer aiming to create user-centered, successful products. These metrics provide valuable insights into user behavior, satisfaction, and engagement, allowing designers to make informed decisions that go beyond aesthetics.
By incorporating metrics like CSI, NPS, DAU, and others into your design process, you can not only track the effectiveness of your design choices but also identify areas for improvement. For instance, a low NPS score might highlight the need to enhance user onboarding, while a high Task Completion Rate could confirm the intuitiveness of your interface.
For product designers, it’s not just about knowing these metrics but about mastering their application:
- Integrate Metrics Early: Begin considering relevant metrics from the initial design stages. This ensures your design decisions are data-driven from the start.
- Regularly Monitor and Adjust: Continuously track these metrics as the product evolves. Use the data to refine and optimize your designs.
- Collaborate with Cross-Functional Teams: Work closely with product managers, developers, and data analysts to align design goals with business objectives. Metrics often bridge the gap between design and business strategy.
- Be Proactive, Not Reactive: Use metrics to anticipate user needs and trends, rather than just reacting to issues. This approach helps in crafting a product that not only meets current demands but also sets the stage for future success.
By mastering the use of these metrics, designers can elevate their role from simply creating visually appealing interfaces to becoming strategic partners in product development, driving both user satisfaction and business success.
