What is Metrics:
- Metrics is just a fancy term for a number that describes what’s going on with your product. It’s a measurement of something.
What makes the metrics good?
- A metric should be understandable
- Metrics should usually be a rate or ratio
- Correlation
Common Metrics for Product Managers are:
- Monthly active users
- Returning users
- Churned users
- App store reviews
You can define the success of any feature with the help of metrics. For example, if you are building a feature then you can set a goal that this feature will increase these metrics and this is how we can measure the success of any feature.
Example of Facebook:
- Facebook wants to increase the time people spend at FB and this is an entire company goal.
- As a PM of a small team, your role is to support company goal. So a PM will think to increase comment and post which will increase the amount of time people spend at FB
- Engagement Metrics:
- Position clicks
- Messages Sent
- Time spent on site
- Average number of likes per day per user
Example of Twitter:
- Growth Metrics:
- Total new users/month
- Monthly/Daily active users
- Activated users/month - Engagement Metrics:
- Multiple logins per day
- Time spent
- Number of tweets sent per user
- Average number of likes, retweets and followers
- Number of messages sent
Example of Youtube:
- Engagement Metrics:
- Video views per user
- Average viewing time per users
Types of metrics:
- Growth and Acquisition:
- This is a bucket of metrics that basically tracks and measures, informs you how your company or product is growing.
- Examples:
— Total new users per month or per week
— New users by source (This is a very important metric)
— Activated users mean the users who did any certain activity after signup - Retention:
- It’s simply a way to find out who’s coming back. It’s just how many people were here last month that are nowhere in this month using it again
- Examples:
— Retained users
— Resurrected users are the users who come back after getting churn - Engagement:
- Engagement is going to be one of the most common things for the Product Manager to be tracking.
- Examples:
— Number of logins
— Number of active users
— Number of emails sent per day - User Happiness:
- How happy are our users?
- Examples:
— NPS score
— Number of complaints
— Number of Bad reviews - Revenue Metrics:
- How much revenue we are making?
- Examples:
— LTV — Life Time Value
— CCA — Cost of Customer Acquisition
— MRR — Monthly Recurring Revenue
— ARR — Annual Recurring Revenue
