Transform Your Product Strategy with Powerful Metrics
Metrics are vital in product management. They set strategies and track success. Metrics enable teams to measure progress, make educated decisions, and align with strategic goals. Tracking metrics allows product managers to verify that their products fulfill customer demands, generate company development, and maintain quality.
Three categories of measurements stand out: North Star Metrics, Supporting Metrics, and Guardrail Metrics. Understanding each kind, their traits, and duties may help firms align their teams, focus on effective tasks, and strike a good balance.
North Star Metrics (NSMs)
North Star Metrics (NSMs) are the most important metric that captures the core value your product delivers to customers. This metric guides the entire organization and helps teams align around a common goal.
The North Star Metric should reflect long-term success and be directly tied to the product’s mission and the value it provides to users. A good NSM measures the value users get from the product. It also correlates with long-term growth and sustainability. It should be easy for everyone in the organization to understand. Teams should be able to influence this metric through their efforts.
Supporting Metrics
Supporting Metrics are extra metrics that offer context to the North Star Metric. These metrics provide information on many elements of the product’s performance and user behavior.
Supporting metrics aid in problem diagnosis, process optimization, and detailed progress tracking. They contribute to the identification of the elements that impact the North Star Metric. They also offer information into specific topics including acquisition, activation, retention, referrals, and revenue.
Supporting metrics should be measured and recorded on a regular basis to evaluate success. They should complement the NSM by providing a comprehensive picture of the product’s health.
Guardrail Metrics
Guardrail Metrics are a subset of metrics that guarantee that achieving key goals (typically assessed by the North Star Metric) does not result in bad side effects or unforeseen consequences. These indicators track the health and balance of several components of the business. They guarantee that the emphasis on expansion does not jeopardize quality, customer happiness, or other vital factors.
Guardrail measures are frequently grouped together with other supporting metrics. While supporting metrics give extensive information about numerous areas of the product’s performance, guardrail metrics are primarily concerned with preserving balance and avoiding harmful side effects.
Real-World Example: SpeakWise Metrics
Practice Time! Let’s discuss the metrics of an imaginary mobile application called SpeakWise.
SpeakWise is a new language learning software that tries to compete with well-known companies such as Cambly. A user may connect with a professional teacher from any nation to receive one-on-one language sessions in real time.
SpeakWise supports a wide range of languages and may assist people of all ability levels, from total beginners to proficient users. The program features a straightforward user interface, personalized learning algorithms, and a robust feedback mechanism to assure ongoing improvement.
SpeakWise’s focus on conversational practice and cultural immersion seeks to make language learning more enjoyable, effective, and accessible. Its unique combination of live tuition, interactive activities, and community elements helps learners acquire fluency confidently and easily.
North Star Metric (NSM)
- Total Minutes of Lessons Completed per Month
SpeakWise chose this NSM because it directly measures user engagement and the app’s primary value of real-time, one-on-one language learning.
Supporting Metrics
Acquisition:
- Number of new user sign-ups per month
- Cost per acquisition (CPA)
- Traffic sources (organic, paid, referral)
Activation:
- Percentage of users completing their first lesson
- User satisfaction score after the first lesson
- Time to first lesson from sign-up
Retention:
- Monthly active users (MAU)
- Lesson completion rate
- Average session length
Referral:
- Number of referral sign-ups
- Referral code usage
- Net Promoter Score (NPS)
Revenue:
- Subscription conversion rate
- Average revenue per user (ARPU)
- Revenue from additional services (e.g., specialized courses)
Guardrail Metrics
- Tutor availability and response time
- Lesson quality rating
- Customer support response time
- Subscription cancellation rate
To avoid negative effects on user experience and retention, SpeakWise uses these guardrail criteria to assure high-quality tutoring, responsive service, and customer happiness while concentrating on user engagement. They keep growth, quality, and efficiency in balance.
Product managers need metrics to track progress, make choices, and align teams with strategic goals.
Organizations may assure product quality, customer satisfaction, and sustainable growth by understanding and using North Star, Supporting, and Guardrail Metrics.
If you have any questions or other points to contribute to the discussion, please leave a comment.
