What gets measured gets managed!

  1. In one of my earlier essays (Titled: Separating noise from the signal (Part 1)!), I touched upon multiple sources for your product requirements and one important source (for existing products or consumer-facing products) is Metrics.
  2. Imagine, you are trying to build a product to solve a very important problem (always remember: put the problem before the solution) and you know the user groups that will benefit from this problem, how will you measure your success? The answer is Metrics.
  3. Now, let’s say you have a product that solves a problem for a specific category of customer (e.g. small enterprises) and you see a good opportunity to scale the product (function & feature-wise) for another type of market (e.g. medium enterprises); do you want to decide that based on your gut/hope or do you want to take a data-driven decision? I am sure the answer is later, the magic word once again is Metrics.
  1. Growth and activation metrics (measures the growth rate, adoption rate of your product): Total new users, New users by source, Number of activations are a few examples.
  2. Retention metrics (measures how well you are able to retain or resurrect the users of your product): Returning users, Resurrected users are few examples.
  3. Engagement metrics (measures how well your users are engaged with the product or how well they use the more critical functions/features of your product): Time spent on site, Number of messages sent, Number of clicks on content are few examples.
  4. User happiness metrics (measures the happiness quotient of your customers/users): Net promoter score, App downloads, Number of net new user recommendations for a few examples.
  5. Revenue metrics (is a measurement of entropy in the product that contributes directly to the revenue of your product): Lifetime value of customers/users, Weekly/Monthly recurring revenue, Cost of acquisition are few examples.

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