## Definition of Product Metric Product metrics are measurements used to evaluate the performance of a product. These metrics can be used to track key performance indicators, such as [[Customer Engagement]], [[Customer Satisfaction]], conversion rates, [[Revenue]], and other key business objectives. By tracking these metrics, product teams can gain valuable insights into [[User Behavior]] and product performance. Product metrics help teams identify areas of improvement and prioritize product features for [[product development]] initiatives. ## What types of Product Metrics You can collect all your product metrics on one dashboard that won't even fit on two widescreen monitors, and imitate a smart guy mode when the executive walks in 😃 Or you can categorize the metrics by type of impact on the product and track the ones that are truly relevant right now. ## Product metrics Categories ### Growth Metrics "Growth metrics" answer the "questions about the current state of the business as a whole: - Are revenues growing or declining? - How many people are using the product? - What is the trend of the active audience? ### Product metrics "Product metrics" characterize "the product itself around which you build a business". They answer questions such as: - How well does the product retain users? - How much money does an average new user spend in the product? - What percentage of new users reach a specific point in the product? ### 1. Operational Metrics Is the product working? Is it working as expected by users and the team? Metrics: server latency, page load time, down-time, site glitches, etc. ### 2. Usage Metrics How do users use the product? Metrics: core actions, funnel metrics per action, Y usage in X days, help guide reads, [[User Retention]], etc. ### 3. Adoption Metrics Is the product being used as often as we'd like? Metrics: [[Active users]], [[Daily Active Users (DAU)]] or [[Monthly Active Users (MAU)]], upgrades from free to paid (and vice versa), time to conversion, etc. ### 4. [[Customer Satisfaction]] Metrics What is the overall sentiment of our customers towards the product and features? Metrics: [[Customer Satisfaction Score (CSAT)]], CSAT for new features, CSAT for support/accounts, NPS, LiveNPS, etc. ### 5. Ecosystem Metrics What is the product's state in the market it operates in? Metrics: market share, shares in target segments/audiences, industry rankings, etc. ### 6. Outcome Metrics What overall results do we get from our product? Metrics: [[revenue]], revenue per user, active users, market share captured, transactions, % coverage, etc. ## How to Choose the Right Metric to Track There are 2 approaches to working with metrics in the product: - **Data-Driven**, where metrics and data are the primary criteria for making product decisions. - **Data-Informed**, where metrics and numbers are used as one of many factors when making product decisions. Lots of broken swords on which approach and at which product stage works best. > [!NOTE] > Use the one that best fits the chosen metric tracking goal The peak of mastery – combine both approaches depending on the chosen metric category. ## How to Define the Efficiency Product Metric How to tell if a metric is useful and suitable for tracking? - It is an indicator of the [[Customer Value]]. - It reacts to changes in the product. - It ties to business value ([[product monetization]]). - It is expected to be long-term (at least 2-3 years). ## Product Metric Articles <div style="font-family: Arial, sans-serif; font-size: 16px; line-height: 1.4; color: #333333; border: 1px solid #825cff; border-radius: 6px; padding: 10px; margin:20px;"> <a href="https://mixpanel.com/content/guide-to-product-metrics/full-report/" target="blank" style="color: #825cff; text-decoration: none;"> <strong>The Guide to Product Metrics</strong> <br> Fundamentals for defining key performance indicators that enable growth </a> </div>