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Product metrics categories:
1. Health metrics
2. Usage metrics
3. Adoption metrics
4. Satisfaction metrics
5. Ecosystem metrics
6. Outcome metrics
When conceiving your metrics, consider each of these categories & pick the right metrics across them.
A product metrics primer
1. Health metrics
2. Usage metrics
3. Adoption metrics
4. Satisfaction metrics
5. Ecosystem metrics
6. Outcome metrics
When conceiving your metrics, consider each of these categories & pick the right metrics across them.
A product metrics primer
1/
Health metrics
Key question:
Is the product available & performing in the manner that users would reasonably expect?
Examples:
latency, initial load time, uptime, data loss rate, http errors,...
Health metrics
Key question:
Is the product available & performing in the manner that users would reasonably expect?
Examples:
latency, initial load time, uptime, data loss rate, http errors,...
2/
Usage metrics
Key question:
How are users using the product?
Examples:
time-of-day/day-of-week trends, top N actions, funnel metrics, help docs usage, retention, password reset rate,...
Usage metrics
Key question:
How are users using the product?
Examples:
time-of-day/day-of-week trends, top N actions, funnel metrics, help docs usage, retention, password reset rate,...
3/
Adoption metrics
Key question:
Is the product (along with its key features) being used as much as weâd hope and in the ways that weâd like?
Examples:
active users, dau:mau, N of M day usage, strategic feature adoption trends, free-to-paid conversions,...
Adoption metrics
Key question:
Is the product (along with its key features) being used as much as weâd hope and in the ways that weâd like?
Examples:
active users, dau:mau, N of M day usage, strategic feature adoption trends, free-to-paid conversions,...
4/
Satisfaction metrics
Key question:
What is our customersâ overall sentiment towards the product or its main features?
Examples:
overall CSAT, new feature CSAT, support CSAT,...
Satisfaction metrics
Key question:
What is our customersâ overall sentiment towards the product or its main features?
Examples:
overall CSAT, new feature CSAT, support CSAT,...
5/
Ecosystem metrics
Key question:
What is the macro state of the product within the domain in which it operates?
Examples:
share of wallet, 3rd party integrations, industry rank, marketshare within target segments, % of TAM,...
Ecosystem metrics
Key question:
What is the macro state of the product within the domain in which it operates?
Examples:
share of wallet, 3rd party integrations, industry rank, marketshare within target segments, % of TAM,...
6/
Outcome metrics
Key question:
What overall results are we seeing from this product?
Examples:
revenue, margin, revenue per user, active users, marketshare, transactions, % of Fortune 1000 covered,...
Outcome metrics
Key question:
What overall results are we seeing from this product?
Examples:
revenue, margin, revenue per user, active users, marketshare, transactions, % of Fortune 1000 covered,...
Why these categories?
These categories cover multiple granularities & perspectives you need to consider for rigorous product decisions
Other notes
-A given metric can belong to more than 1 category
-You may skip a certain category altogether for your product. Just be intentional
These categories cover multiple granularities & perspectives you need to consider for rigorous product decisions
Other notes
-A given metric can belong to more than 1 category
-You may skip a certain category altogether for your product. Just be intentional
For any important product, youâll want to track dozens of metrics (esp. in the Usage metrics category)
At the same time, define a small set of metrics (3-5) that'll be faithful indicators of your productâs progress towards its strategy & goals. Letâs call them Key Metrics (KMs).
At the same time, define a small set of metrics (3-5) that'll be faithful indicators of your productâs progress towards its strategy & goals. Letâs call them Key Metrics (KMs).
A good heuristic from @bbalfour, related to Key Metrics
Source:
https://mixpanel.com/content/guide-to-product-analytics/chapter_1/#metrics-measure-product-success
Source:
https://mixpanel.com/content/guide-to-product-analytics/chapter_1/#metrics-measure-product-success
The criteria I use for Key Metrics:
(a) is responsive to product changes
(b) is an aggregate measure of the productâs value for its users
(c) can be readily tied to business value
(d) is expected to be long lasting (say at least 2-3 years)
(remember: these aren't rules)
(a) is responsive to product changes
(b) is an aggregate measure of the productâs value for its users
(c) can be readily tied to business value
(d) is expected to be long lasting (say at least 2-3 years)
(remember: these aren't rules)
Key Metrics (KMs) give a great birdâs-eye view of how the product is doing.
Youâll typically create annual goals/targets for your KMs.
Your companyâs execs/board will also likely look at these metrics to assess the productâs progress.
Youâll typically create annual goals/targets for your KMs.
Your companyâs execs/board will also likely look at these metrics to assess the productâs progress.
Some ppl perform major metrics contortions for Key Metrics e.g. âfor this, I depend on Sales, so I can't use it as a KM".
I donât worry about having 100% control.
There's no such thing as 100% control anyway & if Sales canât or doesnât sell my product, thatâs still MY problem.
I donât worry about having 100% control.
There's no such thing as 100% control anyway & if Sales canât or doesnât sell my product, thatâs still MY problem.
In certain cases (e.g. B2B SaaS with long adoption cycles), KMs can be lagging indicators of work done (e.g. Revenue takes time)
Thatâs why you also need a small set of leading indicator metrics. Call them Leading Metrics (LMs). Define 3-5 LMs in addition to KMs if this applies.
Thatâs why you also need a small set of leading indicator metrics. Call them Leading Metrics (LMs). Define 3-5 LMs in addition to KMs if this applies.
Your Leading Metrics might change more frequently than Key Metrics.
e.g. for the next 2-3 quarters, you might have an LM for adoption of a particular strategic feature (which over time will move your KMs), an LM for country availability, an LM for self-serve funnel success,....
e.g. for the next 2-3 quarters, you might have an LM for adoption of a particular strategic feature (which over time will move your KMs), an LM for country availability, an LM for self-serve funnel success,....
So, overall:
3-5 Key Metrics & 3-5 Leading Metrics have worked quite well for me on most products, across both B2B products and consumer products.
The 6 metrics categories introduced in this thread will help ensure youâre thinking holistically about user value & business value.
3-5 Key Metrics & 3-5 Leading Metrics have worked quite well for me on most products, across both B2B products and consumer products.
The 6 metrics categories introduced in this thread will help ensure youâre thinking holistically about user value & business value.
Bonus:
Some tactics Iâve found useful
1. Treat your metrics dashboard like a product
2. Actually track its usage (meta!)
3. Set a Chrome pinned tab for the dash
4. Review pinned tab every N days (I do it every morning)
5. Set a weekly email report (some ppl LOVE emailed metrics)
Some tactics Iâve found useful
1. Treat your metrics dashboard like a product
2. Actually track its usage (meta!)
3. Set a Chrome pinned tab for the dash
4. Review pinned tab every N days (I do it every morning)
5. Set a weekly email report (some ppl LOVE emailed metrics)
Lastly:
Remember to be metrics-informed, not metrics-driven.
Metrics are one of the inputs you need to make product decisions & assess progress towards your companyâs mission & strategy. Also use other inputs.
Context is everything, so adapt accordingly. Okay to break rules.
Remember to be metrics-informed, not metrics-driven.
Metrics are one of the inputs you need to make product decisions & assess progress towards your companyâs mission & strategy. Also use other inputs.
Context is everything, so adapt accordingly. Okay to break rules.
Back to the top of this thread: https://twitter.com/shreyas/status/1304628719374544896
If you're looking for more content on this topic, check out the references
The types of inputs for product decisions and the need for finding a balance based on context: https://twitter.com/shreyas/status/1290029077772906496
More on metrics and other inputs for product decisions, in the Good PM/Great PM thread: https://twitter.com/shreyas/status/1249039638829793280
Metrics are an essential part of a good product strategy
(these are Outcome metrics & in some cases, Ecosystem/Adoption metrics) https://twitter.com/shreyas/status/1244810104945295360
(these are Outcome metrics & in some cases, Ecosystem/Adoption metrics) https://twitter.com/shreyas/status/1244810104945295360
Understand Maslowâs Hammer and know that metrics are often used as a hammer at modern, analytically-minded, fast-paced companies: for product decisions and internal promotion decisions https://twitter.com/shreyas/status/1282169209670078466
Some Apple Pie Positions use metrics, because we can always signal that we are smart when we bring up the need for more metrics, tracking, quantitative decision-making, etc. https://twitter.com/shreyas/status/1231457267498618880
When setting metrics targets, beware false precision https://twitter.com/shreyas/status/1276723984000663552
When confused about the right Key Metrics to use, consider seeking the Eigenquestion https://twitter.com/shreyas/status/1293973551955861510
âMetrics made me do itâ (where âitâ is major damage to the company) is not an acceptable answer from a leader. In such situations, you might not need different metrics, you almost certainly need a different leader. https://twitter.com/shreyas/status/1283219220705116161
As you can tell, I have strong opinions about managers who game metrics for personal advancement, often at the companyâs or customersâ detriment. Modern tech companies should not be condoning that way of doing business. https://twitter.com/shreyas/status/1268909583415652352
If youâre more interested in this particular topic, donât forget to check out the two articles linked in this thread: https://twitter.com/shreyas/status/1268937581535756289
My perspective on PMs running SQL (table-stakes, very useful at junior levels, not a good use of a PMâs time beyond the junior levels) https://twitter.com/shreyas/status/1264216698250395651
On annual planning and goal-setting https://twitter.com/shreyas/status/1302423854095036421
