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7 Product Management Metrics for every Product Team

Product metrics are numerical indicators of a product's health. By monitoring and examining these product KPIs, a product team may make better decisions. Stakeholders, marketers, and product managers can utilize metrics to define goals, monitor progress, find problems, and assess the effects of their decisions. Various indicators exist depending on the industry, stage of growth, and corporate strategy. Have a look at the 7 Product Management Metrics for every Product Team.

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7 Product Management Metrics for every Product Team

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  1. 7 PRODUCT MANAGEMENT METRICS FOR EVERY PRODUCT TEAM

  2. INTRODUCTION Product metrics are quantitative insights into the health of a product. A product team can improve its decisions by tracking and analyzing these product metrics.Metrics can be used by stakeholders, marketers, and product managers to measure the impact of their decisions, identify problems, set goals, and track progress. Metrics provides accurate measurements about how the process inside the organization is functioning and helps in driving improvement. Metrics help in improving overall results and align your team and processes with your goals.

  3. While it is true that there is no one silver bullet metric that serves all businesses, we have compiled a list of some most important metrics that every product person should be aware of. Monthly Active Users (MAU) and Daily Active Users (DAU) : The Monthly Active Users (MAU) metric measures the number of users who open your product within a month. The Daily Active Users (DAU) metric provides that information daily. MAU and DAU provide you with a clear idea of how many active users you have on a monthly and daily basis. MAU and DAU provide you a clear idea of how long a user interacts with your product and shows you the accurate engagement.

  4. Customer Satisfaction Score (CSAT): is the average satisfaction score of customers influenced by a particular experience. While CSAT is important to gauge customer sentiment, it should be used alongside other product analytics to get a balanced view of user health and engagement. Another best practice to keep in mind is timing. Customer Acquisition Cost (CAC): Customer Acquisition Cost (CAC) is how much it costs you to acquire one customer. There are so many factors that affect this. E.g. advertising costs, cost of the software you are using, employee salary, etc.This metric primarily involves Sales and Marketing.

  5. Customer Lifetime Value (CLV: measures how valuable a customer is to your company with an unlimited time span as opposed to just the first purchase. This metric helps you understand a reasonable cost per acquisition. CLV is the total worth to a business of a customer over the whole period of his relationship with the company. The formula for measuring CLV is: CLV = Customer revenue minus the costs of acquiring and serving the customer

  6. Customer Lifetime Value (CLV: measures how valuable a customer is to your company with an unlimited time span as opposed to just the first purchase. This metric helps you understand a reasonable cost per acquisition. CLV is the total worth to a business of a customer over the whole period of his relationship with the company. The formula for measuring CLV is: CLV = Customer revenue minus the costs of acquiring and serving the customer

  7. Monthly Recurring Revenue (MRR): Monthly recurring revenue is the revenue generated by your product in a month. MRR is calculated by considering the MRR at the beginning of the month and adding it to the revenue that you got from the new customers and then subtracting it from the churned revenue. MRR is calculated by multiplying the total number of paying customers by the Average Revenue per Account (ARPA). MRR= Customers * ARPA

  8. Customer Churn rate (CCR): The customer churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop using your service. It is most commonly expressed as the percentage of service subscribers who discontinue their subscription within a given time period. Customer churn rate = [users at the beginning of period- users at the end of period/users at the beginning of period] * 100

  9. Customer Retention rate (CRR): customer retention rate (CRR) is the percentage of customers your company has retained over a certain time period. It is the reverse of the customer churn rate, which shows the percentage of customers a company has lost over a specific period. When measuring your customer retention rate, make sure that you choose a period that works for your business and the way your customers buy. Formula to calculate customer retention rate. Customer Retention Rate = ((E-N)/S) *100

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