Product Management - Metrics

Role of defining metrics is very important to analyze the performance of your product.

Metrics plays an important role during the feature enhancement of the product. It gives you an overview regarding the acceptance of the feature and helps in streamlining about the requirement of your users.

Ideal Metrics should be — understandable, changeable, should have correlation and should project itself in the form of rate or ratio. Metrics are of different types:

1. Growth & Activation Metrics — To figure out the rate of projection in daily users and customers.
2. Engagement — To track the time on site/platform and user journey based on session interval, monthly active users etc.
3. Retention — To keep a track on the returning users on your platform, can be figured out by an external approach like sending notifications, emails etc.
4. Users Happiness — Based on the recommendation of the users, generally justified by the app store rating or net promotion score (NPS).
5. Revenue — The conversion of a user to a customer.

 

 

There are few different frameworks which helps the product manager to define the strategy of the scalable product metrics.

HEART Framework by Kerry Rodden

• H — Happiness (Defines the satisfaction what your user get with your service.)
• E — Engagement (Defines the connect of the user with your product.)
• A — Adoption (Defines the rate of conversion from a user to a customer.)
• R — Retention (Defines the coming back of your bounced users and customers.)
• T — Task Success (Defines your success of allowing your user to perform the task.)

AARRR Framework by Dave Mcclure

• A — Acquisition (Defines your caliber to acquire new user to your platform.)
• A — Activation (Defines the adoption of your platform by the users.)
• R — Retention (Defines the coming back of your bounced users and customers.)
• R — Referral (Defines the increase of your community by incentivizing the customer.)
• R — Revenue (Defines the generation of profit by premium users & advertisements.)

Checking your metrics timely and redefining them on the basis of user needs is what “Data beats emotions.” — Sean Rad, Adly and Tinder founder

Product Management — Ideas Vs Needs

Two key principles to Enhance the products are Ideas and Needs.

Idea could be in the form of good idea or bad idea where as Need could be in the form of user sticking needs or false user needs.

 

 

There is a terminology which defines the source of ideas and needs i.e. EMUC!

E — Employees ( Takes starts from you, your coworkers, management, etc.)

M — Metrics ( Takes you get from your defined metrics in your analytical tools, navigating user journeys, etc.)

U — Users ( Takes you get from user feedbacks, app reviews, etc.)

C — Clients (Generally in case of B2B businesses where you get takes from your product stakeholders.)

What is most important in this case?

To figure out the solution to a problem rather then fitting a problem into the solution.

Key Mantras to get a clear view on the ideas and needs are to ask 3 Why’s! This will help you to get an overall true prospective about the demand of end user.