Download as PDF, PPTX
![Example: Amplitude
Customer Value
Easily answering questions on what
drives behavior and powering a better
customer experience
Growth stage [Between Virality and Revenue]
The metric of Weekly Querying Users
(WQUs) reflects breadth –
The number of customers who get
value at least once a week is a leading
indicator of our ability to retain and
expand accounts over time.
38](https://image.slidesharecdn.com/demystifyingproductmetrics-201224205437/75/Demystifying-product-metrics-38-2048.jpg)
![47
When do your customers reach end-result?
Does this apply to all our customers?
Is this moment measurable for us?
Does this metric show the actual engagement
with the product?
Does my NSM metric change frequently? Can this metric determine that the product is
moving in the right direction?
Is NSM growth tied to business growth? Is it easy to understand and communicate
across all teams?
What is the best frequency? [Stage dependent] Can this metric guide you when evaluating
pricing, potential features, plans, and other
important decisions?
What external factors have an impact? Can everyone in the company (marketers, sales,
UX, etc.) relate what they’re doing to
this
metric?
Does the full pirate funnel impact NSM? Does it capture the essence of the company and
long term value of your product?](https://image.slidesharecdn.com/demystifyingproductmetrics-201224205437/75/Demystifying-product-metrics-47-2048.jpg)
![CareerEQ NTM
Paid Product – Video content and slides
Net no. of purchases
[Purchases – Returns]
71](https://image.slidesharecdn.com/demystifyingproductmetrics-201224205437/75/Demystifying-product-metrics-71-2048.jpg)
![83
When do your customers reach end-result?
Does this apply to all our customers?
Is this moment measurable for us?
Does this metric show the actual engagement
with the product?
Does my NSM metric change frequently? Can this metric determine that the product is
moving in the right direction?
Is NSM growth tied to business growth? Is it easy to understand and communicate
across all teams?
What is the best frequency? [Stage dependent] Can this metric guide you when evaluating
pricing, potential features, plans, and other
important decisions?
What external factors have an impact? Can everyone in the company (marketers, sales,
UX, etc.) relate what they’re doing to
this
metric?
Does the full pirate funnel impact NSM? Does it capture the essence of the company and
long term value of your product?](https://image.slidesharecdn.com/demystifyingproductmetrics-201224205437/75/Demystifying-product-metrics-83-2048.jpg)
Uploaded byVidhya Sriram, CCXP
Demystifying product metrics
The document outlines a session on product metrics, emphasizing the importance of defining north star metrics that reflect customer value and align with product strategy. It discusses characteristics, limitations, and the need for constellation metrics to support decision making in a business context. Practical examples and critical questions are provided to guide organizations in evaluating and using metrics effectively.
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Demystifying product metrics
- 1. Demystifying Product Metrics Side PrjctSession: Nov 4 2020
- 2.
- 3. Today’s session Part 1:Foundational Principles • Characteristics of Metrics • Types of Metrics • Dimensions of Metrics • Metrics and Stages of Business • Metrics and Business Models Part 2: North Star metrics + • Characteristics • Definition • Limitations • Making it real with my product • Interactive session with your product 3
- 4.
- 5.
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- 15.
- 19. 4. Metrics and Stagesof Business
- 21. 5. Metrics and Businessmodels
- 29.
- 30.
- 31. The ONE thingto know North star metric should represent, the realized value for the customer 31
- 32. Consider… # Daily activeusers # Registered users # Signups # Downloads They say absolutely nothing about what your customers value about your product. A missed opportunity to provide clarity and purpose the team 32
- 33.
- 34. NTM - 3Critical Goals Gives your organization clarity and purpose Helps to decide the trade offs Communicates product’s impact and progress Helps to stay in alignment Product is held accountable to the outcome 34
- 35.
- 36. The Definition A northstar metric should consist of 2 parts: ▪ A metric that represents customer value led by product vision ▪ A metric that represents your product strategy driven by product stage 36
- 37.
- 38. Example: Amplitude Customer Value Easilyanswering questions on what drives behavior and powering a better customer experience Growth stage [Between Virality and Revenue] The metric of Weekly Querying Users (WQUs) reflects breadth – The number of customers who get value at least once a week is a leading indicator of our ability to retain and expand accounts over time. 38
- 39.
- 40. A good northstar metric is Specific to your product and represents the realized customer value 40
- 41. Question Can you thinkof any north star metric that all products can use? 41
- 42. Answer Can you thinkof any north star metric that all products can use? Not possible. Your product north star should be specific to your product and what your customers value 42
- 43. A good northstar metric is Leading indicator of product’s success in relation to customer value 43
- 44. Which is abetter NTM? Revenue retention Renewing subscription value at $3M Usage retention Weekly querying users at 10K 44
- 45. Answer Revenue retention: Renewing revenueat $3M Usage retention Weekly querying users at 10K Leading indicator & Customer value focused 45
- 46.
- 47. 47 When do yourcustomers reach end-result? Does this apply to all our customers? Is this moment measurable for us? Does this metric show the actual engagement with the product? Does my NSM metric change frequently? Can this metric determine that the product is moving in the right direction? Is NSM growth tied to business growth? Is it easy to understand and communicate across all teams? What is the best frequency? [Stage dependent] Can this metric guide you when evaluating pricing, potential features, plans, and other important decisions? What external factors have an impact? Can everyone in the company (marketers, sales, UX, etc.) relate what they’re doing to this metric? Does the full pirate funnel impact NSM? Does it capture the essence of the company and long term value of your product?
- 48.
- 49. Facebook ▪ Monthly activeusers ▪ Revenue made from the user 49
- 50.
- 51. Amazon ▪ No. ofpurchases per month ▪ Net purchase revenue 51
- 52.
- 53. LinkedIn ▪ Monthly activeusers ▪ Growing monthly engagement per user defined by □ Meaningful conversations / connections / follows / shares etc. 53
- 54.
- 55. The limitations North StarMetric Also known as One Metric that Matters can be limiting for large organizations. 55
- 56. Example LinkedIn has teamsdedicated to monetization and engagement 1. Monetization targets revenue from ads 2. Engagement targets activities like connections, comments etc. 56
- 57. Simplistic understanding of thescenario 1. Ads will put off people and monetization team will lose out. 2. Monetization teams’ gain can affect long term engagement which can affect long term retention. . 57
- 58. A more sophisticated approach 1.Ads can put off people and enable monetization gains 2. The temporary loss of engagement may be worth the financial gains temporarily 3. This could be a grand experiment to focus on the retention of high value customers 58
- 59. So What? ▪ Largeenterprises have teams with diverse focus areas. A north star metric cannot objectively represent the multiple product goals ▪ A north star metric cannot account for one metric affecting another ▪ The NTM that intends to provide clarity can actually increase blind spots All of the above create a climate for bad decision making in the long run 59
- 60. What does this mean? ▪You should not oversubscribe to the One metric that matters argument. ▪ You should consult the first principles and choose metrics that will help you make decisions objectively, proactively and progressively as the product evolves 60
- 61.
- 62. Constellation metrics -Beyond North Star metric 62 One Metric that matters Supporting Metrics
- 63. Constellation metrics withmore dimensions 63
- 64. Constellation metrics -Example 64
- 65. Understand the importanceof Tradeoff Metric 65
- 66. Let’s put the stepstogether
- 67. ▪ Reflect onProduct principles ▪ Think about your business model. ▪ Reflect on the stage of the business ▪ Begin with a North star metric ▪ Build the constellation metrics with other dimensions Engagement, Retention, Monetization ▪ Depending on the scale of the product think more input or supportive metrics that will help you achieve the primary metrics ▪ Sanity check on product principles 67
- 68. Let’s make itreal
- 69. CareerEQ Paid Product –Video content and slides A DIY coaching session to figure out what’s next for you and how to get there ▪ launch offer for $39 ▪ 15-20 hour course ▪ 100% money back in 3 months ▪ 50% refund when reviews are shared via social 69
- 70. Business Stage: Empathy &Stickiness Problem Validation ▪ Is the problem real and do people care enough about it to solve? Solution Validation ▪ Will they use or buy it for enough money from you? Product value ▪ Will my product grow? ▪ Will they care to come back and tell others? 70
- 71. CareerEQ NTM Paid Product– Video content and slides Net no. of purchases [Purchases – Returns] 71
- 72. CareerEQ >NTM Paid Product– Video content and slides Engagement ▪ Ratio of positive to not-so-positive reviews ▪ No. of people getting 50% refund after completion Retention / Acquisitions ▪ Ratio of visitors to purchases Monetization ▪ Total no. of purchases ▪ Net revenue (purchases – returns) 72
- 73. Time for yourproduct
- 74. 1. Reflect onProduct Principles
- 75.
- 76.
- 78. 3. The Stageof the business?
- 80. Business Stage: Empathy& Stickiness Before Product Market Fit Problem Validation ▪ Is the problem real and do people care enough about it to solve? Solution Validation ▪ Will they use or buy it for enough money from you? Product value ▪ Will my product grow? ▪ Will they care to come back and tell others? 80
- 81. 4. The NorthStar Metric?
- 82. The Definition A northstar metric should consist of 2 parts: ▪ A metric that represents customer value led by product vision ▪ A metric that represents your product strategy driven by product stage 82
- 83. 83 When do yourcustomers reach end-result? Does this apply to all our customers? Is this moment measurable for us? Does this metric show the actual engagement with the product? Does my NSM metric change frequently? Can this metric determine that the product is moving in the right direction? Is NSM growth tied to business growth? Is it easy to understand and communicate across all teams? What is the best frequency? [Stage dependent] Can this metric guide you when evaluating pricing, potential features, plans, and other important decisions? What external factors have an impact? Can everyone in the company (marketers, sales, UX, etc.) relate what they’re doing to this metric? Does the full pirate funnel impact NSM? Does it capture the essence of the company and long term value of your product?
- 84. 5. The constellation Metrics? Engagement,Retention and Monetization
- 85. Your Product ▪ Engagement▪ Retention ▪ Monetization 85
- 86.
- 87. 7. Sanity checkof product principles
- 88.
- 89.
- 91.
- 92. Quora ▪ No. ofanswers to questions 92
- 93. Uber ▪ Rides perweek 93
- 94. Hubspot ▪ Weekly activeteams 94
- 95. Slack ▪ Daily activeusers 95
- 96.
- 99. Questions to askto move to the next stage
- 106. Questions to define metricsbased on business models