One of the most important skills a PM must have is an understanding of the product metrics and take action to improve them. Most companies have their own and some may be variations on industry standards but some of this will show up in most initiatives and cases. >[!attention] > Be always on the look out when any of the product metrics turns into [[Vanity metrics- Misleading Indicators of Success]], which create the illusion of success but provide little to no actionable insight for decision-making or are not tied to the success of a product or company You may classify them using the [[AARRR framework]] also known as pirate metrics: ## Acquisition [[Acquisition]] - where / what channels do users come from? - [[Conversion Rate]] - [[Bounce Rate]] - [[Customer Acquisition Cost (CAC)]] - [[Cost Per Click (CPC)]] - [[Click-Through Rate (CTR)]] - [[Traffic Source Distribution]] %% - [[Cost Per Acquisition (CPA)]] %% %% - [[Channel Effectiveness]] %% %% - [[Landing Page Conversion Rate]] %% ## Activation [[Activation]] - what % have a "happy" initial experience? - [[Onboarding Completion Rate]] - [[User Activation Rate]] - [[Trial-to-Paid Conversion Rate]] - [[First-time User Conversion Rate]] - [[Time to Value (TTV)]] %% - [[Product Qualified Leads (PQL)]]%% %% - [[Product Qualified Accounts (PQA)]]%% ## Retention [[Retention]] - do they come back & re-visit over time? - [[Churn Rate]] - [[User Retention Rate]] - [[User Renewal Rate]] - [[Product Adoption Rate]] - [[Customer Lifetime]] - [[Cohort Retention Analysis]] %% - [[Customer Health Score]]%% ## Referrals [[Referrals]] - do they like it enough to tell their friends? - [[Virality Coefficient]] - [[Customer Referral Rate (CRR)]] - [[Referral Conversion Rate]] - [[Net Promoter Score (NPS)]] ## Revenue ^a907fa [[Revenue]] - can you monetize any of this behavior? - [[Average Revenue Per Account (ARPA)]] - [[Customer Lifetime Value (CLV or LTV)]] - [[Customer Profitability]] - [[Monthly Recurring Revenue (MRR)]] - [[Annual Recurring Revenue (ARR)]] - [[Expansion Revenue]] - [[Gross Margin]] - [[Net Revenue Churn]] - [[Net Revenue Retention (NRR)]] %% - [[Average Contract Value (ACV)]]%% ## Engagement [[Engagement]] Not a [[AARRR framework|Pirate metric]] but measuring *Engagement* are some of the main metrics for a PM. - [[Daily Active Users (DAU)]] - [[Monthly Active Users (MAU)]] - [[Stickiness]] - [[User Satisfaction (CSAT)]] - [[Session Length]] - [[Session Frequency]] - [[Feature Usage]] %% - [[Task Success Rate]]%% %% - [[User Feedback Score]]%% ## Agile Metrics Given most technology companies implement an [[Agile]] framework, [[Agile Metrics]] should be understood. - [[Lead Time]] - [[Time to Market (TTM)]] - [[Cycle Time]] - [[Work In Progress (WIP)]] - [[Throughput]] - [[Work Item Age]] - [[Velocity]] ## Business Metrics Although traditionally [[Business Metrics]] are not required at entry level, to grow as a PM one must understood the impact their Product has on their business (Somewhat related to [[#^a907fa|Revenue Metrics]]. - Total Transaction Value - Operating Cash Flow - Revenue - Take Rate (Variable contribution) - ROI - EBITDA --- ## References [Product Marketing for Pirates: AARRR! (aka Startup Metrics for Internet Marketing & Product Management) - Master of 500 Hats](https://500hats.typepad.com/500blogs/2007/06/internet-market.html) [Offline doc: Product Metrics](bear://x-callback-url/open-note?id=336DD551-F319-4625-A73B-17AF7B418F41)