What we do when we measure a Product’s success
“If you really look closely, most overnight successes took a long time.”
— Steve Jobs
It was November 2022. I was helping two product managers to measure success for a feature we were building. Like how it happens, we were focussing on analytics, NPS, retention and churn, the math, the calculations. Then a key stakeholder asked me,” How can you measure something like success with simple maths?” I. mostly. don’t. But sometimes I am not the one who makes such decision.
In the product world, measuring product metrics is an essential part of product management as it helps to understand the performance of a product, identify areas for improvement and make data-driven decisions.
Here are a few common methods for measuring product metrics.
Using User Analytics
User analytics tools such as Google Analytics, Mixpanel, and Amplitude can be used to track user behavior and engagement on a product. Metrics such as session duration, bounce rate, and conversion rate can provide insights into how users interact with a product.
Performing A/B testing
A/B testing is a method of comparing two versions of a product to determine which one performs better. By running A/B tests on different features or designs, product managers can gather data on which variations are more effective to make decisions.
Doing Surveys and Feedback
Surveys and feedback mechanisms such as NPS (Net Promoter Score), CSAT (Customer Satisfaction Score) and CES (Customer Effort Score) can be checked to gather feedback from customers on their experience with a product. This feedback can be used to identify and measure customer satisfaction.
Checking Revenue and ROI
Revenue and ROI metrics track the financial performance of a product. Metrics such as lifetime value, customer acquisition cost, and return on investment can provide insight into the financial success of a product and help to make data-driven decisions about its future development.
Tracking Retention and Churn
Retention and churn metrics track how many users continue to use a product over time, and how many users stop using a product. These metrics can provide insight into how engaging a product is and how well it is meeting user needs.
Checking Social Media metrics
Social media metrics such as engagement, shares, and followers can provide insight into the popularity of a product and its brand.
However, if things were that easy, most products wouldn’t have failed.
I felt it can be easy to become overly focused on metrics and lose sight of the bigger picture. Finding balance when measuring product success is essential to ensure that the product is meeting what users want while also achieving business goals.
Quantitative metrics, such as revenue, user growth, and retention, provide valuable information about the performance of the product. Qualitative metrics, such as user feedback, sentiment analysis, and usability testing, provide insight into how users interact with the product and their overall experience. Combining both types of metrics can provide a more comprehensive understanding of the product’s success.
Another way to find balance when measuring product success is to consider both short-term and long-term goals. Short-term goals, such as monthly or quarterly targets, are important for tracking progress and making data-driven decisions. It is also important to consider long-term goals, such as the overall vision for the product and its impact on the company’s bottom line. By keeping both short-term and long-term goals in mind, product managers can ensure that the product is on the right track to achieve the target, or find a space for introspection and improvement.
It’s also important to involve stakeholders in the process of measuring product success. This can include product managers, designers, developers, and even users. By getting input and feedback from different stakeholders, product managers can ensure that the product is meeting the needs of all stakeholders and not just the business.
Lastly I realized one of the best ways is to continuously evaluate and improve the metrics used to measure product success. Metrics that were once important may no longer be relevant, and new metrics may need to be discussed and introduced so that the product managers can ensure that they are providing an accurate representation of the product’s success and longivity.
In short, as product manager, understanding product-market fit is essential. The right product-market fit means you have the right value proposition for the right target audience. If your product does not solve the needs of the target users, it has little chance of being successful. With the feedback you collect regularly is one of the best ways to understand what value customers expect to find in your product. You can increase your chances of product success by adjusting your value proposition in light of this feedback. Also remember market trends and customers’ expectations are constantly changing. A streamlined system of customer feedback can help you quickly adapt to these changes, allowing you to reduce risks and have a more successful product.
Doesn’t that sound like more humane and less maths?
