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MANAGING THE BUSINESS OF SOFTWARE

A2A: What are the best product metrics?

Retrospective

My favorite set of metrics help instrument the movement from "interested” to “advocate." Consider “Pirate Metrics” from Doug McClure.

Acquisition: Do customers find you?
Activation: Do they sign up?
Retention: Do they come back?
Revenue: Do they pay you?
Referral: Do they tell their friends?

So what becomes key is the conversion rates. Revenue or NPS alone aren’t very good yardsticks. If you truly believe you have a good idea, these metrics will show where you need to improve.

In addition to a process retrospective, product teams should do a business retrospective periodically to analyze these metrics and take corrective action.

 
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A2A: What are the best product metrics?

My favorite set of metrics help instrument the movement from "interested” to “advocate." Consider “Pirate Metrics” from Doug McClure.

Acquisition: Do customers find you?
Activation: Do they sign up?
Retention: Do they come back?
Revenue: Do they pay you?
Referral: Do they tell their friends?

So what becomes key is the conversion rates. Revenue or NPS alone aren’t very good yardsticks. If you truly believe you have a good idea, these metrics will show where you need to improve.

In addition to a process retrospective, product teams should do a business retrospective periodically to analyze these metrics and take corrective action.