[Product Success] How do you measure the success of a product, and what key performance indicators (KPIs) do you use? Flashcards
“To measure the success of a product, I start by aligning success metrics with the product’s goals and the company’s overall objectives. I focus on three key areas: business outcomes, customer impact, and engagement.
For business outcomes, I look at metrics like revenue growth, profitability, and market share to ensure the product contributes to the company’s strategic objectives. For example, tracking Monthly Recurring Revenue (MRR) is critical for a subscription-based product.
On the customer side, I evaluate metrics like Net Promoter Score (NPS), customer retention, and adoption rates to understand how well the product solves user pain points and drives satisfaction. For instance, if retention is low, it might indicate a need to address onboarding or user experience challenges.
For engagement, I focus on metrics like Daily Active Users (DAU), feature adoption rates, and conversion rates. These tell me how users interact with the product and where improvements might be needed. For example, if a key feature isn’t being used, I’d analyze whether the issue is visibility, usability, or relevance.
Lastly, I also collect qualitative feedback through customer interviews, surveys, and reviews to complement the data and gain deeper insights. This ensures we not only meet quantitative goals but also deliver real value to users.
By continuously monitoring these metrics, I can assess the product’s health and make informed decisions to improve both user experience and business outcomes.”
