The SaaS business is rife with suggestions about the best product metrics to track your customers’ activation, engagement, and interactions. However, how can these ideas convert into actual product enhancements? If you don’t know what questions you want to answer, these product metrics will blind you with the same data you were hoping to see. So, how do you move from merely putting your statistics into formulae? To address crucial questions about your product and business and deliver data that might help your product team make better decisions. Let’s find out what is Product Metrics!
What Are Product Metrics?
Product metrics are data measurements that a product manager recruiting agency uses to assess a product’s success and identify how customers interact with it. Popular indicators like attrition rate and conversion rate assist multiple corporate stakeholders in determining a product’s value and guide product direction.
Not Every Product Is The Same
Track standard SaaS finance KPIs like clients’ conversion rate from trial to paid and monthly recurring income. These and other measures, such as customer acquisition cost (CAC) and client lifetime value (LTV), are critical for determining a company’s overall health and strategy.
Start by researching what other businesses have done. While most of the “best practice” product analytics advice was good for presenting concepts, the guidelines weren’t universally applicable. So much is dependent on the sort of company you manage.
The Right Questions Lead To The Appropriate Product Metrics.
“Start with the correct inquiry” is a core principle for the team. We’d be starting with someone else’s question instead of our own if we merely used well-worn frameworks mindlessly. If these frameworks don’t start with the right question, the metrics have no impact on how the production of a product or the path a company takes. These measures become fictitious proxies that appear fine on paper but create a misleading roadmap and don’t provide you with the details you need. Furthermore, when a firm expands in size, a single set of dimensions to service the entire organization becomes less and less valuable. When measures matter to them, teams tend to disagree.
Even though they all have the same high-level purpose, they contribute to it in various ways and judge their performance accordingly. The growth team focuses on one aspect of the product, while the marketing team focuses on another.
It Requires A Team Effort To Come Up With Good Questions.
The analytics team may give product managers various relevant data to help them assess product performance more effectively. Here are a few examples of SaaS company engagement metrics:
- It is average time it takes to convert a trial user to a paying customer.
- Percentage of users that utilized a particular feature of a product
- The average number of times a user took an essential action per session, the average number of necessary actions taken
Most teams get stuck because they don’t know how to ask the correct questions using their analytics. Instead of the more usual stakeholder-resource relationship, deciding on such questions necessitates collaborative cooperation between the analyst and product development team.
We drew inspiration from what guides the development of product metrics linked to product goals (Happiness, Engagement, Adoption, Retention, Task Success). Here are some of the queries we ask our product teams to assist them in understanding their goals and helping them develop relevant metrics:
- What activities do we picture an ideal client performing when they receive value from our product?
- What are the specific actions a user must take within our product to accomplish a goal?
- Is this product intended to address an issue that affects users or just a portion of them?
Touchpoints To Consider While Determining Metrics.
We employ product usage ideas that have become well recognized and agreed upon within the organization to assist our product partners in answering these inquiries. These words are connected closely to crucial moments in our product’s journey for customers:
Intent to use: The action or acts that customers take to indicate that they plan to utilize the product or service definitively.
Consumer engagement: refers to how much a customer continues to benefit from a product or feature.
We may seek to address problems like those given above using these simple notions. The next stage is to hunt for product or feature-specific signals corresponding to these ideas. We’ve discovered that open cooperation with individuals from all parts of our product teams — managers, designers, researchers, and engineers – produces many relevant signals that we can utilize to construct effective product success indicators.
As long as you’re asking the appropriate questions, you’ll acquire helpful information that you can use. In other words, begin with the problem rather than the facts like that of topgrading interview questions and answers the company asks to understand the problem-solving capability of the candidate.
This collaborative approach to defining metrics has resulted in more seamless collaboration between the analytics and product teams. Using a uniform, consistent manner of working also ensures that everyone in the organization understands what product metrics represent and why they are essential. It implies that the insights acquired from analyzing the data defined by these indicators guide – or even lead – product improvements.