METRICS
Andy Acs
PDM7
METRICS
METRICS
LEARNING OBJECTIVES
‣ Identify
the right metrics and KPIs to track for a variety of
products
‣ Identify tools you can to measure your metrics
‣ Understand the concept of the customer conversion funnel, and
how the stage of funnel determines what you need to measure and
track
METRICS
KPIS
KPIS 5
WHY IS IT IMPORTANT TO USE
METRICS AS A PRODUCT
MANAGER?
KPIS
WHAT IS A
KEY
PERFORMANCE
INDICATOR?
*Chart by Wilson Joseph from The Noun Project
KPIS
KPIS SHOULD BE:
SPECIFIC MEASURABLE
TIMELY REALISTIC ACTIONABLE
KPIS
ONE METRIC
THAT MATTERS
KPIS
A GOOD METRIC IS
Understandable Comparative A rate or ratio Behavior Changing
If you’re busy Comparison is The only way Who’s behavior
explaining the context. to measure are you trying to
data, you won’t change & roll change, and how
be busy acting up the tension are you measuring
on it. between two it?
metrics (MPH).
KPIS
AIRBNB
Metric Improve the number of nights a property was rented.
Hypothesis Professional quality photos will increase number of nights
the place is booked for.
Experiment Hire a few photographers to professionally photograph
a few properties and compare booking rates.
KPIS
RESULT
METRICS
CUSTOMER CYCLE
CUSTOMER CYCLE
WHAT IS A CUSTOMER CYCLE
THROUGH A PRODUCT?
CUSTOMER CYCLE
CUSTOMERS WILL...
VISIT & ARRIVE
INTERACT & ENJOY
COME BACK
SPREAD THE WORD
GENERATE REVENUE
CUSTOMER CYCLE
MEASURE YOUR CUSTOMER JOURNEY.
AARRR
ACQUISITION
ACTIVATION
RETENTION
REFERRAL
REVENUE
CUSTOMER CYCLE
CUSTOMER CYCLE
WHAT IS
ACQUISITION?
CUSTOMER CYCLE
ACQUISITION
GETTING NEW PEOPLE TO YOUR PRODUCT.
WAYS TO CLASSIFY A NEW WHERE ARE THESE PEOPLE
ACQUISITION? COMING FROM (SOURCES)?
Spends at least 1 minute on a page Social Media
Word of Mouth
Visits at least 2 pages Blogs
SEO
Clicks at least 2 things
Paid Advertising
CUSTOMER CYCLE
KEY TERMINOLOGY
SOURCE BOUNCE RATE
COST PER CONVERSION CTR
AVERAGE CPC CONVERSIONS
IMPRESSIONS CLICKS
CUSTOMER CYCLE
HOW WOULD
MEASURE ACQUISITION?
CUSTOMER CYCLE
WHAT IS
ACTIVATION?
CUSTOMER CYCLE
ACTIVATION
WHEN NEW USERS SIGN-UP, USE, AND ENJOY YOUR PRODUCT.
WAYS TO CLASSIFY A NEW
ACTIVATION?
Signed-Up
Filled Out a Form
Used Specific Features
CUSTOMER CYCLE
KEY TERMINOLOGY
PAGES PER VISIT CLICKS PER CONVERSION
TIME ON SITE TASK / ACTIVITY COMPLETION
TIME PER CONVERSION
CUSTOMER CYCLE
HOW WOULD
MEASURE ACTIVATION?
CUSTOMER CYCLE
WHAT IS
RETENTION?
CUSTOMER CYCLE
RETENTION
USERS THAT CONTINUE USING YOUR PRODUCT OVER AND OVER AGAIN.
WAYS TO CLASSIFY A REPEAT
USER?
How often do they come back?
How often do they perform specific actions?
How long is each visit to your product?
CUSTOMER CYCLE
KEY TERMINOLOGY
TIME SINCE LAST VISIT
USER LOYALTY
SESSION LENGTH
EMAIL OPEN RATE
CUSTOMER CYCLE
HOW WOULD
MEASURE RETENTION?
CUSTOMER CYCLE
WHAT ARE
REFERRALS?
CUSTOMER CYCLE
REFERRAL
USERS TELLING FRIENDS TO ALSO BECOME USERS OF YOUR PRODUCT.
WAYS TO ENCOURAGE &
INCREASE REFERRALS?
Social Media Features
Building Virality In
Affiliates
CUSTOMER CYCLE
KEY TERMINOLOGY
AFFILIATES & AFFILIATE NETWORKS
PAID & ORGANIC GROWTH
VIRALITY
% OF USERS REFERRING
# OF REFERRED USERS
CUSTOMER CYCLE
HOW WOULD
MEASURE REFERRALS?
CUSTOMER CYCLE
WHAT IS
REVENUE?
CUSTOMER CYCLE
REVENUE
THE METHOD AND AMOUNT OF MONEY YOU’RE MAKING
THINGS TO CONSIDER ABOUT
REVENUE?
How many users are paying?
How long did it take for them to make a
purchase?
How much money did they spend?
CUSTOMER CYCLE
KEY TERMINOLOGY
TIME TO FIRST TRANSACTION
BREAK-EVEN
SUBSCRIPTIONS / RECURRING TRANSACTIONS
COST PER ACQUISITION
CUSTOMER CYCLE
HOW WOULD
MEASURE REVENUE?
ACTIVITY
KEY OBJECTIVE(S)
Discuss strategies to increase KPIs at each phase of the
customer cycle for Spotify. ACQUISITION
TIMING
5 min Get in the groups of 4. ACTIVATION
EXERCISE
25 min Brainstorm strategies that Spotify can use or
is using to increase their KPIs at each phase
RETENTION
of the customer cycle. REFERRALS
REVENUE
DELIVERABLE
A list of strategies that Spotify can use or is currently
using to increase KPIs at each phase of the customer
cycle.
RESOURCES
FUNNEL ANALYSIS
RESOURCES
COHORT ANALYSIS
RESOURCES 40
TOOLS & RESOURCES
GOOGLE ANALYTICS KISSMETRICS COMPETE
METRICS
HOMEWORK
METRICS
CHOOSE THE METRICS YOU WILL BE MEASURING FOR YOUR
PRODUCT. WHICH ONE IS THE ONE METRIC THAT MATTERS?
METRICS
Q&A
