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Essential Guide: The top 10 KPI every product leader should know

As a product leader, you need to know which key performance indicators (KPIs) will help you measure the success of your product. But with so many different metrics to choose from, it can be difficult to determine which ones are the most important.

To help you out, we’ve put together an essential guide to the 10 KPIs every product leader needs to know. By tracking these metrics, you can gain valuable insights into how your product is performing and make data-driven decisions to drive growth.

Active Users

Active users are the number of people who are currently using your product. This metric gives you a sense of how engaged your audience is and can help you identify areas where you need to improve your product to keep users coming back.

Retention Rate

Retention rate measures the percentage of users who continue to use your product over a given period of time. This is an important metric because it’s much easier and cheaper to retain existing customers than to acquire new ones.

Churn Rate

Churn rate measures the percentage of users who stop using your product over a given period of time. This is important because it can help you identify why users are leaving and make changes to prevent further churn.

Customer Acquisition Cost (CAC)

CAC measures the amount of money you spend on sales and marketing to acquire a new customer. This metric is important because it helps you determine the ROI of your marketing efforts.

Customer Lifetime Value (CLV)

CLV measures the total amount of revenue a customer will generate for your business over their lifetime. This is an important metric because it can help you identify which customers are most valuable to your business and make strategic decisions accordingly.

Monthly Recurring Revenue (MRR)

MRR is the amount of revenue you earn from subscription-based products or services each month. This metric is important because it can help you determine the overall health of your business and make informed decisions about pricing and product offerings.

Net Promoter Score (NPS)

NPS measures the likelihood that your customers would recommend your product to others. This metric is important because it can help you identify areas where you need to improve your product and can also serve as a measure of customer satisfaction.

Conversion Rate

Conversion rate measures the percentage of users who take a desired action, such as making a purchase or signing up for a newsletter. This metric is important because it can help you identify which parts of your product or marketing strategy are working and which ones need improvement.

Funnel Drop-off Rates

Funnel drop-off rates measure the percentage of users who drop off at each stage of your product funnel. This metric is important because it can help you identify where users are getting stuck or losing interest and make changes to improve conversion rates.

Average Revenue Per User (ARPU)

ARPU measures the average amount of revenue generated by each user of your product. This metric is important because it can help you identify which products or features are most profitable and can also help you determine pricing strategies.

By tracking these 10 KPIs, you can gain a comprehensive view of how your product is performing and make data-driven decisions to optimize performance and drive growth.

    Amit Desai

    Marketing & communications professional with 25+ years of experience in product development and marketing, growth hacking, strategic marketing, consumer insight, brand & product strategy, interactive & digital marketing, creative development, public relations, media planning & buying, direct-marketing - across top FMCG / Consumer Durables / Retail and Financial Services Categories and Brands.

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