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Common Product Metrics

· 2 min read

Some of the common product metrics used in product management.

1. User engagement metrics​

  • Number of sessions per user.

  • Sessions duration for a cohorts/group, over time

  • Number of key user actions per session. eg: number of likes, etc

  • CTR (Click-through rate)

(Number of click / Total Impressions) * 100

2. Business metrics​

  • ROI: Return on Investment - The value is in %
((Gain from investment – Cost of Investment) / Cost of Investment ) * 100
  • LTV/CLV: Customer Lifetime Value.

Net profit you will generate until the customer churns or stops paying for service. Alternate metrics is Customer Lifetime Revenue, where one excludes the customer servicing cost (salary of employees, server cost, etc).

  • CAC: Customer Acquisition Cost.

It is the ratio of (Sales and marketing expense)/(number of new customers).

  • ARPA: Average revenue per account

  • MRR: Monthly recurring revenue

  • Revenue churn rate

Percentage of revenue loss per month due to churn or stoppage of service.

  • Retention rate [not a good metric]

Far less actionable than other metric like Churn metric

3. Customer service metrics​

  • Number of incoming support ticket

  • FCR: First Call Resolution

  • Net Promoter Score

    Promoters % - Detractors %

    Range: -100% to 100%

4. Churn analysis​

Tips

For counts, take Medians over Means as they are less sensitive to outliers.

Churn analysis, do a t-test of the mean churned and retained users.

References​

  1. Critical Metrics Every Product Manager Must Track

  2. How to Measure Growth: Cohort Analysis and Retention Rate

  3. Calculating Customer Retention (Fixed and Rolling)

  4. How to Calculate Customer Retention and Dollar Retention

  5. Measuring Customer Retention: Retention and Average Lifetime Customer Value

  6. [Source for WhatsApp Monthly Active Users]