The Art and Science of Crafting Success Metrics in Product Management

Success in product management is an elusive concept, with the journey often overshadowing the destination. Every product manager (PM) aims to gauge the success of their product, but the vast landscape of metrics can make this a daunting task. In my journey as a product management hiring manager, leader, and coach, I’ve observed a common pitfall: the reliance on generic metrics. While these metrics, like acquisition and engagement, are important, they often don’t tell the full story.

In this comprehensive guide, we’ll delve deep into crafting the perfect success metrics, supplemented with real-life examples from the trenches of product management.

1. User-Centric Metrics:

At the heart of any product lies its users. Metrics that don’t factor in the user’s perspective are often shallow.

Questions to Consider:

• What are the user’s primary objectives with the product?
• Which core human need does your product address?
• What actions signify that their need has been fulfilled?
• Is a single action sufficient to ascertain the user’s objectives are met?
• How can these actions be quantitatively and qualitatively measured?

Real-life Example: Sarah, a PM at a fitness app startup, wanted to gauge user satisfaction. Instead of just tracking app downloads, she delved deeper. She focused on how many users set fitness goals within the app and how many actually followed through with daily exercises. By understanding these user-centric metrics, Sarah got a clearer picture of genuine user engagement.

2. Usage and Adoption Metrics:

Beyond understanding users, it’s essential to know how they interact with the product.

Questions to Consider:

• How many users are actively engaging with the product?
• What’s the potential user base, and how many of those are currently on board?
• Are there segments of users who should be using the product but aren’t?

Real-life Example:
Mike, a PM at a SaaS company, observed that while many companies signed up for their software, not all were using the advanced analytics feature. By segmenting users and understanding usage patterns, Mike identified a gap in onboarding and training for that feature.

3. Satisfaction and Loyalty Metrics:

Usage is one thing; love for the product is another. Loyalty and satisfaction often lead to organic growth through word-of-mouth.
Questions to Consider:

• Do users recommend the product to others?
• Which features resonate most with users?
• Does the product experience encourage repeat engagement?
• What proportion of users genuinely enjoy the product experience?
• How fervently do they endorse it?
• What specific actions or features resonate with their preferences?
• How can their satisfaction levels be measured?
• Does the product experience encourage repeat usage, and if so, at what frequency?

Real-life Example:
Priya, a PM at an e-commerce platform, tracked not just sales but repeat purchases and customer reviews. When she noticed that repeat purchases were high but positive reviews were lacking, she initiated a feedback loop, discovering that users loved the product range but found the checkout process cumbersome.

4. Quality of User Experience:

A product’s success is heavily reliant on the user’s journey and experience.

Questions to Consider:

• Are users facing challenges with certain tasks?
• What aspects of the product garner negative feedback?
• Is the product versatile enough to cater to all user needs?
• Are there specific actions or tasks that users find challenging?
• What aspects of the product receive negative feedback?
• Is the product versatile enough to cater to diverse user needs?
• Are there desired actions or features that are currently missing from the product?
• How can these facets of user experience be quantified?

Real-life Example:
Alex, a PM for a digital banking app, noticed that while the app had a high download rate, the account setup completion rate was low. On digging deeper, he found that a particular step in the verification process was causing user drop-offs. By refining this step, user experience and completion rates improved.

5. Integrity and Reliability of Metrics:

Metrics should be foolproof and should genuinely reflect the product’s health.

• Can these metrics be manipulated?
• Are they simple enough for everyone to understand?
• Do they genuinely depict the product’s state?
• Are there loopholes that can skew the metrics?
• Do the metrics offer a genuine reflection of the product’s state?
• Are the metrics straightforward enough for all stakeholders to comprehend?

Real-life Example:
David, a PM at a gaming company, initially used “game downloads” as a success metric. However, he soon realized that while downloads were high, actual in-game activity was low. He pivoted to track “active game time” to get a more honest metric of user engagement.

6. Broader Impact on Product and Organization:

It’s crucial to view metrics in the broader context of the organization’s goals and vision.

• Do the metrics align with the company’s long-term goals?
• Could improving one metric negatively impact another?
• Are potential trade-offs justifiable?
• Do the chosen metrics genuinely depict success?
• Are there other aspects of the user journey that need to be measured?
• Could optimizing the primary metrics adversely impact other vital parameters?
• Are potential trade-offs between metrics justifiable?

Real-life Example:
Jasmine, a PM at a news portal, was ecstatic that their aggressive push notifications strategy led to higher article clicks. However, she soon noticed a rise in app uninstalls. The short-term gain in clicks was leading to long-term loss in user base, prompting a reevaluation of their notification strategy.

Conclusion

Crafting success metrics goes beyond numbers. It’s a blend of science, art, intuition, and a deep understanding of the user. The right metrics serve as a beacon, guiding the product towards genuine success and impact. For all the product managers out there, remember: it’s not just about tracking success, but understanding it. As we conclude, we’d love to hear your stories. How do you define and measure success in your product journey?