A product manager’s roles and responsibilities might differ as per the company. It totally depends on dynamics like company size, type, product type, product stage, and sometimes as per the culture of the company. But one thing that brings all the product managers together is the need to bring their products in the market.
To take up the baton, product managers must know how to use data generated through customer interaction and traction. However, it is not as easy as it seems. In this article at Feeddough.com, Sourobh Das jots down ten product metrics that may make a product manager’s life easier.
Track Down Progress
- Data helps in calculating the customer lifetime value (LTV) by multiplying the average profit per month from a customer with the average lifetime of a customer in a month. It is the net revenue a company generate in a customer’s lifetime.
- Similarly, the product manager must also understand the significance of customer acquisition cost (CAC), the estimated cost of a new customer. It plays a pivotal role in ensuring long-term sustainability of the product.
- Customer conversion rate (CCR) is equally essential to calculate the number of prospective buyers that could turn into real customers. Even minor changes in CCR can boost the product revenue.
- Average revenue per user (ARPU) is to calculate the revenue you earn on an average per month from a customer. It is an achievement for a product manager and the team if ARPU increases against the fixed price of the product.
- Churn rate is the percentage of consumers that have stopped using the product per month. To calculate it, divide the total number of consumers lost by last month’s total number of consumers.
- Monthly recurring revenue (MRR) finds the revenue a product generates every month from a new consumer. One step ahead is the add-on MRR, the method of finding if the customers find the product useful enough and if they are willing to invest in it regularly.
- Bounce Rate calculates the ratio of people that visit your product website but leave without buying anything. However, it helps to measure landing page performance.
- Dwell Time calculates the average time spent by a user in a single session. It gives clarity over the power of content used to promote the product performance on your website.
- Net Promoter Score (NPS) takes product performance feedback from customers in the form of rate card. It is like a product feedback survey over the product.
- Organic or paid traffic calculates the product demand on the company website or app with or without spending money on online marketing campaigns.
The author also mentioned a couple of other metrics like Cost per Thousand Impressions (CPM), Average Order Value (AOV). Usage of product metrics totally depends on the nature of your business. However, learning to implement these metrics could bring more traction for your products and helps you sustain leadership in the competitive product market. Follow the link below to read the full article: https://www.feedough.com/top-10-metrics-every-product-manager-should-know-track/