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Benefits of product metrics
You need to select the right metrics to measure the success of the product or feature you're building.
Once selected, metrics help the product development in many ways:
- They provide direction for the product development
- They offer data to make better decisions
- They help measure the impact of new features
- They provide alignment across teams
- They help identify problems
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The right set of metrics
Answer these questions to find the right metrics for your product:
- Primary output metric — When will you call your product a success or failure?
- Input metrics — What milestones will your product hit before it becomes a success?
- Check metrics — Are you screwing up other company metrics while building your product?
- External dependent metrics — What external metrics outside of your control are required for your product to be a success?
Tap the image to see example metrics for improving revenue/ride at Uber.
There are two more examples in the article if you're curious (Netflix and Amazon Prime).
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Best practices for defining metrics
- Define metrics in such a way that they are measurable and can be tracked on a regular basis
- Define the increment in the metric that your product will bring: "Increase average session length from 5min to 8min"
- Define the time period in which that metric will be achieved: "Increase survey completion rate from 2% to 5% within 3 months"
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