Before discussing the key KPIs and metrics for product managers to look at, the first thing that you need to ask yourself is whether the product you manage meets the requirements of your customers or not. Most product managers would say yes without even thinking.
This is because they look at their assumptions or what a few of their customers tell them. Well, the truth is that you need to look at some key metrics and KPIs before determining how well your product is performing.
Unfortunately, most product managers do not even know which KPIs and metrics they need to look at.
In this article, we are going to discuss some of the most important KPIs and metrics for product managers in 2022;
Free Trial Conversion Rate
The free trial conversion rate can be defined as the number of your product users on a free trial who convert to paying customers. This is important in helping product managers understand the total number of customers who can convert to paying customers at a given time.
In addition, this rate plays a vital role in understanding the impact that changes made on the free trial version of your product have on the number of customers who convert into paying customers.
Product managers can also use this rate to evaluate whether the performance of their product is growing or not. Over time, they can evaluate the things that they need to do to improve this rate and grow their businesses.
Active users can be categorized into three. This includes MAU (Monthly Active Users), WAU (Weekly Active Users), and DAU (Daily Active Users). This metric is used to measure the total number of active users your product has over a given time.
Using the active users’ metrics, product managers can understand their clients well and how their behavior changes over time. They can also see the activity of their users at any given time. If this number goes down, then chances are that there is a problem with the product.
The calculation of active users varies from one product to another. Some businesses will categorize a person who logs in for a few seconds every day as an active user. Others will categorize an active user as a person who takes an action after logging in.
Retention rate can be defined as the total number of customers, in percentage, that continues using a product and paying for its use, at any given time. This is an important measure for product managers and they need to be careful with it.
This is because getting new customers is more expensive than keeping the current ones. They, therefore, have to do everything that they can to ensure that they are not losing customers. Retention rates can help them evaluate the performance of their businesses.
Product managers can use retention rates to understand the value that customers get from the use of their products. In addition, it can help them see the impact that any changes made to the product have had on customer experience.
Stickiness can be defined as the rate at which your customers use or engage with a product. This is an important metric when it comes to finding out whether customers value the product they are using or not.
It can also be used to evaluate the rate of growth of a business. You can determine stickiness by looking at the retention rate to see whether a group of customers is still using your product and paying for it.
If they are still paying, then it means that they are still engaging with the product, something that is good for your business.
Creation of Support Tickets
This can be defined as a measure of the total number of support tickets users create at a given time. It is important in determining whether the product in use has flaws or not and if it meets customer requirements.
In addition, support tickets on the same issue might indicate a problem with the product in use. For instance, if you get a high number of support tickets on user sign-up, then you need to look at your sign-up module since it could mean that it has a problem.
You can also use this metric to understand if any changes made to your product have hurt the product’s customer experience.
A product manager’s job is not a walk in the park. However, if they keep tabs on the KPIs and metrics discussed above, they will find it easy to ensure that their products meet customer expectations.