If you’re a product manager, you’re constantly being slammed by figures and opinions. Your company leaders have ideas, fellow employees have opinions, and customer data is flooding every screen you have.
How do you know which KPIs are worth your time?
You don’t have to panic. Take a deep breath and read on. We’ve picked out the best product management KPIs to track if you want to back decisions, focus priorities, secure buy-in, and prove product ROI.
Why do product managers need to track performance KPIs?
KPIs can supercharge a product manager’s plans on a few levels. First, they provide a foundation to prove ROI. After all, you can’t prove what you can’t measure. In the same way, having metrics backing decisions will give you the support you need to show that the decisions within your product roadmap are aligned with the goals of the company.
Additionally, tracking product performance is a catapult for growth. In order to drive product-centered growth, you need to be gathering data from your customers, using that data to make decisions, implementing those decisions, and monitoring the success of moves.
That approach to product-centered growth is a growing force. In fact, Gartner found that in the next three years, 80% of IT organizations will change their missions and structure as they prepare for product-centered operating models.
The takeaway? All signs toward success point to product-centered growth, and product management KPIs are your ticket there.
What are the best product management KPIs for growth?
So, what KPIs will give you the best results? Here are the most important KPIs for the performance of your product:
Net Promoter Score (NPS)
Your Net Promoter Score (NPS) will show you how likely your users are to recommend your product or services to others. For product managers, it’s a way to keep your finger on the pulse of users. If users are willing to pass on good news about your product, it’s a solid indication you’re making enhancements that they crave.
Ultimately, upping your NPS contributes to both happier users and more growth. By zooming in on your NPS, you can increase repeat customers and spark a reputation that grows through positive reviews.
Time to Value (TTV)
One of the most valuable product management KPIs out there is time to value (TTV). That’s because TTV opens the door to major opportunities for product growth. For instance, as a product manager, you can use it to measure the success of product enhancements.
As you identify sticky features and start chiseling out more direct workflows to get users to those high-value features, TTV should improve. Another quick way to boost TTV is to sprinkle educational guides and in-product engagements throughout your product to drive higher adoption.
Breadth of Adoption
Product and feature adoption are the beating heart of any healthy product-centered growth strategy. Simply introducing a new feature to users isn’t enough. The deeper their adoption is, the higher their long-term use will be. In turn, the value of your product will rise with higher adoption.
This all points to the advantage of using breadth of adoption product management KPIs. Here are some examples of adoption analysis metrics:
- Usage by feature
- Adoption rate
- Login rate
- Time on page or feature
Retention is a critical metric in the modern SaaS world. In fact, 59% of SaaS leaders identify customer renewals as a high priority. And if you want to improve retention rates and increase product growth, it’s important to monitor retention and work toward lower churn. Here are a few product management KPIs to keep an eye on as you work toward higher retention:
- Net dollar retention
- Revenue retention rate
- Annual recurring revenue retention rate
- Client retention rate
- Renewal rates
- Average contract length
Customer Satisfaction (CSAT)
If your goal is to drive product-centered growth and a better user experience, it only makes sense to measure customer satisfaction (CSAT). After all, more than two out of every three businesses now compete primarily on customer experience. Wondering how to improve your CSAT? One way is to dig into the user experience through path analysis and identify any friction points within your product. From there, you’ll have the blueprints to start building a better user or customer experience.
Active Users Per Total Users
In the long run, it won’t matter how many users you have if they aren’t engaged with your product. Inactive users are a red-hot churn indication, and they’ll drop off if you don’t make adjustments. Fortunately, by measuring active users per total users, you can see how much engagement your product and features are sparking. This KPI also sheds light on those areas where you can step in, reach out to less active users, and work to grab your user’s attention.
In the end, your biggest goal as a product manager is to clear the way for users and customers to take action. That’s where monitoring conversion rates becomes so handy. Conversion rates indicate the number of people who take a desired action divided by the number of total visitors. So, these rates can reveal how well those efforts to grab a visitor or current user’s attention are paying off.
You can boost conversion rates by keeping an eye on funnel and path analysis. These reports show you the steps users or customers take—or where they drop off—on the way to an action. As you tweak your product to address those holdups, your conversion rates will indicate how well your moves are turning into growth.
Use KPIs to Create an Effective Product-Led Strategy
Now that you have a grasp of the best KPIs to measure, it is time to develop a product-led growth strategy. Download our e-book and learn how to deliver personalized product experiences through product-led strategy.