This plan outlines key metrics for achieving success in product management. Each metric is tailored to evaluate distinct aspects of the customer experience and product performance. Metrics like Customer Satisfaction (CSAT) and Net Promoter Score (NPS) help gauge customer perceptions and loyalty, which are vital for product improvement and customer retention.
For example, using CSAT, product managers can pinpoint areas requiring better support or feature enhancement, leading to elevated user satisfaction. Similarly, tracking Monthly Active Users (MAU) and Customer Retention Rate provides insights into user engagement and product stickiness, important for long-term growth.
By addressing these metrics and following the suggested improvements, product managers can ensure sustained product relevance and increased average revenue per user, contributing to overall business success.
Top 5 metrics for Product Management Success
1. Customer Satisfaction (CSAT)
Measures customer satisfaction based on their experience with the product, typically through surveys
What good looks like for this metric: 75%-85%
How to improve this metric:- Improve customer support
- Enhance product features
- Implement user feedback promptly
- Conduct regular user experience reviews
- Offer personalised customer interactions
2. Net Promoter Score (NPS)
Measures customer loyalty by asking how likely they are to recommend the product to others
What good looks like for this metric: 30-50
How to improve this metric:- Implement user-friendly design
- Enhance product reliability
- Offer proactive customer support
- Regularly update and improve the product
- Conduct customer satisfaction surveys
3. Monthly Active Users (MAU)
Tracks the number of unique users engaging with the product within a month
What good looks like for this metric: Varies by industry
How to improve this metric:- Increase marketing efforts
- Enhance user engagement features
- Regularly update content
- Simplify onboarding process
- Offer promotions or incentives
4. Customer Retention Rate
Measures the percentage of customers who continue using the product over a specific period
What good looks like for this metric: 80%-90%
How to improve this metric:- Improve customer service
- Enhance product quality
- Analyse and address churn reasons
- Regularly engage with customers
- Offer loyalty programmes
5. Average Revenue Per User (ARPU)
Calculates the average income generated per user, typically on a monthly or annual basis
What good looks like for this metric: Varies by industry
How to improve this metric:- Upsell premium features
- Introduce new pricing models
- Increase user engagement
- Expand user base
- Conduct pricing analysis
How to track Product Management Success metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
