8 examples of Product Development metrics and KPIs
What are Product Development metrics?
Crafting the perfect Product Development metrics can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.
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Find Product Development metrics with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Measures the level of satisfaction customers have with a product or service, often collected via surveys at the end of a transaction or service interaction. Calculated as (Number of Satisfied Customers / Total Number of Responses) * 100.
What good looks like for this metric: 75-85%
Ideas to improve this metric
Gather regular customer feedback
Resolve customer complaints promptly
Enhance product features based on feedback
Train customer support teams
Improve user experience design
2. Net Promoter Score (NPS)
Assesses customer loyalty by asking how likely customers are to recommend the product to others. Calculated as percentage of promoters minus percentage of detractors.
What good looks like for this metric: 30-50
Ideas to improve this metric
Engage with promoters for referrals
Address issues raised by detractors
Implement a customer loyalty program
Improve overall product quality
Personalise customer interactions
3. Monthly Recurring Revenue (MRR)
The total predictable revenue that a business expects to make every month. Calculated by summing up the recurring revenue from all customers in a month.
What good looks like for this metric: Varies widely by industry
Ideas to improve this metric
Upsell existing customers
Introduce tiered pricing models
Reduce customer churn
Expand market reach
Improve the onboarding process
4. Customer Acquisition Cost (CAC)
The cost associated with acquiring a new customer, calculated by dividing the total marketing and sales expenses by the number of new customers acquired.
What good looks like for this metric: $10-$200
Ideas to improve this metric
Optimise marketing spend
Increase organic growth channels
Improve lead conversion rates
Enhance targeting strategies
Strengthen brand awareness
5. Customer Lifetime Value (CLTV)
The total revenue a business expects from a customer over their lifetime. Calculated by multiplying the average purchase value, purchase frequency, and customer lifespan.
Measures the number of new customers acquired within a specific period after the product launch, typically calculated as the percentage of new customers relative to total target audience
What good looks like for this metric: 20-30%
Ideas to improve this metric
Increase marketing efforts
Offer promotions or discounts
Enhance online presence
Use influencer partnerships
Optimise your sales funnel
2. Customer Retention Rate
Indicates the percentage of customers who continue to purchase your product after initial acquisition, calculated by dividing the number of repeat customers by the total number of customers
What good looks like for this metric: 40-60%
Ideas to improve this metric
Improve customer service
Introduce a loyalty programme
Regularly update the product
Solicit customer feedback
Follow up with customers
3. Revenue Growth Rate
Tracks the increase in revenue generated by the new product over a set period, usually expressed as a percentage
What good looks like for this metric: 10-25%
Ideas to improve this metric
Upsell and cross-sell
Expand into new markets
Increase marketing investment
Optimise pricing strategies
Refine product features based on feedback
4. Market Penetration
Measures the extent to which the new product is being adopted in the target market, calculated by the percentage of target market users purchasing the product
What good looks like for this metric: 5-15%
Ideas to improve this metric
Conduct market research
Adjust marketing messaging
Offer introductory offers
Establish strategic partnerships
Create compelling product demo and trials
5. Customer Satisfaction Score
Gauges customers' satisfaction with the new product, commonly measured using surveys and net promoter scores
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