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10 Product Metrics You Should Know About

Understanding customer needs. Monitoring the market. Creating and executing a vision. These are the core responsibilities of product managers and Kris Jenner. 

While we can’t speak for the Kardashians’ success methods, we know a thing or two about how product teams utilise metrics to grow. Product teams can use product success metrics to measure outcomes and progress, applying the hard data gathered to guide their strategies.

Here are 10 useful metrics to measure product success to consider when writing data-led OKRs.

Top 10 product management metrics examples

To help you get started, we’ve compiled a list of 10 product performance metrics and product engagement metrics. We also explain why they matter to your business.

  1. Daily Active User (DAU)
  2. Monthly Active User (MAU)
  3. Sessions per user
  4. Number of key user actions per session
  5. Retention rate
  6. Churn rate
  7. Customer Acquisition Cost (CAC)
  8. Customer Lifetime Value (CLV)
  9. Monthly Recurring Revenue (MRR)
  10. Net Promoter Score (NPS)

1. Daily Active User (DAU)

Daily Active User (DAU) tracks the number of users who engage with your product daily. Companies may define engagement differently.

Why it matters

Monitoring DAU helps you understand who is using your product and why they’re using it. It’s a health check — it lets you know the number of people who use your product or service daily. 

2. Monthly Active User (MAU)

Like DAU, Monthly Active User (MAU) measures how many users interact with your product monthly. What qualifies as engagement differs from company to company.

Why it matters

MAU reveals how engaged your customers are with your product. With this information, product teams can assess customer satisfaction and better understand how the product is doing.

3. Sessions per user

Sessions per user tracks how many times a user re-engages with your product. It measures how often a single user uses your site or product on average. 

Why it matters

This metric determines how often users return to your website or app. When an audience engages with a product frequently, it indicates that it is well received. Return users may also have a higher conversion rate than first-time users.

4. Number of key user actions per session

The number of key user actions per session measures how many times a user takes the intended action while using your product.

Why it matters

The number of key user actions per session helps product teams understand customer behaviour. This metric considers your product's core action — it tracks whether users get value from your product and if they use your product as intended. It’s also used in A/B testing to assess features and UX elements.

5. Retention rate

Your retention rate is the percentage of customers who remain using your product after a defined period. Product teams can base retention on downloads, logins, purchases or clicks.

Why it matters

A product retention rate can tell you whether — and how long — you retain customers. A high retention rate can indicate your product is valuable to your customers. A low retention rate is an opportunity to improve your product. 

6. Churn rate

Your churn rate is the opposite of retention, measuring how many customers stop using your product after a defined period. Cancelled subscriptions or lost customers can determine churn.

Why it matters

Churn rates provide valuable information about customer satisfaction. A suddenly high churn rate may mean your customers aren’t happy with a new feature or price/structure change. Churn is also a great metric to compare to growth. A company's success depends on growth over churn.

7. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is how much it costs to turn someone into a customer. It factors in marketing, sales and product team efforts.

Why it matters

Product teams use Customer Acquisition Cost to determine their products' overall value and return on investment (ROI). Growth won't be sustainable if CAC is higher than the value your customers bring.

8. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is the amount of money you expect to make throughout your relationship with a customer. It is represented as an average.

Why it matters

CLV measures the value of your customers by forecasting how much money you can make from them. The higher your CLV, the better. Product teams compare CLV and Customer Acquisition Cost (CAC) to determine the profitability of marketing and sales efforts.

9. Monthly Recurring Revenue (MRR)

Monthly recurring revenue (MRR) measures your product's total revenue over one month.

Why it matters

MRR provides key insights into your customers’ behaviour. It tracks the performance of your business and forecasts growth. It also simplifies budgeting since predictable monthly revenue makes it easier for businesses to budget for new projects.

10. Net Promoter Score (NPS)

A Net Promoter Score (NPS) measures how many customers recommend a product (promoters) and how many do not (detractors). NPS is calculated by asking users to rate your product from zero to 10. 

Why it matters

NPS measures customer loyalty and customer satisfaction. Using this metric, companies can constantly build awareness and improve customer experience. 

How to use metrics for product management success

Product metrics are just one part of the success equation. Identifying goals through metric data is the key to business growth. That’s where goal-setting framework Objectives and Key Results (OKRs) comes in — it’s a three-step process that boosts product performance.

  1. Objectives: Objectives set out your quarterly strategy. 
  2. Key Results: Key results measure progress on objectives. They set a target value and establish a starting point.
  3. Initiatives: Initiatives define the work required to meet the key results.

Our software, Tability, makes it easy for your team to commit to OKRs. Our regular check-ins and easy-to-use interface are sure to impress any product team. Browse examples of product OKRs or start your free trial of Tability today!

Pair your

Product

Metrics with OKRs

Check out our OKRs for

Product

guide, and connect your favorite Success Metrics to objectives you can execute on.

Browse OKRs Examples →

Pair your Success Metrics to OKRs

Check outour OKRs Examples and connect your favorite Success Metrics to an objective you can execute on.

Browse OKRs Examples →

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