What A Product Growth Manager Does | KPIs
KPIs (key performance indicators) are numbers that show how well your product is performing. Effective KPIs may help you figure out if your product is delivering the expected value to users, customers, and the company. Without KPIs, you end up guessing how your product is performing. It’s like walking in a foggy forrest without map, torch and compass: you can’t tell if you’re on the correct track or getting closer to your destination.
You may have a hunch, but you have no way of knowing if it’s accurate. You may balance intuition with empirical proof by using KPIs and gathering pertinent data. This improves your chances of making the best selections and launching a successful product.
1.Select The Appropriate KPIs Based On The User, Business, and Product Goals.
You must be clear on the user and business goals your product serves before choosing the correct KPIs.
If your product generates income directly, for example, revenue is likely to be an important indication. If you’re not sure what these objectives are, consider how the product helps both the users and the business.
- Why would individuals want to use it?
- Why would a company want to put money into it?
Then, using a tool like my Product Vision Board, take the next step and write out your objectives. You may reach a free template that I prepared here.
2.Define Your Goals Specific
To choose the correct KPIs, you must first understand your product’s business objectives. The goals must be defined and practical in order to properly apply the indicators, analyze the data, and take the proper measures. Setting such goals, especially for new and young goods, may be difficult. The following suggestions will assist you in this endeavor.
To define your objectives, use ratios and ranges. Instead of announcing that a new product should get 1 million new users this year, you may state, for example, that the product should increase 30 to 50% new users ratio in total user within a year of its introduction. While you can’t guarantee that objective will be fulfilled, at the very least you’ve established a benchmark against which progress may be judged. If it turns out that the objective is too lofty, you may change the target by moving the line.
3. Don’t Use Vanity Metrics
Vanity metrics which make your product appear beautiful but don’t bring any value. For example, the amount of downloads for an app says little about its success. Instead of counting downloads, you should track something more useful, such daily active user.
However, there is an important point: Don’t Measure Everything That Can Be Measured. Instead, utilize the business objectives to choose a limited number of KPIs that will genuinely assist you in understanding how your product performs. Otherwise, you risk spending time and effort analyzing data that yields few or no conclusions. In the worst-case scenario, you act on irrelevant information and make poor judgments.
4. Feedbacks are Important
Take support from qualitative data. Quantitative indicators, such as daily active users or income, assess the quantity of something rather than its quality, as its name implies. This offers the advantage of obtaining “hard” data that is statistically representative. User feedback, for example, is a qualitative indication that can help you understand why something happened, such as why people aren’t as happy with the product as they should be. Combining the two categories provides you a more balanced view of your product’s performance. It lowers the danger of losing sight of the most crucial success factor: the people who buy and use the product.
5.Conclusion
You should gather relevant data and analyze it on a regular basis once you’ve chosen the correct key performance indicators for your product. First you can start making simple dashboard on Excel then you can improve it.
Compare the statistics you present to other time periods, user groups, or rivals, such as revenue growth over the previous six weeks or quarter-to-quarter cancellation rates. This allows you to see trends, such as whether revenue is rising, flattening, or dropping. If a decrease in venue is a one-time incident, for example, there is usually no need to be concerned, but if it is a trend, you should look into ways to halt and reverse it. Trends help you better comprehend what’s going on and take the appropriate measures.
And if you put your data on graphs You can more easily describe how your product performs. Showing is easier than telling.
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