The Ultimate List of Product Metrics: Measure & Optimize
The complete list of Product Metrics to Track, Analyze, and Optimize Your Product Performance
Acquisition metrics are a set of metrics that are used to measure the effectiveness of marketing campaigns or activities in attracting and acquiring new customers. These metrics help businesses to evaluate the performance of their marketing efforts and optimize their strategies to maximize their return on investment (ROI) and increase their customer base.
Acquisition metrics can include a range of different metrics such as cost per acquisition (CPA), conversion rate, click-through rate (CTR), customer acquisition cost (CAC), lifetime value (LTV), and many more. These metrics provide valuable insights into the success of different marketing channels and tactics, allowing businesses to make data-driven decisions to improve their marketing strategies and drive growth. Here are some examples of acquisition metrics:
Cost per acquisition (CPA): CPA is a metric that measures the cost of acquiring a new users. It is calculated by dividing the total cost of a marketing campaign by the number of new customers acquired during that campaign.
Conversion rate: Conversion rate is the proportion of website visitors who complete a desired action, such as buying a product or filling out a form. It's determined by dividing the number of conversions by the total number of visitors, and then multiplying the result by 100%.
Click-through rate (CTR): CTR is a metric that measures the percentage of people who click on a link in an advertisement or email. It is calculated by dividing the number of clicks by the number of impressions and multiplying by 100%.
Cost per click (CPC): CPC is a metric used in pay-per-click (PPC) advertising campaigns to measure the cost associated with each click on an ad. Essentially, CPC is calculated by dividing the total cost of the campaign by the number of clicks received.
Customer acquisition cost (CAC): CAC is a metric that measures the cost of acquiring a new customer over a specific period. To determine the cost of customer acquisition, divide the total cost of sales and marketing activities by the number of new customers acquired during a specific time period.
Return on investment (ROI): ROI is a commonly used metric in marketing that measures the effectiveness and profitability of a marketing campaign. Essentially, ROI is calculated by subtracting the total cost of the campaign from the total revenue generated and then dividing the result by the total cost of the campaign. This figure is then multiplied by 100% to express the ROI as a percentage.
Lifetime value (LTV): LTV is a key metric used to evaluate the total worth of a customer throughout their relationship with a business. Essentially, LTV measures the total value that a customer will bring to a business over the course of their lifetime. The calculation of LTV involves multiplying two other key metrics: the average revenue per user (ARPU) and the average customer lifespan.
Customer lifetime value (CLTV): CLTV is a metric that measures the total value of a specific customer over their lifetime. It is calculated by multiplying the average revenue per user (ARPU) by the average customer lifespan and multiplying the result by the customer retention rate.
Time to Conversion: Time to Conversion is a metric that measures the time it takes for a user to convert into a customer from the first interaction with a product or service.
Churn rate: Churn rate is a metric that measures the percentage of customers who cancel or do not renew their subscription or service during a given time period.
Lead-to-customer conversion rate: Lead-to-customer conversion rate measures the percentage of leads generated that convert into paying customers.
Marketing-originated customer percentage: Marketing-originated customer percentage measures the percentage of customers who came from marketing efforts, rather than from other sources.
Market penetration: Market penetration measures the percentage of a target market that a business has captured.
Net promoter score (NPS): The Net Promoter Score (NPS) is a customer satisfaction and loyalty metric. This measurement is obtained by taking the percentage of detractors away from the percentage of promoters.
Revenue per user (RPU): RPU is a metric that measures the average amount of revenue generated per user.
Number of new customers: Number of new customers measures the total number of new customers acquired during a specific time period.
Average revenue per user (ARPU): ARPU is a metric that measures the average amount of revenue generated per user over a specific time period.
Repeat purchase rate (RPR): RPR is a metric that measures the percentage of customers who make a repeat purchase.
Social media engagement: Social media engagement measures the level of engagement and interaction on social media platforms, such as likes, shares, comments, and retweets.
Organic traffic growth: Organic traffic growth measures the percentage increase or decrease in website traffic that comes from organic search results.
Bounce rate: Bounce rate is a website analytics metric that measures the percentage of website visitors who navigate away from a website after only viewing a single page, without interacting with any other pages on the site. In other words, a "bounce" occurs when a visitor lands on a page of a website and then leaves without clicking on any other links or taking any further action.
A high bounce rate can be an indication of several things, including:
Poor user experience: Visitors may leave the website quickly if they find the content unengaging or difficult to understand.
Slow page load times: Visitors may become impatient and leave the site if pages take too long to load.
Irrelevant content: Visitors may leave the site if the content does not match their expectations or needs.
Poor navigation: Visitors may struggle to find what they are looking for on the site and leave as a result.
Channel effectiveness: It refers to how well a particular marketing channel, such as social media, email, or advertising, is performing in terms of reaching and engaging with its target audience, driving conversions, and generating a positive return on investment (ROI).
Measuring channel effectiveness involves tracking and analyzing key performance indicators (KPIs) such as click-through rates (CTR), conversion rates, customer acquisition costs (CAC), customer lifetime value (CLV), and return on ad spend (ROAS).
Traffic source distribution: It is a measurement of the sources through which website traffic is generated. It involves analyzing the proportion of website visitors that come from various sources such as search engines, social media platforms, email campaigns, direct traffic, and other referral sources.
Activation metrics are a set of metrics used to measure the effectiveness of a business's efforts to turn website visitors or app users into active customers or users. These metrics help businesses to evaluate how effectively they are engaging and retaining customers, and to identify opportunities for improvement in their customer activation strategies.
Activation rate: It measures the percentage of website visitors or app users who take a specific action such as signing up, making a purchase or completing a form. It helps businesses assess the effectiveness of their efforts to convert visitors into active users or customers.
Time to activation: This metric measures the amount of time it takes for a new user to become an active customer or user, from the moment they sign up or download the app. It helps businesses understand how long it takes for users to start engaging with their product or service.
Retention rate: Retention rate is a metric that tells businesses how many users are continuing to use their product or service over a specific time period, usually monthly or yearly. It helps businesses understand how effectively they are retaining customers and preventing churn.
Onboarding completion rate: This metric measures the percentage of users who complete the onboarding process and become active users. It helps businesses understand how effectively they are onboarding new users and getting them to start using the product or service.
Engagement rate: This metric measures the level of engagement of active users, based on the frequency and depth of user interactions with a product or service. It helps businesses understand how effectively they are engaging users and encouraging them to use the product or service more frequently.
Churn rate: This metric measures the percentage of users who stop using a product or service over a specific period of time. It helps businesses understand how effectively they are retaining customers and preventing churn.
Revenue per user (RPU): This metric measures the amount of revenue generated by each active user over a specific period of time, such as a month or year. It helps businesses understand the value of each user and their contribution to the overall revenue of the business.
Average order value (AOV): This metric measures the average value of each transaction made by a customer, over a specific period of time. It helps businesses understand the spending habits of their customers and the average value of each transaction.
Customer lifetime value (CLV): This metric measures the total value a customer brings to a business over the course of their relationship, taking into account their spending habits, loyalty, and retention. It helps businesses understand the long-term value of their customers and the potential revenue that can be generated from each customer.
Referral rate: This metric measures the percentage of active users who refer new users to a product or service. It helps businesses understand how effectively they are leveraging their existing user base to acquire new customers.
Trial-to-Paid Conversion Rate: Trial-to-paid conversion rate is a metric that measures the percentage of users who convert from a free trial to a paid subscription or purchase. This metric is commonly used in SaaS (Software-as-a-Service) businesses that offer free trials to potential customers.
The trial-to-paid conversion rate helps businesses understand how effectively they are converting free trial users into paying customers.
First-time User Conversion Rate: It is a metric used to measure the percentage of first-time visitors to a website or app who complete a desired action, such as making a purchase, signing up for a newsletter, or filling out a form. This metric is important because it indicates how effective a website or app is at converting new visitors into customers or users.
Time to Value (TTV): It is a metric used to measure the amount of time it takes for a new user to realize the value of a product or service after they sign up or start using it. In other words, TTV is the time it takes for a user to experience the benefits of the product or service they have signed up for.