You can’t go without product data if you want to run a successful product. Without data, you won’t have what you need to make smart business decisions. And when 62% of companies use data to measure success, you should take it seriously.
So, what are the best product management metrics to track to see the best results from your next product? Keep reading to learn five product metrics worth considering.
1. Customer Satisfaction
Customer satisfaction should be your number one priority when managing products. You aren’t creating something for your own needs. Your goal is to satisfy your customers and keep them returning to do more business with you.
Look at your customer complaints to see how they come up over time. It’s fine to have a few issues here and there. But if your customer satisfaction is too low, it’s a sign that something is wrong, and you risk losing business.
Combine this information with your data in software like the Inriver product to keep track of the biggest issues.
2. Customer Retention
Getting customers in the first place is hard enough. The last thing you want is for people never to return, and you need to repeat the acquisition process.
Customer retention is your ability to keep customers. For subscription services, this means looking at your churn rate. For regular product businesses, this means looking for repeat customers.
Aim to keep customer retention high to minimize your marketing costs.
3. Customer Lifetime Value
One of the key parts of launching a successful product is seeing a profit. You want your product and marketing costs to be less than the price you sell.
But one sale doesn’t tell the whole story. You have to calculate the average amount customers spend over their lifetimes on your products.
4. Customer Acquisition Cost
Yes, you may see profit with your current marketing campaign. But that doesn’t mean you should stop there. Your goal should be to reduce costs as much as possible to increase your profit.
Knowing your customer acquisition cost will help you do this. Measuring this cost allows you to tweak your marketing to reduce costs. The right changes will lower your marketing budget and increase your total profit.
5. Bounce Rate
Your bounce rate on your website tells you a lot about how relevant your content is to them. If someone sticks around for a while, they find value in your content. If not, your content didn’t resonate.
Your bounce rate won’t be perfect, but at the same time, it shouldn’t be too bad. Make sure your website content aligns with what people want when they arrive.
When you do, you’ll attract people more interested in your products.
Pay Attention to Product Management Metrics
With how common it is for products to fail, you don’t want to not have data about your performance. Not understanding what’s going on means you aren’t able to find and fix problems before they lead to product failure.
That’s why all good project managers should know their product management metrics. When they do, it’s easier to ensure product quality and successfully ship your products.
Do you want to learn more product management tips that will help you run an efficient team? Learn more about launching products on the blog.