{"id":8834,"date":"2021-03-05T07:05:51","date_gmt":"2021-03-05T12:05:51","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=8834"},"modified":"2021-03-06T04:13:22","modified_gmt":"2021-03-06T09:13:22","slug":"product-management-kpis","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/product-management-kpis\/","title":{"rendered":"Product Management KPIs"},"content":{"rendered":"

\"\"Product Managers are responsible for defining the features or functions of a Product and for overseeing the development of the Product.\u00a0 The role of Product Managers spans many activities from developing Product Strategy<\/a> to tactical plan and can vary based on the organizational structure of the organization.<\/p>\n

Typically, Product Leaders are involved with the entire Product Lifecycle<\/a>.\u00a0 However, the Product Management’s primary focus is on driving New Product Development.\u00a0 To successfully execute these roles, it\u2019s important for Product Management to collect and synthesize proper, relevant data to make informed Product decisions.<\/p>\n

Product Managers need to evaluate 10 categories of Key Performance Indicators (KPIs)<\/a> to determine the most appropriate KPIs relevant to their work:<\/p>\n

    \n
  1. Product Stickiness<\/strong><\/li>\n
  2. Product Usage<\/strong><\/li>\n
  3. Feature Adoption<\/strong><\/li>\n
  4. Feature Retention<\/strong><\/li>\n
  5. Net Promoter Score (NPS)<\/strong><\/a><\/li>\n
  6. Leading Indicators<\/strong><\/li>\n
  7. Top Feature Requests<\/strong><\/li>\n
  8. Product Delivery Predictability<\/strong><\/li>\n
  9. Product Bugs<\/strong><\/li>\n
  10. Product Speed and Reliability<\/strong><\/li>\n<\/ol>\n

    \"\"<\/a><\/p>\n

    Let’s discuss these Product Management KPIs<\/a> in a bit detail.<\/p>\n

    Product Stickiness <\/strong><\/h2>\n

    KPIs around Product Stickiness determine whether users are re-engaging with our product.\u00a0 If a product is successful, it exhibit \u201cstickiness.\u201d\u00a0 That means users don\u2019t just sign up and forget about it.\u00a0 They continuously live inside the product, such that it becomes part of their daily routine.\u00a0 A good product should not long attract new users, but to also continuously re-engage with its users.<\/p>\n

    Product Stickiness is often measured by taking the ratio of our Daily Active Users (DAU) to Monthly Active Users (MAU): i.e., DAU\/MAU.\u00a0 This metric calculates the percentage of our monthly users who engage with our product on a daily basis.<\/p>\n

    Product Usage<\/strong><\/h2>\n

    It is inevitable that not all features of a product will be utilized the same.\u00a0 Some features are more heavily used, whereas others are not.\u00a0 The only way to know what product features are important to users is by measuring how our product is being used.\u00a0 Measuring user engagement across the product allows us to answer what features should we enhance, which ones to eliminate, and which features to promote to increase users awareness of the product functionality.<\/p>\n

    Product usage is measured by using 3 key metrics\u2014Breadth: refers to the number of active users for a given client within the last 90 days.\u00a0 Depth: Captures whether users are using key features that make the product sticky.\u00a0 Frequency: e.g., number of logins across all devices within the last 90 days.<\/p>\n

    Feature Adoption<\/strong><\/h2>\n

    These KPIs seek to understand and set feature adoption goals.\u00a0 Key question to clarify these KPIs is whether users are adopting the newly released features. \u00a0Feature adoption data of recent feature launches is critical to determine appropriate feature adoption goals.\u00a0 It is important to look at feature adoption at both the user level and account level.\u00a0 For instance, different customer groups with an account may exhibit different levels of adoption for different feature sets.<\/p>\n

    The key metric to measure feature adoption is the percentage of users using the feature.\u00a0 This should be evaluated across multiple features on a timescale (typically for at least 30 days following the feature release).<\/p>\n

    Feature Retention<\/strong><\/h2>\n

    Feature retention KPIs reveal true adoption of features vs. the initial promotion-driven adoption. \u00a0Feature Adoption seeks to measure initial use of a feature, whereas Feature Retention seeks to measure the long-term, persistent usage of a feature.\u00a0 Measuring feature retention helps us identify at-risk users who have started to disengage from the product after the initial promotion is over.\u00a0 We can then take action to re-engage these users.<\/p>\n

    Feature retention can be measured across different customer segments, e.g., by pricing (Free vs. Paid), by organization size (Startups vs. Enterprises), by position (Analyst vs. Manager).<\/p>\n

    Interested in learning more about the other KPIs critical to manage and develop a Product Portfolio?\u00a0 You\u00a0can download\u00a0an editable PowerPoint presentation on Product Management KPIs<\/strong> here\u00a0<\/u><\/a>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n

    Do You Find Value in This Framework?<\/h2>\n

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    \u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n

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    \u201cAs a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant\u2019s toolbox.\u201d<\/p>\n

    \u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

    Product Managers are responsible for defining the features or functions of a Product and for overseeing the development of the Product.\u00a0 The role of Product Managers spans many activities from developing Product Strategy to tactical plan and can vary based on the organizational structure of the organization. Typically, Product Leaders are involved with the entire… Product Management KPIs<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":8837,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[2300,840,2408,2411,2409,812,1870,1910,1145,1602,2407,2410,2412],"class_list":["post-8834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-customer-engagement","tag-customer-experience","tag-customer-retention","tag-daily-active-users","tag-feature-adoption","tag-kpis","tag-net-promoter-score","tag-nps","tag-product-development","tag-product-management","tag-product-retention","tag-user-engagement","tag-user-experience"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=8834"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8834\/revisions"}],"predecessor-version":[{"id":8849,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8834\/revisions\/8849"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/8837"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=8834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=8834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=8834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}