Finding the Right Metric
Explore how to find the right metrics to guide product improvements by considering your business model, product lifecycle stage, and problems to solve. Understand the concept of the one metric that matters (OMTM) and how focusing on key metrics like retention helps you drive meaningful progress and achieve product-market fit.
We'll cover the following...
The product metrics cycle
Throughout the quest to find a business model that is sustainable, repeatable, and scalable, you will repeat the same process over and over again:
- The current problem to solve. For example:
- Many order cancellations
- Very low retention
- Few daily active users
- Find a meaningful metric you can act on.
- Perform experiments to improve until that metric is good enough.
- Go to the next problem and repeat the process.
The right metric
There are hundreds of metrics you can use to improve a business model performance, but only a few that make sense at a given point in time. To find the right metric, you need to bear in mind four aspects:
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Details of your business model
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The stage of the product life cycle you are currently in
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The problem you are trying to solve
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An analytics model
With these aspects in mind, it will be easier for you to find the right metrics to help you evolve your product and business model.
There are many possible metrics, and their importance will change depending on the circumstances. For example, if you are leading ...