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Measuring Your Product

This collection of metrics cards offers detailed insights into key software development metrics, showcasing methods for improvement, real-world examples, and departmental utilization. By focusing on these metrics, product teams can strategically drive growth, enhance product quality, and optimize user engagement, ensuring sustained success in a competitive landscape.

Available Metrics:

59

Financial

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) quantifies the total average cost spent on acquiring a new customer. This includes all marketing and sales expenses over a given period, divided by the number of new customers acquired during that period.

FORMULA

CAC= Total Marketing and Sales Expenses/Number of New Customers Acquired

Financial

Gross Margin

Gross Margin represents the difference between revenue and the cost of goods sold (COGS), expressed as a percentage of revenue. It measures how efficiently a company uses labor and supplies in producing goods or services.

FORMULA

Gross Margin=(Revenue - COGS/Revenue )×100%

Financial

Revenue

Revenue is the total income generated from the sale of products, services, or software licenses. It is a primary indicator of a company’s financial health and growth potential.

FORMULA

Revenue=Number of Units Sold×Average Price Per Unit

Financial

Operating Cash Flow

Operating Cash Flow (OCF) measures the cash generated from a company's regular business operations, reflecting the company's ability to generate sufficient revenue to maintain and grow operations without relying on external financing.

FORMULA

Operating Cash Flow=Net Income+Non-Cash Expenses+Changes in Working Capital

Financial

Recurring Revenue

Recurring revenue is the portion of a company's revenue that is expected to continue in the future. This metric is crucial for businesses with subscription-based models as it provides a predictable income stream and financial stability.

FORMULA

Recurring Revenue=Sum of all recurring payments

Fractional Executives

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