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
Operational
Return on Investment (ROI)
Return on Investment (ROI) is a financial metric used to evaluate the efficiency and profitability of an investment relative to its cost. It measures the return generated on an investment as a percentage of the investment's cost, providing crucial insights into the value gained from business expenditures.
FORMULA
ROI = ( Net Profit from Investment−Cost of Investment / Cost of Investment ) × 100%
Sales
Average Deal Size
Average Deal Size is a metric that quantifies the average revenue generated per sale or contract, providing insights into the value of transactions a business typically secures. It's a critical indicator for evaluating sales performance and business growth strategies.
FORMULA
Average Deal Size = Total Revenue / Number of Deals Closed
Sales, Marketing
Trial-to-Paid Conversion Rate
Trial-to-Paid Conversion Rate measures the percentage of users who convert from a free trial of a product or service to a paid subscription. This metric is essential for companies offering trial periods, helping them understand the effectiveness of the trial in convincing users to purchase.
FORMULA
Trial-to-Paid Conversion Rate = ( Number of Trial Users Who Convert to Paid / Total Number of Trial User ) × 100%
Customer
Time to Value (TTV)
Time to Value (TTV) measures the duration it takes for a customer to realize significant value from a product or service after purchase. This metric is crucial for understanding customer satisfaction and retention, particularly in industries where rapid value delivery is essential.
FORMULA
TTV is generally measured in days, weeks, or months, depending on the complexity of the product and the industry standards.
Operational
Product Qualification Rate (PQR)
Product Qualification Rate (PQR) measures the percentage of products that meet quality standards and pass the qualification tests during the production or testing phase. This metric is crucial for manufacturing and software development companies to ensure product reliability and customer satisfaction.
FORMULA
PQR = ( Number of Products that Pass Qualification Tests / Total Number of Products Tested ) × 100%
Sales
Win Rate
Win Rate measures the percentage of sales opportunities that are converted into actual sales. It's a critical metric for assessing the effectiveness of a sales team and the overall efficiency of the sales process.
FORMULA
Win Rate = ( Number of Opportunities Won / Total Number of Opportunities ) × 100%