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
Sales, Marketing
Lead Conversion Rate
Lead Conversion Rate is the percentage of leads that convert into customers, reflecting the effectiveness of a company's sales funnel. It helps businesses understand how well they are converting potential customers into actual customers.
FORMULA
Lead Conversion Rate = ( Number of Leads Converted to Customers / Total Number of Leads ) × 100%
Marketing, Sales
Conversion Rate
Conversion Rate measures the percentage of users who complete a desired action out of the total number of visitors. This metric is fundamental for evaluating the effectiveness of specific calls to action, such as signing up for a service, purchasing a product, or upgrading a subscription.
FORMULA
Conversion Rate = ( Number of Successful Conversions / Total Visitors ) × 100%
Customer
Customer Effort Score (CES)
CES measures the ease with which customers can complete a desired action, such as purchasing a product, resolving a service issue, or using a feature. A low score indicates that customers are experiencing difficulties, while a high score reflects a seamless experience.
FORMULA
CES = Average of all customer responses on the ease of completing an action
Sales
Average Revenue Per Account (ARPA)
ARPA measures the average revenue generated per account (or customer) over a specific time period, usually monthly or annually. This metric helps businesses understand revenue contributions on a per-customer basis, which is crucial for pricing strategy and financial forecasting.
FORMULA
ARPA = Total Revenue / Number of Accounts
Product
Product Usage Frequency
Product Usage Frequency measures how often customers engage with a product within a given timeframe. This metric is crucial for understanding customer engagement levels, identifying usage patterns, and assessing the product's value to its users.
FORMULA
Product Usage Frequency = Total number of uses by all customers / Total number of customers
Sales, Marketing
Customer Acquisition Cost (CAC)
CAC is the total cost of acquiring a new customer, encompassing all marketing and sales expenses over a given period. This metric is essential for evaluating the effectiveness of marketing strategies and determining the investment required to attract each new customer.
FORMULA
CAC = Total Marketing and Sales Expenses / Number of New Customers Acquired