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
Customer
Customer Retention Rate
Customer Retention Rate measures the percentage of customers a company retains over a given period without including new customers. It is a vital indicator of customer satisfaction, loyalty, and the effectiveness of retention strategies.
FORMULA
Customer Retention Rate=( Total Customers at End of Period−New Customers during Period/Total Customers at Start of Period )×100%
Customer
Active Users (Daily/Monthly)
Active Users measures the number of unique users who engage with a product within a specific period, typically daily (DAU) or monthly (MAU). This metric is key for assessing user engagement and product reach.
FORMULA
DAU = Number of unique users per day
MAU = Number of unique users per month
Financial
Burn Rate
Burn Rate refers to the rate at which a company consumes its cash reserves before it starts generating or increases its current revenues. It is a critical metric for startups and growth-stage companies to monitor their sustainability and financial health.
FORMULA
Burn Rate=Cash Balance at Start of Period−Cash Balance at End of Period
Customer
Churn Rate
Churn Rate is the percentage of customers or subscribers who stop using a company's product or service within a given time period. It is a critical metric for assessing customer retention, satisfaction, and overall business health.
FORMULA
Churn Rate=( Number of Customers Lost/Total Customers at the Start of Period )×100%
Financial
Net Profit Margin
Net Profit Margin measures the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and other costs have been deducted. It is a crucial indicator of a company’s profitability and financial efficiency.
FORMULA
Net Profit Margin=( Net Profit/Revenue)×100%
Financial
Lifetime Value (LTV)
Lifetime Value (LTV) represents the total revenue a company can reasonably expect from a single customer account throughout the business relationship. It reflects the financial value of a customer and helps assess the long-term viability of customer acquisition strategies.
FORMULA
LTV=Average Revenue per Customer×Average Customer Lifespan