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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

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

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