Why define metrics?

• In order to verify the product brings value, there is a need to define metrics, so it will be possible to measure and verify it
• Defining metrics in advance will promote doing all the required preparations before the product or its features go live, including setting the appropriate Product analytics tool(s)
• Defining metrics will allow to understand which goals the product should reach and can promote taking measures such as optimization of existing features in case those goals are not met
• It also correlates with Product's responsibility to be outcome oriented, and to be based on data to make decisions

How to define metrics?

• Metrics should be SMART:
  • Specific - what exactly do you want to achieve?
  • Measurable - how will you know when you’ve achieved your goals?
  • Achievable - Are your goals realistic?
  • Relevant - are your product goals aligned with your business goals?
  • Time-bound - when do you want to achieve your goals?
• Metrics are usually defined in the form of KPIs or OKRs (which is the recommended method)
• Every product should have a North Star metric

What are possible metrics?

• AAARRR (the pirate metrics):
  • Awareness - customers are reached and made aware of the product (newsletters, blogs, SEO, social networks, etc.)
  • Acquisition - customers arrive at the product
  • Activation - customers first use the product (a-ha moment)
  • Retention - customers are returning to use the product (engagement)
  • Revenue - customers become paying customers
  • Referral - customers share and recommend their use of the product to their networks
• GEM(S) framework (which is my recommended framework):
  • Growth (awareness, acquisition)
  • Engagement (activation, retention)
  • Monetization (revenue)
  • Satisfaction (referral)
• Metrics can also include product-specific metrics (e.g., number of clicks on a certain button)