Product Management Metrics

Track These Product Management Metrics for Success

A KPI is a measurable value that can specifically highlight how the company achieves a business objective. A product manager (PM) uses key performance indicators to analyze the company’s development, identifies compliance with the main goals, determines weaknesses in the team’s cooperation, and, of course, measures the business’s success.

There are key KPIs that help to improve the product performance and the management style. We will consider the main KPIs that will help you track the product’s health and analyze how your product strategy is working.

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Key Performance Indicators and Metrics to Track

Data provided by KPIs help to solve relevant problems, make changes, and eliminate risks. Here are the main metrics to use.

Metrics For Forecasting Product’s Success

These indicators indicate the current financial situation of the business and help forecast future profits. They determine the main vector of the company’s expansion.

Monthly Recurring Revenue (MRR)

MRR is the predictable total revenue generated by your business from all the active subscriptions in a particular month. This revenue encompasses recurring payments for coupons, discounts, and recurring add-ons, but it does not include one-time payments.

By utilizing this metric, you can analyze the business’s health and predict its development.



MRR= The monthly recurring revenue at the beginning of the month

GR= The monthly revenue received from new subscriptions

CR= Churned revenue

Customer Lifetime Value (CLTV or LTV)

This metric measures the total revenue from a client over time. This metric can be used to develop a strategy for long-term company growth and customer retention, analyze different user segments, and test the buying cycle.

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AVDA= Average dollar amount of a purchase

NC= Number of customer purchases annually

AVLCR= Average length of the customer relationship in years

Metrics to Evaluate and Increase User Engagement

These metrics display the effectiveness of the interaction between the user and the product.

Monthly Active Users (MAU) and Daily Active Users (DAU)

MAU and DAU provide information on the growth of your user base and user engagement. These metrics indicate how many unique users per month or day log into their accounts and perform certain actions. Therefore, you can see the product dynamics and decide on the implementation of new functionality.


MAU/DAU ratio= (DAU / MAU) * 100

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Session Duration (SD)

SD denotes the time between opening and closing an app. The data can be used to analyze product shortcomings and find ways to improve session time.


SD = TT / UN

TT= The total time customers spend using your product

UN= Number of users

Metrics to Keep Users Engaged

These metrics show the effectiveness of your marketing strategy.

Retention Rate (RR)

It shows the number of active clients during a certain period (month, year, etc.). This KPI allows you to get an understanding of retention dynamics and forecast customer lifecycle value.


Churn Rate (CR)

CR shows the percentage of customers who refused to use the product. It can be used to analyze the degree of customer satisfaction.


Bottom Line

Using the KPIs we’ve described above allows you to improve product quality, boost client satisfaction, and be on top of the business’ performance.

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