They are numeric indicators. Professionals use them to measure how good a service or project is. They can be used to determine whether the product meets quality standards or what the client wants.
It is important to know that such metrics are used at every stage of a product’s life: from conception and design to creation and delivery to the end user.
What are the types of product metrics:
Time . Attention is paid to the engineer data package period spent on completing a task. This metric is often used to evaluate how well the work is done and how well the processes are structured.
Errors . Defects made during the creation/production of a product. An error can be any defect that prevents the product from functioning properly.
Customer satisfaction. This is how satisfied the customer is with what the company does: the service or the product. Measurements are made by interviewing customers.
Failures : This is how often a product fails to deliver the expected results or performs as advertised.
Returns : The percentage of the product/service that the customer returns due to a defect.
Defect Rate: An assessment of business processes that could lead to defects or failure.
KPI – coefficient of repeated use . The calculation is based on how many times the product has been used relative to its total operating time.
Using the listed product metrics, you will be able to evaluate the quality of the service/product being produced. This will also help determine if there are any problems, how to improve processes and increase customer satisfaction.
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Product Value Metrics Level
The manufacturer of the product must be sure that it meets all the stated requirements and satisfies the needs of the client. If it completely copes with the task, then the person will want to contact again and pay even more. Absolutely any metrics can be used for evaluation.
Average Revenue Per Paying User (ARPPU) – it is most often used in analytics and marketing. The metric reflects the income received from each user in a given period of time. With the help of ARPPU, you can evaluate how effective your marketing campaigns are, which customers most often purchase products, which products you should focus on, and which strategies work best.
We tell you how to calculate ARPPU. To do this, you need to take the total revenue for a certain period and divide it by the number of solvent customers.
Average Revenue Per Paying User (ARPPU)
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Basic metrics of product value include:
NPS (Net Promoter Score) – measures the likelihood that customers will want to recommend a product to friends, family, or colleagues. It is one of the most powerful metrics for determining the value of your product.
CLV (Customer lifetime value) works to measure the total value of one customer over the life of a company, including their spending and recommendations to others.
Time to value. This is the period of time it takes for a buyer to fully appreciate the value of your product after they have paid for it.
Churn rate. How short is the period during which the customer stops using the service/product. And this indicator is considered an indicator of how valuable the product is and how it satisfies all the customer's needs.
User engagement: Is the customer actively using what they paid for?
Conversion rate: How often a trial period converts to a paid version or a consumer upgrades from a basic subscription to a more expensive one.
If you track the listed product metrics, you will be able to identify growth points that will help you determine which direction to move in, how to develop your business, and how to improve your existing product.