A product manager will need to weigh tradeoffs between quality and delivery timelines. Remember that a negative experience in any scenario can have a bigger 'echo' effect than a positive one, especially if the customer experience team fails to respond on time. It's more likely for an unhappy customer to jump on social media before an organization has a chance to try and fix the problem, so ensuring that quality control is tracked can minimize this.
Support tickets do not immediately mean that there is a quality concern, as it could depend on the situation a new version of a product is released with new features so there is a learning curve. It is still a good indicator of consistency, and unless something significantly changes in the product, the number of tickets per customer should remain steady, or gradually reduce with product improvements.
Example: Maintain no. Here you could measure only situations where the first line of support was not able to resolve an issue. This could mean a product's quality is more compromised or that a particular faults persist. Example: Reduce no. Testing can cover anything from testing units, features, systems, and automation.
You could look at the number of failed tests, or the percentage of success, depending on where the focus needs to be. There you have it! This is by no means a comprehensive list of metrics you could be tracking during the product management process, but it is certainly enough to get you started with some ideas.
As per all our KPI guides, this is just an example of what you can measure, and ideally, you should really create your own KPIs from scratch. Get a demo of the 1 strategy software and ask questions of our strategy experts. Sign up for a Cascade account or ask to see our platform in action. All rights reserved. Product Learn Pricing Sign In. Customer Stories See how Cascade aligns teams, and executes strategic goals in organizations.
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The Disconnect Between Business and Software Development Development teams grow organically and rarely start with a well-defined set of KPIs governing their ongoing review. Writing Testable Code When we talk about writing testable code, we mean both writing code that is easy for an automated system to test and also writing those tests.
Working on Code Churn Code churn refers to how often code changes over time. Writing Simple Code Writing simple code involves writing in such a way that the intent is clear to both other developers and the machines running the system. Supporting Each Other Related to sharing knowledge is supporting people within the immediate and broader team.
Try it now FREE! No credit card required. As the CEO of Aha! You can only improve what you measure. We have been successful in setting up the right metrics for our business and we often outpace them. But this growth did not happen by accident. We look at how our business is doing against our goals each week and measure how well we are responding to our customers every day. We also speak with hundreds of product managers and teams each week about their strategies and roadmaps.
This gives us a sense of how leading teams measure their own progress. There are hundreds of different metrics that product managers could potentially measure. But all successful teams have a core set of metrics that matter most to them and the nature of their business. While every business is different, there are some metrics that we believe are important for SaaS companies and product managers to track.
We measure them at Aha! This list focuses on essentials and is split into three core areas: marketing, customer success, and business operations. Monthly unique visitors Monthly unique visits are the number of unique individuals visiting your website each month.
So, one person visiting the site multiple times will be counted as one unique visitor as long as they use the same device to visit the site each time. Monthly unique visits UVs is a standard benchmark for marketing teams.
Since this data is readily accessible from third-party websites, it is commonly used for competitive analysis. Use this, the annual contract value, and customer lifetime value to understand if your customer acquisition model is profitable and sustainable. Understanding how much it costs you to acquire new customers is key to scaling a SaaS business profitably.
You can also gain a holistic picture of your marketing channels by segmenting CAC by source organic, paid, email, social. Organic traffic vs. Measuring traffic by both organic and paid channels is essential to understanding where and how your business is growing.
It will also allow you to make better decisions on which marketing campaigns are most valuable. Conversion rate to customer The conversion rate to customer is the percentage of potential customers who started a trial and end up converting to paid customers. Only when you can calculate the total amount invested for each client would you be able to gauge how much you need to spend in the future for acquiring a new customer. Customer Lifetime Value allows you to calculate how much money a customer will generate in their entire lifetime.
It basically gives you an idea of how much profit you can expect from a customer before they stop spending their money with you. Why is this important? Because it helps you measure how much you can spend on acquiring a customer. Just knowing these numbers helps you make smart business decisions, especially for marketing and product pricing.
Use this metric to select the best customer acquisition channels and retention strategies. It will also help you to understand if your product pricing is flawed or do you need to market it differently so that you can get a different set of customers who will be ready to pay more. It is the percentage of customers who continue doing business with you after a certain time period. Using this KPI in product management, you can measure how long you will be able to retain your customers.
And if there is a decline in the number of customers leaving, you need to find out if there are measures taken regularly to retain customers. Without a retention strategy in place, it is normal for businesses to only spend time on acquiring new customers while completely ignoring the existing ones. Another method that you can use to reduce the retention rate is to talk to your previous customers and ask them why they decided to leave you.
Always remember that getting new customers is much more difficult than keeping your existing customers happy. Your old customers tend to spend more on you versus new customers. Retention rate and Churn rate are the opposite of each other.
While retention rate measures the percentage of customers who chose to stay with you, churn rate measures the percentage of customers you have lost. Customer churn talks about the number of users who have canceled their subscription or stopped working with you. Revenue churn indicates the amount of revenue that the business has lost because of customer churn.
While we would advise you to concentrate on revenue churn than customer churn, the latter is also important because it can tell you a lot about customer satisfaction. This is one of the most important metrics to measure customer satisfaction and loyalty. It asks the customers a simple question.
Customers who give a rating between 0 and 6 are considered detractors, and they are most likely to churn. Customers who give a rating of 7 or 8 are most likely to jump ship when they see a better product but stay with you for now since the product meets their minimum expectations, but they are not extremely excited about it.
The ones who will stay true to you are customers who give you a rating of 9 or They are called promoters or advocates and they will be the ones singing paeans about your brand.
There is no right NPS number. It varies depending upon the industry.
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