Product metrics answer questions how users interact with product. Underlying framework for Product is the PRODUCT FUNNEL.It represents users’ journey from product/service discovery to purchase. You can rely on ‘Pirate metrics’ (defined by Dave McClure), that map user behavior to product metrics: acquisition -> activation -> retnetion -> referral -> revenue.

Product KPIs are mostly leading indicators to revenues and you will find an overlapp with marketing metrics (especially in the top of the funnel).

I. Acquisition

What channel brings you the most users?
What channel has the best conversion visitor -> user?
What channel has lowest customer acquisition cost?

• Web visitors
• App visitors
• App visitors who stay 1+min
• Visitor / user conversion rates by channel sources (web, social media, newsletter,…)
• Visitor (or user) acquisition cost per channel

II. Activation

How users discover core features?
How users engage with your solution?

• Signups
• Activation rate
• Time to activate
• AHA moment – conversion rate
• Using add-on features
• % of users taking specific actions
• User session length
• User journey funnel (most and least used features)

III. Retention

Do user come back to solve their problem?

• Monthly Active Users (MAU), Daily Active Users (DAU)
• Customer churn and retention

IV. Referral & Community

How often users share their experience with friends and community?

• Shares on social media
• Net promoter Score (NPS)
• Participation score in referall campaigns
• Community size (and growth)
• Community activity (messages)

V. Revenue (Pricing & Pay model)

How good are you at monetizing your user base?

• Monthly recurring revenue
• Conversion paying users / free trials
• Customer Lifetime Value (CLV)
• Average revenue per user
• Net revenue retention