Measuring Product Performance
Step nine in the 9II9 product lifecycle in media is Measure. The Product Manager is responsible for defining, tracking and monitoring key performance indicators (KPIs) for a product. Three common KPIs to use for prioritizing, measuring, and monitoring the success of digital products are Reach, Retention and Engagement.
Reach metrics track the increase of the size of a particular audience for a product. Monthly active users (MAUs), Daily Active Users (DAUs) and Sessions/Pageviews are a few ways to measure reach for a digital product. These metrics help Product Managers understand not only reach, but also frequency of use for a given product.
Retention metrics monitor a product’s ability to retain loyal users over time. Common measures under the reach category are next day, 7-day and 30-day retention rates. This is measured by tracking the number of users who continue using the product after the first-time-use. Another retention metric that is effective at determining the effectiveness of a product’s design is bounce rate.
Bounce rate is measured by taking the average number of users who visited a page or screen and leave without taking any action.
Engagement metrics track how well the designed features and functions are able to increase discovery and depth of interactions with the content and features of a product. Engagement is measured by tracking events and user flows through a product using funnels and tags.