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Web Product Management and Product Metrics

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Learn about Web Product Management and Product Metrics, by defining and measuring KPIs

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Web Product Management and Product Metrics

  1. 1. Web Product Management | Product Metrics Nadav Benedek Web Product Management Product Metrics | KPIs
  2. 2. Product Management | Scrum Nadav Benedek Definition They are sometimes called metrics or KPIs interchangeably. I prefer metrics. When we create a product or a new feature, it is useful to define metrics in order for us to call it a ‘success’ or ‘failure’. It is especially important when we do an A/B testing or compare two products. In the next slides, I give examples for useful web-product metrics.
  3. 3. Web Product Management | Product Metrics Nadav Benedek Global & Financial Number of users Daily Active Users (DAU) - How many unique product users visit the product daily? Monthly Active Users (MAU) - How many unique product users visit the product in a full month? Frequency of usage: DAU / MAU - In a 30 day month, how many days they are using the product. If they use it every day, we’re in a good position; if they only use it one time, that’s a different story. Range between 3.3% (not coming back at all) to 100% (coming back every day) Percentage of users converted from trials to paying ARPU - Average Revenue Per User
  4. 4. Product Management | Scrum Nadav Benedek DAU / MAU Suppose you have a website X. On Jan 1st, you already have 10,000 users. Every user uses your website once every 4 days. Let’s assume that every day you get 100 new users. Now, on Jan 30th, you calculate the DAU/MAU. So, assuming a month is 30 days long, you have a total of 13,000 users on Jan 30th. A quarter of them will enter the website on that day, so DAU is 3,250. MAU during that month is 13,000 minus the new users that came in the last 3 days, so in total MAU = 12,700. This gives a DAU/MAU = 0.25 = 25%. Now, let’s do this again, but this time you have 1,000 new users every day. Now the DAU is 10,000 and the MAU is 37,000. DAU/MAU = 0.27 = 27% So we can see that the DAU/MAU works pretty well even under different growth rates.
  5. 5. Web Product Management | Product Metrics Nadav Benedek Feature Relevanc e How many users are using this feature (in percentage)? Use Conjoint Analysis to understand the utility of different features as perceived by the user (for every feature / value) A/B testing to understand how a specific feature affects the global metrics CTR - Click Through Rate, on a specific link, button, or image.
  6. 6. Web Product Management | Product Metrics Nadav Benedek Customer Relevanc e Percent of page read (while scrolling down, infinite scrolling, etc.) Normalized Discounted Cumulative Gain (NDCG) - for search results. With this metric you can understand how well your recommendation engine is performing. Average number of items viewed per session
  7. 7. Web Product Management | Product Metrics Nadav Benedek Measures of Breadth Traffic sources - each one of them tells a different story: What channels are performing well? Are you getting more new users or returning users?
  8. 8. Web Product Management | Product Metrics Nadav Benedek Measures of Depth Pages per visit Visit Duration Time on page / site
  9. 9. Web Product Management | Product Metrics Nadav Benedek Measures of Loyalty Visits per visitor Returning vs. new

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