Main Takeaways: - Aligning product success with company success - Directly measurable metrics for your product - Indirect impact of your product on your company's bottom-line - Which metrics are important to Product Managers

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6. How to measure success
of your product
VYOM NAGRANI
DIRECTOR OF PRODUCT MANAGEMENT AT ORACLE CLOUD
PREVIOUSLY MANAGER OF PRODUCT MANAGEMENT AT AMAZON WEB SERVICES

7. Most common metrics
$$$ #

8. $$$ = Revenue or Profit?
Revenue
Fast growing business
Large fixed cost
You don’t control cost
Profit
Stable business
Large variable cost
You control cost

9. Direct vs Indirect $$$
Direct
Customers pay for your product
Indirect
Customers pay for other products
they buy because of your product

10. # of what?
Customers?
Users?
Developers?
Paying customers?
Sales Accounts?
Well, it depends
What drives your $$$
What are company’s objectives?
What is the product’s objective?

11. Numbers are relative …
Product A Product B
#customers 1000 100,000

12. Numbers are relative … and need
the right comparison point
Product A Product B
#customers 1000 100,000
$ / customer $5000 $40
Total $ $5M $4M

13. Is this product successful?

14. Is this product successful? How
about now?

15. Other success criteria
PICK THE ONES RELEVANT FOR YOUR PRODUCT/INDUSTRY

16. Customer feedback
Qualitative
Tone during customer calls
Customer references
News coverage
Social media
Quantitative
Net promotor score
# of support requests or questions
# of comments or reviews
Social media analytics!

17. Competitive Analysis
Your product
Feature A
Feature B
Competitor
Feature A
Feature B
Feature C
Feature D

18. Competitive Analysis
Your product
Feature A
Feature B
Feature C
Competitor
Feature A
Feature X
Feature Y
Feature Z

19. Competitive Analysis
Benchmarks
Feature comparison
Market share comparison
Performance comparison

20. Dimensions to consider
HOW TO SLICE AND DICE YOUR SUCCESS CRITERIA

21. 1. Over time

22. 2. Per feature
Measure …
EVERY metric
For EACH feature!
Sample insights
Customers that use Feature X pay
50% larger than average
Customers who don’t use Feature Y
are 3x more likely to leave

23. 3. Per customer segment
Measure …
EVERY metric
For EACH customer segment!
Sample insights
B2B customers pay 70% of your
revenue
SMB segment is growing usage at 3x
rate of Enterprise customers

24. 4. Per <whatever else that could
be relevant to your business!>
Measure …
EVERY metric
For EVERY category, dimension,
parameter, or grouping that is
relevant for your business!
Sample insights
Customers aged 20-40 create 33%
fewer support tickets than average
Suburban residents book 3x rides
than city dwellers during peak hours

25. 5. And then let’s mix and match
dimensions
Combine …
EVERY metric
For a given value of EVERY
dimension
Compare against other
permutations!
To what end?
Just looking to see if you can find
patterns
Could identify opportunities, or
highlight weaknesses

26. So now which ones are important?
HOW TO DECIDE WHICH DATA TO CONSIDER FOR MAKING DECISIONS

27. How often to measure success
metrics?
AFAP
As Frequently As Possible
“More frequently” than your business
demands
Set alerts
Business as usual
v/s
Something changed

28. Which metrics to consider for
changing product roadmap?
Ones that tell a story
Anomalies over time
Stop considering when “business as usual” (but don’t stop tracking)

29. Be paranoid!
There will always be a metric that you
wish didn’t look so bad
Stay on top of your business
Success of Product == You choose which metrics will suck

30. THANK YOU!
- Vyom Nagrani

31. www.productschool.com
Part-time Product Management Training Courses
and
Corporate Training