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A MEETUP FOR PRODUCT PEOPLE, BY PRODUCT PEOPLE

Product Management Metrics

OR

How to Manage Your Products like a CEO

January 12, 2017

Saeed Khan@saeedwkhanhttps://ca.linkedin.com/in/saeedwkhan

Is this you?

http://www.productfocus.com/blog/archives/129

Or is this you?

https://marketoonist.com/2012/08/the-art-of-product-management.html

Turning the situation around…Do you want to be more strategic?Do you want to show your CEO the value of Product Management in your company?Do you want to get promoted?*

* No promises of career success are being made in this presentation. Your mileage may vary.

What is Product Management?

Building “insanely

great products”

“…the fusion between

technology…and the

business side…”

https://techcrunch.com/2009/03/06/marissa-mayer-on-charlie-rose-the-future-of-google/

Driving Product Success through all stages of the

Product Lifecycle

The Goal of Product Management

Delivering measurable business results through products & solutions that

meet both market needs and company objectives across

the product lifecycle.

The Goal of Product Management

Delivering measurable business results through products & solutions that

meet both market needs and company objectives across

the product lifecycle.

The Goal of Product Management

You need to manage your products like your CEO manages

the companyYes I know you are NOT the “CEO of your product” but don’t

let that stop you from acting like you are.

In Other Words….

What examples are there for managing

Products in a Standard and Systematic way?

Startup Metrics for Pirates

http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

Become A PM Jedi

http://www.slideshare.net/dan_o/how-to-be-a-web-20-metrics-jedi-web-20-expo-april-2009

Become a Product Ninja

http://www.slideshare.net/maverickaman/metrics-for-start-up-ninjas

Lots of Web, Funnel & Other metrics

Couldn’t find anything to holistically manage the overall state of the

product

Let’s talk about Metrics

What is a metric?

A business metric is a quantifiable measure used to track, monitor and assess the success or failure of a business process…

…[and] to communicate a company's progress toward specific long- and short-term objectives.

http://searchcrm.techtarget.com/definition/business-metric

What is a metric?

A business metric is a quantifiable measure used to track, monitor and assess the success or failure of a business process…

…[and] to communicate a company's progress toward specific long- and short-term objectives.

http://searchcrm.techtarget.com/definition/business-metric

Types of Metrics

Quantitative MetricsNumerical values that can literally be measured through automation or manual processes

e.g. deals closed, leads generated, pageviews, closed bugs etc.Often easy to gather and share with others

Qualitative MetricsSubjective assessments of status or results of a process or activity

e.g. training status, support readiness, task completeness Often can be presented in quantitative forms

Types of Metrics

Vanity MetricsMetrics that are easy to collect, but are difficult to use to improve the business

e.g. Likes, Retweets, Downloads etc

Actionable MetricsMetrics that directly measure important attributes that are key to driving the business forward

e.g. conversion rates, acquisition cost etc.

Types of Metrics

Lagging MetricsMetrics that tell you want happened, but don’t necessarily help you change the outcome

e.g. Customer Turnover/Churn, # Bugs Closed

Leading MetricsMetrics that help you predict a potentially related Lagging metric

e.g. # customer complaints/week, # high severity bugs opened/release

Lots of metrics to choose from (just a small sample)

Monthly Active Users

Churn

Retention Rate

Page Views

Daily Active Users

Average Customer Lifetime

Net Promoter Score

Annual Recurring Revenue

Monthly Recurring Revenue

Customer Acquisition

Cost

Lifetime Customer

Value

Average MRR Per Account

Average Contract LengthAverage Case Time Open Customer Renewal Rate

Net $ Renewal

Rate

Average Sale Price

Opened Bugs per

Sprint

MOM Growth

Sprint Velocity

Average Revenue Per User

Activation Rate

Implementations Started

Cases Closed

Average Initial

Response Time

Lost Clients per Quarter

Marketing Qualified

Leads

Story Points Completed

The Key Question...

How to define the right metrics to

manage your product across the

product lifecycle?

What are the key areas that must tracked and

managed to ensure product success?

The First Step…

A Number of Categories to Choose From:

• Business• Organizational Readiness• Go-to-Market• Product• Operations• Financial• Sales• Etc.

Decided on 4 Categories of Focus

What is important in each area?

BusinessCorporate Objectives,

Revenue, Pipeline, Win/Loss, Renewals,

Pricing, etc.

OrganizationInternal Training and Enablement (Sales,

Support, Marketing etc.), Partners, Channels etc.

Go To Market

Positioning, Messaging, Lead Gen, Marketing Funnel, Sales Metrics,

Collateral etc.

ProductProduct Strategy,

Capabilities, Roadmap, Quality, Performance,

Stability, Gaps etc.

What is the Product

Lifecycle?

Product Lifecycle Stages

Dev

elop

Laun

ch

Gro

wth

Mat

urity

Dec

line

End

of L

ife

Product Lifecycle OBJECTIVES

Bui

ld it

Nai

l it

Scal

e it

Exte

nd it

Milk

it

End

it

Product Lifecycle Objectives

Objective Description

Build it

Nail it

Scale it

Extend it

Milk it

End it

Build the first version of the product for specific use cases for a target market

Identify and address barriers to wider adoption within your target market and prepare the company for product growth – more than just product/market fit

Scale the business (marketing/sales etc.) and focus on expansion and new customer acquisition

Move into new markets, market segments, use cases. Growth in new customers and sales into existing baseReduce investment but continue to market/sell with an eye on maximizing profits from customer baseRemove all investment, stop actively marketing and eventually remove from market

At each lifecycle stage, Product Management focus and objectives

can be different!

Focus Areas vs. Lifecycle Objectives

For any product, look at 1 stage at a time

For any product, look at 1 stage at a time

For any product, look at 1 stage at a time

For any product, look at 1 stage at a time

How to Define the Important Metrics to track

What questions are important to answer for each focus area

for the current stage of the product lifecycle

i.e. the key business metrics

Rules for defining the product metrics

1. Define metrics to align with key goals and objectives for your product.

2. Ensure that you can put programs in place to change those metrics if needed.

3. The actual “metrics” will be a combination of quantitative AND qualitative measurements

Hypothetical example… READ THIS!

• The following is an example set of dashboards for a “Scale it” stage product to show how to implement the model.

• For each of 4 focus areas, I’ve picked key metrics to track. You will need to pick the right metrics for your product and stage. • i.e. these may not all apply to your product. Don’t

just copy them without thought.

Creating a simple dashboard

• CEOs like dashboards • Use simple traffic light model to indicate state of

metric

- on or ahead of plan

- at risk of missing plan (must monitor)

- behind plan, needs immediate attention

• Trend indicators showing whether improving or declining

Common Business Metrics

• Sales/Revenue• Pipeline• Win/Loss• Deal Size• Renewals• Pricing• Resellers• Etc.

What are the key metrics and measurable factors to track business progress and success?

How are you tracking against the plan or target?

What actions are needed to improve the situation?

Business Metrics

Common Go-To-Market Metrics

• Positioning• Competition• References• Social Media• Analyst Relations• Demand Gen• Web Presence• Collateral

These “metrics” are not as numeric as the Business ones, but are key to tracking GTM status and progress

Go-to-Market Metrics

Organizational Readiness

• Each group that is key to go-to-market or the ongoing success of the product should be assessed to see if they have been trained and are functioning optimally.

Ensure there is a clear way to assess if teams are ready. Processes in place, training complete, systems ready etc.

Organizational Readiness

Product Metrics

• Strategy• Roadmap status• Product/Market Fit• Product Gaps• Product Quality• Etc.

Where you probably spend a lot of your time currently, filling gaps, fighting fires etc.

Raise the bar and systemetize your efforts and management of the product

Product Metrics

• Each metric is based on additional underlying data or information. • Should be available if needed by

Management.• Update dashboards as often as needed for

business review. • Quarterly or semi-annually is good for most

companies.

Additional Rules and Guidelines

Why go through all this effort and

present the product this way?

• It is a simple, standard way to manage almost ANY product

• Accounts for different needs at different stages of lifecycle

• Easy to communicate status and trouble spots to Senior Management

• Raise your own understanding of your products and manage it like a CEO

• And finally….

Why do this?

…Because this is NOT what you want!!

http://www.productfocus.com/blog/archives/129

Product Management Metrics

OR

How to Manage Your Products like a CEO

January 12, 2017

Saeed Khan@saeedwkhanhttps://ca.linkedin.com/in/saeedwkhan