Growth metrics to track for Product
Like with many things, the world has changed. Now we can build lots of things and when it comes to metrics we can also measure a lot of things. Too many people get into the trap of implementing every analytical solution on the planet and he did the same mistake looking for that Holy Grail of a metric dashboard or some metric that just going to make the business take off.
He has found out that when we do that we end up drowning ourselves in lots and lots of numbers and actually get lost. It doesn’t get clear and it actually gets murkier. So he is a big advocate of starting with just a handful of metrics and for that, he recommends Dave Mclure’s pirate metrics.
So when he looks at any startups metrics irrespective of the stage (whether early or growth stage), he just wants to look at those 5 key metrics.
He likes to see them in a relative sense instead of a snapshot at any given time. He recommends checking this month’s metrics versus last few months metrics so that you can tell which ones are going up or down or which are just stagnant. When you do this, it brings focus. You will find a low hanging fruit which can be fixed quickly. For example acquisition or retention. Once you identify the metric to be fixed, you need secondary metrics as you need to understand why something is happening. You may have to do more learning experiments or go and talk to customers or dig deeper into metrics.