As a project manager juggling multiple products, tracking product successes and failures will be extremely difficult. Each product requires specific metrics or key performance indicators (KPIs) to distinguish products and make informed decisions.
Creating KPIs for every product will provide reliable data so you’ll be able to manage every step of the product lifecycle, from launch to sales. Nevertheless, not all products can have the identical business trajectory, and to be most successful, each product must have its own specific KPIs and ways to trace them.
With all these potentially intersecting products, establishing a solid product management chain and KPIs to trace them generally is a full-time job. But with the appropriate tools and thoughtful planning, you should utilize product management KPIs to measure the effectiveness of your strategies at any stage of the product lifecycle and make the mandatory changes to realize the specified results.
Product management KPI examples
Product management KPIs are metrics that must be used to evaluate the success or failure of a product or product portfolio. To your products, you need to select tracking metrics that will provide you with unbiased insight into your product’s progress, so you’ll be able to make data-driven decisions quickly, saving you beneficial money and time.
Listed here are among the commonest KPIs in product management:
- Product revenue
- Product profitability
- Product sales
- Customer Acquisition Cost (CAC)
- Customer lifetime value (CLV)
- Market share
- Consumer satisfaction
- Time to market
1. Product revenue
That is the whole revenue generated by a product or product line. That is a crucial KPI since it measures the financial trajectory or success of the product.
2. Product profitability
It measures how much profit a product or product line generates. This KPI determines whether the product is profitable or not. While product revenues are mandatory to measure an organization’s sales volume and scale, product profitability provides a more accurate picture of how much money an organization makes from selling a specific product.
3. Product sales
It measures the precise variety of units of a product or product line sold. This KPI determines the recognition of a product based on its sales. This contributed to revenue and profitability, but each product will be pulled out and accounted for on the product level.
4. Customer Acquisition Cost (CAC)
A method of acquiring a brand new customer for a product or product line. CAC determines whether cost of acquiring a new customer is well worth the revenue generated from that very same customer.
5. Customer Lifetime Value (CLV)
It measures the whole value a customer will add to the corporate over their lifetime. Firms use CLV to find out the worth of acquiring a brand new customer.
6. Market share
It measures the share of the whole market captured by a product or product line. The market share KPI is crucial for firms to know how big or how small the market their product is in is.
7. Customer satisfaction
Measures any consumer satisfaction with a product or product line. Customer satisfaction KPI moves the needle on product quality and is used to find out whether customers will proceed to buy the product or not.
8. Time to market
This KPI measures the time it takes to bring a brand new product to market. Understanding the launch of a particular product will help the team understand internal processes, whether the product is being developed effectively and whether it’s going to be competitive available in the market.
Using data to trace product management KPIs
Of the eight specific KPIs listed above, there is barely one technique to effectively track their success or failure: the use of knowledge. Data is critical to the success of KPI tracking in product management; without data, your products will suffer.
By obtaining and analyzing accurate and up-to-date information in regards to the KPIs you are attempting to trace – whether or not they include consumer satisfactionmarkets, trends or competitors – product managers can gain beneficial information that can assist inform decisions as they shape the long run of their services and products.
Using data to power communications
By counting on your product data, you’ll be able to eliminate confusion and guesswork because data offers clear guidance and communication. Presenting transparent product data gives product managers the knowledge they should create and communicate KPIs to stakeholders and beyond.
Using data improves decision-making
With data like this, product managers could make higher decisions faster than ever; this includes setting realistic goals for improving or developing products. With the appropriate data, product managers can more quickly and accurately discover areas for improvement, resulting in smarter decisions across the organization. Ultimately, data serves as an important tool to make sure optimal performance in tracking KPIs in product management.
Tracking key performance indicators
Tracking the progress of your KPIs is a must for any product to achieve success. One technique to achieve that is to make use of a project management platform equivalent to Streetwhich offers a variety of tools and features to provide help to monitor and track your KPIs over time.
Once you’ve identified the goals or KPIs you need to track, you have to configure them in your project management system. With the built-in Goals Hive app, you’ll be able to configure your KPIs as personal or shared goals. Out of your goals dashboard, you’ll be able to proceed to envision in and monitor your progress toward your goals team benchmarks and projected goals.
Hive lets you create custom dashboards that display real-time KPI data, so you’ll be able to easily check your product’s performance at any time.
Tracking KPIs in Hive also lets you monitor your competitors’ performance and trends within the product industry, which makes it easier to discover areas of improvement and development opportunities. Using this data allows product managers to make informed decisions based on what’s best for his or her company.
Arrange your KPIs and begin tracking now
Should you have not already, you have to establish clear communication and agreement on product and performance management goals to make sure everyone seems to be working towards the identical goals and understands what success looks like.
Do not forget that tracking product management KPIs will not be a one-time thing; it must be an ongoing effort that requires dedication and a spotlight to realize the specified results. By staying organized, aligning stakeholders around common business goals, and using comprehensive tracking tools dashboards to not sleep thus farproduct managers can take their products to the subsequent level of success.
