Calculating Key Success Indicators

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Product metrics are tools that show how useful your product is to users. If you don’t count and improve them, you won’t be able to achieve the desired results of your work, and most importantly, the desired profit.

In this article, we have collected the main metrics that need to be tracked in order to:

don't waste money on product development;
develop and maintain the product on the market;
increase the number of loyal users;
get the profit you are aiming for.
This is the main article about product metrics. You can read about each of them separately:

What is NPS , or How to Evaluate and Increase Customer Loyalty
MAU Metric : How to Calculate the Number of Unique Users in a Product
Customer retention : how to evaluate the effectiveness of your customer retention strategy and correct mistakes
Where and why users leave : how to calculate Churn Rate and start working with it
ARPU : how to calculate and draw conclusions
NPS - Net Promoter Score
NPS (Net Promoter Score) shows how users feel about your company. The index is based on the audience's answers to the question: "Are you ready to recommend our company to your friends?" The answer is expressed in points, which help calculate the NPS product metric.

NPS is one of the simplest product metrics in terms of resources spent. Four steps are enough for the study:

Formulate a question . Remember that the answer should be expressed in points on a scale.
Create a survey form . There are free services for this, such as Google Forms.
Launch the survey and let it run for 3-4 weeks to collect enough responses.
Upload your answers and evaluate the results.
So, you ask users to answer the question: “How willing are you to recommend our company to your friends?” The answers will be expressed on a point system, where 0 means I will not recommend, and 10 means I will definitely recommend.

These scores will characterize your audience:

0-6 points - critics (detractors) . They leave negative reviews and are most likely going to leave you.

7-8 points - neutrals . They do not feel negative uae email list towards you, but will leave when they find a more interesting offer.

9–10 points — promoters . Clients who have been with you for a long time: they write in the chat, leave reviews, use all the functions of the service or often place an order and recommend you to others.

NPS formula

Once you have conducted a survey and collected the results, you need to calculate the loyalty index using the formula:

NPS formula
How to evaluate the indicator

The calculation result will be expressed from -100% to 100%.

Each industry has its own normal NPS indicator. The main thing is that it should not be less than zero - this means that your audience is dominated by critics who are dissatisfied with the product and do not recommend it.

A negative NPS is a signal that you need to talk to your users and find out what they don't like.