Mr. Justice Anwar Zaheer Jamali Mr. Justice Asif Saeed Khan K
Product Management Metrics | Saeed Khan | ProductTank Toronto
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Transcript of Product Management Metrics | Saeed Khan | ProductTank Toronto
@ProductTankTO |
#ProductTank
SPONSORED BY
producttankto.com
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
