Product Management - Metrics | Nitin Prasad | Skillshare

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

5 Lessons (30m)
    • 1. Intro & Setting

      3:24
    • 2. Vanity Metrics 2

      5:56
    • 3. Success Metrics

      8:45
    • 4. SAAS Metrics 2

      8:11
    • 5. Summary & Project details

      3:59
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About This Class

Hi all,

In this class, you'll learn the difference between vanity (useless), success (insightful), and SAAS metrics. I'll be using real products that I've launched in the past so you'll get an idea from two different industries and products.

Class structure:

  • Intro & setting - I'll be using two products I launched as examples [~3 mins]
  • Vanity Metrics - Learn the definition and real examples [~6 mins]
  • Success Metrics - Learn how to set up great success metrics with real examples [~8 mins]
  • SAAS Metrics - Learn three key SAAS metrics with their calculations and real examples [~8 mins]
  • Summary & Project details - Have a go at setting up metrics with a real product [~4 mins]

Outcome:

Become an expert on how to set up success metrics for your own products in no time at all. The class project also provides an opportunity to learn to exercise the skills you learn from the class.

Meet Your Teacher

Teacher Profile Image

Nitin Prasad

Passionate about product | Product coach

Teacher

Hi all,

I'm Nitin from Auckland, New Zealand. My goal is to help at least 100,000 aspiring people to get into product management. With over 13 years of working in the IT sector here and several years with SAAS companies in NZ, I've learned a lot and I'm looking to learn even more with you all! - Please review and connect if you watch a class. - Ever grateful.

12+ Years in SAAS
Shipped products in:
- Fintech (Banking, P2P lending & Expense management)
- Retail (POS)
- Transport (Hardware and SAAS)

Qualifications:

- Masters in Commercialisation & Entrepreneurship (University of Auckland - Business School)
- Launched 2 apps (iOS & web app)

Certifications

- Certified Scrum Product Owner
- Scrum.org... See full profile

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Transcripts

1. Intro & Setting: Hello, everyone. Welcome to another class of minutes and percent today begin to about product metrics. I'm really excited because I'm gonna be covering four main topics. Three simple 1st 1 is vanity metrics. So these are highly biometrics that you want to avoid. Will spend a few minutes on that success metrics Main focus of this class, which is no insightful metrics that you want to focus on sas metric. So generic metrics that you will often hear with any cess product. You know, like the example being link clicks Amazon, etcetera There's summary and I've got a project for you all to do It's on the right You're seeing couple screenshots Cesaire, my own personal products that I've launched in the past and I'm gonna be using he's in my class is an example. So the 1st 1 book it's, uh this is an app that we built quite a few years ago. It's for anyone to keep track the books, quotes and ticks. Now, the goals, Really, You wanna understand useful metrics out of these and understand men at vanity was a success metrics and understand SAS metrics with a specific example. The product itself is, um allows users to add books. Why scanning the barcode Pretty easy. Open up the camera, scan the barcode and 11 before the altar in the book. And then you can add courts, vocabulary and text easily as well. So just keep. So leave your records of your books in one place. So great app on. Then we can, you know, identify. Metrics are listed. Some here on will be going through these later on in the class. But you know, things like active users paying users crashes will explore what are vanity metrics and what are real metrics actually go into detail. Second product is attend. So this is a Web that I launched So but the Friends years ago. Basically, it's an app where you can create events, book tickets, people, book tickets to events and but, like meet up dot com. So again, goals here simple when I didn't buy on understand useful metrics, as well as understanding that bandy success and SAS metrics. So the solution is product is one click booking system, even booking system on line of in booking system. You can network with speakers and you, um, can get slides and you get notes succeed error. So we're just product. We know we tried. Identify What are the real metrics? What? Vanity metrics And what assassin metric. So is that ribbon you prevent that we want to look at and what are the customer outcomes that we want to achieve And, you know, things like, percentage of seats filled per event. So, yeah, we're gonna die really into detail. Looking at this product is an example. So stick around and you learn a lot about all these on differ, metrics, looking at real examples. 2. Vanity Metrics 2: Okay. Hello, everyone. Okay, let's have a look at humanity metrics and what they mean Definition. So the's on mitt tricks that, you know, you often hear about here a lot of numbers being thrown at you from whatever product that you're looking at, and it feels like it has a really a few good factor. And but you really don't be relying on these metrics. And that's a key word. They're not really useful. And they're gonna assist you in, you know, and the growth of your product. So you really just want to avoid them and you want to avoid relying on them. Funny for anything, really. So let's have a look at an example. So you might be beginning of the game. You know, a new game on the APP store and it might have, you know, 1000 downloads. You know, you might realize that you might find out that it has 500 stores and then, you know, my fanatical that says I have had 50% Montel Month growth, but what does that really mean? It'll high level doesn't really make much sense. It's not solving the objective or goal. Just we know numbers for face value, Um, could have a real BAP. You know, it could have a lot of visits, just great, and it could also also have a lot of users, which is also great. People could be talking about it on Twitter, and it could have thousands of suit treats. But no, you can't rely on these metrics to make any meaningful decisions, or they're not really that insightful. So it's essentially the definition of vanity metrics, and in essence, you want avoid relying on them. So let's look at it for the examples that we have in the class, which is 1st 1 Facebook bits. Now I haven't really introduced you to book bits. So hits and get into that. So these air screenshots from the app and you can see here in the first screen Children left literally scan ah, barcode, and it will get the altar in the book where you can interrupt manually, right? That's a feature of that. You can also see here the books are listed and reach work. You can add a court third screenshot there, and you can save us. Save the, um quote. You can also scan it using that camera and I recognize the text so pointed towards at the book, and we'll get the text so easy. Way to keep track of your books, quotes, etcetera. It's a good actor. What? Ah, Vanity metrics. So again, um, I could say I have 200 installs where I could say there were 2000 books of people of, you know, scan, um, hundreds of quotes. 50% growth in users. But these RL really vanity metrics. It doesn't really matter that there are 2000 books people have scanned or, you know, hundreds of quartz. It's great. It's identifying usage, but it's not really helping me in any way or as many rate to understand what's going on productive. Uh, yeah. Uh, so we'll get into the success metrics later on. But I just wanted ish kind of highlights and vanity metrics for this product and then a 10 . So again, I haven't introduced you to the product. So it was a simple way for people to log in and create events and shared and get people to attend and take bookings and kind of and then also share the speakers and distribute content etcetera. Yeah. So what? A vanity metrics here again. I could say they were, you know, 10,000 users on the platform, 200 events loaded, 2000 ticket sales, you know, And I could say Frederick seen growth and ticket sales, but it's not really something that's gonna help us understand what's going on. These orders kind of summarized numbers, high level numbers, said nothing that I can rely on it. Yes, they could. It might be ableto might be able to use some of these somewhere, but they're not gonna meet anything. And I'm not gonna be able to rely on And, uh, you know, for the growth of product. So, yes, so that these are vanity metrics and used to example, that's it's really simple, Andi, you can probably think of other examples right on. I'll let you guess, uh, for the examples of the heavier so summary collecting. Top level metrics are not going to relieve the true and sites that you want to see in your platform. Um, so you got to make decisions using these numbers, and they're dangerous over time because, you know, the more you repeat them, the more you think you're validated yourself. But really, you haven't And that could be mistreating, um, and then talking to help using the cell spit so you know it be able to sell something just by these summarized numbers. Right? Um, and yet in him inhibits product innovation. So I can't really use these numbers. Well, I could get Really? Ah, I guess you know, complacent and say that I have 10,000 users, but, you know, that's not really going to help us kind of innovate new products or sub problems in the product. Um, yeah, well, and I want to make a final note to say that, you know, they are mildly useful, baby in your conversations with friends, but really Ah, but only as best as a cost effective reporting. Really? Because you can get them cheaply but can't really using it anyway, So these are vanity metrics, and, uh, next we'll talk about success metrics and the next flat. So yeah, I'll see you there. 3. Success Metrics: Okay, so now it's time to talk about success metrics, and this is a fun part. So let's get in tow definition. So it's specific metrics that yet provide insight, so that's pretty much it. Also, gold actual metrics are, Yeah, let's get straightened his examples because that will make sense. So again we'll look at a new game application. So maybe the success metrics you know that we wanna track for this game is presented of active users who perform specific action, right? There might be multiple actions in the game. But you wanna no active users who may be in the last 30 days who had performed specific action, and that might lead you to understand why they are performing that action and, you know, and if so, what does that lead to next? Etcetera? Or maybe the most active character used to see what's popular and what's not, and help you make decisions with design or understand user behavior, right? Any more insightful now and then for a rib app. Maybe you want to understand decision to account so you know, vanity metric being number of visitors, and that's great. Not really tell you much, but in this example The success metric you want to look at? OK, 10,000 people visited, but only 20 of them converted to an account. Why? You know, what experience have you giving their what could be improved, Andi active users that can work. So, you know, maybe you would look at active users that convert to a specific thing. Right? So maybe you got 1000 visits. And then out of those 20 uses credit account out of those only maybe too active uses every day, Right? It's a small portion out of those you want to see what could worked to a specific behaviour in your way back, whatever that is. And when we go to book butts, an attendant make more sense. Oh, maybe it's a conversion percentage for a specific campaign, right? So you have a specific activity and you want to know what the conversion percent it is. So I hope that gives you a better uh, you know, I guess comparison between vanity vs Success Metrics were actually looking for a goal. Trying to achieve a goal. So let's get into an example. It's a book bits. So the screens we have here again is scanning a book. Bosco came in the back of gen it by the book. Right. So maybe the goal is to increase usage of the scan feature right over adding manually. So in the app that I've got here, users can at the book manually, but we don't want them to, because the whole point is saves them time, right? There's one of we just want o use camera functionality so we won't understand the pain points. So uses who had manually. Right. So what would you measure while you want to measure the clicks on successful scan and mentally added, And then you also wanna look at all active users with at least one book. So you want to see Maybe, you know, the first book was added by scanning and in the wrist added many Maybe the experiences horrible. Maybe they're crashes, you know, don't know what's going on. Um, conclusion, right? So you could see an increase of decrease. You might wanna track or have a goal to have, um, number of uses scanning Bacho to increase over time. You might want to look at the coded by device to see which devices are performing better. Um, versus others, you might also want to look it. And in five many reasons and conductor survey. So contact all those people that are using manual in Austin. Why, what's making them? And manually, do we want to get rid of that functionality? But only a small number. Small percentage? Um, look, a crash rates for uses, adding manually. Or why the barcode, right? And yeah, So I hope that gives you a really good example, because I can start digging into, and it's it's really fun in school because you really trying to understand that behavior. Let's look at another one. So let's say you want to build a visual for users using meaningful data from quotes, right? What does that mean? So in the example here, we're looking at quartz where they can scan using camera and they can scan a page, and courts automatically added, and then you're getting all these courts right? And the vanity metric was is 2000 quotes. Okay, that's great. But maybe we want to use this data and actually build a visual for all uses in the act. And sure, the most favorite court, maybe. I don't know, uh, you know, maybe It's a bit of product innovation. And so yeah, maybe wanna measure most popular authors quotes captured or on. Then you know we also wanna see by active users with at least one book and conclusion could be council Walters and quotes counts of books by author counts of uses by quotes added. And maybe you want to build a dashboard and you want to start looking at looking into a little bit more and it's you know, it. It gives you a little bit more insight. Had to see you know who are the most popular authors, what genres of people reading. And it gives you really good inside. And then you get your uses of really good insight to um, yes. So those are two examples for book bets now for attend. Let's look at this example. Maybe with attend. We want to understand that event activity off active users. So we actually want to understand what active uses a doing in the app. So we want to measure all events created over time. We wanna measure total it in these Purvin we want toe also look at the median ticket price as well, so we just really want understand it from all angles. Right? Um and again, we're gonna target electric uses with at least one completed event. So in event that's finished have loaded it finished. It's done that way. We have all the data that we need from these types of users. Maybe the conclusion we can come to is find out what the median revenue per active user there's. Maybe that's what we're trying toe achieve, um, most active users by number of events and maybe want to contact them and understand, You know, why is that that the platform is behaving? Noor is really, uh, useful Fulham on day. Maybe you want to see revenue generation by industry type, right? Then you can start. That might help you to do your marking in a certain industry, if the main active uses a role in marketing or i t or financial or accounting and then you want to focus on those kind of events more so with a real goal, you can you know, you can start to do some really cool stuff, and it really become really inside for an actionable. So I hope that gives a really good example of, you know, examples of book bits and attend so summary again we But the examples that we looked at, we had specific goals in mind. Right? Outcomes really more to investigate. That's important. And then you also want to track it over time. So, yeah, kind of undignified trains. And yes, so things like ribbing you by industry. You know, that's interesting on you can put them in the sales pitch. Or you can you can say it could hear the most common alters that, uh, you know, that people are reading on the genres that people are reading. And it really goes into detail on the tops of demography, of your customers off caps, right? And then, yeah, it allows you to product innovation. You can use data to boot solutions right on. The one I gave you was a simple one, but it can be a lot more complicated. And you can get a lot of complex data. Teoh build out your products as well. Um simple. Just keep refining us questions and sickles. That's all it is. That's pretty much it and flew to Ruutel. But you could see how insightful it waas over simple vanity metrics. We really were after some goals in there, so yeah, in the next one will look, assess metric. So see that 4. SAAS Metrics 2: Okay. Hello, everyone. So now look at SAS metrics. It's important. Metric probably, um, definitions of a matter the most because they help you're product or your company's scale and grow and get customers and get cash. You can't miss these metrics because they're really important. Success metrics are really important. But these are the ones that are gonna help you Products and that company grow could be split up into three categories. So sales being the financial metrics of accounting metrics, you could say, uh, marketing metrics that these air about in attracting new customers and converting them through the funnel well, through your journey or through your floor, then customer metrics of these ones that are gonna help you retain customers the reduced turn, as well as measuring the health of your customers and the health of your business from your customer point of view. So let's give him toe with some examples. Um, so what? But to be quite familiar in our product, ours. But what a SAS metrics. I want to cover three. So the 1st 1 is a salesman. Trick monthly recurring revenue. So what is a monthly revenue that book bits is bringing in every month. Which measure could have faster your company really growing? And there is a quite a complicated, no so complicated. It's pretty simple, Um, but you need to know your numbers really well. So there are two aspects is that is a positive aspect, which is your existing revenue. So look, what's that say we're getting ad revenue and we there's a premium version that that's $10 bill use that have 100 uses its sights that's $1000 per month and plus a mad raving, you say thousands of $2000. I'm the new business we got in the mountain. We got $200 new business and maybe some reactivation customers, um, that were no longer. But they came back and they know subscribed again and plus some expansion. So they say that comes up to $2005 then you've got some negatives. So let's say 50 customers dropped off when they left. Um, yeah, any contraction in the month Say that 2000. So you lived through it in $1500 so that's pretty much your monthly recurring revenue, and you keep measuring that of a month a month and that kind of help you understand how fast the company's growing. There's also Imara Grote Beest into just ball. But to keep it simple, your imara cells metric is really, really important. Um, for 10 will look at the, um, marketing metric, which is a product qualified league, which is really important as well, from a marketing point of view. So, yeah, what is the likelihood of becoming a paying customer? So let's say we've got about 1000 free users, right? Um, but that's great there on the say they're on the free plan, but you don't know how many of them are actually using it. And having evil can work to be a paying customer. And, um, how can you calculate them? So how many? We can only do that when the uses, you know, success we created and running event on day. Also say completely free trial unused Uppal the features So we know that they're actually using it, and they come to the end of the free trial, and then it means most likely they're gonna become a paying customer. It's not straightforward. It's not a it's not a strict port metric. It's kind of is gray on how to calculate a bet. Um, yeah, you've got a follow users in the journey. What it's not. Eso uses a signing up to free trial. That's that doesn't calculate as a product called widely. Also, not someone who have operated the plan as well, say, from Frida, Premium or premium to Premium. Me, too. Um, yeah, It's basically people that have come in and the Museo A product to a certain extent, and they likely to be a paying customer, and that's pretty much it. So that's really important as well, Then the 3rd 1 which is a customer retention, right? So with book bits, it's got 20,000 customers, right? But one of the passengers customers that, you know, we were able to return from Stop. So start off the launch of the APP. Maybe, you know, did that customers will be able to retain the customer for the whole year that the APP was it or did they drop off? It's basically the opposite of turn. So yeah, the calculations again, Not too difficult. Just using, you know, the numbers are number of customers at the end of the period, minus duration. Quiet your during the period, and then you divide that by the total customers side of the period, and then yet and you get the retention right. So, yeah, if they were 100 customers at the end right now. And, you know, customers acquired during periods 20 and then, um, customers of the side of period 104. Yeah, that's a 96% retention, right? That's getting this from mixed mental. The's calculations are available everywhere, but yeah, it's ah, um, really important to understand the customer retention rate. That's just a graph that I have the units downloaded by per week. So yeah, I just want to throw that in there to show you will be able to keep that customer who you don't want to start with a drop off those of three metrics that I wanted to cover. Um, there are way most asked me tricks in that, but those that three key ones for me in each of those categories I feel, um, cells Metrics. Yes. So, as we said, yeah, with that in Amara here, your business will have recurring catch. So But if you don't track imara, your success metrics, why it makes sense because you really need a viable business. Yeah, without a peak role you want, you lack paying customers. You may understand you the quote of your customers. You may understand the problems, but you really are unsure. Ensure that you know you're building a product that people will love and the pay to love. Well, love to pay for it. You put it that way and then custom metrics. So without retention, you lose customers of time. So you don't want to lead customers, right? That's the last thing you want to do. So how do you retain them? What do you need to do? So a lot of these will drive your success metrics because you might have a goal to have a retention, you might have a gold to improve new product call. If I lead, you might have a goal to increase in my rock. And then, you know that will kind of flow backwards into your success metrics to set the right goals . Um, yeah. There are plenty obsess metrics like customer acquisition cost turn left on value net promoter score, which you know, ah is also somewhat important. There different ways to look at it that results of feedback And on that I mean PS. But, you know, these are all really important. So I would urge you to kind of have a look through some articles and, um, an understandable other metrics if we really want to. But yet that's the end of assess metrics. So your next will look at the summary of the course. And also I've got a really good project for you actually work of the rule example and tried out into five Envy, success and SAS metrics. And I think you know what that really get a feel for. How will these played together? 5. Summary & Project details: higher run, you've made it to the end of the class. Thank you for watching my class. And so, yeah, let's look at what we've learned and the project. So we looked at product book bits and we looked at the manatee matrix, and we learned that knowing the number of users number of books added generic growth presented isn't not gonna tell us much. I'm gonna avoid relying on them. And then we looked at success metrics. So we looked at, you know, the rule metrics like books added scan verses, menu understanding the difference there and deacon increases and decreases of time and understanding behavior. And we looked at a number of active customers. Also uses performing an action specific action and setting out goals, which was fun. And then we looked at the lifeline of the product for the company monthly Recurring revenue , um, product qualifying, lead and customer attention, right? So, yeah, that was that was interesting. And then we looked attend and we looked at why Landry metrics, like number abuses or number of events and general growth presented is a really again not going to give us much. We can't really rely on it. and it's going to inhibit, you know, product innovation. And then we looked at success metrics of Rio. Metrics like percentage of seats filled, prevent or understand me revenue, Purvin and by industry type, or what collective uses were doing etcetera. And then we looked at says metrics, the same three metrics Imara, pick Ural and the retention rate, so yeah, well, what about? So now that you've learned Elice, how about, you know, uh, I set out a simple project where you have a nap. Amends for doctors, right? And it's a way about that. Allows doctors to record patients and their visits and medicines administered and schedule appointments, Right. Pretty cool. That for doctors. And you can have a go it out in flying Benoni metrics. Um, and identifying some success metrics as well. What goals? That on that you would have the sap and what it goes. What a success metrics that you'd really dig into. What would your get out of having some really good insightful in actual metrics? And then what would the Aymara pick your role and the CR examples would look like so really gets you to understand, get you to understand you know the difference between the three and how they interact and how they play. And now the good in the real metrics misses the no metrics of energy matrix that just don't make sense. Um, final Final summary has simple, avoid high level metrics. You want to sit goals, meaningful goals and objectives. We're gonna dig deep into the data and even asked as many questions. And you just want to keep repeating the three. Andi just want to avoid high level metrics. It's actually a simple is that, But knowing your goals take some time and I'm digging deep also takes a lot of if that asking questions also takes some time in. If it so yeah, that's it. And look at my aim is really to get a t least 1000 people. Teoh Inter prolactin Inter product on a ship in product management. So I've got some other classes, one of the miss free called product owner core fundamentals, And if you are interested in getting into product on a roll, I would I recommend that you watch that because it's it's free and, yeah, there's a lot of good content of their views, even used a banking example. So I really wanted to thank your time. And if you have any questions at all, just let me know and be happy toe help out any time.