Product teams have a lot of questions.
The job of a product manager today is tricky. Customers have high expectations, and digital experiences must be engaging and intuitive across channels and devices to keep users from churning. All of this hinges on asking, answering, and delivering on the right questions.
According to survey results, there’s no “golden question” behind building killer products. Instead, product teams are trying to answer a range of key questions to understand user behavior and product impact. Here are the top three questions product teams are asking:
- Which of my features launches made an impact?
- How are my users navigating my product?
- What keeps users engaged and coming back to the product?
The bottom line: To build products that customers love, product teams must analyze the experience from many angles.
It’s all about retention, engagement, & conversion.
To no surprise, retention, engagement, and conversion are the metrics that product teams care about most—across the board.
Things get interesting when we look at focus metrics for specific industries.
“Understanding what customers find most and least valuable about your product in the context of their alternatives is crucial to maximize customer growth and retention. Savvy product teams will stay focused on solving customers’ unmet needs with few alternatives to create differentiated value so customer success can retain those relationships, product marketing can position against alternatives, and sales can steal share from weaker competitors.”
Top 3 metrics that matter for teams
The rest of the metrics product teams care about
Priorities can vary widely by industry.
The average product team may be focused on engagement, retention, and conversion, but when you look at top metrics across industries, we found that goals are often closely aligned to those of the company and industry.
Most and least important metrics to product teams(by industry)
Regional focus can impact key metrics.
Globally, retention, engagement, and conversion are the top three metrics for product teams. But thing get interesting when we look at the data by specific regions.
In the U.S., revenue came in #3, beating out conversion and defying the global rankings of metrics that matter. When we look at Europe, however, a top-line metric like revenue ranked near last in order of importance, with a much bigger focus on product-oriented KPIs like active usage and activation.
The reason for the difference is not accounted for by this survey. Possibly, it comes down to the highly competitive nature of the U.S. market—which might cause product teams to value top-line metrics just as much as more product-oriented KPIs.
“We see many companies shift their emphasis to implementing third-party analytics solutions, as opposed to relying solely on their own data scientists and BI experts. I expect this trend to continue with the new capabilities, and scalability options of cloud-based Analytics platforms.”