Key Performance Indicator: Don’t measure everything

Key Performance Indicators

Types of KPIs:

  • Business: How are you doing against business goals?
  • Product: How is the product being used? How is the product helping users to meet their goals?
  • Quality: How often user encounter issues and problems?
  • Development: How well the team is executing when it comes to building and delivering the product?

How to pick KPIs:

  • Don’t measure everything: First and foremost, I know it’s really tempting to do because it’s a lot of different data and lots of things that you can measure but you wanna be super selective when you are picking KPIs. It’s better to have few actionable KPIs rather than having a ton of KPIs that are difficult to understand. If you have too many KPIs, you will waste a lot of of time trying to understand what they all mean and what’s causing them to change over time.
  • Align user, product, and business goals: It’s good to have few KPI’s that touch on each of these. If one of your business goals is related to revenue then revenue will likely be one of your KPIs. User goals are related to the problem that your product is trying to solve. Product goals are generally related to the usage of your product, usually around engagement.
  • Make sure KPIs are measurable: Team agrees on how those KPIs will be measured. At first, this seems very simple and straightforward but often times when you start digging into the data there is a lot of more complexity that appear at first.
  • Use percentages and time periods when setting goals: Always set goals based on percentage and time periods which is generally more helpful to achieve.

Let’s imagine we are defining KPIs for Skype, just to make it more tangible:

Defining KPIs: Skype

--

--

--

Data Product Manager. Building products that are capable of solving the customer’s problem. Customer obsession & ownership are the two principles that I believe

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Agile Localization. What Is It And How Is It Managed?

#2 Intercom on Product Management

How We Did a Product Expansion for our SaaS Product in 2 months

Product Manager Relationships: Software Engineers

A day in the life of a product manager

Product Managers’ Reading List

It’s A Hard Life As An Internal Product Manager

Product Manager Skills — Strategic Thinking

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Shruti Dwivedi

Shruti Dwivedi

Data Product Manager. Building products that are capable of solving the customer’s problem. Customer obsession & ownership are the two principles that I believe

More from Medium

How to Make Good Promises at Work

Delivery metrics that Product Managers should care about

It’s Not Just About Building Product — It’s About Building People: Insightful Chats with Yassen…

Downtown Calgary Stephen Avenue Skyscraper and Art

A validated approach for up-skilling the Product Management Team — Designed for Leaders in Product…