The Metrics That Matter
Why Every Product Team Member Should Care About Data
In today's data-driven world, metrics aren't just numbers on a dashboard—they're the compass that guides product decisions, validates engineering efforts, and ensures program success. Whether you're shipping features, fixing bugs, or planning the next quarter, understanding and acting on the right metrics can make the difference between building something people love and something they ignore.
For Product Managers: Your Decision-Making Framework
As a PM, metrics are your most reliable allies in the endless stream of decisions you face daily. Here's why they matter:
First, metrics provide objective validation for your product hypotheses. When you're convinced that a new feature will drive engagement, user behavior metrics will tell you if you're right. They help you move from "I think" to "I know."
Second, they enable prioritization based on impact. When engineering resources are limited (and when aren't they?), metrics help you identify which initiatives will move the needle most significantly. A 20% improvement in load time might be more valuable than a new feature that only 2% of users will use.
Finally, metrics create accountability. They transform vague goals like "improve user experience" into specific, measurable objectives like "reduce cart abandonment rate by 15%."
For Engineers: Building with Purpose
Engineers, your relationship with metrics goes beyond monitoring system health. Here's why you should care:
Performance metrics directly reflect your technical decisions. That clever optimization you implemented? Load time metrics will show its real-world impact. That refactoring you've been advocating for? Error rates and system stability metrics can justify the investment.
User behavior metrics help you understand how people actually use your code. Are users finding that new search function you built? Are they using it as intended? Metrics tell the story of your code in production.
Most importantly, metrics help you advocate for technical investments. When you can show that technical debt is causing increasing error rates or that a architecture change could improve response times by 40%, you're speaking a language everyone understands.
For Program Managers: Keeping Projects on Track
Program managers, metrics are your early warning system and your proof of success:
Project health metrics help you identify risks before they become problems. Velocity metrics, sprint burndown charts, and cycle time measurements let you know if you're on track to hit deadlines.
Cross-team dependencies become clearer when you can measure handoff times and bottlenecks. Metrics help you optimize processes and improve team collaboration.
Most crucially, metrics help you demonstrate project success to stakeholders. When you can show that a major initiative improved key business metrics, you're proving the value of your team's work.
The Metrics That Matter Most
While specific metrics vary by product and company, here are some universal ones every team member should track:
1. User Engagement Metrics
Daily/Monthly Active Users (DAU/MAU)
Session duration and frequency
Feature adoption rates
Retention rates
2. Performance Metrics
Page load times
API response times
Error rates
System uptime
3. Business Impact Metrics
Revenue Per User (RPU)
Average Revenue Per Paying User (ARPPU)
Customer Acquisition Cost (CAC)
Customer Lifetime Value (CLV)
Making Metrics Work for You
Remember these key principles:
1. Focus on actionable metrics. If you can't change it, don't measure it.
2. Look for trends, not just absolute numbers.
3. Combine quantitative data with qualitative feedback.
4. Share metrics widely to create alignment.
5. Review and adjust your metrics regularly.
Conclusion
Metrics aren't just management tools—they're the shared language that helps product teams build better products. When everyone understands and cares about the right metrics, teams make better decisions, ship better features, and create more value for users.
Start by identifying the key metrics for your role and product. Share them with your team. Use them to guide decisions. Because in the end, what gets measured gets improved.
Want to learn more about effective metrics? Signup to my product metrics workshop which I am planning in the near future, and will be sharing some best practices and learnings from my experience working with product metrics at Big Tech companies.