As developers, we often talk about shipping features. But for product owners, the real question is: Are we building the right things?
The answer lies in measurable KPIs. Let’s break down the 7 KPIs every product owner should track, with formulas and examples.
1. Customer Retention Rate (CRR)
CRR = (Customers at End – New Customers) / Customers at Start
Example: Start = 100, New = 20, End = 105 → CRR = 85%.
2. Activation Rate
The % of new users reaching “aha moment.”
Activation Rate = Activated Users / New Users × 100
Example: 300 out of 500 new signups complete onboarding → 60%.
3. Feature Adoption Rate
Feature Adoption = Feature Users / Active Users × 100
Example: 400 out of 2000 active users try “dark mode” → 20%.
4. Churn Rate
Churn = (Lost Customers / Customers at Start) × 100
Example: Start = 500, Lost = 25 → Churn = 5%.
5. Net Promoter Score (NPS)
NPS = % Promoters – % Detractors
If 60% are promoters, 10% detractors → NPS = +50.
6. ARPU (Average Revenue per User)
ARPU = Total Revenue / Active Users
Example: $20,000 ÷ 1,000 users = $20 ARPU.
7. Cycle Time
** Cycle time **= Avg time from work start → production.
Example: Jira/GitHub can help track this metric.
Goal: reduce cycle time to increase agility.
Why These 7 Matter:
Tracking these KPIs aligns developers, PMs, and founders around value delivery, not vanity numbers.
👉 What KPIs do you currently track in your product team?
Top comments (0)