Title: What the Heck are Value Metrics? Find Yours for Your Product
Headings: What the Heck Are Value Metrics? And How To Find Yours?
What the Heck Are Value Metrics? And How To Find Yours?
A value metric is the way you measure value exchange in your product.
What Makes a Good Value Metric?
1. It’s easy for the customer to understand.
2. It’s aligned with the value that the customer receives in the product.
3. Grows with your customer’s usage of that value.
The Mistake that So Many Make: User-Based Pricing
Per-User Pricing Scratch Pad
How to Find Your Value Metric
Step 1: Subjective Analysis
Value Metric Scratch Pad
Step 2: Data-Driven Approach
How to Stress Test Your Value Metrics
Value Metric Scratch Pad
Commonly Asked Questions
Why is a value metric important?
What is the difference between data and metrics?
What are key growth metrics?
What are the five most common pricing strategies?
What are the five key performance indicators?
Does your value metric grow with the customer?
How do you arrive at a value-based price?
What is a net promoter score?

Content: When analyzing usage patterns, it’s easy to focus on measuring your product data without segmenting your users. By doing so, it’s easy to optimize for everyone while creating a worse experience for your best users. For instance, if we look at the product data for your best customers, we could streamline the onboarding experience for your perfect-fit customers while simultaneously filtering out bad-fit customers. We might decrease our signup-to-activation metric but increase our free-to-paid conversion rate. To get meaningful insights out of your product data, look for patterns among your best and worst customers. For instance, ask yourself these questions when analyzing your data: What do my best customers do regularly in