Title: 15 Key Product Management Metrics and KPIs | AltexSoft
Headings: 15 Key Product Management Metrics and KPIs
15 Key Product Management Metrics and KPIs
KPIs and metrics for product management
Key Product KPIs
Metrics to forecast business success of a product
Monthly recurring revenue (MRR)
Monthly recurring revenue / total number of accounts = ARPU
Customer Lifetime Value (CLTV or LTV)
Average Revenue Per User (ARPU) * Average customer lifetime = CLTV
Customer Acquisition Cost (CAC)
Sales & marketing spendings for a period of time / total # of customers generated for a period of time = CAC
Metrics to analyze and grow user engagement
Daily Active User/Monthly Active User ratio
DAU/MAU = # of Daily active users / # of Monthly active users
Session duration
Traffic (paid/organic)
Bounce rate
Metrics to keep users interested
Retention rate
Retention rate = Customers at the end of the calculated period – New customers / Customers at the start of the calculated period x 100
Churn rate
Customer churn rate = Customers lost / Total customers
Metrics to measure product/feature popularity
Number of sessions per user
Number of user actions per session
Metrics to evaluate user satisfaction
Net Promoter Score (NPS)
NPS = % of promoters – % of detractors
Customer Satisfaction Score (CSAT)
Final word: How to choose software KPI metrics?

Content: Sales & marketing spendings for a period of time / total # of customers generated for a period of time = CAC
How to use CAC. Use CLTV and CAC together to identify whether customers bring you less profit than what you spend on them, and whether it’s time to reconsider pricing and product marketing strategy to attract more users. Metrics to analyze and grow user engagement
Albeit less relevant to stakeholders, customer-oriented metrics will show you how your product development efforts transform into user interactions. How many users find and use your product? How much time do they spend using it overall or a particular feature? How do customers react to a specifically planted action or feature? Also, these metrics include data on those who stopped using a product abruptly (bounce rates). Daily Active User/Monthly Active User ratio
Besides revenue, the most valuable metrics of product growth is the number of users or subscribers for a fixed period of time. But the number of people who have subscribed or purchased your product isn’t a primary KPI. What really matters is the number of active users.