Thinking about setting your OKR's and not sure what measurements are right? In planning season and want to set product marketing metrics that are actually meaningful to the business? Use this mega-post as inspiration.
Product Marketing Metric Basics
1. Customer Acquisition Cost (CAC)
What it is: The average amount spent to acquire a single customer.
Why it matters: Lower CAC means you're efficiently utilizing your resources. A high CAC could be a sign that your marketing strategies need revision.
2. Customer Lifetime Value (CLV)
What it is: The projected revenue that a single customer will generate over the course of their relationship with your brand.
Why it matters: A high CLV indicates strong customer loyalty and effective upselling or cross-selling strategies. Comparing CLV to CAC can also provide insights into the sustainability of your business model.
3. Product Adoption Rate
What it is: The percentage of your target audience that starts using your product after its launch.
Why it matters: A higher adoption rate means your product is resonating well with your audience, while a lower rate may indicate a mismatch or market saturation.
4. Churn Rate
What it is: The percentage of customers who stop using your product over a specific period.
Why it matters: A high churn rate can be a sign of dissatisfaction among users. It's crucial to understand why users are leaving and address those concerns.
5. Net Promoter Score (NPS)
What it is: A measure of customer loyalty and satisfaction.
Why it matters: A higher NPS indicates that your customers are happy with your product and are likely to recommend it, leading to organic growth.
6. Product Usage Metrics
What it is: Metrics that show how frequently and intensively customers use your product.
Why it matters: Understanding product usage can help you identify features that are popular and those that may need improvement.
7. Conversion Rate
What it is: The percentage of users who take a desired action, such as signing up or purchasing.
Why it matters: A high conversion rate means that your product marketing strategies are effectively moving customers through the sales funnel.
8. Engagement Metrics
What it is: Measures of how users are interacting with your product, including session duration, active users, and feature interactions.
Why it matters: Engagement metrics help you understand the user experience and identify areas for enhancement.
9. Feedback and Reviews
What it is: Direct input from your customers about their experiences.
Why it matters: Customer feedback is a gold mine for improvement. Positive reviews can boost sales, while negative ones provide actionable insights.
Objective Specific Metrics
1. Goal: Increase Product Awareness
Metrics:
Brand recall: Measured through surveys or focus groups to understand how top-of-mind your product or brand is within the target audience.
Web traffic: The number of visitors to your product pages or related content.
Media mentions: Frequency of mentions in press, blogs, and industry publications.
2. Goal: Enhance Product Understanding
Metrics:
Content engagement: Metrics like video views, infographic shares, eBook downloads, etc.
Product demo requests: Indicates interest after understanding the product's features and benefits.
FAQs and inquiries: Fewer basic inquiries might indicate better product understanding.
3. Goal: Improve Product Positioning
Metrics:
Positioning survey results: Surveys conducted before and after positioning changes to measure shifts in perception.
Competitive win rate: The frequency with which your product is chosen over competitors.
USP (Unique Selling Proposition) recognition: Measures how often your intended USP is recognized by the audience.
4. Goal: Drive Product Adoption
Metrics:
Adoption rate: The percentage of users who start using the product after its introduction or a significant update.
Feature usage: Frequency or percentage of users leveraging key product features.
5. Goal: Support Sales Team Effectiveness
Metrics:
Sales content usage: How frequently sales teams use the content provided (like pitch decks, case studies, etc.).
Sales feedback: Qualitative feedback from the sales team on the usefulness of materials and training.
Lead conversion rate: The percentage of leads converted to customers, indicating the effectiveness of sales enablement.
6. Goal: Gather and Utilize Market Feedback
Metrics:
Feedback collection: The volume of feedback collected from various channels (e.g., surveys, social media, customer support).
Product updates based on feedback: The number or percentage of product changes made based on customer feedback.
7. Goal: Foster Customer Loyalty
Metrics:
Net Promoter Score (NPS): Measures customer loyalty and satisfaction.
Retention rate: Percentage of customers continuing to use the product over time.
Customer testimonials: Volume and quality of positive testimonials or case studies received.
8. Goal: Launch New Products Successfully
Metrics:
Launch reach: The number of people reached during a product launch (via emails, webinars, events, etc.).
Early adoption rate: Percentage of target users who adopt the product shortly after launch.
Post-launch feedback: Qualitative feedback collected after a product launch to gauge initial impressions.
SaaS Product Marketing Metrics
1. Monthly Recurring Revenue (MRR)
What it is: The predictable revenue a SaaS company can expect to receive every month.
Why it matters: MRR is a key metric to understand the health of the business and its growth potential. An increasing MRR indicates that you're acquiring more customers or upselling existing ones effectively.
2. Annual Recurring Revenue (ARR)
What it is: The annual version of MRR, showing the yearly subscription revenue.
Why it matters: It offers a long-term perspective on the financial health and stability of the SaaS company.
3. Average Revenue Per Account (ARPA)
What it is: The average MRR across all active customers.
Why it matters: ARPA indicates the value of an average customer. Watching this metric can help gauge whether upselling or cross-selling efforts are paying off.
4. Expansion MRR
What it is: The additional MRR gained from existing customers, either through upselling, cross-selling, or pricing adjustments.
Why it matters: Positive Expansion MRR indicates that you're maximizing the value of your existing customer base.
5. Customer Retention Cost (CRC)
What it is: The cost involved in retaining existing customers.
Why it matters: SaaS companies rely heavily on subscription models, making customer retention pivotal. Lower CRC suggests effective customer support and satisfaction.
6. Time to Value (TTV)
What it is: The duration taken for a customer to achieve their first "win" or derive value from your SaaS product.
Why it matters: A shorter TTV enhances user satisfaction, which can reduce churn and boost word-of-mouth marketing.
7. Feature Adoption Rate
What it is: The percentage of users adopting a new feature post-launch.
Why it matters: High adoption rates of new features can signal product/market fit and the success of feature communication strategies.
8. Customer Health Score
What it is: A metric that gauges the overall health of customer accounts based on product usage, feedback, support ticket frequency, etc.
Why it matters: By monitoring customer health, SaaS companies can proactively address potential churn risks.
9. Onboarding Completion Rate
What it is: The percentage of new users who complete the onboarding process.
Why it matters: Effective onboarding is crucial for user retention. A high completion rate suggests that new users find the onboarding process valuable and user-friendly.
10. Active Users (DAU, MAU)
What it is: Daily Active Users (DAU) and Monthly Active Users (MAU) measure the number of unique users who engage with the SaaS product daily and monthly, respectively.
Why it matters: These metrics can help understand user engagement levels and the stickiness of the product.
Product Release Metrics
1. Release Adoption Rate
What it is: The percentage of users who have adopted or started using the new release or feature.
Why it matters: This indicates the effectiveness of the PMM's go-to-market strategy and communication about the release.
2. Customer Awareness
What it is: The percentage of customers who are aware of the new release or feature.
Why it matters: Awareness is the first step in the adoption funnel. If users aren’t aware, they can’t adopt.
3. Engagement with Release Announcements
What it is: Metrics like open rates, click-through rates, and engagement metrics for release announcement emails, blog posts, webinars, etc.
Why it matters: This helps the PMM gauge the effectiveness of their communication channels and messaging.
4. Customer Feedback and Sentiment
What it is: Direct input from users regarding the new release, often collected through surveys or feedback forms.
Why it matters: Feedback can guide future product enhancements and refine marketing messaging.
5. Training or Tutorial Engagement
What it is: The number of users who engage with training materials, tutorials, or webinars about the new release.
Why it matters: It provides insights into the clarity and effectiveness of educational content crafted by or influenced by the PMM.
6. Upsell/Cross-Sell Metrics
What it is: The number or percentage of existing customers who purchased additional features or services as a result of the release.
Why it matters: This measures the effectiveness of marketing strategies geared towards monetizing the release further.
7. Net Promoter Score (NPS) Post-Release
What it is: A measure of how likely customers are to recommend the new release or feature to others.
Why it matters: NPS can give insights into overall satisfaction with the release and its perceived value.
8. Lead Generation from Release
What it is: The number of new leads or inquiries generated as a direct result of the release announcement or related marketing activities.
Why it matters: It indicates the release's potential in attracting new prospects or customers.
9. Press and Media Coverage
What it is: The number and quality of media mentions related to the release.
Why it matters: Positive media coverage can boost awareness and credibility, reflecting the effectiveness of PR strategies.
10. Social Media Engagement
What it is: Metrics like shares, likes, comments, and overall reach for social media posts related to the release.
Why it matters: Social media is a powerful channel for product marketing. High engagement indicates resonating content and effective promotion.
Buyer Persona Metrics
1. Conversion Rate
What it is: The percentage of users who take a desired action, such as signing up for a newsletter, downloading content, or making a purchase.
Why it matters: High conversion rates suggest that your messaging and offerings resonate well with the targeted persona, meaning you've likely chosen the right ones.
2. Customer Acquisition Cost (CAC)
What it is: The average amount you spend to acquire a new customer.
Why it matters: A lower CAC indicates that you're effectively reaching and persuading your target personas with less expenditure.
3. Lifetime Value (LTV) to CAC Ratio
What it is: A comparison of the lifetime value of a customer to the cost of acquiring them.
Why it matters: A high LTV:CAC ratio indicates you're targeting and acquiring profitable customers that match your ideal personas.
4. Engagement Metrics
What it is: Measures such as average session duration, page views per session, and content interaction rates.
Why it matters: High engagement suggests your content and product align with the interests and needs of your target personas.
5. Customer Satisfaction (e.g., Net Promoter Score)
What it is: A measure of how satisfied customers are with your product or service.
Why it matters: If you've chosen the right personas, they should find value in your offering, leading to higher satisfaction scores.
6. Churn Rate
What it is: The percentage of customers who stop using your product or service over a specific period.
Why it matters: A low churn rate indicates that your product or service meets the needs and expectations of your chosen personas.
7. Sales Cycle Length
What it is: The average time it takes for a lead to become a customer.
Why it matters: A shorter sales cycle can indicate that your marketing and sales efforts align well with the needs and pain points of your buyer personas.
8. Content Interaction
What it is: Metrics like downloads, shares, comments, and time spent on specific pieces of content.
Why it matters: High interaction rates suggest your content resonates with the intended personas.
9. Ad Performance
What it is: Click-through rates, conversion rates, and cost-per-click for paid ad campaigns.
Why it matters: Effective ad performance indicates you're targeting and messaging the right personas.
10. Customer Feedback and Reviews
What it is: Direct input from your customers about their experiences and needs.
Why it matters: Feedback aligned with your persona profiles can validate that you've accurately identified and are serving your target audience.
Sales Enablement Metrics
1. Time Spent Selling
What it is: The proportion of a salesperson’s time that's actually spent on selling activities versus administrative tasks.
Why it matters: Sales enablement tools and processes should ideally reduce administrative overhead, allowing salespeople to focus more on selling. Will also greatly help your relationship with sales.
2. Sales Training Completion Rate
What it is: The percentage of the sales team that has completed mandatory training or certifications.
Why it matters: This indicates how well the sales team is equipped with the knowledge they need to sell effectively.
3. Sales Onboarding Time
What it is: The average time it takes to onboard a new sales rep to full productivity.
Why it matters: Effective sales enablement should shorten the onboarding process by providing clear resources and training.
4. Content Usage Rate
What it is: How often sales reps use the sales enablement content (like case studies, whitepapers, presentations) provided to them.
Why it matters: This can indicate the relevance and effectiveness of the materials provided to the sales team.
5. Deal Win Rate
What it is: The percentage of deals that close successfully.
Why it matters: Enhanced sales enablement efforts should ideally result in a higher win rate as sales reps are better equipped to handle objections and articulate value.
6. Sales Cycle Length
What it is: The average duration it takes to close a deal, from initial contact to final sale.
Why it matters: Effective sales enablement might reduce the sales cycle length as reps can address customer needs and objections more efficiently.
7. Quota Attainment
What it is: The percentage of sales reps meeting or exceeding their sales quotas.
Why it matters: An increase in quota attainment can indicate effective sales enablement, as reps are better equipped to close deals.
8. Rate of Use of Sales Tools
What it is: The frequency with which sales reps use provided sales tools, software, or platforms.
Why it matters: This helps measure the adoption and effectiveness of tools introduced to enhance the sales process.
9. Feedback on Sales Training
What it is: Qualitative feedback from sales reps on the training sessions they attend.
Why it matters: Feedback can offer insights into the areas of training that are most valuable and areas that need improvement.
10. Revenue per Sales Rep
What it is: The average revenue generated by each sales representative.
Why it matters: An increase in this metric can indicate that sales enablement initiatives are leading to more effective selling.
GTM Strategy Metrics
1. Market Penetration Rate
What it is: The percentage of your target market that has been captured as customers.
Why it matters: It helps PMMs understand how effectively the product is reaching and being adopted by its intended audience.
2. Time to First Purchase
What it is: The average time it takes from a lead's first interaction with your brand to their first purchase.
Why it matters: It indicates the efficiency of the sales funnel and the effectiveness of the GTM strategy in driving quick conversions.
3. Customer Acquisition Cost (CAC)
What it is: The average cost to acquire a new customer, taking into account all associated marketing and sales expenses.
Why it matters: A lower CAC indicates a more cost-effective GTM strategy, whereas a rising CAC may prompt a review of the strategy's efficiency.
4. Lifetime Value (LTV) to CAC Ratio
What it is: A comparison of the total revenue a customer is expected to generate over their lifetime to the cost of acquiring them.
Why it matters: A high LTV:CAC ratio suggests a strong return on investment for the GTM strategy.
5. Product Adoption Rate
What it is: The percentage of the target audience that starts using the product after its launch.
Why it matters: This metric helps gauge the initial success of the product in the market.
6. Churn Rate
What it is: The percentage of customers who stop using the product or service within a specific time frame after acquisition.
Why it matters: A high churn rate post-launch might indicate issues with product fit, customer expectations, or the effectiveness of post-purchase engagement strategies.
7. Net Promoter Score (NPS)
What it is: A measure of customer satisfaction and loyalty based on how likely they are to recommend the product to others.
Why it matters: A high NPS can be an early indicator of product success and customer satisfaction with the GTM strategy.
8. Sales Cycle Length
What it is: The average time it takes for a lead to go from initial awareness to a closed sale.
Why it matters: A shorter sales cycle indicates an effective GTM strategy that quickly moves leads through the funnel.
9. Feedback and Reviews
What it is: Qualitative input from customers about their experiences with the product.
Why it matters: Feedback provides invaluable insights for PMMs, helping refine the product offering and GTM strategy for future iterations.
10. Engagement with GTM Content
What it is: Metrics like open rates, click-through rates, and engagement for content specifically crafted for the GTM strategy, such as product launch emails, blog posts, or webinars.
Why it matters: High engagement indicates that the content resonates with the target audience, signaling an effective GTM content strategy.
Collaboration Metrics
1. Cross-Functional Project Completion Rate
What it is: The percentage of projects or initiatives involving multiple departments that were completed successfully and on time.
Why it matters: Successful completion of cross-functional projects is a tangible indicator of effective collaboration.
2. Feedback from Collaborative Teams
What it is: Qualitative feedback from members of other departments on the PMM's collaboration skills.
Why it matters: Direct feedback is a credible source of information on how well the PMM is collaborating with colleagues.
3. Number of Joint Initiatives
What it is: The count of initiatives or projects the PMM has taken up in collaboration with other teams.
Why it matters: A higher number indicates active efforts to engage and collaborate with different departments.
4. Sales Enablement Effectiveness
What it is: Metrics like sales content usage rate, feedback on sales training sessions, or the number of joint sales calls attended.
Why it matters: Close collaboration with the sales team should result in better-aligned and more effective sales enablement tools and resources.
5. Product Feedback Loop Implementation
What it is: The frequency or effectiveness of feedback loops established with the product team to communicate market insights, customer feedback, etc.
Why it matters: Regular and structured feedback loops indicate a strong collaborative effort between product marketing and product development.
6. Joint Workshops and Meetings Attended
What it is: The number of workshops, brainstorming sessions, or strategy meetings attended with other teams.
Why it matters: Attendance and active participation in such sessions demonstrate a hands-on approach to collaboration.
7. Customer Support Interactions
What it is: Metrics like the number of joint training sessions with customer support, feedback sessions, or shared customer insights.
Why it matters: Effective collaboration with customer support ensures that market insights and customer feedback are seamlessly integrated into marketing strategies.
8. Cross-Training Sessions Conducted
What it is: The number of training sessions or knowledge-sharing workshops the PMM has conducted for other teams or vice versa.
Why it matters: Cross-training sessions foster understanding, empathy, and alignment among teams, reinforcing collaboration.
9. Collaborative Tools Usage Metrics
What it is: Data on the active use of collaboration tools, frequency of updates, or participation in collaborative platforms.
Why it matters: Consistent and effective use of collaborative tools indicates a PMM's commitment to staying connected and working seamlessly with colleagues.
10. Conflict Resolution Rate
What it is: The number of inter-departmental conflicts or misalignments that were effectively resolved.
Why it matters: The ability to navigate and resolve conflicts is a testament to strong collaborative skills and interpersonal effectiveness.
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