How to measure Product success?
As businesses, everybody has a different set of definitions for a successful product, but for most of them, it means more conversions and increased profitability. It determines your next step as a business.
On the basis of success or failure of your product, you will need to make the necessary changes with the help of customer insights. Even measuring the success or failure of the product requires an understanding of your goals as a company and the key metrics on which your product’s success is dependent.
When you have released a product to the market, it is time to check the effectiveness of the product. You will need to check on the engagement ratio, the user adoption rate and the usage of your product on a monthly basis. These are just some of the metrics that you ought to keep in mind. We will discuss in detail, on how best you can measure product success.
Define the Goal
Define the goal you aim to achieve by launching this product. This is your first step towards measuring your product success. The goals should be quantifiable and should revolve around the critical events that you want your users to complete. Here are a few goals that you can consider when working on a product
- What is the mission statement for your company? The mission statement helps in achieving the goal for your product
- Which features are aligned to the user needs, which you have identified
- What is the ultimate aim of the product? Do you want to increase visibility, revenue or user base for the product?
Let’s say you want more subscribers for the product? Then adding an event that allows users to fill out a subscriber form can help you achieve this goal.
Now that you know how to position your goals, let’s have a look at how to measure product success.
Start with Testing new ideas
Prior to designing your product, you need to test the product idea with your target audience. A simple change in the interface to make it more relevant can be best tested with consumers at the forefront. Know how they want the interface to look or, what subtle changes they are looking for. Does the idea you have helped you in achieving your goal?
Know the metrics
It is important at this time to know the metrics that you need to measure product success. Few metrics according to us would be:
- Adoption or usage of the product. This would include the number of times the mobile app will be used and the number of people downloading the mobile app
- The number of people completing an event. For example, the number of people signing up for the newsletter would define the success of the event, which will, in turn, define the success of the product
- The customer segment that is adopting a particular type of feature. This will help you gain insights into customer behavior, which will, in turn, help you in understanding the success rate of the product
- The app quality is a metric to measure the success of your app product. The net promoter score, as well as the number of bugs, will be used to measure this metric.
- There are business related metrics as well which help in determining the actual success of the app and the profitability of the business
- The product’s lifetime value
- The recurring revenue that the product will earn. This will be calculated both monthly and annually
- The average revenue the business earns per user should be determined. The lead conversion ratio needs to be determined as well
Most of the metrics mentioned here are trackable metrics. There are multiple metrics that can predict the success of the app, which is usability. If your app is usable and easy to learn and handle, you will find it being adopted easily. This is a metric that cannot be tracked directly.
Measure user engagement
In the early stages of your mobile app, you will need to measure user engagement. Check for specific feature usage at this point instead of the traffic, you want to know if you are giving out with the desired experience through your app.
For user engagement, you will need to study the features of the app that are mostly used and the number of times this feature is used. If driving app engagement is the main aim of your app, you might want to use the engagement pyramid. It gives out layers of activities that will help in improving app engagement.
Metrics help in defining the product success. If you know the right metrics, and include them in your app development and launch activities, and align them to your goals, you will be able to get the desired success.
Sodio Technologies offers mobile app development solutions catering to your business needs. Connect with us for best-fit solutions.