All you needed to know on product management KPIs and metrics

Product management KPIs and metrics are the unsung heroes of a successful product strategy. They help product managers assess performance, align with goals, and make informed decisions.

But what exactly are these metrics, and why should they matter to you? More importantly, how do you choose the right ones to track?

Let’s explore the world of product management KPIs, dive into 15 key metrics every product manager should monitor, and uncover how great design can amplify their impact.

The key difference between KPIs and Metrics

KPIs, or Key Performance Indicators, are specific measurements that show whether you’re meeting critical business objectives.

Metrics, on the other hand, are broader indicators of progress, not necessarily tied to core goals.

However, tracking the right metrics can streamline decisions and potentially enhance performance.

For instance: a product manager's KPI focusing on customer satisfaction could reveal areas to refine, while metrics like session duration might hint at the need for a user-friendly design — something we at Webmil help you achieve.

On customer KPIs?

Customer-focused KPIs might give you an understanding of how well your product meets user needs. Let’s take a look at how it works:

1. Customer satisfaction. Sending out surveys can measure how happy customers are with your product. A clear, appealing interface or streamlined functionality, often born from thoughtful design, can skyrocket these scores.
2. Retention rate. This measures how many users are engaged. The math is simple: subtract new customers from the current total, divide by the starting total, and multiply by 100. A higher retention rate often means the product delivers consistent value.
3. Conversion rate. Moving free trial users to paid subscriptions? That’s conversion. A seamless user experience and intuitive call-to-action placement can make all the difference.

On engagement KPIs

Engagement metrics might help you bring your service to perfection by giving you a grasp on how valuable your product is to the customers. Here’s how it works:

1. Daily and monthly active users. Track how many unique users interact with your product daily or monthly. A well-designed interface ensures they come back regularly.
2. Session duration. This measures how long users stay engaged. Engaging visuals, smooth navigation, and interactive content keep users hooked – areas where Webmil’s expertise shines.
3. User actions per session. Understanding what users do during a session helps you pinpoint feature adoption and areas for improvement.

On product quality KPIs

Tracking product quality is essential to maintaining (and being able to control) user trust and satisfaction. Let’s dive into the mechanism:

1. Testing and velocity KPI. Track the number of successful tests to gauge your product’s stability. Collaboration between developers and designers ensures that every iteration is better than the last.
2. Defects and detection effectiveness. Measuring defect detection rates ensures issues are caught before launch.
3. Support ticket escalations. Escalated tickets hint at unresolved issues. A well-designed user interface can reduce confusion, cutting down on such escalations.

On business performance KPIs

That’s simple. Business performance metrics revolve around profitability and allow you to keep a finger on the pulse of the financial health of your product. This is how it works:

1. Monthly recurring revenue. This measures the revenue your product generates each month. Clear, conversion-friendly design plays a crucial role in keeping those numbers steady.
2. Average revenue per user. A clear pricing model combined with thoughtful onboarding can boost your product's perceived value.
3. Net promoter score. Track customer loyalty by asking users to rate their likelihood of recommending your product.

Why does product design matter?

In a nutshell, a really good design can increase customer satisfaction. In fact, it was shown to increase customer retention by 42%, according to Keap.

Whether it’s for better conversions, reduced churn, or boosted user engagement —  investing in a top-tier design will have a multiplier effect on your KPIs.

A sleek, user-focused interface grows the loyalty of your customers, while intuitive functionality drives better adoption rates.

Our designers at Webmil focus on these principles, ensuring your KPIs don’t just meet expectations, but exceed them.

Choosing and tracking the right metrics

Identifying the most relevant KPIs depends on your product’s stage and goals. Are you measuring customer satisfaction? Tracking retention? Scaling revenue? For every need, there’s a metric that can guide your product management decisions.

Tools like dashboards can help visualize performance, but remember: the data is only as good as the experience driving it. Contact us today and let’s align your KPIs with a great design strategy like your product deserves!