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How Product Managers Can Use Financial KPIs to Drive Success

  • Financial KPIs help product managers assess a product’s financial health and its contribution to the company’s overall success.
  • Revenue growth indicates market demand and product adoption, while customer acquisition cost (CAC) evaluates the efficiency of marketing and sales strategies.
  • Customer lifetime value (CLV) helps determine the long-term value of retaining customers compared to the cost of acquiring them.
  • Profitability metrics such as gross margin, operating margin, net profit margin, return on investment (ROI), and break-even analysis are important for understanding financial sustainability and decision-making.

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