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The Growth Catalyst
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Mastering the 'Product Metrics That Matter'
- Product Metrics That Matter (PMTM) is a collection of metrics that give a complete picture of a product.
- PMTMs can be difficult to master since a great metric for one product could be a terrible one for another.
- Understanding the usefulness and relevance of a metric will be determined by four variables: product, company, industry, and end users.
- A startup fitness product raises its annual membership cost to $1,000 for 500 active members using offline fitness centers.
- In determining PMTMs for this startup, PICE (Product, Industry, Company, End User) framework is applied.
- For the startup, its goal is to reduce subscriber churn since it’s the biggest growth problem.
- Metrics focused on user experience like user-focussed metrics, customer journey funnel, and average ratings are used to determine PMTMs.
- The PMTMs for the startup are: acquisition, activation, referrals, and churn.
- Focusing on PMTMs that reinforce each other and affect the one metric that matters most will significantly help in tracking and goal setting.
- Data can be used to see which of the input metrics has higher correlations with churn, thus narrowing focus further.
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