KPI model and metrics for a product manager

It is important for a product manager to correctly determine the main product metrics and select the appropriate KPI model. The success of a project or an entire business largely depends on this. Let’s understand why KPIs and metrics are needed.

Why do we need KPIs: evaluation criteria

Kipiai are Key Performance Indicators or key performance indicators. They are expressed as percentages and are used in sales, advertising, testing and other areas.

Key performance indicators are visual data that help analyze the real effectiveness of business processes, a specific specialist or the entire team. They are also needed to:

• find strengths and weaknesses of business processes and strategy;
• make the right decisions to improve efficiency;
• define new goals for specialists.

Before the start of the project, an individual KPI system is selected. This allows you to more closely monitor specific business processes and change strategy. KPIs for a product manager may include conversion rate, click-through rate, advertising return on investment, and much more.

Basic metrics for a product manager

First, it’s worth clarifying what metrics are. These are measurable indicators that characterize the product. They are calculated based on actual results and costs, some of which may be included in Product Manager KPIs depending on the project.

Key product metrics include:

1. MAU/DAU. The number of unique users active during the month or day, respectively.
2. Conversion rate or CR. The percentage of users who performed the target action – registration, purchase, etc.
3. Customer churn rate or Churn Rate. The number of customers who stopped using the product in a given period of time.
4. Customer retention rate or Retention Rate. The number of customers who continue to use the product after the first visit.
5. Customer Lifetime Value or CLTV. Helps to find out the profit of a business from one client throughout his entire interaction with the company.

This is only part of the answer to the question – what are the metrics. You can learn more about this by taking product manager courses in Kyiv. Experienced mentors will also tell you what KPI is in simple words and how to select metrics depending on the project. Sign up for the Hillel Computer School as quickly as possible – there are still vacancies!

How much does a Product Manager earn?

The salary of a product manager depends on various factors:

• industry;
• scale of the company and project;
• product experience and skills;
• various bonuses and more.

Therefore, it is difficult to give a clear answer to the question of how much a product manager earns. The amount can vary from several thousand to ten or more thousand dollars per month.

In addition to product managers, the IT industry also needs machine learning specialists. This is a promising direction, the capabilities of which can be used in medicine, multi-channel marketing and even game development. This profession can be mastered by taking Machine Learning courses in Kyiv.

Based on materials: https://kyiv.ithillel.ua/ru