Key Metrics Every PMM and PM Should Track, Together

How do you actually measure your impact as a PMM? as a PM? It's easy to get caught up in the "keeping the lights on" tasks. Getting the feature out, writing the blog post - without focusing on overall impact.
As a product marketer, there's a lot of debate about which KPIs we should measure and which are the best to focus on? Often, it ends up coming down to pipeline or adoption, but finding just one north start metric for PMM is often challenging.
The argument is that there really isn't just one metric that product marketers can claim sole ownership of because other teams impact those metrics. However, that's part of the problem; no one should really be the sole owner of a metric. Every team should be working toward improving shared metrics, indicators that the company is creating value for customers - shared value indicators.
An example of this is pipeline, if you reach your pipeline goals 100% of the time, but those customers churn 3 months later because they aren't a fit for your product. Awesome, you met your pipeline goal, but that was only serving the sales team's goal to reach that number, not serving the customer or company as a whole to reach ideal customers and provide value.
In an ideal scenario, all teams should be focusing on shared goals within three main realms of growth, retention, and engagement.
Focusing on Growth, Retention, and Engagement
In terms of PM and PMM, the metrics we choose to focus on can significantly influence the trajectory of a product's success. Grouping these metrics into three fundamental categories – growth, retention, and engagement – provides a structured approach to understanding and optimizing different product and market performance aspects while working together to move the needle.
Growth metrics are pivotal in driving the expansion of the product's market presence and user base. They help in understanding market share, user acquisition, and the overall scalability of the product.
Retention metrics focus on maintaining and nurturing the existing customer base, ensuring the longevity and sustained success of the product. These metrics are essential in gauging customer loyalty and satisfaction, key indicators of a product's market fit and value.
Engagement metrics, on the other hand, delve into how users interact with the product. They provide insights into user behavior, feature adoption, and the overall stickiness of the product.
PMs and PMMs can develop a more holistic and focused strategy as partners by categorizing metrics into these three areas. It allows for a balanced approach to not only attracting and acquiring new users but also keeping them engaged and satisfied over time. Each category complements the others, creating a comprehensive framework for measuring and achieving product success.
Of course, each of these categories has its own metrics that PM and PMM should be tracking together. Here are key metrics through the lens of their significance and impact on product management and marketing strategies.
Growth Metrics
Market Share Growth
Market Share Growth can be tricky but is crucial as a long term goal for PMs and PMMs as it directly correlates with the product's success in the competitive market. For PMs, this metric reflects how well the product is performing against competitors, indicating the effectiveness of their development and innovation strategies. PMMs use market share growth to assess the impact of their branding and positioning efforts, ensuring that their marketing strategies effectively capture a larger segment of the market.
What it is: Assesses the product's performance relative to competitors.
How to find it: Market Share Growth = [(Current Market Share - Previous Market Share) / Previous Market Share] × 100%.
Conversion Rates
Conversion Rates are a vital indicator of how effectively a product or campaign turns prospects into customers. For PMs, this metric sheds light on the product's market fit and appeal. For PMMs, conversion rates are key to understanding the success of messaging, sales enablement, and marketing strategies, helping them fine-tune their approaches to improve these rates and drive sales.
What it is: Measures the effectiveness of converting leads into customers.
How to find it: Conversion Rate = (Number of Conversions / Total Number of Visitors) × 100%.
Product Launch Campaign Effectiveness
The effectiveness of Product Launch Campaigns is critical for both PMs and PMMs to gauge the market's response to new products or features. PMs look at this metric to confirm product-market fit and to gather insights for future product iterations. For PMMs, it's about measuring how well the product has been received in the market, allowing them to adjust their marketing narratives and tactics accordingly. This can also go hand in hand with engagement metrics like feature adoption of daily active users (DAU) or monthly active users (MAU).
What it is: Tracks the success of marketing campaigns for new product launches.
How to find it: Based on qualitative metrics like user growth rate, feature adoption, and feedback.
Retention Metrics
Churn/Customer Retention Rate
The Churn or Customer Retention Rate is a critical indicator of a product's ability to maintain its customer base over time. PMs analyze this metric to understand the product's value and usability, looking for areas to improve customer satisfaction and reduce churn. PMMs view this rate as a reflection of the effectiveness of their engagement and loyalty strategies, shaping their efforts to keep customers connected and satisfied with the product.
What it is: Measures the percentage of customers retained over time.
How to find it: Customer Retention Rate = [(Customers at End of Period - New Customers) / Customers at Start of Period] × 100%.
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a powerful tool for both PMs and PMMs to measure customer loyalty and satisfaction. PMs use NPS to understand how users perceive the product, which can guide improvements and enhancements. For PMMs, NPS is invaluable in gauging customer sentiment, shaping marketing messages to reinforce positive experiences and address any concerns. Note, following up with these customers to hear about their experiences is essential.
What it is: Gauges customer loyalty and satisfaction.
How to find it: NPS = % of Promoters - % of Detractors.
Engagement Metrics
Feature Adoption Rate
The Feature Adoption Rate is essential for understanding how users are interacting with specific features of a product. PMs rely on this metric to determine which features resonate with users, guiding future product development and enhancements. For PMMs, understanding feature adoption is key to crafting effective marketing campaigns that promote underutilized features or highlight popular ones.
What it is: Tracks the usage of specific product features.
How to find it: Feature Adoption Rate = (Number of Users Using the Feature / Total Number of Users) × 100%.
User Engagement Rates
Understanding User Engagement Rates is crucial for both PMs and PMMs. It encompasses various aspects such as daily and monthly active users, session duration, and frequency of interactions. For PMs, these metrics provide a comprehensive view of how the product is used, guiding decisions to enhance user experience. For PMMs, engagement rates are invaluable for developing targeted marketing strategies that drive further engagement and product adoption.
What it is: Measures how users interact with the product.
How to find it: Involves tracking various metrics like DAUs, MAUs, session duration, and interaction depth.
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) is a critical financial metric that bridges the gap between product management and marketing. It provides an average of the revenue generated per user, offering insights into the product's revenue-generating capabilities. PMs use this metric to make
informed decisions about product pricing and feature prioritization, while PMMs utilize it to understand the impact of different customer segments on revenue.
What it is: Calculates average revenue generated per user.
How to find it: ARPU = Total Revenue / Total Number of Users.
Join Efforts, Win
For PMs and PMMs, focusing on these growth, retention, and engagement metrics provides a strategic framework for driving product success and market growth. These metrics not only offer insights into current performance but also guide future strategies for both product development and marketing efforts.
You can only affect change when you are tracking and measuring progress. This is why it's critical that these teams not only track these metrics but also monitor them together. Then, communicating regularly around these and building products and goals to improve the shared value indicators.