Ready to launch a new product? Interested in revamping an existing one? Even the most innovative, ingenious product every created can flop big time if you’re not prepared to keep tabs on performance as you head to market. Key performance indicators, otherwise known as KPIs, can help you track progress, profitability and efficiency in real-time so you can optimize your campaign and maximize everything from reach to ROI.
Here are the five metrics crucial to assessing the performance of a product:
Conversion Rate
One major goal of a marketing or sales campaign is to get consumers to take a specific action. The amount of prospects to complete that action equals your conversion rate. When you’re launching a product, your target actions might be:
- Signing up for your newsletter
- Clicking on an ad
- Buying the product
Average conversion rate differs depending on the target action as well as the industry, so be careful what number you’re using as a benchmark.
New Customers
If you’re a new company flogging a single product, it’s easy to know whether that product is attracting new customers. If they’re buying your product, they’re now a new customer. When you’ve been in business for a while and you’re launching a new product, it’s nice to know if you’re building an audience based on the brand in general or because that new product is extending your reach.
Active Users
If you’re selling a digital product such as an app or online course, finding out how many people are using that product acts as a predicator of both customer satisfaction (though use is just one aspect of that) and potential for growth. For instance, say you’re in the SaaS (software as a service) space and encouraging people to sign up for your project management platform. Total number of signups is important, but knowing your active users also helps tell you whether people are following through on their purchase.
A high number of active users is encouraging — your product must be easy to use and addressing the problem it’s intended to solve. A low number of active users could mean your UX is subpar or that customers don’t think the product fits their needs as expected.
Feature Usage
Feature usage is an extension of active users. Now you’re not only looking at whether people are signing on to your product but also which features they seem to gravitate toward. This information helps underscore which features appeal to your demographic and could be used in marketing campaigns to help boost interest and conversion rates.
Net Promoter Score
NPS is a fantastic KPI because it’s like social proof and customer satisfaction rolled into one. Net promotor score measures how likely it is that a customer will recommend your product to other people. Surveys are the go-to learning tool here. Sending out an email or use social media to request feedback. Recommendations are a good sign.
Product performance metrics are just one way to measure the health of your company. Learn more about key business performance metrics and empower your whole team to build a better campaign using data.
