> For the complete documentation index, see [llms.txt](https://iam.highonproduct.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://iam.highonproduct.com/modules/essentials/metrics-for-product-management.md).

# Metrics for Product Management

Metrics are CRUCIAL for understanding your users and whether your product is delivering value. Numbers tell a story. And you need to speak that language.

First, let's understand the difference between Metrics, KPIs, and OKRs. Take a look at this article:

{% embed url="<https://www.splunk.com/en_us/blog/learn/okr-kpi-metrics.html>" %}

### Some Commonly Used Metrics

* Quantitative (numbers-focused): MAU, conversion rate, revenue
* Qualitative (user feedback): NPS, satisfaction scores, interviews
* Leading (predictive): New sign-ups, quality of inbound leads
* Lagging (historical): Revenue, churn rate
* Business: Revenue, profit margins, acquisition costs
* Product: Adoption, retention, feature usage

### Selecting your Metrics

The AARRR framework is a model for tracking and optimizing the customer journey. It categorizes metrics into the following stages:

* Acquisition/Awareness - How do you acquire new users?
* Activation - Do users have a great first experience?
* Retention - How often do users come back?
* Referral - How do you incentivize sharing?
* Revenue - How do you monetize users?

Refer to this blog to understand metrics (and selecting your metrics) in detail:

{% embed url="<https://mixpanel.com/blog/product-management-metrics-and-analytics/>" %}