Professional Documents
Culture Documents
Product Metrics
Explained
Average revenue per user (ARPU) 1
How much revenue a company makes from a
c u s t o m e r i n a s p e c i fi e d p e r i o d o f t i m e ( m o s t l y
m o n t h l y o r y e a r l y ) .
A R P U = N o . o f o r d e r * A v e r a g e o r d e r v a l u e .
F o r S A A S c o m p a n i e s :
r e v e n u e ( M R R ) / N o . o f a c t i v e c u s t o m e r s
hellopm.co
Cost to acquire a customer (CAC) 2
H o w m u c h a c o m p a n y s p e n d s t o
a c q u i r e a c u s t o m e r .
T h i s g e n e r a l l y i n c l u d e s m a r k e t i n g , s a l e s
a n d o t h e r c o s t s r e q u i r e d t o c o n v i n c e a c u s t o m e r .
B u s i n e s s e s w i t h l o w
“ a v e r a g e r e v e n u e p e r u s e r ” ( A R P U )
c a n n o t a ff o r d t o p a y a l o t t o a c q u i r e a n i n d i v i d u a l
c u s t o m e r , h e n c e t h e i r C A C
s h o u l d b e l o w . *
company.
o v e r a p e r i o d o f t i m e .
l o o s e 2 0 c u s t o m e r o u t o f e v e r y 1 0 0 a f t e r a m o n t h .
b e g i n n i n g ) X 1 0 0
hellopm.co
Rate of conversion 5
The ratio of users numbers between two steps in
t h e u s e r j o u r n e y .
C o n v e r s i o n r a t e f r o m w e b s i t e t r a ffi c t o r e g i s t r a t i o n
w i l l b e 1 0 % i f o u t o f e v e r y
registered users.
m a k e s i n a m o n t h f r o m i t s a c t i v e u s e r s .
hellopm.co
Daily active users/Monthly active users
(DAU/MAU)
7
Number of users who do a core action in your
p r o d u c t i n a d a y / m o n t h .
O n w h a t s a p p 7 0 0 m i l l i o n u s e r s s e n d / r e c e i v e
a t l e a s t o n e m e s s a g e e v e r y d a y .
hellopm.co
DAU/MAU ratio:
Indicator of stickiness of the product. High
8
engagement product (entertainment, social media,
Session duration: 9
How much time does a user spends in a session
a n d e n t e r t a i n e n t ( n e t fl i x , y o u t u b e ) .
action.
hellopm.co
Retention rate:
11
The percentage of customer who keep on using
y o u r p r o d u c t .
b e g i n n i n g o f t h e p e r i o d
E x a m p l e :
hellopm.co
Number of user actions per session
12
S i g n i fi e s t h e e n g a g e m e n t d u r i n g a s e s s i o n .
session (Facebook).
13
A customer loyalty and satisfaction measurement
s c a l e o f 0 - 1 0 .
g i v i n g ( 0 t o 6 ) .
hellopm.co
Average order value - AOV
14
T h e a v e r a g e r e v e n u e m a d e f r o m o n e o r d e r .
month.
15
Ratio of number of people clicking a button to
p r e s e n t .
M u l t i p l e b y 1 0 0 t o m a k e i t a p e r c e n t a g e .
U s e d f r e q u e n t l y i n m e a s u r e e ff e c t i v e n e s s o f a d -
c r e a t i v e s e t c .
hellopm.co
Want more?
hellopm.co/join
hellopm.co