We know that people are talking about the success of the product we designed. But how do you see how successful a product is? then the answer is a KPI or product metric.

The product has different KPIs. depending on what type of KPI or metric we use to calculate the success of our product. Therefore, it is best to ask several things before defining the measures to use.

Which metrics are suitable for our product?

The range of success measures for the products we develop is certainly different. As social media products, they are definitely rated based on daily active users or DAUs. At the same time, for e-commerce products, of course, how often is the bounce or traffic of the user.

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There are several ways to measure a KPI using its metrics.

## Based on Company Revenue

#### Monthly Recurring Revenue Metrics

Monthly Recurring Revenue is a way to calculate product success based on revenue.

Calculation formula

*If the company has a price level, such as annually, quarterly or semi-annually, you can divide it to get a monthly price.

#### Average Revenue per User Metric

ARPU is a derivative of MRU that calculates the purchasing potential of our users. Usually used in online stores or online stores. ARPU is a derivative of MRU that is calculated

Calculation formula

*ARPU is a measure used when the price of a product increases, decreases or changes. This metric can also be used to compare with other competitors.

#### Customer Lifetime Value

Another measure of product success is CLTV, or Customer Lifetime Value. This is also a derivative of the previous metric. CLTV is calculated based on the probability that the user will be able to complete the purchase. Using this metric to calculate product success provides more comprehensive information than simply using average revenue per user.

formula

*Knowing the number of purchases by users can help to use marketing tools and still try to make a profit

#### Customer acquisition coast

Metrics to calculate money spent for marketing purposes. . This is of course related to the previous metric.

Several formulas can be used and the following are examples.

The above metrics are metrics based on company revenue. But what if the product is still new? Perhaps user behavior/habits metrics can be used to calculate product success.

### Based by User Behavior

Calculation of user habits related to our products can of course be simplified with the help of platforms that provide these services. for example Google Analytics, HotJar or Appflyers.

The following calculations are used to determine user behavior:

## Percentage of active users

The number of users downloading our application may not be a good estimate. Because everyone can download, but not everyone uses the products that we bring to the market. Therefore, the percentage of active users is a metric that tells you how many users there are per day or per month out of all our users.

Formula:

*Knowing the average day per month tells you where you are in the product lifecycle

#### Session duration

This metric is used to calculate how long users stay in the product we are planning

formula:

This metric allows us to calculate how long it takes the user to complete the product.

#### Bounce rate

Bounce rate is the condition where a user leaves after viewing just one page. It can show if users are interested in the product/app we are designing.

Knowing this may not provide answers to problems encountered by users/visitors. But at least we’ll know there’s something wrong with the screen we’ve created.

Knowing what is being measured naturally informs what we should develop with our products. Therefore, use the appropriate matrix for our product.