Key product metrics through the product life cycle
Most of us are aware of the typical Product Life Cycle curve (PLC) but product management leaders ought to be on top of key metrics that…
Most of us are aware of the typical Product Life Cycle curve (PLC) but product management leaders ought to be on top of key metrics that define success in each of the PLC stages.
The purpose of chasing the right metrics in each of the life cycle stages is to ensure the developed/built product delivers value to customers, is viable to the team, and profitable for the company.
There is, of course, the market discovery and product discovery phases before you develop a product and introduce it in the market.
Market discovery is about identifying a problem worth solving and identifying the right opportunities worth pursuing.
Regardless of identifying a new problem via market discovery or deciding to solve an existing problem innovatively, it’s essential for companies to do a good job at product discovery — it’s about identifying the right product to build which will be valuable to the target customer and feasible & profitable for the company.
Now onto the metrics…
Product Introduction Stage
Goal: Achieve product-market fit ASAP
A good and a faster fit means the product will enjoy maximum differentiation for a longer period of time
Key metrics
NPS
Product management strategies
Take the MVP approach with a sincere product discovery process
Induce product trials (as needed)
Understand who’s really using the product, which aspects of the product are resonating the most
Discover unmet needs & new insights from customers and the overall market
Iterate fast on the learnings
Growth Stage
Goal: Maximize market-share
After product market fit is achieved, and as the news of a new good product arrival spreads, there will be new players jumping into the ring for a fight. So, market share becomes the obvious metric to focus on.
Key metrics
Primary
Market Share Growth Rate
Customer Acquisition Rate
User Engagement
NPS
Secondary
Unit Economics
Product management strategies
Product differentiation becomes key
Mine data to uncover patterns and new insights
Automate customer on-boarding
Continue iterating and improving the product
Continue scaling to support growing numbers & increased usage
Do not compromise on product quality
Maturity Stage
Goal: Retain market-share
Key metrics
Hold/grow market share
Unit Economics & ARPU
Repeat usage
Customer churn
Product management strategies
Optimize COGS
Create fine product distinctions, focus on enhancements with high ROI
Consider new market segments and uncover unique needs the product could address
Declining Stage
Goal: Decline gracefully, with a win-win strategy for the customer and the company
Product management tactics
Ensure the product works and is compatible with the latest OS/browsers/etc.
Address critical/trending field issues that could potentially become a PR nightmare
Address security issues
Scale down infra to optimize cost
Give long lead time to customers
Hope the post is useful, feedback is welcome.