20 Product Metrics you Should be Tracking
Learn how to track essential product metrics to see where your business is going, how users interact with your product, and how much revenue you’re making with it.
If you’re concerned about how tricky it can be to track dozens of metrics to find out if your product is performing well, you’ve come to the right place.
In this blog post, we’ll explain 20 product metrics you should be tracking — and clear up why you should track them in the first place.
First, let’s see why choosing the right one can have a deep impact on your company’s financial and growth outlook.
Why picking the right product metrics is so important
In product development, data is king. But not just any data — the right data. Choosing the correct product metrics to track helps you:
Make informed decisions: The right metrics act as signposts, guiding your product strategy and decisions. They give you clear, objective information about how your product is performing and how users are engaging with it.
Focus on what really matters: With a plethora of data available, it's easy to get overwhelmed. The right metrics help you cut through the noise and focus on the aspects that truly drive your product's success.
Measure progress and spot issues: By tracking the right metrics, you can clearly see if your product is moving in the right direction. They can also serve as an early warning system, highlighting potential issues before they become major problems.
Keep growing, keep customers happy: Understanding what makes your users tick allows you to tailor your product to their needs. This leads to a better user experience, increased engagement, and, ultimately, business growth.
The wrong metrics, on the other hand, can be misleading or irrelevant. They might paint a rosy picture when things aren't going well, or they might focus on vanity metrics that don't translate into meaningful business results.
Top 20 product performance metrics to track
#1 Daily Active Users (DAU)
What is it?
Daily active users (DAU) is a count of unique users who interact with your product or app within a 24-hour window. It's a snapshot of how many people are finding your product valuable enough to use on a daily basis.
Why should you track it?
DAU is a vital sign for your product's overall health and engagement. It reveals trends in user interest, the immediate impact of new features, and helps gauge if your product is becoming more or less "sticky" over time.
A growing DAU often indicates increasing product-market fit and potential for long-term growth.
How to calculate it:
DAU = Number of Unique Users Engaging Daily
#2 Monthly Active Users (MAU)
What is it?
Monthly active users (MAU) is a count of unique users who interact with your product within a 30-day window. It provides a broader perspective on user engagement compared to daily active users (DAU) and can help identify longer-term trends and patterns.
Why should you track it?
MAU is a key indicator of your product's overall user base and engagement. It helps you understand how many people are actively using your product over time, measure the effectiveness of marketing campaigns, and assess the overall health of your user base.
How to calculate it:
MAU = Number of Unique Users Engaging Monthly
#3 Customer Acquisition Cost (CAC)
What is it?
Customer acquisition cost (CAC) is the average amount of money you spend to acquire a new customer. It takes into account all sales and marketing expenses, providing a clear picture of how much it costs to bring new users into your fold.
Why should you track it?
CAC is crucial for understanding the effect of your marketing and sales efforts. By comparing CAC to customer lifetime value (LTV), you can determine if your acquisition strategies are profitable in the long run. It also helps you identify which acquisition channels are most cost-effective.
How to calculate it:
CAC = Total Acquisition Expenses / Number of New Customers Acquired During the Period
#4 Customer Lifetime Value (LTV)
What is it?
Customer lifetime value (LTV) is a prediction of the total net profit a customer will generate for your business throughout their entire relationship with you. It's a way to gauge the long-term value each customer brings to your company, not just the revenue from a single purchase.
Why should you track it?
LTV is essential for making informed decisions about sales, marketing, and customer service. It helps you determine how much you can afford to spend on acquiring new customers, identify your most valuable customer segments, and tailor your strategies to maximize long-term profitability.
How to calculate it:
LTV = Average Purchase Value * Purchase Frequency * Retention Time Period
#5 Churn rate
What is it?
Churn rate is the percentage of customers or users who stop using your product or service over time. It's a measure of how well you're keeping your customers on board and can serve as a warning sign for any problems with your product, pricing, or customer support.
Why should you track it?
Churn rate is an indicator of your business’s long-term sustainability. A high churn rate means you're losing customers faster than you're acquiring them, which means stagnant or declining growth.
By keeping a close eye on your churn rate, you can recognize and address the friction points causing customers to part ways.
How to calculate it:
Churn Rate = (Number of Customers Lost During Period / Number of Customers at the Start of Period) * 100
Not every business will have the same definition of churn, though. If a company’s product relies on seasonality or an ever-changing customer engagement pattern, this equation will have more variables.
#6 Retention rate
What is it?
Retention rate is the percentage of users who continue to use your product over a given period. It's the opposite of churn rate and measures how well you keep customers engaged and satisfied.
Why should you track it?
High retention rates translate to loyal customers, recurring revenue, and stronger growth potential. Once you've got a handle on how many customers are sticking around, you can see if all that work you're doing to keep them happy is actually paying off.
How to calculate it:
Retention Rate = (Number of Customers at End of Period - Number of New Customers Acquired During Period) / Number of Customers at the Start of Period * 100
#7 Revenue growth rate
What is it?
Revenue growth rate is the percentage change in your revenue over a certain time, usually compared to the previous period (month-over-month or year-over-year). It's a key indicator of how quickly your business is expanding and generating more income.
Why should you track it?
Revenue growth rate is like the heartbeat of your business's financial health. It shows how your sales and marketing strategies are working and helps you figure out where you're headed.
When your revenue rate is growing, it's an obvious sign that your business is doing well. This usually leads to scaling up your operations.
How to calculate it:
Revenue Growth Rate = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] * 100
#8 Net Promoter Score (NPS)
What is it?
The net promoter score (NPS) is a commonly used metric for measuring customer satisfaction and loyalty. It asks a straightforward question: on a scale of 0 to 10, how likely would you be to recommend our product or service to a friend or colleague?
Why should you track it?
It helps you gauge customer satisfaction, identify areas for improvement, and predict future business growth.
A high NPS indicates strong customer advocacy and potential for positive word-of-mouth marketing, while a low NPS can highlight areas where you need to improve the customer experience.
How to calculate it:
Survey your customers: Ask them the question, "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
Categorize respondents:
Promoters (9-10): Loyal enthusiasts who will likely recommend you.
Passives (7-8): Satisfied but not enthusiastic, could switch to competitors.
Detractors (0-6): Unhappy customers who may damage your brand's reputation.
Calculate NPS: NPS = (% of Promoters) - (% of Detractors)
#9 Conversion rate
What is it?
Your conversion rate is the percentage of users who complete a specific action or goal on your website or app. This action could be anything from making a purchase to signing up for a newsletter or clicking/tapping on a specific button.
Why should you track it?
By tracking conversion rates, you can identify which pages or features are most successful in driving conversions, optimize your user experience, and improve your overall business results.
How to calculate it:
Conversion Rate = (Number of Conversions / Total Number of Visitors) * 100
#10 Average session duration
What is it?
Average session duration is the average amount of time users spend actively engaged with your product during a single session. A session typically begins when a user opens your app or website and ends after a period of inactivity (often 30 minutes).
Why should you track it?
Longer sessions suggest that users are finding value and are more likely to convert, while shorter durations may indicate issues with user experience, content relevance, or navigation. Keep in mind this will depend on the type of product or service you’re offering.
How to calculate it:
Average Session Duration = Total Session Duration / Total Number of Sessions
#11 Bounce rate
What is it?
Bounce rate is the percentage of visitors who land on your website or app and leave without taking any further action, such as clicking on a link, viewing another page, or making a purchase.
Why should you track it?
Let’s start with a common misconception. While a high bounce rate might seem alarming, it's important to understand that it doesn't always indicate a problem. It might mean users are completing actions successfully and faster. Looking at just this one metric can be misleading.
It can also be a valuable metric for assessing the effectiveness of your landing pages, content relevance, and overall user experience. A high bounce rate (with the caveat we’ve just mentioned) might signal that visitors aren't finding what they're looking for.
How to calculate it:
Bounce Rate = (Number of Single-Page Sessions / Total Number of Sessions) * 100
#12 Feature usage
What is it?
Feature usage refers to how often and to what extent users interact with specific features within your product or service. It tracks which features are popular, underutilized, or not used at all.
Why should you track it?
Feature usage data is a goldmine of information for product development and improvement. It helps you understand which features are delivering value to users and which ones might need to be refined or even removed.
This data is crucial for prioritizing development efforts, improving the user experience, and making sure your product stays relevant.
How to calculate it:
Feature usage can be tracked using a variety of methods, including:
Product analytics tools: These tools can collect and analyze user interaction data to provide detailed reports on feature usage patterns.
Surveys and feedback: Gathering direct feedback from users can provide qualitative insights into how they perceive and use different features.
A/B testing: By experimenting with different feature variations, you can measure their impact on user engagement and overall product performance.
#13 Product-Qualified Leads (PQLs)
What is it?
PQLs are highly engaged users who have taken specific actions indicating their potential to become paying customers. They have shown a strong interest in your product by signing up for a free trial, using a key feature, or attending a product demo.
Why should you track it?
Tracking PQLs helps you prioritize your sales and marketing efforts, focusing on those who are already demonstrating a strong interest in your product and a higher potential for conversion.
How to calculate it:
There's no one-size-fits-all approach to tracking PQLs, as the definition of what constitutes a PQL can vary depending on your product and business model. Common criteria for identifying PQLs include:
Usage-based triggers: Reaching a certain usage threshold within your product (e.g., completing a key task, using a specific feature multiple times).
Engagement levels: Demonstrating consistent and active engagement with your product (e.g., logging in frequently, interacting with multiple features).
Conversion actions: Taking specific actions that indicate a strong interest in becoming a paying customer (e.g., requesting a demo, exploring pricing options).
#14 Time To Value (TTV)
What is it?
Time to value (TTV) is the amount of time it takes for a new customer to experience the core value your product or service promises. This "aha moment" can be defined as the point at which users realize the benefits they sought or achieve their desired outcome.
Why should you track it?
TTV is a critical metric for understanding the effectiveness of your onboarding process and overall product experience.
A shorter TTV indicates a smoother onboarding experience, leading to higher user satisfaction and increased retention. By tracking TTV, you can identify bottlenecks or areas for improvement in your onboarding flow.
How to calculate it:
TTV can be calculated by measuring the time from a user's initial signup or purchase to the point at which they achieve a specific milestone or desired outcome. This milestone can vary depending on your product and target audience.
#15 Cost Per Acquisition (CPA)
What is it?
Cost per acquisition (CPA) is the average amount you spend on marketing and sales to acquire a single paying customer. It's a way to see how well you're acquiring new customers.
Why should you track it?
CPA helps you evaluate the return on investment (ROI) of your marketing and sales campaigns. By comparing CPA to the average revenue generated by a customer (LTV), you can determine if your acquisition strategies are profitable.
If your CPA is too high relative to your LTV, it may indicate that you need to refine your targeting, messaging, or channels to acquire customers more cost-effectively.
How to calculate it:
CPA = Total Marketing and Sales Expenses / Number of Customers Acquired
#16 User stickiness
What is it?
User stickiness measures how frequently users return to your product within a given time frame. It's typically expressed as a ratio of daily active users (DAU) to monthly active users (MAU), representing the percentage of monthly active users who engage with your product daily.
Why should you track it?
A high stickiness ratio indicates that users find your product valuable enough to use regularly, while a low ratio may signal that you need to improve user experience or find ways to re-engage users who have dropped off.
How to calculate it:
Stickiness = (DAU / MAU) * 100
#17 Revenue Per User (RPU)
What is it?
Revenue per user (RPU), also known as average revenue per user (ARPU), is the average amount of revenue generated by each user during a specific period. It's a measure of your product's monetization effectiveness and the value your users derive from it.
Why should you track it?
It helps you assess the success of your pricing strategies, identify high-value customer segments, and evaluate the impact of new features or changes to your product on revenue generation.
How to calculate it:
RPU = Total Revenue / Number of Users
#18 Activation rate
What is it?
Activation rate is the percentage of new users who complete a set of predefined actions that indicate they have experienced the core value of your product.
These actions often involve completing onboarding, using key features, or reaching a milestone that demonstrates they "get" what your product is about.
Why should you track it?
Similarly to TTV, A high activation rate means your onboarding process is smooth and users are quickly finding value, increasing the likelihood they'll stick around and become loyal customers. A low rate could signal problems in your onboarding flow, user experience, or overall product-market fit.
How to calculate it:
Activation Rate = (Number of Activated Users / Total Number of New Users) * 100
#19 Support tickets
What is it?
Support tickets are formal requests submitted by customers to seek help, report issues, or ask questions about your product or service. They can be submitted through various channels, such as email, online forms, or in-app chat support.
Why should you track it?
By looking at the volume, types, and resolution times of support tickets, you can identify recurring problems, prioritize customer needs, and proactively address issues before they escalate.
Ultimately, tracking support tickets can help you improve your product, enhance customer satisfaction, and build stronger customer relationships.
How to calculate it:
Most companies use customer support or help desk software to manage and track support tickets. These tools often include features like:
Ticket categorization and prioritization
Ticket status tracking (open, pending, closed)
Response time and resolution time tracking
Customer satisfaction ratings
Reporting and analytics capabilities
#20 Referral rate
What is it?
Referral rate is the percentage of new users who discover your product or service through referrals from existing customers. It measures the effectiveness of your referral program or word-of-mouth marketing efforts in generating new business.
Why should you track it?
Referrals are often a cost-effective and high-quality source of new customers. A high referral rate indicates strong customer satisfaction and loyalty, as customers are more likely to recommend products or services they genuinely enjoy.
Tracking referral rates helps you evaluate the success of your referral program, identify your most enthusiastic advocates, and focus your marketing efforts on generating more word-of-mouth buzz.
How to calculate it:
Referral Rate = (Number of Referred Customers / Total Number of New Customers) * 100
Next steps
You now have a good grasp of the importance of tracking product performance metrics to steer your business in the right direction.
But how do you effectively collect, analyze, and use this valuable data?
This is where Eppo, a powerful experimentation and feature management platform, helps you gather and experiment based on these key metrics.
Eppo is data warehouse-native, which means it centralizes product metrics in a single source of truth. So you can easily track metrics like DAU, MAU, LTV, and plenty of others.
Eppo enables you to design and run experiments focused on your core product metrics. With Eppo’s tools, you’ll be capable of:
Randomized assignments: Results are bias-free, which eliminates the risk of self-selection or other factors that could cloud the outcome.
CUPED++ acceleration: Eppo allows you to reach statistical significance quicker, reducing how long experiments can run and freeing up resources to run more.
Continuous monitoring: You also get automated alerts for traffic imbalances, data quality problems, and more to keep your experiments healthy and reliable.
These tools empower you to track and test key product metrics, helping you boost the numbers that truly matter: User engagement, retention, and your bottom line.
Learn how to track essential product metrics to see where your business is going, how users interact with your product, and how much revenue you’re making with it.
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