Product metrics — complete list.

Saving and storing relevant data allows you to answer all questions related to acquiring new customers, the sales process, and the behavior of users inside the product. The metrics listed below are crucial to business management and give important information on what to focus on when it comes to product development.

Metrics are divided to:

1. Financial
2. Traffic
3. Engagement
4. Other

🔴 when selecting the metrics for a product, those marked in red in the table are the metrics that should be there. You should choose 10 metrics for the product — the less, the better (it’s easier to control the data).

Financial metrics

MRR 🔴

Monthly Recurring Revenue — is a monthly, recurring income, i.e., the amount of income your company can expect each month. The most important feature of the MRR is the predictability resulting from repeatability and understanding of the factors influencing its changes.

MRR = a number of customers * average amount of active subscriptions.

The metric is helpful in SaaS businesses or other businesses with a subscription model. They are used interchangeably with the ARR.

ARR 🔴

Annual Recurring Revenue— This helps you calculate your company’s revenue for that year but also helps you predict future revenue and growth and how much momentum you can count on in terms of sales, renewals, and upgrades that can help you develop your strategy for the upcoming fiscal year.

ARR = Average Annual Profit / Average Investment

Like MRR, this metric is helpful in SaaS businesses or other businesses with a subscription model.

Gross revenue 🔴

(before deducting VAT, other taxes, and fees) was generated by the product in the selected period.

The formulas:
- gross revenue = (number of goods sold) x (price per item)
- gross revenue = (number of customers) x (price of service)
give you the gross revenues for both product-based and service-based income.

Conversion rate 🔴

Conversion rate = Paying users / Active users.