Are you looking to improve your product marketing strategy? If so, then you'll need to know about product marketing KPIs or key performance indicators.
KPIs can help measure progress and identify areas that need improvement. In this blog post, we'll discuss five product marketing KPIs that are essential for any business.
Product Marketing KPIs for Evaluating Product Success
Product marketers are responsible for ensuring that your products are successful.
But how do you know if your products are truly successful?
What metrics do you use to evaluate success?
There is a variety of product marketing KPIs that marketing organizations can use to evaluate success. Here are a few of the most important ones.
This is perhaps the most important metric for evaluating success. If your product is not generating revenue and you are constantly missing your revenue goals, then your product marketing efforts are lacking.
2. Market Share
Another important metric to consider is market share. If your product has a small market share, then your go-to-market strategy is not as successful as it could be.
3. Customer Satisfaction
It is also important to consider customer satisfaction when evaluating the success of any eCommerce business. If customers are not happy with your product, then you should evaluate your product features.
4. Customer Engagement
Another metric to consider is customer engagement. If people are not using your app and your daily active users metric is way below your product marketing goals, then it is not successful.
5. Customer Churn
Finally, you also need to consider churn. If people are leaving your product, then you should find out why retention rates are not successful.
These are just a few of the most important product marketing metrics. Use these KPIs to evaluate the success of your product and make sure that it is truly successful.
The Most Important Product Marketing KPIs
Product marketing key performance indicators help product marketers measure the success of their marketing campaigns and activities. Some of the most important product marketing metrics include sales volume, customer satisfaction, and market share.
Sales volume is a key product marketing KPI because it indicates how well your marketing campaigns are driving demand for your products. If you see a decline in sales volume, it may be an indication that your product launches are not as effective as they could be.
Customer satisfaction is another indicator of product marketing success. This metric measures how satisfied customers are with your product. If you see a decline in customer satisfaction net promoter score, it could mean that your product is not meeting customer needs.
Market share is a key product marketing KPI because it indicates how much of the total market for your product you have captured. If you see a decline in market share, it may be an indication that your marketing campaigns are not as effective as they could be.
There are more product marketing KPIs that you may want to track, but these are some of the most important ones. By tracking these KPIs, you can get a better understanding of how your marketing campaigns are performing and make changes if necessary.
Basic SaaS Metrics
These basic SaaS metrics are essential for product marketing managers who are looking to measure their success.
1. Customer Acquisition Cost (CAC)
This metric measures how much it costs to acquire a new customer and whether your product marketing efforts are resulting in new customers.
2. Customer Lifetime Value (LTV)
This metric measures the value of a customer over their lifetime. It can help you determine whether your marketing efforts are resulting in long-term customers.
3. Customer Churn Rate
This metric measures the percentage of customers who cancel their subscription or stop using your product and whether your marketing efforts are resulting in customers sticking around.
4. Net Promoter Score (NPS)
This metric measures how likely customers are to recommend your product to others and whether your marketing efforts are resulting in customers who are promoters of your product.
5. Product Usage Rate
This metric measures how often customers use your product so you can determine whether your marketing efforts are resulting in customers who find your product valuable.
These key metrics focus on evaluating conversion rates:
- Number of people who see your product advertisement.
- Number of people who click on your product advertisement.
- Number of people who buy your product.
Ideally, you want to see a high conversion rate at each stage. If you're not seeing the results you want, it may be time to reevaluate your product marketing strategy.
There are a number of factors that can impact conversion rates, so it's important to experiment and see what works best for your product.
User onboarding and feature adoption metrics are key performance indicators that product marketing teams use to determine whether users are successfully adopting a product and using it as intended.
There are a number of different metrics that can be used to measure user onboarding and adoption, but some of the most common include:
- Number of active users.
- Number of sign-ups.
- Number of product feature usage.
Product marketing teams should track these metrics over time to identify trends and areas for improvement. By doing so, they can optimize the user experience and increase the chances of success for new products.
Product Engagement Metrics
Here are some of the most important product engagement metrics that you should be tracking:
- Daily active users
- Engagement rate
- Churn rate
- Retention rate
- Referral rate
- Customer satisfaction
How to Use Product Marketing KPIs in Your Business
If you're in product marketing, chances are you're always looking for ways to improve your KPIs. After all, product marketing teams are key to success in any business.
Here are a few tips on how to use product marketing metrics in your business.
1. Know Your Audience
This may seem like a no-brainer, but it's important to know your target market before you start creating product launches. Once you know who your target market is, you can create product launch metrics that are relevant to them.
2. Keep It Simple
Don't try to measure everything at once. Start with a few product goals and then add more as you go. Trying to measure too many things at once will only lead to confusion and frustration.
3. Make It Actionable
Your product launch metrics should be actionable. That means they should be measurable and have a clear goal. For example, if your goal is to increase brand recognition, your KPI could be the number of people who see your ad.
4. Be Realistic
Don't set unrealistic product marketing goals for your KPIs. If you do, you'll only be setting yourself up for disappointment. Be realistic about what you can achieve and then set your KPIs accordingly.
5. Review and Adjust
Business goals are never set in stone. As your business changes, so will your KPIs. Review your KPIs on a regular basis and make adjustments as needed.
If you follow these tips, you'll be well on your way to using product marketing KPIs in your business. Just remember to keep it simple, actionable, and realistic and you'll be sure to see success.
What Are the Benefits of Tracking Product Marketing KPIs?
There are several benefits to tracking product marketing KPIs. First, it can help identify areas where sales and marketing efforts are falling short such as brand recognition, demand gen, customer acquisition cost, conversion rates, customer lifetime value, retention rates, feature adoption, and win rates.
Second, tracking KPIs can help product marketing managers and marketing professionals assess the effectiveness of their campaigns and strategies.
Third, product marketing KPIs can also help justify marketing expenditures to upper management.
Finally, tracking product marketing KPIs can help product marketing teams track progress over time and make necessary adjustments to improve results.
Why You Should Be Using Product Marketing KPIs
If you're not already using product marketing KPIs, you should be!
- They help you track progress and identify areas for improvement.
- They keep you focused on your goals.
- They help you communicate your results to stakeholders.
- They can help you make better decisions about product development and marketing strategy.
- They can help you track the ROI of your marketing efforts.
- They can help you identify new opportunities for growth.
- They can help you benchmark your performance against your competitors.
- They can help you track customer satisfaction levels.
- They can help you identify issues early on and prevent them from becoming bigger problems.
- They can help you build a strong case for future investment in product marketing.
If you're not already using product marketing KPIs, now is the time to start. They can help you track progress, identify areas for improvement, and make better decisions about product development and marketing strategy.
How Do You Measure Product Marketing Success?
There are a number of ways to measure product marketing, but some common KPIs include things like conversion rates, customer acquisition cost, customer lifetime value, and engagement metrics.
Let's break down KPIs into two stages: Pre and Post Product-Market Fit.
Product marketers tend to focus on long-term results, rather than short-term gains. This is because they understand that it takes time for a product to be adopted and that long-term success requires consistent effort.
At the pre-product-market fit stage, a company has had some success but is still trying to figure out the best strategy. It has a handful of salespeople, and an outbound-focused marketing department, and is in the early stages of implementing inbound strategies.
You can measure the success of product marketing at this stage through:
- Sales effectiveness
- Win rates in target markets
- Reasons for winning
Once you’ve nailed down your market, have a clear position, and are expanding quickly, the responsibilities of product marketing managers will start to change.
Now, instead of one person handling everything, you have a whole team, each with their own specialties.
At this stage, these KPIs start to become important:
- Brand recognition
- Feature adoption
- Conversion rates on inbound marketing channels
If you're looking to improve your product marketing strategy, then key performance indicators are essential. KPIs can help measure progress and identify areas that need improvement.
In this blog post, we've discussed important product marketing KPIs that are essential for any business. By tracking these KPIs, you'll be able to fine-tune your product marketing strategy and ensure that your business is on the right track.