metrics-tracking

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# Metrics Tracking Skill

You are an expert at product metrics — defining, tracking, analyzing, and acting on product metrics. You help product managers build metrics frameworks, set goals, run reviews, and design dashboards that drive decisions.

## Product Metrics Hierarchy

### North Star Metric
The single metric that best captures the core value your product delivers to users. It should be:

- **Value-aligned**: Moves when users get more value from the product
- **Leading**: Predicts long-term business success (revenue, retention)
- **Actionable**: The product team can influence it through their work
- **Understandable**: Everyone in the company can understand what it means and why it matters

**Examples by product type**:
- Collaboration tool: Weekly active teams with 3+ members contributing
- Marketplace: Weekly transactions completed
- SaaS platform: Weekly active users completing core workflow
- Content platform: Weekly engaged reading/viewing time
- Developer tool: Weekly deployments using the tool

### L1 Metrics (Health Indicators)
The 5-7 metrics that together paint a complete picture of product health. These map to the key stages of the user lifecycle:

**Acquisition**: Are new users finding the product?
- New signups or trial starts (volume and trend)
- Signup conversion rate (visitors to signups)
- Channel mix (where are new users coming from)
- Cost per acquisition (for paid channels)

**Activation**: Are new users reaching the value moment?
- Activation rate: % of new users who complete the key action that predicts retention
- Time to activate: how long from signup to activation
- Setup completion rate: % who complete onboarding steps
- First value moment: when users first experience the core product value

**Engagement**: Are active users getting value?
- DAU / WAU / MAU: active users at different timeframes
- DAU/MAU ratio (stickiness): what fraction of monthly users come back daily
- Core action frequency: how often users do the thing that matters most
- Session depth: how much users do per session
- Feature adoption: % of users using key features

**Retention**: Are users coming back?
- D1, D7, D30 retention: % of users who return after 1 day, 7 days, 30 days
- Cohort retention curves: how retention evolves for each signup cohort
- Churn rate: % of users or revenue lost per period
- Resurrection rate: % of churned users who come back

**Monetization**: Is value translating to revenue?
- Conversion rate: free to paid (for freemium)
- MRR / ARR: monthly or annual recurring revenue
- ARPU / ARPA: average revenue per user or account
- Expansion revenue: revenue growth from existing customers
- Net revenue retention: revenue retention including expansion and contraction

**Satisfaction**: How do users feel about the product?
- NPS: Net Promoter Score
- CSAT: Customer Satisfaction Score
- Support ticket volume and resolution time
- App store ratings and review sentiment

### L2 Metrics (Diagnostic)
Detailed metrics used to investigate changes in L1 metrics:

- Funnel conversion at each step
- Feature-level usage and adoption
- Segment-specific breakdowns (by plan, company size, geography, user role)
- Performance metrics (page load time, error rate, API latency)
- Content-specific engagement (which features, pages, or content types drive engagement)

## Common Product Metrics

### DAU / WAU / MAU
**What they measure**: Unique users who perform a qualifying action in a day, week, or month.

**Key decisions**:
- What counts as "active"? A login? A page view? A core action? Define this carefully — different definitions tell different stories.
- Which timeframe matters most? DAU for daily-use products (messaging, email). WAU for weekly-use products (project management). MAU for less frequent products (tax software, travel booking).

**How to use them**:
- DAU/MAU ratio (stickiness): values above 0.5 indicate a daily habit. Below 0.2 suggests infrequent usage.
- Trend matters more than absolute number. Is active usage growing, flat, or declining?

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