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Measure the Immeasurable: Beyond Vanity
Metrics
Sari Harrison Hannah Flynn
With: Moderated by:
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Empowering Product Teams
Webinar Series
Revulytics gives any software producers deep and actionable insight into
who is using their software products and how they are being used, and the
out-of-box analytics that enable them to grow incremental revenue, convert
and retain customers, and make decisions about licensing and cloud
transformation strategies.
Empowering Product Teams
Webinar Series
Click on the Questions panel to
interact with the presenters
www.productmanagementtoday.com/webinar-series/empowering-product-teams
About Sari Harrison
Sari spent more than 20 years in high-tech R&D at Apple and Microsoft. As a software engineer, engineering
manager, product manager, and product management leader, she has delivered half a dozen successful “1.0”
products, along with countless iterations of existing products, in B2B2C and B2C. She is now focused on teaching
product management and product management consulting.
About Hannah Flynn
Hannah went to The University of Chicago, where she majored in Environmental Studies with a concentration in
Economics and Policy. She now works with Aggregage on social media strategy and webinar production for Product
Management Today and B2B Marketing Zone.
Empowering Product Teams
Webinar Series
MEASURE THE
IMMEASURABLE
BEYOND VANITY METRICS
SARI HARRISON
HTTPS://MEDIUM.COM/@SARIHARRISON
WWW.SECONDNATUREINNOVATION.COM
WE ARE RESPONSIBLE FOR
THE IMPACT OF OUR
PRODUCTS
GOAL: SHIFT THE METRICS CONVERSATIONS
“Impact”
Happier
More productive
More free time
Amazing experiences
Revenue
Usage
NPS
“Vanity”
Time spent
AARRR
VANITY METRICS ARE
TRAILING INDICATORS!
Adding value? Or extracting value?
Adding value? Or monthly active users?
Adding value? Or referrals?
MIND THE GAP
Vision/value
proposition,
strategy
Vanity-based
Metrics, KPIs,
OKRs
CLOSE THE GAP
Vision/value proposition,
strategy, goals
Things we measure and
strive forImpact Metrics
ABOUT ME
Apple
• Engineer
• Engineering
manager
• DRI
• 92-00
Microsoft
• PM
• Lead PM
• GPM
• 01-14
Apple
• Head of
Apple maps
PM
• 14-18
SecondNatureInnovation
• PM
Consultant
• Innovation
Coach
• PM Trainer
Data-Driven becomes a “thing”
APPLE MAPS VISION
Apple ecosystem customers are able to
seamlessly explore and navigate the
world
APPLE MAPS
STRATEGY
Beautiful
Safe and relaxing
Supports the Apple ecosystem
Unmatched attention to detail
Fresh and accurate data
Consistent with the Apple brand
APPLE MAPS
STRATEGY
Beautiful
Safe and relaxing
Supports the Apple ecosystem
Unmatched attention to detail
Fresh and accurate data
Consistent with the Apple brand
APPLE MAPS MEASURABLE METRICS
Usage
• Launches
• Time spent
• Feature usage
• MAU, DAU, WAU
• …
Financial
• Cost
• ~0 revenue
Quality
• Major navigational errors
• Time from report to fix
• Search “wins”
• Autocomplete performance
• …
APPLE MAPS
IMMEASURABLES
Most beautiful
Easiest to read and understand
Safest, most relaxing experience
Glanceable
Community friendly (brand)
Most trusted
Proactive
Question: should
we aggressively
reroute around
traffic ala Waze?
Answer (typical metrics): yes
Answer: no
Not community friendly
Not safest and most relaxing
experience
Engagement != valuable
Answer (typical metrics): no
Answer: yes
Apple ecosystem integration
Least effort
Answer (typical metrics): yes
Answer: no, users did not
understand what was going
to happen
POLL QUESTION: DO YOU HAVE A STRATEGY THAT
GOES BEYOND VANITY?
Yes/No/We don’t have a strategy
COUNTER EXAMPLE – BING ADS
Prioritization exercise was to estimate revenue…
1. Number of customers that adopt the new format
2. CPC/CPM … average? min? max?
3. How often ad would be displayed
= Total guesswork 🔮
= Gamed
= Wrong 100% of the time
POLL: DOES YOUR CURRENT PRIORITIZATION
FRAMEWORK GO BEYOND VANITY?
Yes/no/we don’t prioritize
BEYOND VANITY FRAMEWORK
• Types of success metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
BEYOND VANITY FRAMEWORK
• Types of metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
USAGE
Monthly active users, time spent, launches, page
views, churn, usage, abandonment…
Trailing indicator
Measurable
Product is only one factor
FINANCIAL
Revenue, subscriptions, advertising dollars, cost
Trailing indicators of value
Measurable
Product is only one factor
QUALITY
Performance, bug counts, reliability
Leading indicator
Measurable
Product is primary factor
IMPACT:
The “metrics”
that fill the gap
Unique to your
[business/product/feature] vision
Set the standard. Not leading or
trailing.
Possibly measurable
Product is the only factor
BEYOND VANITY FRAMEWORK
• Types of metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
ANY METRIC APPLIES TO SOME UNIT OF THE
BUSINESS
Business
• Is our business thriving?
• Are we extracting value
from our customers in
return for the value we
provide?
• Is our business model
working?
• Examples: revenue, sales,
cost per user, pricing
Product
• Is our product adding
value?
• Is it high quality?
• Examples: usage,
engagement, retention,
referral
Feature/Feature Area
• Did we solve the problem
we intended to solve?
• Did we do it well?
• Is it discoverable?
• Examples: usage,
abandonment,
performance
BEYOND VANITY FRAMEWORK
• Types of metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
CONVERSATIONS
THAT INVOLVE
METRICS
understanding
inspiring ideas
prioritization
hypothesis generation and validation
readiness
context and alignment
BEYOND VANITY FRAMEWORK
• Types of success metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
CALL TO ACTION
1. CREATE IMPACT METRICS TO COMPLEMENT YOUR EXISTING
USAGE, FINANCIAL, AND QUALITY METRICS
2. BE THOUGHTFUL ABOUT WHICH METRICS YOU USE FOR WHAT
CONVERSATION
BEYOND VANITY FRAMEWORK
• Types of success metrics
• Things that metrics apply to
• What we are using them for
• Call to action
• How exactly do we do this?
IT ALL STARTS FROM YOUR USER GOALS
Vision and Strategy Goals
Metrics,
Features (or
sub-features)…
APPLE MAPS VISION
Apple ecosystem customers are able to
seamlessly explore and navigate the
world
APPLE MAPS
STRATEGY
Beautiful
Safe and relaxing
Apple ecosystem integration
Unmatched attention to detail
Fresh and accurate data
Consistent with the Apple brand
APPLE MAPS
GOALS
Help the user plan how to get somewhere
Help the user navigate to their chosen destination
Help the user decide where to go
Help the user discover new things
Help the user understand the world around them
User has to do as little work as possible
User feels safe and relaxed while navigating
Developer efficiency
Operational efficiency
Fresh and accurate data
APPLE MAPS
USER GOALS
Help the user plan how to get somewhere
Help the user navigate to their chosen destination
Help the user decide where to go
Help the user discover new things
Help the user understand the world around them
User has to do as little work as possible
User feels safe and relaxed while navigating
User trusts our answer
Developer efficiency
Operational efficiency
Fresh and accurate data
BING ADS
GOALS
Reduce friction for
advertisers
Make Bing profitable
Help the user discover new
products and services
Ads should not negatively
impact Bing usage metrics
BING ADS USER
GOALS
Reduce friction for
advertisers
Make Bing profitable
Help the user discover new
products and services
Ads should not negatively
impact Bing usage metrics
BING ADS USER
GOALS
Reduce friction for advertisers
Make Bing profitable
Help the user discover new
products and services
Ads should not slow the user down
in finding relevant search results
TURNING
GOALS INTO
METRICS
FB: Meaningful interactions
Apple Maps: Right about proactive
suggestions
Apple Maps: Stress while navigating
Bing Ads: Google advertiser friction
Bing Ads: Time to relevant results
Office for Mac: Feels Mac-like and Office-like
to the users
Mediaroom: Time user spends in interface
QUANTITATIVE
MEASURABILITY
FB: Meaningful interactions
Apple Maps: Right about proactive
suggestions
Apple Maps: Stress while navigating
Bing Ads: Google advertiser friction
Bing Ads: Time to relevant results
Office for Mac: Feels Mac-like and Office-like
to users
Mediaroom: Time user spends in interface
HOW TO
MEASURE THE
IMMEASURABLE
Survey
Usability interviews
In-app feedback
Focus groups
Heuristic evaluation
STOP AND THINK – WHAT’S THE RIGHT
METRIC?
Metrics
• Usage
• Financial
• Quality
• Impact
Things
• Business
• Product
• Feature
Conversations
• Understanding
• Inspiring Ideas
• Prioritization
• Validation
• Readiness
• Context
USING IMPACT METRICS DAY TO DAY
All hands Brainstorming
Hypothesis
generation
and validation
Feature
validation
Prioritization
USING IMPACT METRICS DAY TO DAY
All hands Brainstorming
Hypothesis
generation
and validation
Feature
validation
Prioritization
INNOVATE EVERYWHERE, INCLUDING YOUR METRICS
Are we using the
right metric in this
conversation?
Is there a better
one?
Is there one we
should retire?
How can we
measure it?
How do they impact
each other?
Can we avoid the
negative in addition
to increasing the
positive?
Define
Measure
Analyze
Hypothesize
Adjust
Empowering Product Teams
Webinar Series
Q&A
Hannah Flynn
With: Moderated by:
Product Management Instructor, Product School
Linkedin page: /in/sariharrison/
Twitter ID: @sariharrison
Website: www.secondnatureinnovation.com
Sari Harrison
Site editor, Product Management Today
Linkedin page: /in/hannahmflynn
Twitter ID: @prodmgmttoday
Email: hannah@aggregage.com
Website: productmanagementtoday.com
www.productmanagementtoday.com/webinar-series/empowering-product-teams
THANK YOU!
WWW.SECONDNATUREINNOVATION.COM

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Empowering Product Teams: Measure the Immeasurable: Beyond Vanity Metrics

  • 1. Measure the Immeasurable: Beyond Vanity Metrics Sari Harrison Hannah Flynn With: Moderated by: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. Webinar will begin: 11:00 am, PST TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. United States: +1 (914) 614-3221 Access Code: 530-037-997 Audio PIN: Shown after joining the webinar --OR-- Empowering Product Teams Webinar Series
  • 2. Revulytics gives any software producers deep and actionable insight into who is using their software products and how they are being used, and the out-of-box analytics that enable them to grow incremental revenue, convert and retain customers, and make decisions about licensing and cloud transformation strategies.
  • 3. Empowering Product Teams Webinar Series Click on the Questions panel to interact with the presenters www.productmanagementtoday.com/webinar-series/empowering-product-teams
  • 4. About Sari Harrison Sari spent more than 20 years in high-tech R&D at Apple and Microsoft. As a software engineer, engineering manager, product manager, and product management leader, she has delivered half a dozen successful “1.0” products, along with countless iterations of existing products, in B2B2C and B2C. She is now focused on teaching product management and product management consulting. About Hannah Flynn Hannah went to The University of Chicago, where she majored in Environmental Studies with a concentration in Economics and Policy. She now works with Aggregage on social media strategy and webinar production for Product Management Today and B2B Marketing Zone. Empowering Product Teams Webinar Series
  • 5. MEASURE THE IMMEASURABLE BEYOND VANITY METRICS SARI HARRISON HTTPS://MEDIUM.COM/@SARIHARRISON WWW.SECONDNATUREINNOVATION.COM
  • 6. WE ARE RESPONSIBLE FOR THE IMPACT OF OUR PRODUCTS
  • 7. GOAL: SHIFT THE METRICS CONVERSATIONS “Impact” Happier More productive More free time Amazing experiences Revenue Usage NPS “Vanity” Time spent AARRR
  • 8. VANITY METRICS ARE TRAILING INDICATORS! Adding value? Or extracting value? Adding value? Or monthly active users? Adding value? Or referrals?
  • 10. CLOSE THE GAP Vision/value proposition, strategy, goals Things we measure and strive forImpact Metrics
  • 11. ABOUT ME Apple • Engineer • Engineering manager • DRI • 92-00 Microsoft • PM • Lead PM • GPM • 01-14 Apple • Head of Apple maps PM • 14-18 SecondNatureInnovation • PM Consultant • Innovation Coach • PM Trainer Data-Driven becomes a “thing”
  • 12. APPLE MAPS VISION Apple ecosystem customers are able to seamlessly explore and navigate the world
  • 13. APPLE MAPS STRATEGY Beautiful Safe and relaxing Supports the Apple ecosystem Unmatched attention to detail Fresh and accurate data Consistent with the Apple brand
  • 14. APPLE MAPS STRATEGY Beautiful Safe and relaxing Supports the Apple ecosystem Unmatched attention to detail Fresh and accurate data Consistent with the Apple brand
  • 15. APPLE MAPS MEASURABLE METRICS Usage • Launches • Time spent • Feature usage • MAU, DAU, WAU • … Financial • Cost • ~0 revenue Quality • Major navigational errors • Time from report to fix • Search “wins” • Autocomplete performance • …
  • 16. APPLE MAPS IMMEASURABLES Most beautiful Easiest to read and understand Safest, most relaxing experience Glanceable Community friendly (brand) Most trusted Proactive
  • 17. Question: should we aggressively reroute around traffic ala Waze? Answer (typical metrics): yes Answer: no Not community friendly Not safest and most relaxing experience Engagement != valuable
  • 18. Answer (typical metrics): no Answer: yes Apple ecosystem integration Least effort Answer (typical metrics): yes Answer: no, users did not understand what was going to happen
  • 19. POLL QUESTION: DO YOU HAVE A STRATEGY THAT GOES BEYOND VANITY? Yes/No/We don’t have a strategy
  • 20. COUNTER EXAMPLE – BING ADS Prioritization exercise was to estimate revenue… 1. Number of customers that adopt the new format 2. CPC/CPM … average? min? max? 3. How often ad would be displayed = Total guesswork 🔮 = Gamed = Wrong 100% of the time
  • 21. POLL: DOES YOUR CURRENT PRIORITIZATION FRAMEWORK GO BEYOND VANITY? Yes/no/we don’t prioritize
  • 22. BEYOND VANITY FRAMEWORK • Types of success metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 23. BEYOND VANITY FRAMEWORK • Types of metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 24. USAGE Monthly active users, time spent, launches, page views, churn, usage, abandonment… Trailing indicator Measurable Product is only one factor
  • 25. FINANCIAL Revenue, subscriptions, advertising dollars, cost Trailing indicators of value Measurable Product is only one factor
  • 26. QUALITY Performance, bug counts, reliability Leading indicator Measurable Product is primary factor
  • 27. IMPACT: The “metrics” that fill the gap Unique to your [business/product/feature] vision Set the standard. Not leading or trailing. Possibly measurable Product is the only factor
  • 28. BEYOND VANITY FRAMEWORK • Types of metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 29. ANY METRIC APPLIES TO SOME UNIT OF THE BUSINESS Business • Is our business thriving? • Are we extracting value from our customers in return for the value we provide? • Is our business model working? • Examples: revenue, sales, cost per user, pricing Product • Is our product adding value? • Is it high quality? • Examples: usage, engagement, retention, referral Feature/Feature Area • Did we solve the problem we intended to solve? • Did we do it well? • Is it discoverable? • Examples: usage, abandonment, performance
  • 30. BEYOND VANITY FRAMEWORK • Types of metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 31. CONVERSATIONS THAT INVOLVE METRICS understanding inspiring ideas prioritization hypothesis generation and validation readiness context and alignment
  • 32. BEYOND VANITY FRAMEWORK • Types of success metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 33. CALL TO ACTION 1. CREATE IMPACT METRICS TO COMPLEMENT YOUR EXISTING USAGE, FINANCIAL, AND QUALITY METRICS 2. BE THOUGHTFUL ABOUT WHICH METRICS YOU USE FOR WHAT CONVERSATION
  • 34. BEYOND VANITY FRAMEWORK • Types of success metrics • Things that metrics apply to • What we are using them for • Call to action • How exactly do we do this?
  • 35. IT ALL STARTS FROM YOUR USER GOALS Vision and Strategy Goals Metrics, Features (or sub-features)…
  • 36. APPLE MAPS VISION Apple ecosystem customers are able to seamlessly explore and navigate the world
  • 37. APPLE MAPS STRATEGY Beautiful Safe and relaxing Apple ecosystem integration Unmatched attention to detail Fresh and accurate data Consistent with the Apple brand
  • 38. APPLE MAPS GOALS Help the user plan how to get somewhere Help the user navigate to their chosen destination Help the user decide where to go Help the user discover new things Help the user understand the world around them User has to do as little work as possible User feels safe and relaxed while navigating Developer efficiency Operational efficiency Fresh and accurate data
  • 39. APPLE MAPS USER GOALS Help the user plan how to get somewhere Help the user navigate to their chosen destination Help the user decide where to go Help the user discover new things Help the user understand the world around them User has to do as little work as possible User feels safe and relaxed while navigating User trusts our answer Developer efficiency Operational efficiency Fresh and accurate data
  • 40. BING ADS GOALS Reduce friction for advertisers Make Bing profitable Help the user discover new products and services Ads should not negatively impact Bing usage metrics
  • 41. BING ADS USER GOALS Reduce friction for advertisers Make Bing profitable Help the user discover new products and services Ads should not negatively impact Bing usage metrics
  • 42. BING ADS USER GOALS Reduce friction for advertisers Make Bing profitable Help the user discover new products and services Ads should not slow the user down in finding relevant search results
  • 43. TURNING GOALS INTO METRICS FB: Meaningful interactions Apple Maps: Right about proactive suggestions Apple Maps: Stress while navigating Bing Ads: Google advertiser friction Bing Ads: Time to relevant results Office for Mac: Feels Mac-like and Office-like to the users Mediaroom: Time user spends in interface
  • 44. QUANTITATIVE MEASURABILITY FB: Meaningful interactions Apple Maps: Right about proactive suggestions Apple Maps: Stress while navigating Bing Ads: Google advertiser friction Bing Ads: Time to relevant results Office for Mac: Feels Mac-like and Office-like to users Mediaroom: Time user spends in interface
  • 45. HOW TO MEASURE THE IMMEASURABLE Survey Usability interviews In-app feedback Focus groups Heuristic evaluation
  • 46. STOP AND THINK – WHAT’S THE RIGHT METRIC? Metrics • Usage • Financial • Quality • Impact Things • Business • Product • Feature Conversations • Understanding • Inspiring Ideas • Prioritization • Validation • Readiness • Context
  • 47. USING IMPACT METRICS DAY TO DAY All hands Brainstorming Hypothesis generation and validation Feature validation Prioritization
  • 48. USING IMPACT METRICS DAY TO DAY All hands Brainstorming Hypothesis generation and validation Feature validation Prioritization
  • 49. INNOVATE EVERYWHERE, INCLUDING YOUR METRICS Are we using the right metric in this conversation? Is there a better one? Is there one we should retire? How can we measure it? How do they impact each other? Can we avoid the negative in addition to increasing the positive? Define Measure Analyze Hypothesize Adjust
  • 50. Empowering Product Teams Webinar Series Q&A Hannah Flynn With: Moderated by: Product Management Instructor, Product School Linkedin page: /in/sariharrison/ Twitter ID: @sariharrison Website: www.secondnatureinnovation.com Sari Harrison Site editor, Product Management Today Linkedin page: /in/hannahmflynn Twitter ID: @prodmgmttoday Email: hannah@aggregage.com Website: productmanagementtoday.com www.productmanagementtoday.com/webinar-series/empowering-product-teams
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