What Are Product Success Metrics?
Learn how to measure what matters, avoid vanity metrics, and track real product success
Your Progress
Section 1 of 5You Can't Improve What You Don't Measure
Metrics tell you if your product is succeeding or failing. But most teams track the WRONG metrics-vanity numbers that look good in slides but don't drive decisions. Great product builders track metrics that reveal truth, guide strategy, and predict future outcomes.
Metric Frameworks
Different frameworks for different product types:
AARRR (Pirate Metrics)
Track user journey from first touch to advocacy
Best For:
Consumer products, SaaS, mobile apps
Stages:
Example: Spotify
- •Acquisition: Downloads, signups
- •Activation: First song played
- •Retention: Weekly active listeners
- •Revenue: Premium conversions
- •Referral: Playlist shares
Good vs Bad Metrics
Same goal, different metrics-one misleads, one guides:
❌ Bad Metric
Vanity metric - doesn't show if users actually use product
Example Problem:
10,000 signups but 9,000 never came back? Looks good but means nothing.
✅ Good Metric
Shows actual engagement - users who find value come back
Action:
Track WAU growth rate and retention cohorts
Three Rules for Good Metrics
1. Actionable, Not Vanity
Good metric: If it changes, you know what to do. Bad metric: Looks impressive but tells you nothing.
2. Understandable by Everyone
If your team can't explain the metric to their parents, it's too complex. Simple metrics align teams.
3. Ratio or Rate, Not Absolute
Absolute numbers hide trends. 1000 signups means nothing without context. 20% week-over-week growth? That's useful.
Vanity Metrics Kill Products
Most products die while metrics look good. "We have 100K users!" (But 95% churned). "Feature has 50% adoption!" (But no one uses it twice). Vanity metrics create false confidence. Actionable metrics reveal uncomfortable truths that drive real improvement.
Key Takeaways
- •Frameworks: AARRR for consumer, HEART for enterprise, North Star for focus
- •Good metrics are actionable, understandable, and ratios/rates not absolutes
- •Vanity metrics (signups, downloads) look good but mislead decisions
- •Track engagement and retention, not just acquisition