Effortlessly Manage Your Company Bill Format for Product Management

Company bill format for Product Management

hello everyone if you are someone who's a product manager or an aspiring product manager who's looking to understand more about analytics then this session is going to be super helpful for you so recently I conducted a two-hour long Master Class where I help people understand how to use analytics better as a product manager and in this session we have talked about multiple important topics such as why do you need to understand product analytics as a product manager then we talk about what are the different kind of popular metrics that every product manager should be aware about then we have talk about how to understand and identify the different kind of metrics that a product can have and what metrics to measure in order to understand the success or the failure of the product and then eventually we talk about something called event based tracking and some of the reports such as cohorts segmentations and funnels and in the end I have also given a quick overview of how to use mix panel in order to do all of this work so this session is for people who are looking to understand analytics better and all the resources links are mentioned in the description at any point of time you have any questions feel free to put them in the comments and make sure that you subscribe to the channel because we are planning the similar kind of sessions on AI for product managers uxui for product managers tech for product managers and multiple other sessions so make sure you subscribe so that you do not miss out let's go ahead and look at the session so we are all set thank you everyone for taking out time on a weekend to spend to learn learn product management so today we are going to give you some understanding of how to do analytics as a product manager okay so we are going to talk about a lot of stuff today so I'm not promising you that we are going to cover each and everything that is into product management about analytics because that will be very overwhelming for you for just two hours but I'll make sure that you have enough knowledge so that you are able to take this understanding and then do a better job as a product manager or if you are an aspiring product manager you should be able to do better in interview and you should be able to develop that analytical mindset okay so that is the promise for today make sure that you are at a non-distracting place like if you are going to focus in the session that is going to help you out only now let me go ahead and start the session yes disable enonation for others yes cool so today's session is around electrics for product managers yes and this is our agenda today we are going to talk about we are going to start our session from what is actually need for analytics why are we doing analytics then we'll talk about metrics and kpis then we'll talk about some of the popular metrics yeah guys I hope I am Audible for everyone like the voice is very very clear right a quick yes or no yes thank you thank you thank you so I have a tendency to speak fast so I would appreciate if you guys just go ahead and focus on the session yes cool guys so then we are going to talk about some of the popular metrics that are common across the industries then I'll talk about how to find the right metrics what is a tool called as metric Tre then we'll talk in detail about what is event based analytics and then we'll talk about a couple of things which is funnels and cohorts how you can use these reports in order to improve your products and then in the end you'll understand about how to do antical problem solving and then I'll give you a quick five minute overview of what is mix panel and how you can use this tool in order to take better analytical driven decisions okay so this is the agenda for today can you guys quickly tell me in the chat which of these are you most interested in you can take anything and then tell me in the chat tell me one thing that you are most interested in today Fels even Bas all even Bas cool I think similar answer yes finding right matrics is is s is is a common yes cool so let me go ahead we'll cover everything but I'll make sure that I'm putting some strong focus on whatever you guys guys have told me cool so now before I could start the session there has to be some context who am I why am I eligible to go ahead and give you like deserve the two hours of attention from you so my name is anit and I started my career as an engineer while I was in college I was an engineer I started a couple of companies one was goer 7.com another was my legal work so goer 7 was nothing but the zepto that you see today we tried to go ahead and deliver things to people within 7 hours within that particular City didn't worked out as you can see it so this was around 2012 2013 after this I have I have gone ahead completed the education started another startup again and eventually I started working for a company called Shiro Shiro was the largest social network for women in the world and and then when I joined Shiro I was able to take the company from around 1 million users to 5 million users and I was able to take the retention of the product from around 35% to around 70% which is day seven retention after this I work for a very hyper Growth Company which was indd money I was a very like a pretty earlier Joiner at indd money I was able to take the company from around 10,000 users to 500k users growth I was leading the product growth function over there and then in the end I recently worked for a company like couple of years ago which is escalar Academy so they have a very popular product known as interview bit where I was able to take that product from around 250k users per month to around 3 and a half million users per month this has been about my professional career and I have also been a founder of a company called hopm in the last three years and where we have help more than 10,000 individuals learn product management so you might have seen our videos on YouTube you might have seen our content on LinkedIn on other kind of places if you search for product management articles on Google you'll be able to find hopm somewhere or the other so we have been helping people with product management education for about three years now and we have been uh putting some free courses some paid courses to make sure that we are able to go ahead and help people learn product management we have scaled so much that most of the time if you go ahead and pick pick any company out there in India and mostly in the world you'll be able to see one or the other person who is working as a product manager or in the product team in that particular company so we have a wide reach now and this is just to make sure that you are able to understand that uh maybe we deserve the two hours of attention that you are going to give in the next few hours yes anyone who knows any of these companies anyone who knows any of these companies yes yes I money scaler I money scal yes cool actually you guys are very fortunate because when I joined this company when I joined these companies they were not at all popular so I was just like maybe a right person at the right place at the right time and that is how I was able to learn a lot from people so I've seen like zero to one Journeys at all of these companies yes so now with that being said this is the most important slide in the whole session today guys whatever I'm going to give you today whatever I'm going to give you today is just information but information has never helped anyone okay you what you need is actually knowledge so how do you bridge that Gap I'll give you information but you have to convert it into knowledge so how do you bridge that Gap you will bridge that Gap by taking the action I'm also going to recommend you multiple exercises today so that you are able to take all of the information that I've told you practice in your life and what you need to effectively do is think for yourself understand there is already a lot of content around product management around building businesses around analytics around tools that is already available but what is lacking is how do you go ahead and convert this information into knowledge and that you can do by a lot of action and reflection which is if I tell you this is the NSTAR metric or these are the metrics for WhatsApp you should think for yourself as in yes this is for WhatsApp how can I go ahead and create the same kind of metrics or maybe Spotify or maybe Facebook if you do enough practice then only you'll be able to convert this information into knowledge and try to question everything not to me but to yourself you have to think for yourself if you do not know how to think for yourself you can never become a good product if you are only let's say understanding from books or let's say learning from other people then what will happen is that you'll just become like a backlog manager or a Sprint manager you'll not be able to come up with the like really unique or helpful ideas for your customers okay so this is the most important slide whatever I'm going to give you today this is just information maybe I have created some better information that's it I'm putting some experiences of mine that's it but what you need is knowledge and for that you have to do the actions that I'm going to recommend you today and you have to think for yourself don't take my word for you have to think for yourself okay now let us go ahead and formally start the session we are already 10 minutes into this talking about the definition of product analytics what is product analytics yes although you guys can see the definition on the screen although you guys can see the definition on the screen can people go ahead and take a moment to tell me in couple of words what is product analytics try to be as as brief as possible and tell me in the chat what do you think is product analytics what are we going to learn about today user Brad comes very interesting how product performs useful insights measuring the usage of the product very good analyzing user Behavior super interesting yes understanding different metrics cool yes I think you guys are already already there great amazing guys amazing cool I think we have some intelligent room today yes so product analytics is meing how your users are using your product to improve their experience and meet your business goals I'll tell you a fundamental equation for any business in the world no matter what kind of business or product that you are creating this is a fundamental equation that every business Works about any product that is created it has to deliver the value to the user and in return the user will reciprocate that value with the help of money or let's say attention right now the purpose of the product is to make sure that it is able to deliver value value mean means are you able to solve a problem in the life of the user the the product has to be a solution for an important problem or it has to address an important desire in the life of the user I want to go from place a to place B and I want convenience I want safety and I want cost Effectiveness so maybe I'll take an Uber Uber is the product that solve for these desires problems okay so the first purpose of the product is to deliver the user value and the second purpose of the product is to make sure that you are able to deliver the business value what does the business wants more Revenue more attention more market share these kind of things or more profits so the purpose of any product in the world and this is the fundamental rule of product management that never changes why does a product manager exist a product manager exists so that they are able to build a product which delivers customer value and business will whether you should know Tech design ux UI these kind of things data and all it depends upon whether it solves you helps you solve these two purposes this is the fundamental of product now let's say how do you know what's a business value what is a customer value how do you know if you have created a product that is actually giving the customer some value that is actually giving business some value how do you know that you know that through measurement by measuring how people are doing this how people are using your product for example Uber might think that people are looking to go from P to point A to point B and they need con convenience safety and cost effectivess however if people do not use the product if they do not go ahead and if they do not go ahead and continuously use the product pay the amount book The Cab then it means that it is not so analytics is that measure that will make sure that yes your product is able to go ahead and deliver like that will show you that whether the product is able to deliver the value or not okay so this is what analytics is and why do we understand analytics why do we understand analytics analytics can help you to do multiple things analytics is basically study of data analytics is study of data and it will help you improve user empathy as in whether your people are actually using or loving your product or not it is very much clear from the data if people are let's say using your product you will have more usage you will have more let's say if you are loving Instagram reals then if Instagram product managers check how much time are you going ahead and open opening let's say the product what is the daily active users then they will understand that yes this person is actually loving our product okay similarly it improves your business understanding there are some common analytics or metrics that every business has to measure which is what is the cost to acquire a customer which we are going to talk about in a minute okay so this will tell you whether you are able to acquire the customer at a better cost or not so that your business is actually let's say a sustainable business on Okay so these are few numbers that will tell you about the business understanding then it helps you build influence build influence as in as a product manager you have no authority over people you have to convince your developers your designers your leadership through your influencing abilities and there is no better influencer than data so let's say you are stuck between whether I should do a or whether I should do B then you can go ahead and conduct an AB test you can do the you can understand the data you can do some benchmarking in order to gather that data and then showcase to the leadership or to your developers or designer that this is what we should do so data is also an influence and most importantly data will also help you post correct by post correcting I mean you decided that we are going to make 10 million Revenue in this quarter you launch something then you measure the data Revenue again but it is not going as per your expectation so you can always go ahead course correct because your metrics are telling you that you are not going in the right direction and if you combine all of these four things you are going to build better purs okay so this is why you as a product manager need to understand how to use analytics otherwise if you are a product manager who does not understand analytics and only thinks about let's say how do I go ahead and execute things then you'll be like a pendulum which is moving here and there but does not know what is the real direction that they really want to move okay and how does it fit in the Complete product management life cycle I divide the whole product management flow into three parts first is the Discovery second is the delivery third is the distribution Discovery means you talk with your customers you understand your business goals and then you try to understand what what I can build for them this is mostly the ideation in the definition course here you try to understand what to build and here the company benchmarks the insights and the analytics will help you start with a goal and Direction so here metrics can help you out in order to set up a goal similarly when product delivery happens product delivery basically means that you will go ahead create some kind of product requirement documents or user stories you will give it to your designers and developers and testers they are going to build the product based on your requirements and when these people are facing some conflicts whether we should do a or whether we should do B then your analytics or your metrics will help that because we are focusing on this metric this is the best thing that we need to do so it helps you in Deion making during the product delivery and the third part is product distribution whenever you go ahead and create a product and you take it into the market out there to distribute that is known as product distribution here sales and marketing and growth teams plays a very important role and here it is used to help your assess your progress and attribution whether if you have thought that this product will be used by so many users is it true or not how do you understand what kind of users are using the product here also metrix helps a lot so metrix is applicable is helpful in all the three faces of product management whether it is Discovery delivery or distribution okay so in short if you are building a product you need to know if you are going in the right direction whether you are making the prce whether you are making the progress or not and that is done with the use of metrics and the understanding of Matrix is known as analytics the study of metrix is known as analytics okay so everyone tell me on a scale of 1 to five if you are able to understand why we are why we should know how to use met interesting very good guys yes cool yes distribution is launch cool let me give you a short example and I'll take one example across the session okay let's say we have we are looking to create a referral system okay so first of all how do we discover that we need to create a reference system how do we discover if we need to create a reference Sy okay so the company has given you a goal that we need to increase our user base and after understanding the users after doing the research with the marketing team you are able to understand the best way to get the users is to introduce a referral mechanism but why would people refer other friends to your particular app or product then you will do more study you will understand what is the incentive what is the motivation what is your what is something that your product can provide them okay so this is what you are going to do in product Discovery you will understand how to create the referral mechanism you will research your audience you'll understand the business goals you will do the market research what your competitors are doing and then you'll be ready with the product the referral Discovery once that is done once you know what you need to do then you are going to create a product requirement do that you will share with your engineering and the design team and they will go ahead and share everything okay and here also they will understand that yes if they are stuck in any kind of decision they are going to understand that yes we have to increase the number of users that is why we have to make it simple so let's say designer has two options five screens or three screens maybe three screens are better because you want to get as many users to use the referral mechanism and easier the onboarding easier it is to go ahead and get more people report okay and then eventually when you go ahead and launch the referral in the market then you have to understand the Mets which is how many new people are being invited to the platform because of this mechanism how many people are actually looking at the referral screen how many people are actually inviting how many people are actually joining these could be some of the met so if I take an example of referral this is how these three things are going to work yes a quick yes on everyone if you're able to understand this yes cool now let us talk about metrics and kpis okay so what are product metrics product metrics are quantifiable data points that a business tracks and analyzes to cause the success of it okay so metrics and anything that you can measure with your product and kpis are important metrics Okay so metric is anything and everything that you can measure that's just data that is being generated out of your product however kpis are important metrics which means that all metrics sorry which means that all kpis are metrics but all metrics are not kpis kpis stand for key performance indicators the these are important metrics that show whether your product is able to whether your product is able to go ahead and give business some kind of success or not okay does it relates to business success or not while a k while a metric is each and any that you can go ahead and measure so every kpi is a metric but every metric is not a kpi a quick yes on everyone if you're able to understand the sentence every kpi is a metric but every metric is not a kpi cool now everyone quickly give me one example of kpi give me one example of kpi Da yes M CTR NPS retention C sign up engagement very good engagement turn rate yes yes I think this room knows most of the things already yes great very good yes cool so let me give you first some examples of metrics first okay so in an e-commerce website like a flip cart Amazon Mantra these kind of things we have page views how many views are these Pages how many people are actually going ahead and viewing these Pages number of registered users how many people are registered on the website how many people are adding two cards every day or every week or every month how many sales are happening and what is the daily TR okay you can understand all of these are all of these are metrics but maybe page views is not an important met maybe number of registered users is not an important met right so important metrics could be maybe at two cart could be an important metric how many people are adding two cart but that is not a very important metric the very important metric is how many people are you able to get daily what is the daily active users plus what is the sales that you generate right so these two could be kpis and others are as you know our metrics similarly for a social network retention daily active users average time is spent messages sent number of reactions could be metrics but average time is spent daily active users and retention they could be kpis because they are important it actually tells you about the value that the product is the customer is getting from the product and The Advertiser is getting from the product while messages sent a number of reactions might not be okay so if you want to understand what's a kpi what a metric try to understand does it signifies user value the value that the user is getting and does it signifies the business value if you are able to relate to business value and the user value then mostly it is a me it is a kpi but guys understand it is subjective on every business let's say if you are working for Facebook okay if you're working for Facebook if you are the CEO of Facebook which is Mark zerar then for you retention is a very important metric and revenue is a very important metric but let's say if you are working in a team which is actually working only on reactions then this is also an important metric for you so it changes on with context if you are depending upon the person that you are depending upon what is your responsibility depending upon the context that you are coming from some metrics could also be KPS yes a quick yes or no everyone if you're able to understand everything so far wonderful yes yes so something could be a metric to someone but a kpi to someone else yes very good so Mark zukerberg might not care about what is the average time he spent what he cares about is the revenue in the end or the shareholder value or the value of the share yes cool good interesting now let's go ahead and talk about some of the popular metrics okay so I'll take some time in order to help you understand different kind of popular metrics let us start with the first one the first one is revenue what is revenue revenue is the money that company makes most of the time this is the main metric for any company I would say all of the time it is the main metric for every company unless you are in very early stage okay so Revenue simply means the money that a company makes okay the valuation of the company is also dependent mostly on or a large part on the revenue of the company okay after Revenue we have something called as monthly recurring Revenue what is monthly Rec Revenue monthly Rec revenue is how much money do you make every month how much money do you make every month that it tells you it tells you the status of health of your business so most of the SAS applications software as a service and most of the good possible businesses in the world they measure their metrics monthly what is the monthly recurring Revenue okay similarly you can go ahead and convert it into weekly recurring revenue and you can also convert this into annual recurring revenue and if you are in a simple business such as SAS let's say you are a product manager at Z now if you want to understand what is the revenue that the company is making is equal to 12 into Mr Right what is Mr mrr is nothing but number of active users who are paying multiplied by what is the average money that they pay you arpu stands for average revenue per user average revenue per user okay and this is the number of active users and number of active users is equal to new users which are acquired this month plus old users old users who are there from more than a month ago which is your retention new users are which are coming from marketing and average revenue per user is average revenue per user is the money that you make from one user okay and if you want to increase understand the average revenue you will understand what is the money that they are paying for feature one what is the money that they are paying for feature two what they money that they are paying for feature three or feature four what I have created right now what I have created right now is a metric tree okay I have created a metric three so what I'm doing is I'm taking few metrics and then I'm going ahead and helping you understand that how smaller metrics are related to the bigger goal of the company which is eventually the Reven okay if you want to make the similar metric tree for a company called Airbnb for Airbnb revenue is revenue is yes cool yes so guys here the old users in this case the old users are people who are still active if I remove this active then it will become total old users minus churn rate okay this is the J so if we are taking active users that's okay but if you want to calculate active user that means that yes you you are acquiring lot of users but many users are actually going ahead and many actually are users are actually going ahead and they are leaving your system which is the churn rate okay so now a question for everyone let's say there is a company whose daily active users da stands for daily active users people who are active on the platform today okay this is the ratio the ratio is this is company a here we have today they have 300 users then they have 400 users then they have 450 users then they have 500 users and then there is Company B which has 200 users 220 users 230 users and to 50 users this is Da for company a this is Da for Company B can you guys tell me which company is doing better this is number of users number of users number of users which is daily active users tell me which company is doing better guys A or B e yes cool so guys the answer is that you do not have enough data okay the answer is you do not have enough data enough data is understand daily active users is equal to daily active users is equal to new users that are acquired that day plus old or existing active users it might be possible that for this company let's say 300 people are coming today tomorrow out of the 300 people only five people are coming and they are acquiring 390 people more this is new users and this is old users who are coming and out of this five next day out of these 3 400 people maybe 10 people are coming and they are again acquiring 440 more people and then similar next day 20 people are coming from 450 Plus plus they are acquiring 480 users and it could be possible in this particular scenario that they have 200 users next day 180 of them are coming and they are acquiring 40 more users next day 200 are coming and they are acquired 30 more users and the next day 220 are coming and they are acquiring 30 more users yes so the data was not enough understand in product management you have to ask clarification questions you just cannot go ahead and go on metric in order to give your answer right everyone a quick yes or no if you're able to understand this yes so ask the right questions cool yes and also guys we never asked what is the definition of da da means daily active users for Facebook a daily active user is someone who spend let's say 1 minute on a platform daily for Amazon a daily active user could be that someone who is at least buying something that day for Netflix a daily active user could be someone who is spending at least 20 minute in order to do something so the definition of daily active users depends from company to company Flipkart would not want you to just open the app and go away that is not their daily active user account right so it depends on context that's why the only thing that you can learn from this session forever is think for yourself cool everyone on a scale of 1 to five you're able to understand everything so far very good yes now one more question one more no to this guys okay just because this product is better at retention doesn't mean that this is going to be a better product okay because although most of the products depend on good retention there are some products where retention might not matter for example if you are wakit you are selling metes if you sell one metric to someone they will never if your product is good they will not come back to you for for 10 years right so please go ahead whenever you are asked the question try to understand the context context is the most important thing that you need to think for yourself there are no formulas yes so we talked about Revenue monthly recuring Revenue we talk about average order value average order value is how much let's say in a in a in an order people are able to spend on your product which is your basket size when you go to Amazon what is the size of your card that is the average order okay the player such as zepto such as Amazon they want to increase your basket they want to increase the average order value that is why they are going to whenever you go ahead and try to check out they will try to upsell you something they will try to make sure that you are able to buy the item that can give them the most profits or they are able to increase the average order okay similarly there is something called as customer lifetime value customer lifetime value is taking the complete lifetime of the customer can you predict what is going to be the total value that this customer generates for your business this is generally a prediction not a completely correct value but it generally comes becomes better as you go ahead and your company operates for a longer period of time okay customer lifetime Val the the fifth metric is customer acquisition cost customer acquisition cost is how much do you pay in marketing or sales in order to bring the customer to buy something from you customer acquisition cost and this is one of the cost that eats up many of the customers if you have a very heavy sales team have very heavy marketing team then your customer acquisition cost is high okay and if your customer acquisition cost is high and your customer lifetime value is low that means you'll not be able to build a sustainable business okay let me give you examples so let's say we have two products we have two products one product is MailChimp and other product is Amazon web services or let's say Microsoft as you these are Google these are Cloud providers and MailChimp is a simple system through which you can send emails to your clients okay in mail Chim generally let's say we consider CLTV customer lifetime value for 12 months okay every month they are getting $20 from the customer and customer is being on their platform for 12 months so they are going to make anyways between 240 USD okay similarly there is AWS or L where there there are many customers who are going to give them as much as 100K USD maybe every month there are many businesses that are going to spend this kind of okay which means that LTV on AWS is much bigger than LTV of mailchip which also means that if AWS Azure has to choose a sales Channel or marketing channel they can go with their on ground sales team they can sponsor events they can spend much more in Market because their LTV is very good so your channel of distribution will also depend upon how much your LTV and how much your C is LTV stand for lifetime value and C stands for cost to acquire a customer okay and then if you think that your cost to acquire a customer is high then you have to think innovatively in order to make sure that you're able to get customers at the lower cost that is what you need to do qualitatively as a product man okay so LTV should be greater than yeah this is the ultimate equation for business building any sustainable business yes everyone a quick yes or no if LTV and CAC is understood to you cool I'll give you guys one more shot LTV means customer lifetime value let's say we want to take the customer lifetime value for 12 months okay let's say we want to take the customer lifetime value for 12 months then it means that what is your monthly charges multiplied by 12 so if you are talking about mailin which is $20 multiplied by 12 which is you are going to make $240 from a customer if you want to this is for a s okay now if you want to include it for Amazon then what you are going to say is let's say what is the average order value multiplied by number of orders that they make so let's say in one order you order for 1,000 rupees and you make 10 orders per your on so you make you give 10,000 rupees to Amazon okay so this is a simple formulation of LTB understand I have taken 12 months but generally companies take on their own context some people take 24 months some people take 36 months depends upon how much prediction you want and how much predictability you can do how much prediction you can do depends upon what is the data that you already have what is the confidence that you have in your data Amazon can right now go ahead and do maybe prediction for next 5 10 years it is going to be a prediction right but maybe smaller companies or newer companies such as zepto cannot do it because they do not have that much data of historical availability right aov is average order value or called as a basket guys you need to focus on the session you need to focus on the session to understand the whole flow of the session otherwise you will miss out cool yes guys quickly write focus in the session if I have your attention right now please write focus in the chat if I have your potential right now yes because we are talking about too many let's say new jarons and technical things it is important for you to keep focused otherwise things will not understand because if you forget what is revenue and EO you will not understand the entirety of the class cool very good yes so we talked about this then there is something else then there is something else called as payback period now guys I have a question for everyone what do you think is a payback period what do you think is a payback period yes the time till which your C is recovered for example you spend $10 in marketing and monthly cost for your product is $5 okay your monthly cost of the product is $5 and you spend $10 in cap so it will take you how many months to break down Break Even it will take you how many months to break even yes two months so two months is your payback period this is very important for apps and SAS and businesses which are heavily relying on Performance Marketing Performance Marketing is you see ads on LinkedIn Facebook Instagram YouTube the the ads that you can skip these are these people when they are running ads so heavily they need to formalize a formula so that they can understand in how much time will be be able to get the money back okay then there is retention and churn what is retention and churn so retention and churns are opposite opposite of each other consider this diagram and retention is one of the most important metric for a product manager it actually tells the actual value of your prod okay so this is number of active users and this is number of days okay when the people are on your app on Day Zero all of them are going to be active because they have opened the app right but as the time goes people go ahead and they stop using the app this is called as retention initially let's say there are 100% people who are using the app next day 80% then 70% then 60% this happens with most of the apps okay this is the retention retention means how much are you able to go ahead and retain your users okay if you take the reverse of it 100 minus retention it will become churn rate right retention actually means that users are getting the recurring value from your okay right now retention number of people who keep on using your product month after month or day after day that is called as retention okay the opposite of retention is CH how many people are you losing out very frequently okay how many people are you losing out very frequently okay now now there are three kinds of retentions that are possible number one retention Which is popular with most of the products most of the products are going to go ahead and do this okay they will start with a bang and then they will die can you guys give me any product any example of this yes very good threads is a very good example they were the most popular product on day one and then it died down similarly another example is another example is this app called clubhouse right very good yes now there are more products okay there are other products where what happens is that you start using the product but eventually some people will keep on using and some people will go away okay this line this line will become parallel to x-axis number of users and this is number of Bas okay can you guys tell me an example of this product where it loses the audience but then it becomes stable these are generally stable products yes so most of the products with good retention most of the general products if you see your phone if there are some apps that you have not uninstalled for a longer period of time then maybe these are these apps very simple if there are some tools that are you that you are using in your business then most of the time these are the tools that have good okay now there is a third graph as well that is rare the third graph is okay so can you guys tell me what is happening here it's a u Shi graph tell me what is happening here yes right so what happens here is that this part everyone is able to do let's say if your company is good with marketing then this is just the novelty phase novelty as in people want to use new products and they are going to go ahead and use your okay after a certain period of time that novelty is going to die down people will eventually go ahead and they will stop using the app most of the people will stop using the app this is realization but after a certain period of time whenever you are facing that problem again you are again going to go back to that whenever you are facing that problem again you are going to again go back to that app remember when you start using chat GP initially it was all over the place so everyone was excited about the same but you used it for one day to day but you thought maybe not very helpful but they keep on updating the product so whenever you are facing that challenge again then you again come back to the product again so all the popular products all the great products actually follow this graft so whenever you face that that problem again because you are this is a continuous problem that they are solving whenever you face that problem again that this product is solving you are again going to go back to that particular app right yes so chat GPT Facebook Instagram all of these are the example of these kind of apps right yes everyone and know on a scale of 1 to five if you are able to understand the retention cool very good very good very good very good yes happy to know now after retention we have daily active users and monthly active users I have told you what are daily active users monthly active users but guys understand every company has a different definition of daily active users and monthly active users for Amazon someone who buys in a day or in a month once in a month is known as da or mu for Amazon right but for let's say a Facebook people who are even opening the app they are daily active users for Netflix people who start a series are daily active users or monthly active users or people who spend 10 15 minutes on the platform okay so this is daily active users and monthly active users it is very popular for gaming companies and generally social networks or maybe entertainment companies okay now da and M okay da divided by mu this reflects what is the stickiness of your platform which is if 100 people are active every month on your platform how many of them are actually coming every day this shows the stickiness of the platform that how many people are actually very very active on the what is the stickiness of the platform do people use it once or they use it frequently okay so this is ba versus mu very important for gaming and social network companies and can you guess one Product Where Da by Ma is highest tell me guys can you tell me one product where diu to Miu is higher yes whatever product that you use daily it tells more about retention yes very good chat GPD is a great example WhatsApp is a very good example yes can you guys tell me one example where du to Mu ratio is very low give exam one example Where Da to ma ratio is very low very good your personal banking apps you get your salary on first day you look what your salary is and then you move to PTM phone pay in order to goad and transact you never look at your bank by Bank app again right very good very good yes and that does not mean that your product is not good that does not mean that the product is not good just that it is not an important metric right then there are other metrics as well one is net promoter score net promoter score means that how are people liking your product and How likely are they to refer your product to other people which is net promoter is okay you might have seen a lot of let's say a lot of people a lot of apps lot of product which will ask you that on a scale of 1 to 10 How likely are you to recommend this product to other people that is called as net promoter this is a indicator whether people are actually liking your product or not whether they like it enough to tell it to other people as well this is mostly a surve okay but you need to be like very much aware of the surveys because I'm also going to share you with your survey at the end of the class and I know most of the people are going to push it in hurry right conversion rate very simple how are you able to convert the users and the definition could be different for different kind of companies for example how many people are able to arrive on your website how many people are landing on homepage versus how many people are actually clicking on sign up button so CTR is the difference between Step One is step how many people registered for this particular class how many people are actually attending and then how many people actually go ahead and give the feedback this is the conversion then there is a click- through rate how many people are clicking on the button click through rate is CTR very important for advertisers and marketers CTR click through rate and then average revenue per user average revenue per user is a rpu how much revenue do you get from per user and some people do it for monthly some people do it for weekly some people do it for yeses okay so this is average Rue yes cool so these are the important 14 metrics that you need to know guys everyone tell me on a scale of 1 to five if you're able to understand all of these Mets great so yes cool guys so now what we'll do is we will take a quick break of five minutes and then we will come back so go ahead get up from your chair drink some water do some stretches and come back we'll see each other after the end of this time welcome back everyone please write me I am back in the chat if you are back please write I'm back in the chat if you're back and also guys I would request some of you to open your cameras so that you are able to put your best focus in the session and I should be able to see some faces so that I know I am interacting go ahead Guys open your cameras if you can yes all I could see is a lot of fans great like not my fans but literally fans great great amazing cool so we we'll resume now Okay cool so welcome back everyone so many fans yes cool so let me go ahead yes and guys also I understand that this is too short of a session to help you understand each of these metrics in detail in the bigger program that we offer we discuss these thing in detail but I'll also share with you like a cheat sheet or a list where I will help you understand these things in details so that will be available to you after the session like after couple of days from the session but right now I think this should be enough information for you now let's go ahead and talk about so these metrics that I've told you these are applicable for most of the these okay but there are also some product specific metrics okay these are product specific metrics as in if you talk about YouTube YouTube is going to measure how many hours that you have B this metric will not make sense for Amazon this will not make sense for Flipkart but it is unique to YouTube or these kind of platforms similarly Airbnb is going to talk about nights book similarly Zoom is going to talk about meetings conducted how many meetings are conducted because it is unique to zoom this is how they measure their success similarly zepto is going to measure how many deliveries are we able to do in 10 minutes because that is their brand prise that is their value proposition and then LinkedIn job posted how many jobs are being posted on LinkedIn and then there is a company which measures videos created can you guys tell me which logo is this can you guys tell me which logo is this Loom very good very good very good yes so Loom is a company that helps you record videos and and do the session recordings screen recordings easily yes so they measure video created okay so understand some metrics are common metrics some metrics are product specific metric some metrics are important metrics some are not so important metrics many times I have seen product managers make a very terrible mistake that they try to focus on either they don't focus on Matrix or they focus on too many metrics and they end up overwhelming themselves okay so focus is the key now the biggest question how to decide how to decide the north yes how to decide the right metrix for any product okay although there are multiple methods to the same there are multiple methods some people start with the noar metric some people talk about L1 metric L2 metric some people talk about leading metric lagging metric some people talk about driver metric success metrics okay but I'll go ahead and give you a very common sensical framework so that you don't have to remember everything okay there is a ARR framework there is a her framework there are so many Frameworks out there okay but I would request you to forget every framework right now and focus on the common sense because common sense is the only thing that is going to help you think on your feet okay not these Frameworks okay so forget about rice mosco Koo or L1 L2 lagging leading any of these things focus on the common sense the first thing that you need to do is understand the feature if someone asks you the question that what would be the metrix that you will measure for this feature then the first question that you need to ask is what is the feature what is the goal of the feature what is the company strategy what is the problem that it solve to make sure that you and the person or the product is on the same page about the you and the other person are on the same page about the understand the purpose of thect that is Step number one step number two is why was the feature built why in the world have you invested so much effort time design and and development and testing and marketing in order to build this feature okay this is the most important question and as I have told you every product in the world is created for two things can you guys tell me what is the purpose of every product in the world tell me in the chat what are the two purposes for every product in the world I have told you just few moments ago yes cool so every business every product exist for customer value and business value okay so now you have to question how do I measure this customer value and the business value that is your answer of why okay and that will only come to you if you understanding the first step if you understand the feature really well if you understand the problem that is solved then you'll be able to understand why we have created this feature and the answer of why is actually your success n the answer of why is actually your success right then after you have understood the main metric why we are doing this let's say a main metric could be a very bigger metric let's say it is revenue it is number of new users it is market share that is a big metric you cannot go ahead and tackle it like head on so what you have to do is you have to break down that metric into smaller parts so you will look at the user journey and you will break down the user Journey or break down the metrix of the user journey into multiple Parts okay there are many Frameworks for this you can use the AR framework you can use the uh you can use the uh what we call it yes you can use the AR framework you can use the L1 L2 you you can use a lding leaking metric but you not do not if you do not know these things that is okay I'm going to tell you a much simpler framework simpler is just take the product take the user flow and break it down into three steps the first step is awareness awareness is are your people are your customer actually aware about this feature or not the second is adoption are people actually using this product are they using frequently or and the third is Success which is the same metric that we have talked about that why this feature work if you are able to break down your metrics into three parts then you should be able to go ahead and give the answer to this question and the third or then the fourth part which is also optional is sanity metric sanity metric means that in in the pursuit of one metric you should not doriate the other mat it often happens that if people are focusing on user growth the ratings of the app go down or the retention of the product goes down because if you tell marketing team that we need to increase the number of users they will run discounts they will do these kind of ads that kind of s they are going to make false promises and then eventually what will happen the number of let's say the retention that you have and the experience that you have can detate so you have to also have some sanity metric which is what should not be disturbed it is not possible 100% of the time that you are not disturbing other metrics but you should be let's say aware about this okay so describe why was a feature was built map usage steps and Sanity metrics okay here awareness means are people aware about the product adoption means are people using the product or not which means are they onboarded also called as activation in the fancy terms and do they have retention or not are they using it again and again or this is usage and then there is Success whether it is helping you achieve the business outcome or okay everyone on a scale of 1 to five tell me if you're able to understand this everyone please pure Li guys how can you understand this without an example I only tell you the conceptual Theory you cannot understand the conceptual Theory right just with the conceptual Theory right so let me go ahead and give you example okay I will take the same example that I've given you initially which is reference okay I will take example from reference I I'm sure everyone of you might have gone ahead and using yes I'm sure everyone of you might have gone ahead and participated in some of the other referral mechanism referrals are common in b2c as well they are common in B2B as well like slack and other kind of platform they also have some of the other kind of referral mechanisms okay so let us go ahead and try to do the same case study with reference okay so a quick yes or no if everyone is aware about how referrals work know if everyone is aware about how referral Works how referral Works your existing set of users will invite other people on the platform through some links or some coupon codes so that other people can also join the pl okay understand everyone has the same understanding of the feature right now let us solve this metrics for referals what is point number one do we all understand what is referral yes we understand what is why have we started referral tell me guys what is the purpose of building reference what is the purpose of building reference tell me yes why we are doing this number of users growing the number of users right correct everyone on the same page right so if you take any feature in the world if you ask yourself what is the purpose of this feature why this feature was why did anyone border to create this feature and you'll get your answer the success matter right the second the third part is let us create the flow of referrals what is the flow of referral the flow of referral is first of all someone is going to sign up on your platform after doing lot of activities in your product then they are going to discover your referral program that you have a referral program after that they are going to understand the referral program if they feel that the incentives are aligned then they will refer their friends or colleagues and once they refer their friends or colleagues the friend will join a quick yes on everyone if you're able to understand this user yes now let's say you created a referral mechanism but it failed you created refl mechanism but it failed so how would you diagnose how would you diagnose so what you will do is first of all you will understand that are enough people aware about my referral mechanism so you will understand whether do we have enough users already on the platform let's say if you are a new company which only has 10 20 30 users and you are looking to build a referral program then it might not work for you why because maybe you do not have enough base you have enough number of Base number of people to actually start referring people okay so maybe number of users who are already on your platform is your one metric another metric would be maybe people are actually not even aware so rather than promoting your referral what you have done is people have to go to their profile section they have to click on the three dots they have to click on the referral then they will go to the referral so Discovery is actually limited so one of the problem why it is not happening is actually the awareness and how many people are on your platform plus how many people are exposed to the referals is actually the awareness right the second part is understand the referal program and refer their friends this is adoption they are aware of the product but whether are they adopting or not whether are they using it or not okay whether they are using it or not so what you will do you will understand how many people are actually clicking on share link there is a share link option there is a coupon code copy option you will understand how many people are actually going ahead and copying this link and given to their friends right you will measure that metric okay and the third part is how many people are actually joining how many new users are coming from this particular okay so we have divided into three parts the first part is awareness how do we measure awareness we will measure awareness by views on your referral page how much percentage of your audience is actually have a view on the referral page okay how do we measure the adoption metric how many people are sharing the link and then third is how many new users are okay now if you think that let's say many people are aware but still new users are not joining that means that your incentives are not correctly done if let's say people are sharing the links and then there are views on page as well but people are not giving not not joining that means the incentive for other people are not Welling or your referral program is not very okay so if your views are less that means you have to work with the marketing or other teams in order to grow the awareness if your this is incorrect that means that you have to work as a product team in order to improve the ux and the UI and improve the incentive and if this is not coming these things are coming and this is not coming that means your assumption your Baseline assumption was wrong right yes and all the bugs and everything also so you'll be able to measure from these things that where that actual bug is okay so just to create a metric tree for this just to create a metric tree for this yes so if you are having bugs or any issues in your journey you should be able to understand it with the help of Matrix these metrics yes now let me go ahead and tell you how do we create the metric tree for this okay so we want we are creating referrals for what for getting the number of new users to join the platform right if we are getting the new number of users to join the platform then new number of users depend upon number of invitations sent multiplied by conversion rate how many people are actually being convered okay now invitation send depends upon number of users you already have on the platform how many people are actually aware about the same how many people are actually sharing this right and then conversion rate how many people are actually how many people are actually signing up on the platform so how you can improve the conversion rate by improving the incentives or making sure that your audience is also aligned with the audience of your people who are sharing your product with other because your product has to be relevant to their Network as well okay everyone on a scale of 1 to5 if you are able to understand this how do you take a product how do you take a product and how do do you find its metrics simple steps number one find understand the feature completely number two understand why the product was created this is your main metric then number three understand how you can break it down into awareness adoption and success and then you are done if you want optionally you can also have a sanity yes now I have a question for everyone okay I have a question for everyone how will you measure the success of YouTube sidebar I hope everyone is KN knowing about this YouTube sidebar right can you tell me what would be the success metric for YouTube side yes the number one mistake that most of the product managers like you make is you jump to the conclusions okay whether I'm talking about let's say uh what is the value of this feature what is a commercial value what is the user value you didn't understand the same you didn't understand the flow you justum jump to the solution which is CTR if CTR was the only thing then people who are creating back thumnails are also going to rent at the top people who are only creating attractive thumbnails they are going to be at the top but that does not happen YouTube cares about so many other things as well yes cool so this is a homework for you guys okay so I've told that you have to convert your information into knowledge okay so this is the homework for you you do this and I'll share a link with you so that you can submit your assignment okay so what is the success what would be the metrix that you'll measure for YouTube success everyone understood the homework right a quick yes or no yes what is how will you measure the success of YouTube sidebar what is the process tell me the whole process right yes now let me give you one more example of metric please okay so everyone uses WhatsApp and there is a feature on WhatsApp called as status or stories or update daily status stories or updates they have they have shamelessly borrowed it from uh this company called Snapchat okay now this is how we can create a metric tree from the same so daily active users this is the main metric why does Facebook why does meta wants to create this feature on WhatsApp that people should be able to share things every day because they want people to come back to the product each and every day and because these statuses are going to get out of like are going to get deleted after or going to get vanished after 24 hours people are going to come back to see new content every day okay so this is daily active users is a success me then we can divide into two parts okay how many people are creating the status how many people are consuming the status then how many people are creating the status depend upon how many Creator who are creating the status and number of status is generated this is status creation and then there are going to be new user there are going to be repeaters similarly status consumption number of people who are viewing the status tab going to their phone and then looking at that particular thing engagement on the status and time SP and then status view replies and reports this is the interaction or engagement on this okay and eventually in the long run if there are enough daily active users they are going to spend more time and then if Facebook wants to uh launch a ad channel on WhatsApp they should be able to get more right so metric three is nothing but breaking down your whole metrics into smaller parts and then question yourself let's say understand the purpose of you as a product manager is not just to measure metrics but to identify what you need to do so now you have a map so if you want to increase people who are actually the new users and they and they should create a status you should create an informational campaign or a good onboarding flow so that people know how to create a status if repeat users you want to educate you want to make sure that you are repeatedly telling them that boss this is a feature that you might not be aware of okay a quick yes or no everyone if able to understand this metrically cool yes now a very important part I have given you information you have to convert into understand guys in your interview it will not come that what is a what is the success metric for this or this or this they are going to ask you a different question so you need to know how to think on the feet you have to internalize this information into knowledge okay so you have to think for yourself so what you need to do is I'm going to recommend you an exercise if you do this then only you will get the value from the session otherwise that's okay like you have just gone ahead and maybe wasted 2 hours of your time because information is available everywhere okay and this is the same practice that we follow in our cohorts at hopm to make sure that we are giving you assignments so that you are able to practice everything because right now wha