As a product manager, knowing how engaged your customers are is crucial to the success of your business. Understanding how customers interact with your product and identifying areas where engagement can be improved helps you create products that deliver value to your target market. In this blog post, we will explore three essential engagement metrics that every product manager should know.
Customer Retention Rate
Customer retention rate (CRR) is a critical metric that helps product managers understand how often customers continue to use their product. CRR measures the percentage of customers who continue to use your product over a specified timeframe. A high CRR indicates that your product is valuable to customers, and they find enough benefit from continuing to use it. On the other hand, a low CRR suggests that your product may not be meeting customer expectations or that they haven't found enough value to keep using it.
To calculate CRR, you can divide the number of customers at the end of a specific period by the number of customers at the beginning of that period. For example, if you have 1,000 customers at the beginning of the month and 900 customers at the end of the month, your CRR is 90%.
Number of Feature Requests
The number of feature requests is an essential metric that can help product managers prioritize product features. Customers want products that meet their needs, and feature requests provide valuable insight into those needs. By collecting and analyzing feature requests, product managers can identify which features customers find essential or valuable and prioritize them for development.
To measure the number of feature requests, you can track requests from various sources such as customer support tickets, customer feedback forums, email, and social media. This data can also be segmented by product or feature to identify which products or features generate the most requests.
Cart Abandonment Rate
Cart abandonment rate is a metric used to measure how many customers put products in their online shopping carts but then leave the purchase process before completing it. High CARs suggest issues with website usability, pricing, shipping, or payment options.
To calculate your Cart Abandonment Rate, you can divide the number of completed purchases by the number of abandoned carts. For example, if you have 100 completed purchases and 300 abandoned carts, your Cart Abandonment Rate is 75%.
Understanding the evolving needs and wants of your customers is critical for developing and maintaining a successful product. As a product manager, tracking engagement metrics such as customer retention rate, number of feature requests, and cart abandonment rate provides valuable insights into your customers' behavior that can inform product development. Use these metrics to assess product performance and to provide customers with the best possible experience with your products. By keeping a close eye on engagement metrics, you can make data-driven decisions that drive your company's growth and success.
