Module 97: Product Development
Measuring product success
🏠The everyday picture
A shop owner looks beyond the till total: how many people walked in, how many bought something, how many came back next month. Each number tells a different part of the story.
📘What it really is
- Measure outcomes, not just output. Shipping features isn't success; users getting value is.
- Useful metrics:
- a north-star metric: one number that best reflects value for users, such as completed sessions per week;
- funnel metrics: visit → search → view tutor → choose slot → pay → attend; where do people drop out?
- activation: the share of new users who reach the key value moment (first completed session);
- retention: the share who come back (book a second session within 30 days); often the most important sign of real value;
- satisfaction: ratings, Net Promoter Score, support complaints;
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business: revenue, cost per booking (Module 95), tutor earnings.
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Avoid vanity metrics: sign-ups or page views that look good but don't show value.
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Analytics with privacy (Module 79): collect only what you need, with consent where required; prefer privacy-friendly tools (Plausible, self-hosted options), and keep personal data out of analytics events.
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Experiments (A/B tests): show two versions to random groups and compare a metric; useful with enough traffic, and run for long enough to be meaningful. With small numbers, talking to users and watching sessions teaches more.
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Combine numbers with conversations: metrics show what happens; research (Lesson 1) shows why.
- A regular product review: each month, look at the metrics against the MVP's success criteria, decide what to change, and update the roadmap.
🖱️Try it
Define the booking platform's north-star metric, a six-step funnel, and activation and retention measures. Add privacy-friendly event tracking for the funnel steps (no personal data in events), and build a simple dashboard. Using test or pilot data, find the step with the biggest drop-off and write one hypothesis and one experiment to improve it.
✅Quick check
What's a vanity metric?
Show the answer
A number that looks impressive but doesn't show real value, such as total sign-ups.
Why is retention often the most important metric?
Show the answer
People coming back shows the product genuinely helps them.
