Lean Metrics is a term used in product management that refers to the measurement of key performance indicators (KPIs) in a lean startup environment. It is a set of metrics that helps product managers to measure the success of their products and make data-driven decisions.
What are Lean Metrics?
Lean Metrics are a set of KPIs that are used to measure the success of a product in a lean startup environment. These metrics are designed to help product managers to make data-driven decisions and to identify areas for improvement.
Some of the most common Lean Metrics include:
Customer Acquisition Cost (CAC)
Lifetime Value (LTV)
Churn Rate
Monthly Recurring Revenue (MRR)
Net Promoter Score (NPS)
Conversion Rate
Why are Lean Metrics important?
Lean Metrics are important because they help product managers to measure the success of their products and make data-driven decisions. By tracking these metrics, product managers can identify areas for improvement and make changes to their products to increase their success.
For example, if a product has a high churn rate, product managers can use this information to identify the reasons why customers are leaving and make changes to the product to address these issues. Similarly, if a product has a low conversion rate, product managers can use this information to identify the reasons why customers are not converting and make changes to the product to improve the conversion rate.
Conclusion
In conclusion, Lean Metrics are a set of KPIs that are used to measure the success of a product in a lean startup environment. These metrics are important because they help product managers to make data-driven decisions and to identify areas for improvement. By tracking these metrics, product managers can improve the success of their products and ultimately increase their revenue.
