What are the most effective Lean Metrics and KPIs for increasing profitability and competitiveness?

3 How to Choose the Right Lean Metrics and KPIs for Your Products?

When it comes to choosing the right lean metrics and KPIs for your products, there is no one-size-fits-all answer. It depends on the stage, scope, and objectives of the product. However, there are some general guidelines that can help you out. First, define your product goals and hypotheses. Then, identify your key customer segments and value propositions. After that, select the metrics and KPIs that are relevant, actionable, and measurable. Finally, prioritize and focus on the most critical metrics and KPIs to ensure you're not getting distracted by vanity metrics or irrelevant data.

4 What are Some Examples of Lean Metrics and KPIs for Products?

There are many possible lean metrics and KPIs for products, but some of the most common and useful ones include Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), Customer Retention Rate (CRR), Customer Lifetime Value (CLV), Product-Market Fit (PMF), and Lean Canvas. CSAT measures customer satisfaction with your product or feature, and can be collected through surveys, ratings, or feedback forms. NPS measures how likely customers are to recommend your product to others. CRR is calculated using the formula CRR = (E-N)/S x 100, where E is the number of customers at the end of the period, N is the number of new customers acquired during the period, and S is the number of customers at the start of the period. CLV measures how much revenue your customers generate for your product over their entire relationship with you. PMF assesses how well your product meets the needs and expectations of your target market. Lastly, Lean Canvas helps you create and validate product hypotheses, value propositions, and business models.

5 How to Use Lean Metrics and KPIs in Your Product Engineering Process?

Using lean metrics and KPIs in your product engineering process is not a one-time event, but a continuous cycle of learning and improvement. To use them effectively, you should first set product goals and hypotheses to define what you want to achieve. Then, choose relevant, actionable, and measurable indicators for your product goals and hypotheses. Collect and analyze data from various sources, such as surveys, analytics, experiments, or observations. Use the data to make decisions, validate or invalidate your hypotheses, and iterate the product based on feedback. Finally, monitor the lean metrics and KPIs regularly to review progress and adjust goals and hypotheses as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?