For all the product managers out there, KPIs are a powerful way to measure future success

Key Performance Indicators stand for KPIs, and they are essential in tracking any product’s success. These KPIs are more useful when interpreted correctly. They help managers draw important conclusions and drive continuous improvement.

KPIs are many, and calculating these KPIs is not difficult. Honestly, choosing the right KPIs can help you make an informed decision. By picking the right KPIs, data product managers can spend less time observing KPIs and give more time to strategize the implications.

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Let us walk you through the most important KPIs to help you track the performance of B2B data product managers.

1. Customer Acquisition Cost

Customer Acquisition Cost (CAC) is an essential KPI to monitor financial investment for attracting more customers. CAC is used to assess and analyze the value of all the advertising efforts, for instance, the number of hours spent on a project.

It is difficult to measure such minute expenses as labor hours per project, but a dedicated organizational tool can help B2B managers to record the exact time spent on an activity. CAC further helps to understand whether your organization is spending more on attracting customers or gaining more from them.

2. Conversion Rate

Of course, conversion rates are one of the most important KPIs for B2B product managers. If your company is relying on the effectiveness of the website, the conversion rate is a must to calculate success in terms of sales. Managers can use several tactics to drive conversions, for instance, effective social media posts or paid ads.

However, it is important to make your website user-friendly and optimize the structure so that your customers like to stay on the website, which leads them to complete their purchases.

3. Session Duration

Session duration is a precise KPI and it is also considered the best in terms of monitoring exact user engagement with your products. But obviously, this pertains to the digital forms of interaction, and depending upon the purpose of your platform, your team can determine whether the user session duration is long enough to complete purchases, consume content, or subscribe to your services.

Considering session duration, you are directed towards the best and the worst performing parts of your website.

4. Adoption Rate

Adoption rate is a KPI showing product managers how the new users find their product interesting. Customer retention is vital, but attracting new buyers can boost your business. Adoption rates are measured for a certain period as you compare your current month’s success against the previous ones.

There are several ways to grab the attention of new customers towards your products and one such technique is an effective visual representation. Unique branding and logo can also play an important role here.

5. Traffic

Traffic to your website is always an essential indication of the health of your online business. When you get more traffic to your website, you know that your resources are going in the right direction. Paid traffic works but B2B product managers must always keep an eye on the organic traffic. Both the organic and paid efforts must be balanced and distributed correctly.

6. Customer Retention Rate

We discussed some KPIs above while your marketing strategies are still taking place. We are now moving towards metrics that will evaluate your progress. The first one is CRR (customer retention rate). It is an integral part of keeping track of factors such as product efficiency and customer loyalty.

When companies see customer expectations changing rapidly, they upgrade their services. The results are visible through increased retention rate, and the customer will feel special.

7. Customer Satisfaction Score

When you successfully manage to keep your customers happy and retained, it is important to ensure that your product remains in line with their expectations. One easy way to do this is by measuring customer satisfaction score. The score is calculated considering the overall satisfaction of purchase with a certain product.

Attracting new customers is expensive as compared to retaining the old ones. For your long list of satisfied customers, it will lead to a positive corporate image and help you become cost-effective in the future.

Wrapping Up

Product managers must stay ahead of their clients’ needs and beat the competition. There is no denying that current events have made it challenging for product managers to oversee their teams while keeping an eye on their team’s efficiency. While the data product managers have tools like Slack etc., the KPIs also play a crucial role in keeping track and ensuring delivery of the desired results.

So, have you defined your KPIs yet?

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