ND037 GPMND C1 L2 A08 Growth Metrics V2

in this lesson we will learn about common growth metrics and see how they map onto the r framework so let's begin with what are metrics metrics are measurable ways to assess how well a business is performing against the set goals and growth metrics these are metrics that we identify to measure the growth of the business and it is usually pretty well aligned with the r framework so in this section we'll look at some common growth metrics along the user journey using the framework and we'll focus specifically on acquisition activation and retention since that's the main

focus of this course also another thing to keep in mind is that the specific metric you'll be tracking it largely depends on the product in the business context and the ones that we'll be going over are more generic common ones that we often see one of the common acquisition metrics is lead generation rate by channel now let's break that down a little bit a lead refers to a visitor that is successfully routed to the landing page channel there are different channels like search engines or social media where we can source these leads and each channel

will have varying effectiveness in driving the users to the product so lead generation rate by channel it measures how effective a particular channel is in driving awareness of the product to potential users another common metric in the acquisition phase is monthly visitor sessions this shows the aggregate visitor traffic from the different channels like ads or search engine results and it's basically showing the overall effectiveness of all the channels that we have to expose the product to potential users now let's take a look at some common activation metrics one common metric in this phase is conversion

rates this shows the percentage of visitors that converted into a user it's also showing how well we are helping these potential users realize the value of the product customer acquisition cost this is another common activation metric it helps answer how much do we need to spend to activate a customer and it's kind of related to revenue and activation the hope is that the amount that the customer purchases or spends over time will actually be higher than the acquisition cost that we spend on them let's move on to retention one of the most common retention metrics

many products and companies use is monthly active users it usually refers to the number of users who interact with a product in a meaningful way now meaningful way meaningful interaction it again depends on the product it could mean booking a reservation posting content sharing content it depends on the context of what the business is situated in another common metric at this phase is churn rate customer return rate it captures the users who have left the product either because they lost interest or maybe they went to a competitor and it usually is a percentage of the

users who became inactive and or completely opted out of the product within a specific time frame it is usually a percentage of the users who became inactive or completely opted out of the product within a specific time frame