To consistently drive scalable and sustainable growth for your product, you are likely going to need to understand a set of useful metrics around your product or platform. At their core, product metrics are indicators that show how users interact with a product. But there are several types of metrics, and varying levels of utility.

There are two primary groups to metrics, leading and lagging indicators.

Leading indicators - tells you where your business is headed

drive daily tactics
measure frequently (and easily)

Lagging indicators - tells you if your actions were successful

drives long-term strategy
measure at a longer time interval (quarterly / annually)

Neither of these is “better”, they are simply used for different purposes on a different cadence. Your product team should be tracking metrics in both categories.

There are some metrics that are bad, however. These fall into two categories - vanity metrics, and metrics without context.

Vanity Metrics

look good but don't measure meaningful results
aren't actionable or controllable in a repeated way
page views / "likes" / number of email subscribers

Metrics without context

Often, running totals
For example, "10,000 registered users" sounds good, but not if there are only "100 active monthly users"

To understand if you are working with vanity metrics, use this helpful worksheet from Amplitude.

Understanding the categories of metrics can help set a standard on gathering information about your product’s performance. Use the stand-up exercise below to help set that baseline.

STAND-UP EXERCISE

After reviewing definitions of leading / lagging indicators and understanding what types of metrics are bad, make a list of measurements the product team is currently using. Which category do these fall into? Are any of them vanity metrics or lacking necessary context to define success? Which of these measurements is used only internally to the team and which are shared out to stakeholders? How often have these measurements been used to inform a decision on the product?

Once a baseline is in place, the team can dive into making sure metrics correspond to each part of the user journey, as well as determining a primary North Star metric. More of that to come in part two.