Now Let's dive in!

  1. ARPU (Average Revenue Per User): Its How much money each user brings in? ARPU is a strong indicator of your product and business health  Example: If Spotify earns $100 from 10 users in a month, their monthly ARPU is $10.  Calculation: Total Revenue / Number of Users.
  2. CAC (Cost to Acquire a Customer): How much it costs to get a new customer. The higher the CAC more is the burn rate for the company.Example: If Netflix spends $100 on ads and gets 10 new subscribers, their CAC is $10. Calculation: Total Marketing Costs / Number of New Customers
  3. CLTV (Customer Lifetime Value): The total value of a customer over time. Example: If an Amazon Prime member spends $100 per year for 5 years, their CLTV is $500. Calculation: (Average Purchase Value × Purchase Frequency) × Average Customer Lifespan
  4. Churn Rate: The percentage of customers you lose. This is the opposite of retention, and a very important metric for SAAS companies.Example: If Hulu starts with 100 subscribers and loses 5 in a month, their monthly churn rate is 5%. Calculation: (Lost Customers / Starting Customers) × 100
  5. Conversion Rate: How many visitors become customers. Example: If 100 people visit an Airbnb listing and 2 book it, that's a 2% conversion rate. Calculation: (Number of Conversions / Total Visitors) × 100
  6. MRR (Monthly Recurring Revenue): Predictable monthly income for subscription businesses. Example: If Dropbox has 100 users paying $10 per month, their MRR is $1,000. Calculation: Number of Subscribers × Monthly Subscription Price
  7. DAU/MAU (Daily Active Users/Monthly Active Users): Daily vs. monthly usage. Example: If Facebook has 60 million DAU and 100 million MAU, their DAU/MAU ratio is 60%. Calculation: (Daily Active Users / Monthly Active Users) × 100
  8. Session Duration: How long people use your product at a time.  Example: The average YouTube user spends 30 minutes per visit. Calculation: Total Time Spent by All Users / Number of Sessions
  9. Bounce Rate: Percentage of people who leave a website quickly.  Example: If 100 people visit Amazon and 20 leave immediately, the bounce rate is 20%. Calculation: (Number of Single-Page Visits / Total Visits) × 100
  10. Retention Rate: Percentage of customers who keep using your product. Example: If Slack starts with 100 users and 90 are still active next month, the monthly retention rate is 90%. Calculation: ((Starting Customers - Lost Customers) / Starting Customers) × 100
  11. Actions Per Session: How much users do each visit. A strong indicator of engagement.Example: If TikTok users watch 10 videos on average per visit, that's 10 actions per session. Calculation: Total Number of Actions / Total Number of Sessions
  12. NPS (Net Promoter Score): How likely customers are to recommend you. Example: If 60% of Apple users are promoters and 10% are detractors, Apple's NPS is 50. Calculation: % of Promoters - % of Detractors
  13. AOV (Average Order Value): Average amount spent per order. Example: If Wayfair's customers spend $1000 total over 10 orders, the AOV is $100. Calculation: Total Revenue / Number of Orders
  14. CTR (Click-Through Rate): Percentage of people who click a link. Example: If 1000 people see a Google ad and 20 click it, the CTR is 2%. Calculation: (Number of Clicks / Number of Impressions) × 100
  15. Stickiness (DAU/MAU Ratio): How often users return. Example: If Instagram has 50 million DAU and 100 million MAU, their stickiness is 50%. This is a critical metric for all engagement-based products like Gaming and Social Networks.Calculation: (Daily Active Users / Monthly Active Users) × 100
  16. Here is the guide on product analytics:

The complete guide on Analytics for Product Managers – HelloPM

Here are some more helpful resources for your PM journey:

https://hellopm.co/top-pm-resources/