How to Set Key Performance Indicators (KPIs) for Your Product

Introduction: The Metric Trap

Too many product teams track vanity metrics (like page views or signups) instead of actionable engagement metrics that drive long-term business sustainability.

Crucial Product Metrics

Daily Active Users (DAU) & MAU

Indicates user engagement frequency and active product stickiness.

Retention Rate

The percentage of users who return to the app after their initial visit. High retention is the key to scaling.

Customer Lifetime Value (LTV)

Estimates the total revenue a business can expect from a single customer account.