13 – KPI (Key Performance Indicators)
A look at the business model from the product manager's point of view
CANVAS 13 - Great guide on the business model, from the product manager's point of view
1 – Customer Problem
2 – Customer Segments
3 – Value Propositions
Value Proposition Formulation Map
4 – Customer Relationships
5 – Channels
6 – Revenue Streams
7 – Key Activities
8 – Key Resources
9 – Key Partners
10 – Cost Structure
11 – Eco-Social Costs
12 – Eco-Social Benefits
You are here ➔ 13 – KPI (Key Performance Indicators)
As product managers, we begin the process of building a CANVAS business model by understanding the problems and needs of our customers. However, for effective product management and market success, it is necessary to set and track key performance indicators (KPIs). These indicators serve not only as a measure of our success but also as a guide for the development and improvement of our products.
Why are KPIs needed?
KPIs allow us to assess how well the product meets market needs and achieves business goals. They not only help measure success but also identify areas for improvement. For example, if the product's goal is to increase the user base, the corresponding KPI might include the monthly growth of new users or the customer churn rate.
Which KPIs to choose?
The choice of KPIs should be based on the strategic goals of the business and the characteristics of the product. For example, for a mobile application, important metrics might include daily user activity, time spent in the app, or the conversion rate of completed target actions. It is important to choose KPIs that can be clearly measured and that genuinely reflect the successes and problems of the product.
Tools for tracking KPIs
For effective KPI tracking, it is necessary to use specialized tools and dashboards. Modern CRM systems, analytics platforms such as Google Analytics, and user behavior analysis platforms like Mixpanel or Amplitude provide deep data analysis and allow tracking key indicators in real-time.
Summary
KPIs are not just numbers. They serve as a basis for making informed decisions, help evaluate the effectiveness of current strategies, and guide us toward product improvement. KPIs make our approach to product management more structured and result-oriented. Monitoring KPIs allows us not only to evaluate final results but also to understand the dynamics of changes in the product and customer relationships. This is key to strategic planning and long-term business success.