Product Management Metrics

Activation Rate helps companies determine how quickly and effectively their new users are achieving perceived value. It measures the number of new users that have performed a predetermined “key action” within a set period of time, where the key action is assumed or known to deliver initial customer value.

Average Server Response Time is the average amount of time an application’s web server takes to return the results of a request to the user. It is affected by several factors including network bandwidth, number of users, and number and type of requests submitted.

Customer Effort Score (CES) is a measure of how easy or difficult it is for customers to interact with your company, whether that means making a purchase, accessing a free trial, resolving a problem, navigating your website, or getting something done in your product. CES is measured by surveying customers after a specific interaction and asking them to rate how easy or difficult it was to accomplish their goal. High-effort interactions, ones that make customers repeat information, deal with multiple people or screens, or search through irrelevant content, are the primary driver of disloyalty.

A Customer Health Score is a single, calculated number that reflects a customer's health across multiple dimensions. By monitoring Customer Health Scores, you can detect early signals of increased friction or declining customer engagement, and identify highly engaged clients who would make excellent advocates.

Daily Active Accounts measures the number of unique accounts with at least one user who interacted with an application or platform in a given day. An active account may include one or more users, each with varying degrees of activity.

Daily Active Users (DAU) is the count of unique users who interact with an application or platform on a given day. DAU measures daily engagement and includes both new and returning users. Unique users are identified by a username, email address, or user ID, and active users can be paying or non-paying.

DAU/MAU Ratio (Daily Active Users to Monthly Active Users ratio) measures how active monthly users are on a daily basis. In other words, this engagement metric measures the number of days in each month that users performed an activity that qualifies them as active users. A higher DAU/MAU Ratio generally indicates high stickiness, meaning users consistently return to the app.

Gross Margin is a profitability ratio that measures Gross Profit as a percentage of total revenue. Typically, it is calculated as Gross Profit divided by Revenue. This metric is a key indicator of a company's financial health and operational efficiency.

Gross Profit is the revenue remaining after subtracting the Cost of Goods Sold (COGS). It shows how efficiently a company produces and sells its goods or services, and how much revenue is available to cover operating costs and generate net income.

Logo Churn (also called Customer Churn or Account Churn) measures the number or percentage of customers who cancel their subscription or stop doing business with a company during a specific time period, regardless of the revenue value of those customers. Unlike revenue-based churn metrics, Logo Churn treats all customer losses equally, making it a critical indicator of product-market fit, customer satisfaction, and business model sustainability.

Monthly Active Accounts is the count of unique accounts with at least one active user in a given month. It measures platform engagement at the account level, tracking how many accounts are actively using an application or service each month.

Monthly Active Users (MAU) is the count of unique users who interact with an application or platform at least once in a given month. MAU tracks engagement across both new and returning users, and serves as an early indicator of retention risk or growth momentum. Unique users are identified by username, email address, or user ID. Both paying and non-paying users count, including those on free trials.