1. Customer Acquisition Cost (CAC)

• What it measures: The cost of acquiring a new customer through marketing, sales, and any other associated expenses.
• Why it’s important: A high CAC can indicate inefficiencies in your sales and marketing strategy. It’s essential to keep CAC low while maintaining a healthy inflow of new customers.

2. Customer Lifetime Value (CLV)

• What it measures: The total revenue a company expects from a customer over the duration of their relationship.
• Why it’s important: CLV helps product leaders understand the long-term value of a customer and determine how much to invest in acquiring and retaining them.

3. Churn Rate

• What it measures: The percentage of customers or users who stop using your product over a given time period.
• Why it’s important: A high churn rate can signal issues with product-market fit, user satisfaction, or customer service. Reducing churn is key to sustainable growth.

4. Monthly Recurring Revenue (MRR)

• What it measures: The predictable revenue that a company expects to receive on a monthly basis from subscriptions or recurring services.
• Why it’s important: MRR is crucial for understanding the financial health and predictability of a SaaS or subscription-based business.

5. Retention Rate

• What it measures: The percentage of customers who continue to use your product over a specific time period.
• Why it’s important: High retention is a strong indicator of customer satisfaction and long-term product value. It also impacts revenue stability and growth.

6. Net Promoter Score (NPS)

• What it measures: A customer satisfaction metric that gauges the likelihood of customers recommending your product to others.
• Why it’s important: A high NPS reflects customer loyalty and satisfaction, while a low NPS can reveal product issues or poor customer experience.

7. Conversion Rate

• What it measures: The percentage of users who take a desired action (e.g., sign up for a service, make a purchase) out of the total number of visitors or leads.
• Why it’s important: This KPI helps assess the effectiveness of your product, marketing, and sales funnels. Improving conversion rates directly impacts revenue.

8. Average Revenue Per User (ARPU)

• What it measures: The average revenue generated from each active user or customer over a specific time period.
• Why it’s important: ARPU helps gauge the monetization of your user base and informs pricing strategy and product enhancements.

9. Time to Market (TTM)

• What it measures: The amount of time it takes from initial product concept to launch.
• Why it’s important: Speed to market is critical, especially in competitive industries. Efficient product development and delivery can create a significant market advantage.

10. Feature Adoption Rate

• What it measures: The percentage of users who adopt and regularly use a new product feature.
• Why it’s important: This metric highlights the value and success of new features. Low feature adoption may signal usability issues or a lack of relevance to customers.

Bonus KPIs:

• Daily/Monthly Active Users (DAU/MAU): Measures user engagement over time.
• Customer Satisfaction Score (CSAT): Gauges user happiness with your product.
• Product Usage Frequency: Helps you understand how often users engage with your product, which is key to optimizing engagement.

By regularly tracking these KPIs, product leaders can make informed decisions to improve product performance, customer satisfaction, and overall business growth.