//pragmatic leaders

Introduction to Metrics

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5 min
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PM Foundations (Legacy)
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A pragmatic product leader is constantly measuring. Always has major numbers in mind and the numbers that he cares about.
Talvinder Singh, from a Pragmatic Leaders session on metrics

Product momentum is a concept every pragmatic product leader must internalize. You are continuously measuring — not occasionally, not after the fact — but always. The numbers you pick are not random. They determine whether your product succeeds or fails.

The formula of momentum is simple yet powerful: M = mv. In physics, momentum equals mass times velocity. In product, I call m the metrics and v the velocity toward your goal. That velocity is the speed at which you move the metric in the desired direction.

Let me illustrate. Suppose your goal is to improve retention by 10%. Retention is your metric. Velocity is how fast you want to reach that 10% improvement. If your timeline is one month, your velocity is 10% over one month, or 2.5% per week. That 2.5% per week is your momentum — the measurable progress you must hit every sprint.

This is how important metrics are. They are the only way to quantify your theories, your efforts, and your outcomes. Without them, you are navigating blindly.

The formula of momentum: M = mv

The formula helps you break down your targets into actionable increments. It forces you to think about not just what you want to improve, but how fast you want to improve it.

For example, if you want to increase daily active users (DAU) by 20% in 2 months, your velocity is 10% per month, or roughly 2.5% per week. Your team can then plan releases and experiments that aim for that weekly gain.

If you cannot measure velocity, your metric is meaningless. If you cannot tie velocity to your release cadence, you do not have a roadmap.

// scene:

Sprint planning at a Series A Indian fintech startup

You (PM): “Our goal is to improve retention by 10% over the next month. That means a velocity of 2.5% per week.”

Engineering Lead: “Given our current backlog, can we deliver features that move retention by that much weekly?”

Design Lead: “We can prioritize onboarding improvements and personalized notifications to hit that velocity.”

Product Analyst: “I’ll set up dashboards to track retention weekly and alert on deviations.”

This alignment on metric, velocity, and work scope sets clear expectations for the sprint.

// tension:

Without a shared understanding of momentum, teams either overcommit or underdeliver.

Metrics serve different purposes for different audiences

You will hear many PMs talk about metrics as if they are one-size-fits-all. They are not.

Metrics get you deals, end of the day. But the kind of metrics you report and track depend on your audience:

  • Founding team: They want a narrow, coherent focus on execution. The metric must be clear and actionable. They want to iterate based on findings, not gut feeling.

  • Your product team: They need a crystal-clear goal. The metric guides daily decisions, prioritization, and trade-offs.

  • Investors: They assess whether you know what you’re doing. They want to reduce uncertainty and evaluate the opportunity at a glance.

Each audience demands different framing, granularity, and cadence.

// thread: #product-mgmt — PM team discussion on metric reporting
Anjali (founder)I want weekly updates on retention and revenue. Keep it simple — no dashboards, just the headline numbers.
Rahul (PM)For the team, I’m setting up daily funnels on onboarding and activation to identify drop-off points.
Neha (Investor Relations)Investors want monthly cohort analysis to assess growth quality, not just raw numbers.
You (PM Lead)Let’s tailor our reports accordingly. Founders get summary metrics, team gets detailed operational metrics, investors get strategic KPIs.

What is a business metric?

A business metric is a quantifiable measure used to track and assess the status of a specific business process.

Different business processes require different metrics:

  • Operational metrics: e.g., average delivery time, server uptime
  • Financial metrics: e.g., revenue, gross margin
  • Product metrics: e.g., DAU, retention, conversion rate

Each function within a company monitors its own set of metrics that matter most to their goals.

For example:

AudienceMetrics ExamplePurpose
MarketingCampaign CTR, social media engagementTrack campaign effectiveness
SalesNew leads, opportunity conversion rateMeasure pipeline health
ExecutivesRevenue, EBITDA, customer acquisition cost (CAC)Assess overall business health
Product ManagersActivation rate, retention, feature adoptionGuide product decisions and prioritization

A pragmatic product leader understands which metrics matter for their role and audience — and focuses relentlessly on those.

How to identify the right metrics

You will face a flood of data. The trap is to track everything — vanity metrics that look good but do not impact your goals.

Good metrics give real, meaningful insight.

For example, if you are tasked with improving search experience on an e-commerce app, you might start with:

  • Search relevance (are results matching queries?)
  • Query suggestions availability
  • Real-time search response time

But these are just suspects. You need to triangulate the main cause of poor search outcomes.

Maybe users don’t click on search results because:

  • Pictures are unappealing
  • Prices are too high
  • Too many products clutter the page
  • Filters are missing or confusing

If the industry average click-through rate (CTR) from search to product page is 20%, and you are at 10%, that is a significant gap.

You can analyze clicks vs price to check if pricing is the culprit. You can run experiments — for example, discounts on selected products — to validate hypotheses.

This process of hypothesis, measurement, and experimentation is the heart of metric-driven product management.

The PM’s mindset: always measuring, always learning

A pragmatic product leader never stops measuring.

Imagine a year with 52 weeks and a sprint cycle of two weeks. That’s 26 releases — 26 impact points. Each release is an opportunity to move your metrics forward.

If you do not bake measurement into your product from day one, you will not know if you are winning or losing.

Test yourself: Prioritizing metrics for stakeholders

// learn the judgment

You are PM at a Series A Indian SaaS startup. The founding team wants a weekly revenue update. Your product team wants detailed feature adoption data daily. Investors want monthly customer churn analysis. Your analytics team has limited bandwidth.

The call: How do you prioritize metric reporting and design dashboards to serve these diverse needs effectively?

Your reasoning:

// practice

You are PM at a Series A Indian SaaS startup. The founding team wants a weekly revenue update. Your product team wants detailed feature adoption data daily. Investors want monthly customer churn analysis. Your analytics team has limited bandwidth.

Your task: How do you prioritize metric reporting and design dashboards to serve these diverse needs effectively?

your reasoning:

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Field exercise: Quantify your product momentum

// exercise: · 15 min
Quantify your product momentum

Pick one key metric for a product you use or manage — for example, retention, conversion rate, DAU, or revenue growth.

  1. Define a clear goal for improvement (e.g., increase retention by 8%).
  2. Set a timeline to achieve this goal (e.g., 2 months).
  3. Calculate the velocity required per week or sprint cycle.
  4. Write down what changes or experiments you would prioritize to hit that velocity.
  5. Reflect on how you would measure progress each week.

This exercise will help you internalize the momentum formula and make your goals actionable.

Where to go next

PL alumni now work at Flipkart, Razorpay, Swiggy, PhonePe, and dozens of other leading Indian tech companies.