Interactive
Acquisition Metrics
Acquisition is about how new users discover and start using your product. Key metrics include: New Users / Sign-ups: Total people who register or download in a given period. Activation Rate: The percentage of new users who reach a defined “aha moment” (for example, uploading a first photo, sending a first message, or creating a project). Cost per Acquisition (CPA): The average cost of acquiring a new customer, often through ads or campaigns. Strong PMs track whether acquisition channels (organic search, referrals, paid ads) are efficient and scalable.
Scale
Engagement Metrics
Engagement measures whether users are actively finding value. Common metrics are: Daily Active Users (DAU) and Monthly Active Users (MAU): Core indicators of recurring usage. Stickiness (DAU/MAU ratio): Shows how often monthly users return daily. A higher number signals strong product habit. Session Length and Frequency: Average time per session or number of sessions per user. Engagement answers: Are people coming back? Are they staying long enough to benefit?
Measurement
Retention Metrics
Retention shows if users continue using the product over time, which is critical for sustainable growth. Retention Rate: Percentage of users who return in a specific timeframe (for example, Day 1, Day 7, Day 30). Churn Rate: The percentage of users who stop using the product. Cohort Analysis: Groups users by sign-up date to see how long they stick around. Retention is often the most important metric. Without it, acquisition spend is wasted.
Growth
Revenue Metrics
Growth is not only about users but also about monetization. PMs often track: Average Revenue per User (ARPU): How much revenue each user generates on average. Customer Lifetime Value (LTV): The projected total revenue from a customer during their relationship with the product. Conversion Rate: Percentage of free users who convert to paid or percentage of trials that turn into subscriptions. These numbers show if the product model is sustainable and scalable.