A measure of product value

Each product will have its own proprietary feasible indicator. This indicator can guide the direction of the product and help the company to make better decisions, such indicators can bring different competitiveness of the company and others. This indicator is exactly what each product should focus on, on the contrary, those vanity indicators, to the PR department to go on it.

Line on the product, no doubt, will need some indicators to measure the value of this product. The most common PV, UV, DAU, MAU, ROI and so on. These figures, to some extent, represent the value of the product, but also a symbol of the milestone. Therefore, we often see various products in the media broke their own data to demonstrate their strength.

However, as this landmark is magnified, more and more vanity indicators are flooded with the Internet, flooding with product hype. What is more, these vanity indicators become the product's KPI, in order to achieve KPI, more means are out, eventually aggravating the illusion of these indicators.

For example, all users who have used the features associated with this product are counted as active users of this product. For example, always measured by the cumulative user, without losing the user and so on. Similar to 100,000 new users in a week, with a monthly PV of 20 billion and a total membership of 3 million, these figures are the product's keen interest in external PR.

From the trend point of view, the number of users is certainly increasing, with the increase in the number of users, registered users, the number of users must also increase, so these figures may seem very important, but in fact, of little significance.

The emergence of similar false indicators has hindered the normal development of products to a great extent. In addition to a Niubi external, the internal are basically playing digital games, lie to yourself.

Each product should have its own viable indicator. This indicator can guide the direction of the product, and help companies make better decisions, such indicators can bring the company a distinctive competitive edge. This indicator is that every product should pay attention, and those vanity indicators, to the PR department to coax the media and competitors outside it.

For example, the feasible indicator of the review may be the number of reviews and the number of restaurant pictures uploaded; the feasible indicator of the photographing community may be the daily upload number of photos, the percentage of users who return to the website in a week and upload photos; the feasible indicator of the community may be the last 30 days The number of active users.

Funnel model is a more appropriate measure of. Funnel way, you can well know the operation of the product itself and product business model.

For example, from obtaining a user to the user to place the final order in the funnel, pinch to the tail, calculate the cost of obtaining a user is how much the value of the user a single contribution, and then calculate the user repeat the purchase ratio, you will probably know This business is not drawn. If you can not draw it, is the funnel problems, or mode problems?

In the early stage of the Hotel Manager Butler, we set up several funnel models, the new user under the single funnel, the old user under the single Funnel, used to adjust the product design, until the funnel tends to be stable. Then introduce new users come in and keep optimizing this funnel.

We need a set of indicators that we can see that this product is a sustainable product, to measure the value of this product, rather than a total trend. For example, the total number of users is growing, but whether the revenue generated by each new user is increased or not? What is the proportion of new and old users in the total amount?

In addition, from the product cycle point of view, in fact, the product process is a "set a hypothesis - the data to verify this hypothesis - adjust the value of the hypothesis, continue to verify" such a process. Vanity static data does not help in this validation process, but it helps to reveal the causal data of the product.

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