Metric Basics (Day 373)

There are four main categories for metrics:

• User metrics
• Marketing metrics
• Product metrics
• Business metrics

You can get most user metrics from simply using Google Analytics, but require more customization work to track spendings or attributions.

Marketing metrics requires basic analytics in place so you have a baseline number, so you can measure the ROI on marketing campaigns. Tagging and utm tracking allows you form cohorts to provide useful insights.

Product metrics are usually very specific. Most common use case could be the funnel analysis, to find out where in the process we have most dropoffs. Another common use case is A/B testing, so we can test hypotheses of product decisions.

Business metrics are usually more revenue related. From CAC (customer acquisition cost) to the LTV (customer lifetime value), cost of products and cost of marketing, etc.

There are many out of the box solutions, but if possible, it is always a good practice to store the raw data internally. A typical technical design would include actually implementation of the trackings in frontend and backend, extraction and storage of the raw data, data modeling, analysis and reporting, and then a more sophisticated prediction models for key metrics like LTV, churn analysis, etc.