Minimum Viable Product Performance Metrics 📊 - YouTube

Watch this video to learn the most essential success metrics

to measure the results of your MVP.

Value to a minimum viable product based on data, not on your gut feeling.

How to understand if your MVP is a success or fail?

Here at Railsware, we prefer a data-driven approach.

In this video, I will explain the most essential metrics you have to track to understand whether your MVP was successful.

Also, we will discuss what to do if your MVP has failed.

Customer feedback is an essential metric to measure throughout the whole pipeline.

However, it is extremely actionable at the MVP stage.

You can find out how things are going by interviewing your customers.

Listing the problems to be fixed and expectations to be met will help your product to evolve

in the right direction.

The Net Promoter Score (NPS) is a survey-based metric.

This means you need to ask your users directly whether your MVP is good or not.

Traditionally, it is like “will you recommend it to others” or “how would you rate your experience” and so on.

The score scale is from 0 to 10, where two categories of users can be defined: detractors

(rated 0 to 6) and promoters (9-10).

The NPS is the difference between the percentage of promoters and detractors.

Your MVP’s net promoter score can be deemed successful if it is above zero.

And the greater score you obtain, the better.

Activation is all about how good the first user’s experience is.

If the number of signups is growing, that means that your product is doing well.

New customers will bring not only the revenue but also the user stories to improve your startup.

Meanwhile, if new users do not come, you have to find out the reason.

This can be either a poor UX or a problem with your marketing campaign.

The notion of active user differs depending

on the product.

Usually, product owners are interested in monthly active users (MAU).

For example, at Mailtrap, it is recognized according to the number of emails sent

per month.

At the same time, if you want to build MVP website with the focus on social communication,

you’re likely to benefit from daily active users (DAU).

So, if your daily active users metric goes up – you’re on fire; down – you

need to tweak user engagement.

Money-based data should also be taken into

account from the outset.

The monthly recurring revenue is the core financial metric for each Software-as-a-Service product.

It shows the volume of money your product generates per month.

The revenue usually includes a direct income, all of the monthly upgrades/downgrades,

discounts, churns, reactivations and other money-related activities.

One-time fees are not a part of the MRR.

Another financial metric that you can measure

at the MVP stage is customer acquisition cost.

It displays how much money you need to spend to get a single customer.

This is an important metric for you to measure how scalable and profitable your product is.

For example, if you spend more money to acquire the customer than the revenue it brings, the

product is unprofitable.

This metric is also crucial to measure your marketing efficiency and identify the idle costs.

Average revenue per user (ARPU) is a metric

used to track a company’s growth progress.

With this metric, you can understand how much revenue you can get from each single customer

and make the necessary tweaks.

As a rule, you need to divide the total revenue by the total number of users to calculate the metric.

What's next?

After you have launched your MVP, there are literally two case scenarios:

The first one - your MVP is successful.

This means that the metrics you measure show a good performance of your product.

In this case, you should expect a gradual growth of your customer base,

feedback on how you can improve your product and other signs of raised user engagement.

The next steps the product manager can take is the development (for no-product MVPs)

or production (for one-feature MVPs and mockups).

After this, you promote the product ar the market.

Your second case scenario: MVP is not successful.

Most of the startup founders want to build an MVP app that wins out,

but only few of them manage to do this.

If you have downbeat metrics, this doesn't mean that you’ve lost.

Sometimes, you need to pivot and change the course of your idea or business model.

And this is possible if you use the minimum viable product at the outset of your project.

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