PMTK Product Success Indexes
Question: Which Benchmarks are used in PMTK to measure product success?
In the Blackblot PMTK Methodology™, the benchmarks used to measure product success are referred to as Product Success Indexes.
PMTK recognizes four categories of product success indexes:
- FINANCIAL - this commonly used success index is associated with product-related monetary indicators, primarily total revenue and profitability, including revenue or profit growth rates and, in some cases, the company's stock price performance and valuation.
- MARKETING – this success index is associated with non-financial product-related performance indicators, primarily market share, number of registered users, number of top-tier customers, including market share growth rates, and sales velocity.
- PRODUCT LEVEL – this success index is associated with a custom product project for a single customer, typically in a B2B or B2G (business to government) scenario where the revenue and profit are pre-determined. In this case, success is measured through the project delivery parameters of time, quality, and budget.
- CUSTOMERS – this success index is associated with indicators that describe existing and potential customers' attitudes to the product, including satisfaction, image, awareness, recall, and recognition.
PMTK's four product success indexes are not product metrics.
Product Metrics are tracked product variables related to the user's interaction with the product.
Typically followed metrics of digital products include Adoption (first-time use of feature or product) and Engagement (on-going experience and use of a feature or product).
The data collected is used to recognize meaningful patterns, develop insights, and then make product decisions that improve products.
Product Metrics are covered in the Blackblot Data-driven Decision Making for Product Managers™ course.