Today let’s talk about how to measure the effectiveness of your actions. When you build a business or develop a product, you want your effort and expenses to be meaningful. For that, we use metrics. They indicate the speed at which we move towards our goals. What are metrics good for?
- Testing hypotheses. With the data we can see if the changes we introduce into the product bring positive results.
- Making data-based decisions in a fast manner. Introducing new practices that have proven to be profitable.
According to JetStyle’s CEO Alexey Kulakov, if you want to figure out what metrics are best for your business you should visualize the ultimate goal. And then to write down all the steps to reach it starting from the last element of the chain. Alexey wrote a book on product development with one chapter dedicated solely to metrics and their hierarchy within the product development process. Also, it covers the phenomenon of local optimization and other metrics-related risks. If you’re interested, visit Amazon to read the book (link above)
In our next posts, we’ll share a useful tool for metrics calculation which we developed for our own use.