Formula: Feature Adoption Rate = Number of Feature Users/Total Number of Users

Feature adoption rate measures the proportion of users adopting a specific feature in a product. This metric helps determine which HE Tuber features are most popular and helps us improve the product experience and process efficiency. If the adoption rate of a certain feature is low, the design needs to be reconsidered to transform the original process.

For example, we found on our platform that few users use the search bar, so we need to make the search bar more prominent on the page and take additional guidance to increase the usage of the search bar.

In fact feature adoption is a very valuable metric. It can even represent our North Star, the single metric that best captures the value a product provides because it allows us to understand which aspects of a product’s functionality truly attract new users and keep the existing user base loyal to the product.

By analyzing feature adoption rates, product managers may learn that users only interact with a handful of features. This insight may lead to reprioritizing the roadmap to focus on enhancing these areas of the product, or redesigning sales and marketing messages to emphasize the value of the product.

We can also use feature adoption as a metric to understand whether a feature is ready to be released to the entire user base. If a new feature has extremely low adoption it may be a sign that it is not ready to be released to all users.

However, we need to pay attention to the fact that different functions naturally have different expected usage frequencies. For example, if the checkout function in a financial software helps close accounts at the end of the month, quarter, or year, these functions will naturally be used less frequently. So we must eliminate certain functions.

In addition, if the product serves multiple market segments, it becomes important to segment the users to calculate the adoption rate. For example, the same functions for enterprise users and individual users are completely different.

Customer retention rate refers to the ability of a company or product to retain its customers over a specific period of time. A higher number means that customers of the product tend to return and continue to purchase and use it. This is concerned in most businesses and is one of the very important parameters of the business.

A company's ability to attract and retain new customers is not just about its products or services, but also about the way it serves its existing customers, the value customers actually feel as a result of using the solution, and the value it creates in and across the market. reputation. It can be said to be the company’s full-scenario experience.

In summary, the previous leading indicators can help product managers quickly measure whether the commercial value of the product is on the right path in the early stages of product problems, and use these indicators to judge whether the product can achieve the expected business results, so as to Quickly locate problems and take appropriate measures.

It can be said that mastering indicator-driven product design is of great significance to every product manager. By appropriately selecting and tracking business indicators, product managers can better understand and meet market needs, formulate appropriate product strategies and roadmaps, and Measure the business value and effectiveness of your product.

This article is excerpted from my book "Required Courses for Advanced Product Managers".