Before you send your product or service out to the market, you typically should validate that it works and analyse its performance in various scenarios. Depending on the business you are in, it might require different metrics. However, here are three general Key Performance Indicators (KPIs) to use to confirm your product or service’s validation.
- Conversion funnel
A sales funnel is a system that leads a prospect through a process with the goal of purchasing your product or service. From a prospect, the person becomes a customer, and then a repeat customer.
To analyse the funnel, you have to check that it is generating a set number of leads. This is an indicator that your product or service fits your target market and demographic.
Your sales funnel also needs to measure how many unique website visitors you have, how many products are sold, how many customers browse the product, and more.
2. Product activation
Product activation tells you how many customers are engaging with your website. Product activation includes the following metrics to validate your product’s success:
- Number of clicks
- Time on website
- Pages viewed by customers
- Email and blog subscriptions
- Product or service trial signup
A higher activation rates indicates that you are selling to the right audience for your product or service. You can improve your activation rate by working on your website user experience.
3. Customer retention
The sales funnel focuses on how your product converts prospects into customers. The activation focuses on how much the customers engage with your products. Customer retention, the third metric of product/service validation, focuses on how much you can keep your customers interested for them to develop loyalty to your product.
The metrics for customer retention include:
- Repeat visits to your website
- High satisfaction ratings and good reviews
- Referrals to other customers
Not only do you measuring how much your customers stay with you, you also measure how willing they are to recommend your product or services to their fellow customers. If the word-of-mouth brings you good sales, then you have a metric of product or service success in your chosen market.
Validate your product easily
Even if your product has been out for some time, the process of analysing its validity and measuring its success is a valuable investment. You can perform product/service analysis easily with the help of the Bumblebee Branding Company in Chennai, India.