Blended Metrics

In the PMHQ Slack community, we regularly get thought-provoking questions that we feel should be explored in-depth and documented for future reference. We’re starting a new set of Q&A posts called Highlights to dive into these kinds of questions, and enable everyone in the community to revisit the answers and contribute further!

“What do you think about creating blended metrics (a series of metrics, rolled-up into one)? How do you generally decide the weight to give to each particular metric in the blended metric?

For example, let’s say we want to improve “User Enjoyment” for a travel booking site. Imagine that we already have the following raw metrics: net promoter score (NPS), look-to-book (percentage of people who make a purchase out of all people who visited), repeat bookings, and referrals. Continue Reading

PMs & Metrics: Conversion Rate

PM Metrics - Conversion Rate

As a PM, what are some important metrics to measure for your product? In each post of this series we’ll be covering a different metric, why this particular metric is important, and how it’s measured.

If you’re a PM of a website, a product that’s sold on a website, or an app, one of the most important metrics to measure is the conversion rate. Simply put, the conversion rate is the percentage of all visitors or users who take a desired action.

“Conversion rate is the percentage of all visitors or users who take a desired action.”

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 One of the most common examples is the percentage of visitors who end up purchasing on a website.

Why is conversion rate such an important metric, not just for PMs but for the company as a whole? A solid conversion rate is indicative of a good user experience and means that the company is efficiently capturing sales. It’s the barometer of all the efforts spent to optimize the user experience through user research, A/B testing, interviews, etc. In other words, the conversion rate quantifies and validates whether the team’s efforts to improve that page or product has been successful. A higher conversion rate after a page redesign, all else equal, typically means that the redesign had a direct role in having more customers purchase the product. Continue Reading