Product Metrics for Product Designers - The Ultimate Guide
Design Pilot2024-04-13
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💫 Short Summary
The video covers product metrics for junior product designers, understanding company goals, and measuring impact through revenue, cost savings, and growth. It emphasizes the importance of multiple teams focusing on different metrics to achieve company goals, using examples from companies like Airbnb and Uber. The role of product designers in thinking like product managers is discussed, with a focus on optimizing metrics to drive business growth and improve customer engagement. The importance of collaboration between product managers, designers, and engineering teams is highlighted in enhancing referral programs and reducing support costs, ultimately leading to business success and career growth opportunities.
✨ Highlights
📊 Transcript
✦
Discussion on product metrics for junior product designers, covering validation, pivotal metrics, business impact, and understanding metric importance.
00:31Measuring metrics for solo designers, personal projects, and undeveloped products is explained with examples and a case study.
Guidance is provided on how to tackle design challenges effectively.
Viewers are encouraged to participate by taking a test and writing answers in the comment section.
✦
Importance of understanding company goals and metrics.
04:29Nick Fury is compared to a CEO who sets company goals.
Captain America, Hulk, and Iron Man are likened to product managers who strategize and problem-solve to achieve goals.
Emphasis on identifying and solving problems to improve company-level metrics.
Goal is to ultimately reach objectives.
✦
Collaboration between product managers and designers in creating solutions.
06:32Product managers create PRDs with necessary information for designers to execute.
Measuring solutions and iterating is a joint effort between product managers and designers.
Nick Fury sets company goals of revenue increase, cost savings, and growth.
Companies can have multiple goals at different stages, and different company verticals may have different objectives.
✦
Strategies of different companies in maximizing revenue, saving costs, and prioritizing growth and expansion.
10:54Uber focuses on maximizing revenue with its large market share.
Swiggy prioritizes saving costs as they move towards profitability and an IPO.
Ked prioritizes growth and expansion over revenue generation.
Importance of setting clear goals and metrics to define impact emphasized for all companies.
✦
Importance of multiple teams and different metrics for achieving company goals.
12:30Companies like Airbnb and Uber provide examples of the need for various key performance indicators (KPIs) such as increasing bookings and acquiring new users.
The decision to focus on acquiring users or increasing listings depends on the company's strategy.
The segment emphasizes the interconnectedness between user acquisition, booking rates, and revenue generation.
Understanding the flow of actions is crucial for driving success in achieving company goals.
✦
Importance of understanding the role of a product designer in thinking like a product manager.
17:32Airbnb improved listing quality through percentile rankings and trophies.
Uber aimed to increase revenue by reducing ride cancellations.
Uber's primary KPI was revenue, emphasizing the importance of reducing cancellations.
Product designers need to communicate effectively by defining the problem statement before proposing solutions.
✦
Importance of focusing on metrics and KPIs for improving business outcomes.
18:42Reducing driver cancels can lead to lower ride cancels and increased revenue generation.
Increasing referral rates is a cost-effective customer acquisition strategy compared to traditional marketing methods.
Referral users have a strong relationship with product usage, resulting in higher customer engagement and lower acquisition costs.
Optimizing metrics is crucial for driving business growth strategically.
✦
Ways to Improve Referral Rates and Acquire New Customers.
22:35Lack of awareness about the referral program is a common reason why users may not refer others.
The issue can be resolved by making the program more discoverable in the app or running marketing campaigns.
Utilizing the structure of feature KPI, product or team KPI, company KPI, and company goal can help improve referral rates.
Increasing the discoverability of the referral feature can lead to a higher referral rate and more active customers.
✦
Importance of product managers and designers in optimizing referral program bonuses and process.
26:06Product managers analyze referral program bonuses to boost customer engagement and growth.
Designers simplify the referral process to decrease customer support tickets and company costs.
Clear communication and user-friendly design are vital for enhancing the referral system and increasing the referral rate.
Both product and design teams contribute to the success of the referral program by addressing customer questions and improving user experience.
✦
Key initiatives for the company include increasing referral rates and reducing costs to drive growth and expansion.
27:52Teams are assigned specific KPIs, with customer support focusing on cost reduction and the growth team on referral rate.
Addressing errors with referral codes and links is crucial for customer satisfaction and reducing support tickets.
Engineering teams play a crucial role in solving technical issues to enhance the referral process.
Improving metrics involves collaboration across different teams and departments.
✦
Incentivizing completion of steps within 21 days with a €50 bonus and rewards for friend referrals.
31:56Bonus expires if steps are not completed within the specified timeframe.
Understanding rewards leads to fewer customer support queries, saving costs and increasing customer satisfaction.
Collaboration between product teams is essential for achieving customer support key performance indicators (KPIs).
Feature KPIs such as screen views and click-through rates indicate the success of features, while reduction in support tickets confirms feature effectiveness.
✦
Importance of using metrics and data for design decisions in companies.
36:32Not using data-driven design decisions can hinder career growth and reduce chances of success.
Collaborating with product managers who prioritize data can enhance career opportunities.
Data-driven design decisions can lead to better design outcomes.
✦
Importance of working with great product managers, data-driven design decisions, and a strong measurement system.
38:11Preparing detailed PRDs and having a dedicated ecosystem for measuring metrics is crucial.
Companies need to prioritize caring about metrics and face challenges in evangelizing data-based design decisions without leadership support.
Consider career choices if leadership is not open-minded.
Viewers are asked to define ced's active user or users in the comment section.
✦
Defining and measuring active users for platforms like Ked and evaluating new features like Airbnb's metric scale.
41:02Emphasis on identifying primary and secondary KPIs for accurate measurement.
AB testing and user rollout strategies are essential for evaluating success.
Encouragement for designers and product managers to consider metrics for feature evaluation.
Focus on data-driven decision-making and continuous improvement in product development.
00:00[Music]
00:06hey there my fellow designers and
00:07creatives hope we're all doing well
00:08welcome back to a brand new video on the
00:10channel this is again a very highly
00:12requested video today we're going to be
00:15talking about product metrics for junior
00:17product designers there is a lot to
00:20cover so without any further Ado let's
00:22get started now a couple of days ago on
00:24Instagram I asked a question about uh
00:26product metrics and I'd actually asked
00:28people that I wanted to make a video on
00:29it and what are the specific questions
00:31they have and I'm going to be showing
00:33you the various categories of questions
00:34that I've got and basically I'm going to
00:36be answering all the questions in this
00:38video and also showing you a lot of
00:40things there's going to be an agenda
00:41slide which I'm going to show you in a
00:42minute and tell you what in all we're
00:44going to be learning in this or you can
00:45check the timestamps so to start off you
00:48can see some of the questions are very
00:50uh you know straightforward which is how
00:51do you validate which metric plays a
00:53pivotal role in enhancing your product
00:56taking it one step forward talk about
00:58how these metrics and data affect
01:00business and revenue and then as as a
01:02junior oneman team um I would like to
01:04know how to understand which metrics
01:05matter the most so this one is more
01:07about understanding how to define the
01:09metrics what are the metrics and
01:11basically the entire structure moving
01:13forward we have a couple of other
01:15questions which is how to measure metric
01:17as a startup solo designer for project
01:19that did not go live as an aspiring
01:21product designer I don't know what are
01:23the metrics I need to know for the
01:24initial stage um how to measure metrics
01:26for our personal projects and is it uh
01:29possible to find impact metrics of a
01:31product that is not yet developed so I'm
01:33going to be answering this question as
01:34well but it's going to be towards the
01:35end of the video uh the first uh in the
01:38beginning part I'm going to be talking
01:39about this which is pretty much the main
01:41point of the video and there's another
01:42question which is what to do on a
01:44personal side if there are no metrics or
01:46data used in design in our company and I
01:49feel a lot of people watching this video
01:51might be facing this issue um and uh
01:54you're probably watching this video
01:55because you don't have enough context
01:57and you haven't uh been taught about
01:58these things in the company you're
02:00working at that's just my assumption um
02:02so I'm going to be sort of addressing
02:03this a little bit as well so what is
02:06this video All About so we're going to
02:07start off by understanding how metrics
02:09are defined and then I'm going to give
02:11you plenty of examples which should
02:13hopefully give you a really good
02:15understanding of how this entire system
02:16of metrics works then I'm going to share
02:19a mini case study of a project that I
02:21worked on at Trader public it's not
02:23going to be um a case study where I'm
02:24going taking you through my design
02:26process but I'm going to be focusing
02:27mainly on the problem statement the
02:28solution and the
02:30and help you understand how we thought
02:32about it so this is for the first time
02:33I'm going to be showing you one of the
02:35tiniest projects that I worked on um at
02:37ra Republic um and I'm also going to be
02:40talking about how do you tackle these
02:41hard situations that you have and
02:44finally there's going to be a small test
02:45for everybody and I would love for you
02:47to go ahead and take up this test and
02:49just the basically to take up the test
02:51you just have to write the answers in
02:52the comment section and you can read
02:54everybody else's comments and we can
02:55start a discussion there and I'll share
02:57my opinions as well right so hopefully
02:59once you understand all of this you can
03:00go through the small tiny test shouldn't
03:02take more than 5 to 10 minutes and
03:04basically just answer the questions in
03:05the comment section below so this is
03:07basically what I'm going to be covering
03:09now this video is not about
03:11understanding how to measure metrics now
03:13to measure metrics you have a lot of
03:14analytical tools you you're going to
03:16have a customer support team you're
03:17going to talk to customers and users and
03:19you know you're sort of going to measure
03:20it right this is not about showing you
03:21what are the various tools that are out
03:23there you know how do you measure these
03:24metrics and each different type of
03:26metric right so this video is not about
03:28that and I'm also going to be using the
03:30word data metric kpi sort of
03:32interchangeably overall they pretty much
03:34mean the same but you know if you really
03:36want to go into the details you can just
03:38Google the differences but overall I'm
03:40going to be using these three words
03:41interchangeably but I mean the same
03:43thing um when I use these words right
03:46and this video is also not about
03:48understanding how to make datadriven
03:50design decisions this is not a design
03:53related video this is not about taking
03:55your design process and things like that
03:56this is all about understanding what are
03:59the metrics that we have to consider
04:02when coming up with Solutions and what
04:03are we supposed to measure right so I to
04:05make this very clear so let's go ahead
04:07and get started now I'm will to be
04:08taking the Avengers and the Marvel
04:10Cinematic Universe as a little bit of an
04:12example to sort of set context so that
04:14it's easier to understand I like usually
04:16talking about superheroes and Marvel and
04:17things like that so um hopefully this
04:19makes sense so for those of you who know
04:21this is basically Nick Fury he's the one
04:23who is in charge of you know basically
04:26the entire thing he's in charge of
04:27Shield um and he runs the organization
04:29right he's basically sort of the CEO of
04:31the company right now Nick Fury's job is
04:35primarily to determine what are the
04:37company goals so every company has
04:39certain set of goals and I'm going to
04:41talk about what these goals can be in a
04:43bit but he is the primary person who
04:45decides what are the company goals why
04:48does shield exist or you know if you are
04:51a CE of your company you should know why
04:52your company exists and what do you want
04:55right and then to achieve these goals
04:58you then come up with company level
04:59metrics and I'm going to give you
05:00examples of this as well right so you
05:02know what you're trying to achieve and
05:04now in order to achieve that you need to
05:06measure certain metrics and if these
05:07metrics are moving in the direction that
05:09you want maybe you want to increase
05:11something and maybe you want to decrease
05:13something if that is working then you're
05:15going to achieve your company goals
05:17right so this is basically Nick Fury's
05:19job then you have Captain America and
05:22you know Hulk and you know Iron Man now
05:24if you've seen all of the movies these
05:26are the guys who sort of are closely
05:28talking with Nicki and they are sort of
05:31defining how to achieve these goals they
05:34are the ones who are sort of coming up
05:35with a road map with a plan they decide
05:38the strategy right so these guys are
05:41basically like the product managers in
05:43your company and they're primarily
05:45responsible for identifying problems so
05:48in order to go ahead and improve the
05:49company level metrics you need to
05:51identify some problems that have to be
05:53solved right so these people are
05:55primarily your product managers who are
05:57going to do this job now of course
05:59design ERS also go ahead and identify
06:01problems but most of the work that is
06:04being done is done by these uh product
06:06managers and they are the ones who
06:07create something called as a PRD which
06:09is a product requirement document with
06:12all the information that designers need
06:14to solve the problem and these guys
06:16right Spider-Man Hawkeye All of These
06:18Guys these guys are pretty much the
06:19executioners you know they take the
06:21problem they understand they understand
06:22what is the goal and then they go ahead
06:24and solve the problem right this is us
06:26we are designers right so our job is to
06:28create solution Solutions now of course
06:30it is a collaborative effort um
06:32Solutions and identifying problems
06:34pretty much is done by both people
06:36product managers and designers but
06:38designers are the ones who usually
06:40execute and create the solution right
06:42you know you will get some help from
06:43product managers but in the end it's
06:45your job to create the solution right so
06:48that's pretty much the role of product
06:49designers and then now coming back to
06:51these guys again once the problem is
06:53solved then you go ahead and measure the
06:55solution right did it work did it not
06:57work you introspect if it didn't work
06:59you go ahead and come up with something
07:01else right so but measuring Solutions
07:03again a job of both product designer and
07:05a product manager of course product
07:06designers are not required to you know
07:08use analytical tools I mean if you use
07:10it and you know how to use it well and
07:12good but companies don't really demand
07:14that skill from you so it's okay if you
07:16don't know how to use you know mix panel
07:17and Google analytics and things like
07:19that but you need to be aware of the
07:21fact that your solution worked or your
07:23solution did not work right and then you
07:25go ahead and iterate the solution if it
07:27didn't really work right so this is
07:29pretty pretty much how the entire
07:30structure is right and now we're going
07:32to go into the details so coming back to
07:35Nick Fury he now he's now he's the one
07:38who decide what are the company goals
07:40right now essentially for every company
07:43in the world there are three types of
07:45goals so first you have the objective to
07:49increase the revenue of the company the
07:52second one you could be to save costs
07:54now increasing revenue and saving costs
07:56are not fully related to each other
07:59right
08:00um because we're not talking about
08:01profitability we're talking about
08:02increasing revenue and then saving costs
08:04and the third one is growth and
08:06expansion now I'm not saying that every
08:08company is going to go ahead and pick
08:10one of this there's going to be multiple
08:12stages goals can keep changing there's
08:14going to be multiple stages for each
08:16company and you might be focusing on two
08:18goals at a time you know or three goals
08:20at a time you might not be focusing on
08:22just one goal and it totally depends on
08:24the company the structure the stage the
08:26money the amount of money they have and
08:28a company can even have multiple product
08:30lines or multiple verticals and each
08:33vertical of that company might have a
08:34different objective right let's say for
08:36example over here in the Marvel
08:37Cinematic Universe you have the X-Men
08:39you have the Fantastic 4 you've got the
08:41Defenders you've got the Avengers right
08:43all of them may have different goals
08:45right but it's one Company the company
08:47has multiple goals and there might be a
08:49dedicated set of team that's going to be
08:51focusing on that one goal right so let's
08:54take a few examples over here right
08:56let's take Uber right today Uber has a
08:58very big market share um and their
09:00primary objective is to increase revenue
09:01of course I'm making a lot of
09:02assumptions over here um of course I've
09:04never worked for Uber nor do I know how
09:06decisions are made in Uber but I believe
09:08that Uber is just trying to maximize
09:10Revenue as much as they can because
09:11they've got a really good market share
09:14companies like swiggy they're Prim
09:16trying to save costs yes they also want
09:18to make money that is also an objective
09:20but you know they are at a stage where
09:22saving costs is more important because
09:24they are moving towards profitability uh
09:26they want to go for an IPO so if they
09:28have to reach profitability they have to
09:30save costs rather than getting Revenue
09:32because it's easier to save costs
09:34sometimes uh rather than you know trying
09:36to increase Revenue right um so swiggy
09:39is a company that might be in the stage
09:41of course I'm making claims over here
09:42and assumptions but I don't really know
09:44uh but this is just my understanding and
09:46then you have companies like Ked who is
09:48focusing on growth and expansion you
09:49know getting all new customers expanding
09:52um getting collecting data from people
09:55their primary goal isn't really to make
09:57revenue or save costs and as you know
09:58that they they're not really big on
10:00saving costs they spend a lot of money
10:02on marketing uh so increasing revenue is
10:05might be definitely one of their
10:06secondary goals but I think growth and
10:08expansion is probably the most important
10:10goal for them if it take smaller
10:12companies even let's say like ad pist
10:14right ad pist I'm sure everybody has
10:16heard of it they also focus on growth
10:18and expansion right now they have slowly
10:20started to monetize but until now adist
10:22was in a place where they were just
10:24acquiring more mentors and mentees onto
10:26the platform right so all the things
10:28that they worked on were focusing on
10:30growth and expansion and not really
10:31generating a lot of Revenue now I got
10:33this one more question where we're
10:34talking about how to measure impact if
10:37um if the product is seasonal or
10:40influenced by marketing right so in this
10:43case again right this is a very detailed
10:45question but here the whole point is
10:47around what is impact for you right when
10:50you say how to measure impact what is
10:52impact for you and again it comes down
10:54to this is impact increasing in revenue
10:57is impact saving costs or is impact
11:00growth and expanding you know reaching
11:01to more number of people solving a
11:03problem for number for more number of
11:05people what is impact for you right it
11:07doesn't matter who is doing it it
11:09doesn't matter if it is seasonal or
11:10influenced by marketing right as long as
11:12you're able to reach these goals by
11:15moving the metrics I think you should be
11:17fine right that should be impact for you
11:19and like I said before you might have
11:21multiple teams right for example you
11:24know Captain Marvel is from The Avengers
11:26Wolverine is from X-Men Daredevil is
11:28from the defender
11:30and the Human Torch is from the
11:31Fantastic 4 right but all of these
11:33belong to the Marvel Cinematic Universe
11:35you know they're all sort of you know
11:36now of course I'm just taking this as an
11:38example and it's not I'm not trying to
11:40make exact one toone correlation but you
11:43see that all of these teams have their
11:45have their own members and they work
11:46within the teams and sometimes
11:47collaborate with other teams to achieve
11:49pretty much the same goal that they have
11:51right the whole point is multiple teams
11:53can be in charge of increasing the same
11:55metric or multiple metrics right it's
11:57not just that one team is going to be
11:59dedicated to one metric there's one
12:01metric or one goal that can be solved by
12:04multiple different types of teams all
12:06right so now I'm going to take you
12:07through a couple of examples to help you
12:09understand we're going to be looking at
12:10Airbnb Uber and also a couple of
12:12examples from trade Republic as well so
12:15hopefully uh you guys can learn a lot
12:16from it now let's start with Airbnb now
12:19if we start with a company goal you know
12:21let's just assume that Airbnb wants to
12:23increase Revenue right the other two
12:25girls were reduction in cost and growth
12:28and expansion right so let's say they
12:30want to increase
12:31Revenue now one of the kpis that they
12:34might have is to increase bookings right
12:37so this is going to be one of their more
12:39most important kpis because bookings is
12:41directly related to revenue right so the
12:43more bookings you make the more Revenue
12:46um a BNB mix now if increasing bookings
12:50is a primary kpi we need more kpis as
12:52well to narrow this stuff what does that
12:54mean so now the question is how do you
12:56increase bookings do you get in more us
12:59users to the company or do you increase
13:01the number of listings so that users
13:03have more choices to make because maybe
13:06they're not satisfied with the number of
13:08listings that are there or you know
13:10they're not able to find a place of
13:11their own and they're pretty much bored
13:13you know of the same things that there
13:14and maybe they want more right so maybe
13:17you can increase the number of listings
13:18and maybe that will increase bookings or
13:21you bring in more users to the platform
13:24and make them use the app and then they
13:25can go ahead and make more bookings now
13:28each of these two are are two separate
13:29kpis and they're going to be two
13:31separate teams to do it now either you
13:33can focus on getting more users or you
13:35can focus on increasing the listings or
13:37you can do both now the company is going
13:39to decide that right depending on a lot
13:41of factors which are not relevant for
13:43this video but they are going to go
13:45ahead and look at a lot of factors and
13:46decide where to spend their time and
13:48energy on so coming back so you have the
13:51company goal you've got the primary kpi
13:53which is increasing bookings and the
13:55secondary kpi is is it to increase the
13:57number of users or basically onboard new
14:00users or is a secondary kpi to increase
14:02the number of listings right now the
14:05question is now let's say we go with
14:06users we can still break that down even
14:09further are they going to go ahead and
14:11acquire new users or are they going to
14:14solve the problem for existing users and
14:17help them make more bookings there are
14:19two ways to solve this now this could
14:21sort of be a tertiary KP right the first
14:24kpi was booking second kpi was users and
14:26now the tertiary kpi could be new users
14:30or you know um existing users typically
14:32in this case we can still say that there
14:34are two kpis primary and secondary and
14:36there is no tertiary kpi but it it
14:38doesn't really matter if there are one
14:40kpis 2 kpis or three kpis right it it
14:42doesn't really matter but you need to
14:44understand the flow because let's say
14:46you try to solve something for existing
14:47users when you solve something for
14:49existing users it's going to increase in
14:51bookings is going to increase in Revenue
14:53but if you acquire more users it's going
14:55to increase booking and it's going to
14:56increase Revenue right so this
14:58connection is is happening now there's
15:00this YouTube channel called as exponent
15:03and they have a lot of these videos of
15:05PM mock interviews now of course we are
15:08not product managers we are product
15:09designers but still understanding how to
15:12think like a PM is very important
15:14because at the end of the day we're
15:15called Product designers and not just
15:17screen designers right we're called
15:19Product designers for a reason so to
15:22understand if you have to increase
15:23Airbnb bookings how would you go about
15:25and do it right of course it's
15:27impossible to come up with a solution
15:28because you actually need to be a PM at
15:30Airbnb and have all the information and
15:32data to make decisions but the question
15:34is how do you approach it now I'm going
15:36to take an example over here where Brian
15:38sheski who's the founder of Airbnb
15:40always goes ahead and posts updates to
15:42the Airbnb app um you know on a regular
15:45basis I think he does it every quarter
15:47right and this is just one of the
15:49screenshots right so here he's saying
15:52we're doing four things to improve the
15:53quality of airbnbs and help you
15:56understand what you're going to get it's
15:57hard to distinguish good airbnbs and the
16:00best of the best now you can starting in
16:03May you'll see the percentile rank for
16:05every home in the top 25 and get a top
16:07one and the top 1% get a trophy now if
16:11you see over here something that's very
16:13important to understand is that he
16:14started by explaining the feature with
16:16the problem that he's trying to solve
16:19this is how you need to communicate as a
16:21product designer now of course he's not
16:22a product designer but this is how
16:26product designers start need to
16:27communicating he spoke up with the
16:29problem statement it is hard to
16:32distinguish between good airbnbs and the
16:34best of the best once he then explains
16:37the problem statement he then goes to
16:38explain the solution which is starting
16:40in May you'll see the percentile rank
16:42for every home in the top 25% right so
16:45you can see that this home is in the you
16:46know top 1% worldwide based on ratings
16:48review and relatability right so if you
16:52go to his account and you just scroll
16:53his feed you're probably going to see a
16:55lot of these things and this is very
16:56important to understand why a feature
16:58exist and what is the objective of this
17:01feature next example let's take a look
17:03at Uber now Uber let's say they want to
17:05increase Revenue all right now one of
17:09the ways is by reducing the ride cancels
17:13what does this mean so obviously Uber
17:15makes Revenue when a ride is completed
17:17right but a lot of people are cancelling
17:20rides right so the company wants to
17:23reduce the ride cancel now this can be a
17:25primary kpi because this is directly
17:27linked to revenue this is not about
17:30making more bookings yes they can do
17:32things to increase the bookings but they
17:36also see that there is a very high
17:38number of ride cancels and so they want
17:40to reduce that number so in the Airbnb
17:42example we looked at increasing bookings
17:44here in Uber we're looking at the
17:46opposite of that I mean technically it
17:47is the same but it's more like reducing
17:49a kpi not just increasing a kpi now if
17:53this is the primary metric we'll now go
17:55look at the secondary metric which is
17:57should you reduce the rider cancels or
17:59driver cancels what does this mean now a
18:02rider who accepts a ride might cancel it
18:06after it's accepted or basically once uh
18:08a driver has been assigned to a rider
18:11they will cancel it or it could be the
18:14driver who accepted the ride but then
18:17decided to cancel now how we're going to
18:20solve this is a totally different
18:21question and that's not what this video
18:23is about but if you see here you've got
18:24a primary goal then you've got a sorry
18:26you've got uh the company goal then
18:29you've got the primary kpi and then
18:31you've got the secondary kpi now there's
18:33going to be a separate team who's going
18:34to focus on Rider cancels and there's
18:36going to be a separate team that's going
18:37to focus on driver cancels right so this
18:40is how you need to start thinking about
18:42metrics every feature or every problem
18:45or every solution solves a more than one
18:48metric right so if you solve for driver
18:50cancels you are going to eventually
18:52obviously reduce driver cancel you're
18:55going to reduce the overall ride cancels
18:57and then that will lead to revenue
18:59because that ride got accepted and you
19:01are going to make money from that ride
19:03right let's take another example of
19:06Trader public right now let's assume
19:08Trader public is in the growth and
19:09expansion phase because it's a small
19:11startup and there is a lot of work to be
19:13done right so the objective here is to
19:15acquire more customers and expand and
19:17this could be done in multiple ways how
19:19do you get more customers and grow is a
19:22very big question and this could be done
19:23in plenty of ways right now how do you
19:26acquire new customers there are plenty
19:27of ways you can do you can can introduce
19:29new products or Services you can go
19:31ahead and do marketing or you can do
19:34something which is by increasing the
19:36referral rate right now this is one way
19:39to get more customers now why does a
19:42company want to increase referral rate
19:43now I want to make something very clear
19:44that this is all just an example right
19:47I'm not telling you this is how we do
19:49this this is how we make decisions at
19:51trade public but I'm giving you just an
19:54example so here we have the company goal
19:56we've got the primary kpi and then we've
19:58got a second
19:59kpi now the question is why does why
20:02does this company want to increase the
20:03referral rate why do we want to increase
20:05a referral rate right why do we not want
20:07to spend money on marketing or introduce
20:09new products or Services I mean we can
20:11right and we do but why would this be a
20:14reason for the company to do now if we
20:18make an assumption where we understand
20:20that users coming through the referral
20:23use the product more so if somebody is
20:25coming through a word of mouth it means
20:27that they really want to use the product
20:29and there are high chances that they are
20:31going to use the product more so because
20:33of this assumption we want to go ahead
20:35and improve or increase the referral
20:37rate right now this save costs due to
20:40low customer acquisition cost are also
20:43called as CAC basically to acquire a
20:45customer when you spend money on
20:47marketing you are actually spending
20:48money and because of that users are
20:50coming so there's a cost acquir to
20:53acquire every customer but when you do
20:55through a referral program you're
20:57actually saving cost because you did not
20:58spend any money as the company to
21:00acquire this customer your customer
21:03referred another customer that was it
21:05right now the only cost is basically the
21:08small referral bonus that you're going
21:10to provide to the user so there is some
21:12cost but it's not going to be as high
21:14and steep as marketing costs and because
21:16of this there are also High chances of
21:19being an active user that is something
21:20that we already know so when people are
21:22coming from a referral program there are
21:23high chances of them being an active
21:25user and it also reduce costs
21:29now we want to ask the question why are
21:31users not referring right now maybe they
21:33are referring enough but we want them to
21:36refer more or maybe they're just not
21:38referring as per our expectations right
21:40so they're either not meeting our bar or
21:43they're meeting the bar and we now want
21:45to raise the bar now let's assume that
21:47we want to go with this Direction Where
21:49We we want to solve the problem for
21:50users are not referring as per us so now
21:53let's take an example right now today we
21:55have a different solution in the trader
21:57public app but if you have used traded
21:59public and if you are from India you're
22:01not going to have access but if you are
22:02from Europe um most likely that we we
22:05support one of those countries that you
22:06are in but anyway so if you see over
22:08here this is my profile and here I have
22:11a banner which is the referral Banner
22:12tapping on that gives me the
22:14instructions so basically I have to
22:15share my link then my friend starts
22:17investing within 21 days and then I get
22:20my bonus of €50 worth of stocks right so
22:22you get your 50 once your friend
22:24completes all the above steps so they
22:26have to start investing and then I tap
22:28on invite I get a basic share sheet and
22:30then we invite right now this is the
22:32current
22:33experience now the question we have to
22:35answer is why are users not referring
22:38and there could be many reasons for that
22:40let's take a few example let's say
22:41reason one users are are unaware of the
22:44referral program maybe they don't even
22:45know the referral program exists so the
22:47number of people who are refering is
22:48very less
22:50right now who's going to solve this
22:52problem design team or marketing team
22:55are going to solve this problem the
22:57design team is going to say hey we're
22:58going to make it more discoverable in
23:00the app or the market team is going to
23:02say hey we're going to run campaigns and
23:03we're going to let people know there is
23:04a referral program so there are two ways
23:06of solving this problem the design team
23:08or basically the marketing team so this
23:10is one way of solving the problem now if
23:12you come back to the structure that I
23:13spoke about before which was company
23:14goal primary kpi and secondary kpi
23:17there's another way to look at this as
23:19well right and I'm going to reverse the
23:20order a little bit but also it means the
23:22same thing I'm going to start off with a
23:25definition like this where we start with
23:26a feature kpi then we have a product kpi
23:29or a team kpi it can be used
23:31interchangeably depending on the context
23:33and then you have the company's kpi and
23:35then you have the company goal so rather
23:37than saying primary T I'm going to start
23:38with feature kpi product or team kpi
23:42company kpi and then that is the company
23:44goal so this is basically like the
23:46structure right if you improve the
23:48feature kpi you're going to improve the
23:50team kpi and then you're going to
23:51improve the company KP accordingly and
23:53then you're going to improve the
23:54company's goal
23:56right now one of the Sol Solutions is
23:59increasing in discoverability if you
24:01make discoverability of the referral
24:03feature more then that's going to
24:06increase in the referral rate right and
24:09then you're going to increase in the new
24:12active customers right so because of
24:14refer rate you're going to increase in
24:15new customers and these are going to be
24:17active customers because that is our
24:19assumption and we are making this
24:20assumption that because we saw the data
24:22saying that when people referred
24:24somebody those ref those new customers
24:26were active users right and then this
24:29will lead to growth and expansion now
24:31the second reason the bonus is not
24:33exciting enough the thing is maybe
24:36people are referring but maybe the bonus
24:37is not enough for them right the reward
24:39or return on investment for referring is
24:41not enough so who's going to solve this
24:43problem of course it's the product team
24:45now of course typically a product team
24:47consists of product managers designers
24:49and Engineers but here I focusing
24:51specifically on product managers they
24:52are given a budget they're going to do
24:54the calculation they are going to do the
24:56analysis and estimation and they're
24:58going to decide whether they should
24:59increase or decrease or you know change
25:02the bonus or offer more things I don't
25:04know right this is their job to figure
25:06out but this could be another
25:08reason and this will increase in the
25:11referral rate when you increase the
25:12bonus or you make the bonus more
25:14exciting and again you're going to
25:16increase new customers and then growth
25:17and expansion now here you can see that
25:19there is no discoverability thing so in
25:22this case there's no really a feature
25:24kpi it's more of increasing the bonus is
25:27going to increase the ref referral rate
25:29increase in new customers and growth and
25:31expansion right so here there's no
25:33feature kpi but it's more of a product
25:36kpi or a team kpi and then the company
25:39kpi and then the company goal let's look
25:41at another reason people are not
25:43referring because they have questions
25:44about the referral program which means
25:46they want to refer but they don't
25:48understand it or they have some
25:49questions about it now who's going to
25:51solve this problem now in this case
25:54design is going to solve the problem or
25:56product is going to solve the problem
25:57what does this mean
25:58now maybe the instructions that are
26:01there are not explained to users in an
26:03easy way and they don't understand
26:04exactly so we through communication and
26:06design we solve it now how would product
26:08solve it maybe the whole referral system
26:11is so complicated and confusing that
26:13they want to simplify the referring
26:15experience maybe they want to make the
26:17steps simpler maybe they want to reduce
26:19the number of steps right so that
26:21product designers are not really going
26:23to decide how the referral program
26:25should function that's going to be done
26:27by product managers and then
26:29communicating those instructions to the
26:30users is what product designers are
26:32going to do so this problem could be
26:34solved by Design or product or both
26:38right now what this does is this reduces
26:41the Cs tickets by reducing by solving
26:44the problem we will see a reduction
26:46customer support tickets because that is
26:48where we are getting to know that
26:49customers have problems so when we solve
26:52the problem we when we make the referal
26:54program simpler or we go ahead and
26:56communicate it better people people are
26:58going to have less questions and that is
26:59going to be a reduction in the customer
27:01support tickets now this is going to
27:04reduce the cost for the company as well
27:07because solving tickets is definitely
27:08cost for the company you need to hire
27:10agents and it's time you know people
27:12work on an hourly basis so a lot of this
27:14could have been solved in the app but is
27:16being solved by the customer support So
27:18solving this is going to reduce the cost
27:20for the
27:20company then this will increase the
27:23referral rate because now people
27:25understand the referral system more
27:26they're going to increase the referral
27:28rate and that will obviously increase in
27:31new customers and then that will lead to
27:33growth and expansion right now reduction
27:36in cost is also sort of a byproduct of
27:39growth and expansion now the objective
27:41was not to reduce cost but it is one of
27:44the initiatives right so this reduction
27:47in customer tickets not only increases
27:49the referral rate but it also reduces
27:52cost which are two separate kpis see
27:54increasing in referral rate is going to
27:56be handled by the growth team and and
27:58reduction in cost for the company is
28:00going to be handled by the customer
28:01support team right their job is to
28:04reduce cost that is their kpi but the
28:07growth steams kpi is reduction is
28:10increasing in the referral rate so by
28:12solving one problem you're in you're
28:14changing two kpis for two different
28:17teams right and that's how you need to
28:19think about all this let's look at the
28:22fourth reason now there are errors with
28:24the referral code or link maybe there is
28:26some deep link issue maybe there there
28:28is some prop there is some problem
28:29validating the referal code maybe there
28:32is something that's going wrong people
28:33are referring everything is fine
28:34everything is simple but there is some
28:36problem with referring using the referal
28:39code right now this is going to be
28:41solved obviously by the engineering team
28:43they need to go back and look into their
28:44code they need to new test they need to
28:45do some QA and then they have to figure
28:47out how to solve this problem right of
28:49course product managers are not going to
28:51look into this or designers right this
28:53is completely an engineering team right
28:55now this will reduce in Customer Support
28:57tickets because people are going to
28:58complain hey I use my referral code I
29:01referred but I didn't get my bonus my
29:03friend did not get his bonus what's
29:05happening right so this is going to
29:06reduce in Customer Support tickets this
29:08is going to reduce in cost increase in
29:11referral rate increase in new customers
29:14and then growth and expansion for the
29:15company
29:17right the point to understand is that
29:20you are never moving a single metric
29:22ever you're always moving more than one
29:25metric or kpi right and each team has
29:28their own kpis customer support has
29:30their own kpis engineering has their own
29:32kpis product has their own kpis right so
29:35each team has their own kpis and they
29:37have to move those metrics
29:39right now let's take an example of a
29:42real problem now the problem statement
29:45is too many customer support tickets of
29:47inviters asking about the referal and
29:50bonus status so what's happening here is
29:53the post referral experience customers
29:55have invited new customers and the new
29:58customers are onboarding and now these
30:01people who invited are asking about the
30:03referral bonus status hey I invited
30:05someone what is happening to my referal
30:08and bonus status I want to know what is
30:10happening why haven't I still gotten my
30:11bonus yet right so now that is something
30:15that we are getting to know based on
30:16customer support tickets so coming back
30:19to how the solution was so this is what
30:21it was where you had a banner then you
30:24have a screen with the instructions and
30:25then you have this that's about it so
30:28now we went ahead and changed it now the
30:31new solution is when you tap on the
30:33banner now you see this screen where you
30:36have invite friends and earn rewards you
30:38get to see how many people you've uh
30:40invited successfully and how many people
30:41you earned and you can also see the
30:43status of the person right so you can
30:45see that for this person who is Parker
30:47the it expires in 3 days right because
30:50you have to complete the steps within
30:51the first 21 days you get a bonus of €50
30:55and here Emily as well and when you tap
30:56on Emily you can see what Emily has to
30:59do Emily is the friend that I invited
31:01right so there's a bonus that's spending
31:03once Emily completes all the steps you
31:05will receive 50 worth of stock and then
31:08now Emily has completed the step and now
31:10Emily has to complete this step which is
31:12add money and then make to Investments
31:15right now although this is a small
31:17feature it can have a very big impact
31:20now of course there are a lot of edge
31:21cases where what if I have never
31:23referred before right what if I have
31:25expired completed ongo going how does
31:28that screen going to look here's an
31:30example where the bonus was earned so
31:32Emily completed all the steps and I
31:34earned €30 worth of Nike stock on so and
31:37so date and Emily completed all the
31:39steps and if Emily did not complete all
31:42the steps within the first 21 days the
31:44bonus has expired where Emily created an
31:46account but she did not add money and
31:48she did not make two Investments and she
31:50did not complete all the required steps
31:52before 24th August so here the customer
31:56knows why they got a reward or they did
31:59not get a reward and what is the status
32:01of the reward so they will not talk to
32:03the customer support agents and ask
32:05questions and that will definitely
32:07reduce cost for us right so this is
32:10going to reduce in Customer Support
32:12tickets and this will help us allocate
32:15more time to solve other tickets right
32:17other more important tickets and this
32:20will lead to a better customer
32:21satisfaction score cat is basically
32:23customer satisfaction score now because
32:26you are able to allocate more time to
32:28other tickets you are able to solve more
32:30tickets faster you are able to allocate
32:32more people to solve those important
32:34tickets and of course that would
32:36definitely lead to a better customer
32:37satisfaction rate because you are
32:39solving tickets faster and when I say
32:41other tickets I'm talking about other
32:43tickets that are not related to the
32:45referral tickets this is about any other
32:47thing that requires more attention right
32:50and this definitely will reduce the cost
32:52for the company so here the goal was
32:55about cost reduction while that might
32:57not be the prime primary kpi it is still
32:59an important kpi for the company to
33:01reduce cost right and now even though
33:04the customer support kpi was to reduce
33:07customer support satisfaction tickets
33:09and better CAD the product team also is
33:12sort of responsible for that so the
33:14product team along with designers and
33:15Engineers are going to solve the problem
33:17for the customer support team right so
33:20here we are sharing kpis so here there
33:23is no such thing as a feature kpi you
33:25know it's a product kpi which is
33:26reduction in customer support tickets
33:28which will reduce the cost for the
33:30company right now there's another way to
33:31look at this right if we implemented the
33:34solution we could have checked two
33:36things which is screen views and CTR
33:39right what does that mean so are people
33:41tap looking at the screen or are people
33:43looking at the screen right and are
33:45people tapping on this to view this now
33:48screen views and ctrs are basically
33:49feature level kpis right adoption rate
33:52screen views click-through rate all
33:55these are feature level kpis right
33:58now we are not measuring feature level
34:00kpis because the moment we see that
34:02there's a reduction in the customer
34:04support tickets that is enough to
34:06validate that this feature worked we
34:09don't have to measure the clickthrough
34:10rate and this right if customer support
34:13tickets reduced for this particular
34:14problem that customers are facing that
34:16means this feature worked and that is
34:18how you measure impact now moving on to
34:20the next part there's also a lot of
34:22questions around how to measure metric
34:25as a startup solo designer for a project
34:27projects that did not go live as an
34:29aspiring designer I don't know what the
34:31metrics are for the initial stage how to
34:33measure metrics for our personal
34:35projects is it impossible to find uh is
34:38it possible to find impact metrics of a
34:40product that is not developed now there
34:42are two things over here there is what
34:44metrics to measure and how to measure
34:46those metrics right now if I answer one
34:48question at a time how to measure
34:50metrics as a solo designer for prod did
34:52not go live now this is the job of the
34:55product manager to keep track of the
34:57metrics of whatever you're trying to
34:59solve it is their job to measure using
35:02the tools that they have as an aspiring
35:04designer I don't know what are the
35:06metric metrics I need to know right now
35:09of course by now if you have seen this
35:10video if you've come here so far you
35:11should know how to identify a metric
35:14right and it is important for you to
35:16know what you will measure rather than
35:19how to measure your job is not how to
35:21measure a metric it is knowing what
35:24metric you will measure and what metric
35:26you will move by solving a problem
35:28so this so this question about how to
35:31measure the metrics for our personal
35:33projects is not a job of a product
35:34designer and the last question is it
35:37impossible to find impact metrics of a
35:39product that is not developed if you're
35:41developing a product you should know
35:43what problem you're going to solve what
35:46are the company goals So when you say
35:48find impact metrics I don't really know
35:50what that means all right but even if it
35:53is not developed you are solving a
35:55problem at the end of the day and you
35:56know what is supposed to happen when
35:59that problem is solved right let's say
36:01you're introducing a brand new feature
36:03into your app that already exist maybe
36:05not even a product let's say it's just a
36:07feature that you're introducing now
36:09you've not launched that feature but you
36:11know what you're going to measure in
36:13order to see if that feature worked or
36:15not that is pretty much the same as you
36:17know introducing a brand new product
36:19into the market now moving on to the
36:21next question what to do on a personal
36:23side if there are no metrics or data
36:25being used in a in design in our company
36:29now I truly believe a lot of designers
36:32pretty much 80% of the junior designers
36:34or 80% of the small companies do not use
36:37metrics or data um when making designed
36:42to make data driven design decisions in
36:44their company now one of the things that
36:46I want to say is that it is definitely
36:47not a good sign and your chances of
36:50making a good career reduce day by day
36:52if your company is not serious about
36:54this and do not make datadriven design
36:56decisions no you don't always have to
36:58make data driven design decisions but
37:00when you when you are supposed to make
37:02data driven design decisions and you
37:03don't that's a big problem right because
37:06the more time you spend in that company
37:08and the more projects you work on and
37:10the less you use data and you make data
37:12driven design decisions you are going to
37:15reduce your chances of making good
37:16career because people are going to
37:18expect you to have an answer to why did
37:20you make this design decision right now
37:23one of the things that I've realized is
37:24that working with great product managers
37:26is better than working in a great
37:28company now of course there's exceptions
37:31to this but typically even if the
37:33company isn't great but you work with
37:35great product managers who have a really
37:37good process who measure metrics who
37:40know how to make data driven design
37:41decisions that is always better than
37:44working in a great company because even
37:46if you work in a great company there are
37:48chances you might not work with great
37:50product managers there is a chance of
37:53that possibly happening because a
37:54company can never have amazing people
37:56all around you will have somebody who's
37:58limiting maybe Engineers are not great
38:00maybe designers are not great maybe
38:01product managers are not great maybe the
38:03leadership itself isn't great right so
38:05it's never it's impossible to have a
38:06perfect team especially when you're in a
38:08small and midsize company right now how
38:11do you know if a company is actually
38:14interested in those stuff you have town
38:16halls and standups where all of this is
38:18communicated and the company is aware of
38:20what are the metrics that are being done
38:22what are the metrics that were moved in
38:23the previous quarter what are the
38:24projects that happened and how did it
38:26improve
38:28next is about preparing prds right then
38:30this is a process if designers have a
38:32process product managers also should
38:34have a process of preparing really good
38:36PR prds and PRD is basically a product
38:38requirement document which has all
38:40information about what is the problem
38:41what is the context what is the metric
38:43what are the questions how to solve it
38:45all links everything right that's a
38:47product requirement document and then
38:49you need to have a measurement system
38:51just preparing prds and talking about
38:53metrics is not going to help if you're
38:54not really measuring you need to have a
38:56dedicated ecosystem and a measurement
38:58system and tools and processes to
39:00measure everything if you're doing an AB
39:03test you need to know whether which ab
39:05test is going to work you need to have
39:06that infrastructure and system in place
39:08right this is how you know if a company
39:10cares about metrics right and if a
39:12company is doing all of this that means
39:14this is a really good company to work at
39:16and if a company is not doing this I
39:17would encourage you to push your
39:19companies and push the leaders in your
39:21company to start doing these things now
39:23one of the questions that I got was how
39:25can we evangelize databas based design
39:28decisions within the company so the
39:30context here is that this person wants
39:32to force the company to start making
39:34datab based design decisions right to
39:37consider that how can they evangelize
39:40now the honest truth is that if the
39:42leadership doesn't care there is not
39:44much you can do about it if the
39:47leadership isn't interested in doing it
39:49then there is absolutely nothing you can
39:51do as a junior designer in the company
39:53there is only so much you can complain
39:55and force and try to prove right
39:57but if the leadership doesn't care and
39:59isn't open-minded and willing to do it
40:01there's not much you can do about it and
40:03it's time you make probably make other
40:05career choices now finally to end the
40:07video I'm going to give you all a small
40:09test what I need from you is to go ahead
40:11and answer my question in the comment
40:13sections down below I'm sure a lot of
40:15other people also would have answered
40:17the question but I would like you to
40:18answer it first and then read the
40:20comments of other people now the first
40:22question is I want you to Define ced's
40:25active user or user users if you believe
40:28Ked has one active user I need you to
40:31Define what do you think Ked is
40:33measuring to say hey this person is our
40:36active user because of so and so reason
40:38it could be one reason it could be
40:40multiple reason or if you believe cred
40:42has different types of active users and
40:45both users are important what do you
40:47think those users are and how are you
40:49going to decide that because of these
40:51things we would classify these people as
40:54an active user right of course we don't
40:57know what's happening inside the company
40:59but if you are a user of the app and
41:01based on whatever you know I want you to
41:02make your best educated guess over here
41:05right now the second test is this which
41:08I showed you before now this is probably
41:11simpler because it's hard to distinguish
41:14between good airbnbs and the best of the
41:16best they introduced this feature now I
41:18want you to go ahead and think about
41:21what are the metrics it is solving in
41:24the metric scale what is the company
41:26goal that this feature is solving what
41:28is the feature kpi what is the primary
41:30kpi and what is the secondary kpi that
41:33this is this feature is solving how is
41:36Airbnb going to measure the success of
41:39this feature how do you know that this
41:42feature worked maybe they're doing an AB
41:44test where they're testing it but how do
41:46you know whether which ab test worked
41:48and even if they're not doing an AB test
41:50and they want to go live how do they
41:52know if this is going to work or another
41:55possibility is that maybe they launch
41:56this for five % of the users if they
41:58feel confident they will launch it to
42:00100% of the users so how do you know
42:03that this feature worked if you are a
42:05designer or a product manager in that
42:06company what are the metrics you would
42:08measure to check that this feature
42:10worked so this is basically two small
42:12tests for you and let me know in the
42:14comment section your answers and I would
42:15love to have a discussion with you and
42:17talk about this so that's pretty much it
42:19for this video guys thank you guys so
42:20much for watching hope you guys really
42:21enjoyed it if you did let me know in the
42:23comment sections down below make sure to
42:24leave a like And subscribe to the
42:25channel for more amazing awesome content
42:27I'll see you guys in my next video so
42:28then take care and bye-bye
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