How do you pick the right MVP metrics?

Key to this is ensuring you don't overcomplicate the narrative or the MVP. Ultimately you need to solve the customer's issues at its core - additional features are great, but are unnecessary in a finite resource environment. Reduce down the issue to a simple metric. i.e. "Saved x amount of time completing y process", "Increased donations by x %", or similar. People are often less eager to engage with a new product/service because they have to adopt new behaviors. If you can find a metric that resonates closely with the customer's issues, they will be more likely to engage with you on the MVP. Ruthlessly prioritize solving the core issue and customers, investors, and stakeholders will flock to you.

Metrics can vary quite a lot from market to market, but the commonality among all of them is the goal, the reason why one should measure anything at all. And the key goal to measure anything with an MVP is to test an hypothesis. And you need to pay attention to the words: test does not mean validate. You do not choose a metric aiming to validate an hypothesis, you choose one to test if your assumptions are false. Thus, choose metrics that are meaningful for you to test your hypothesis.

Picking the right MVP metrics is about maintaining a laser-focus on your business goals while staying adaptable to new insights. As you move forward, remember: It's not just about numbers, but about the story they tell and the actions they inspire. - Align with Business Goals: Base metrics on overarching objectives. - Customer-Centricity: Pinpoint the problem you're solving for users. - Prioritize Actionable Insights: Metrics should guide next steps. - Seek Clarity: Avoid vanity metrics; choose clear, meaningful ones. - Stay Focused: Embrace the "One Metric That Matters" mindset. - Stay Adaptable: Adjust metrics as the landscape shifts.

I like to align metrics at 4 levels of analysis: 1) Demonstrate that people like the product 2) Show that people understand the product's purpose and when they'd use it 3) Show that people can use the product in its intended way 4) Demonstrate results that the product is able to achieve.

One of the most widely used MVP metrics is AARRR metrics: Acquisition: How users find and visit your website or product. It's about understanding where your users come from: search engines, social media, paid advertising, referrals, etc. Activation is about the user's first experience with your product or service. Measured by signing up, using a feature, or making an initial purchase. Retention: How many users continue to use the product after the initial experience. High retention rates indicate that users find sustained value in your product. Referral: How often your existing users refer others to your product or service. A high referral rate indicates product-market fit and user satisfaction. Revenue: How you monetize your users.

Remember, the objective of an MVP is to learn. And deploying the MVP with instrumentation is critical. - Select Tools: Use Google Analytics for web stats, Mixpanel for user actions, SurveyMonkey for feedback, and Excel for data visualization. - Setup: Ensure tracking tools are seamlessly integrated into your MVP, from tracking codes to event triggers. - Determine Baselines and Targets: Know your starting point and define clear success metrics. Set a reasonable margin of error for each. - Regular Monitoring: Schedule consistent check-ins on your metrics, be it daily or weekly. - Data Visualization: Use charts and graphs to spot trends and anomalies.

Metrics are more than numbers; they're feedback. Listen closely, and they'll guide your MVP towards success. - Frequent Data Review: Make regular metric check-ins a part of your routine. Dig into patterns, trends, and anything that stands out. - Test Assumptions: Validate whether your initial hypotheses hold water with the actual user data. It's okay to be wrong; it's crucial to realize it quickly. - Decide Your Next Move: Metrics might suggest you need to pivot (change the fundamental idea), persevere (stay the course), or iterate (make small adjustments). - Act, Iterate, Improve: Don’t get stuck in analysis paralysis. Use the insights to make iterative changes, testing the MVP's reception after each.