Setting metric targets

Good metric targets balance ambition with achievability. Use historical data, industry benchmarks, and business needs to set goals. A 10% improvement might be aggressive for retention but modest for feature adoption.

Work backwards from business objectives. If you need 50% revenue growth and price is fixed, calculate required user growth and retention improvements. User growth is mostly driven by marketing and sales, while retention improvements are primarily the responsibility of the product team. Break annual goals into quarterly milestones to track progress and adjust tactics.

Avoid arbitrary round numbers. "Increase DAU by 23%" based on analysis beats "double users" based on optimism. Document assumptions behind targets so you can learn when reality differs. Missing reasonable targets teaches more than hitting random ones.