Product managers define success metrics and track outcomes to evaluate product performance. This measurement responsibility ensures the team knows whether their efforts are achieving the intended results.

Effective measurement practices include:

• Setting clear KPIs: Establishing key performance indicators tied to product goals
• Creating measurement plans: Determining how and when to collect data
• Building dashboards: Developing accessible views of critical metrics
• Conducting impact analysis: Assessing how changes affect user behavior
• Sharing results: Communicating outcomes to stakeholders and teams

Good product managers look beyond vanity metrics to focus on indicators that truly reflect product health and business impact. They distinguish between leading indicators (that predict future performance) and lagging indicators (that confirm past success).

The measurement approach evolves throughout the product lifecycle. During the early stages, product managers might focus on acquisition and activation metrics. As products mature, retention, revenue, and referral metrics become increasingly important.