Choosing early KPIs that reflect business goals

While many behaviors and outcomes can be measured, it is crucial to pick a focused set of KPIs that truly reflect your product’s core objectives and company strategy.

Early in product development, it is tempting to measure everything, but choosing a few focused key performance indicators (KPIs) creates stronger alignment. These KPIs should reflect the company’s priorities rather than surface activity. For example, a subscription business may focus on recurring revenue and retention, while a new marketplace might track conversion rates and acquisition costs. Each KPI is valuable only if it connects to a larger objective such as profitability, user loyalty, or expansion.

For product managers who are not yet familiar with metrics, a practical starting point is reviewing established guides. These resources list common metrics across areas like sales, marketing, customer success, and product performance. Once familiar with the options, the next step is to map them against the product’s goals. If the priority is adoption, engagement metrics like daily active users may be most helpful. If stability is the focus, revenue-related KPIs will matter more. This way, learning what exists and matching it to your goals leads to purposeful choices.