Differentiating metric types

Different metrics reveal different truths about a product. In product specifications, they serve as measurable checkpoints that connect user experience with business outcomes. To select the right ones, it helps to understand the main categories most teams rely on:

• Acquisition metrics show how new users find and start using the product. They include indicators like sign-up rate or cost per acquisition.
• Engagement metrics reflect how actively users interact with features, such as session frequency, time spent, or completed actions.
• Retention metrics measure loyalty by tracking how many users return and how often.
• Revenue metrics reveal financial performance through values like lifetime value (LTV), average revenue per user (ARPU), or recurring revenue.
• Satisfaction metrics capture user sentiment using signals such as Net Promoter Score (NPS) or customer effort score.

Each type serves a specific purpose in specifications. A new feature might rely on engagement and retention metrics, while an onboarding flow improvement could focus on acquisition and satisfaction. Mixing several types gives a complete picture of success, helping teams align qualitative goals with measurable outcomes.