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Product metrics (North Star · AARRR · HEART)

Measuring product value and growth: one guiding metric and funnel frameworks.

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$ MAU = 10,000; DAU = 2,000; new signups = 3,000; reached first value = 1,200; …

Essence

Product metrics turn "is the product doing well" from feeling into measurable numbers for decisions. The key: pick metrics that reflect real user value, not vanity metrics that grow nicely but mean nothing (downloads ≠ users).

North Star Metric

One metric reflecting the product's core user value, e.g. "Shorts published per week". Good NSM grows only when users get value.

AARRR

Acquisition · Activation (the "aha" moment) · Retention · Revenue · Referral.

HEART

Happiness · Engagement · Adoption · Retention · Task success — each via Goal → Signal → Metric.

Base metrics

DAU/MAU (stickiness), activation rate, retention curve (D1/D7/D30), time-to-value.

Worked example

MAU = 10,000; DAU = 2,000; new signups = 3,000; reached first value = 1,200; D7 returns = 540.
Stickiness = 2,000/10,000 = 20%. Activation = 1,200/3,000 = 40%. D7 retention = 540/3,000 = 18%.
Lever: activation 40% — half don't reach value. Simplify onboarding → lower time-to-value → raise activation → lifts retention & NSM.

When to use

North Star for team focus; AARRR for growth/funnel; HEART for UX quality.

Pitfalls

Vanity metrics; North Star = revenue; ignoring retention (leaky bucket); averages without cohorts; a metric with no action.

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