What KPIs can you use to measure the success of a product launch with no direct competition?

3 Customer retention rate

The customer retention rate (CRR) is the percentage of customers who continue to use your product over a certain period of time. It shows how loyal and engaged your customers are with your product and how well it retains its value for them. To calculate the CRR, you need to know the number of customers at the beginning and the end of a period, and the number of new customers acquired during that period. For example, if you had 100 customers at the start of the month, 80 at the end of the month, and 20 new customers during the month, your CRR is (80 - 20) / 100 = 60%. You can increase your CRR by providing excellent customer service, delivering regular updates, and creating a sense of community.

4 Product market fit

The product market fit (PMF) is the degree to which your product satisfies a strong market demand and creates value for your customers. It is often considered the ultimate goal of a product launch and a prerequisite for growth and profitability. There is no definitive formula to measure the PMF, but some common indicators are positive word-of-mouth, high referral rates, low churn rates, and increasing revenue. You can achieve the PMF by conducting market research, validating your assumptions, iterating your product based on feedback, and segmenting your customers.

5 Net promoter score

The net promoter score (NPS) is a metric that gauges how likely your customers are to recommend your product to others. It is based on asking customers one simple question: "How likely are you to recommend our product to a friend or colleague?" The answers are given on a scale of 0 to 10, where 0 is the least likely and 10 is the most likely. The respondents are then classified into three categories: detractors (0-6), passives (7-8), and promoters (9-10). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A high NPS indicates that your product has a strong reputation and a loyal fan base. You can improve your NPS by delivering value, exceeding expectations, and resolving complaints.

6 Return on investment

The return on investment (ROI) is the ratio of the profit generated by your product launch to the cost incurred by it. It reflects how efficient and profitable your product launch is and whether it meets your financial objectives. To calculate the ROI, you need to subtract the cost of the product launch from the revenue generated by it, and then divide the result by the cost of the product launch. For example, if your product launch cost $10,000 and generated $15,000 in revenue, your ROI is ($15,000 - $10,000) / $10,000 = 0.5 or 50%. You can increase your ROI by optimizing your pricing strategy, reducing your expenses, and increasing your sales volume.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?