So how does one maintain a balance between the above 2 key parameters?
The below SaaS Product Metrics Pyramid is a very effective way for a company to keep track of its progress.
At the top are metrics around your “North Star”:
— The North Star metric usually reflects the organization-level objectives and goals
— During the growth phase, ARR and MRR can be a great metric
The next layer is “Key influencers of North Star”:
— 2 or 3 metrics that have a huge impact or influence on the North Star
— eg. if you are working on product feature enhancement to reduce CSAT issues, Churn rate can be a great metric
The lowers layer is “Levers”:
— One can have many metrics at this level as it is the most granular layer
— This layer can be tricky as one might not be able to rely on a single metric to get answers to a problem. Usually at this layer, one has to combine a few metrics and draw a holistic inference
— eg. NPS scores, Feature adoption rate, MAU, WAU, DAU, etc.
If you are able to get this product roadmap strategy (metrics-driven) in place, it becomes that much easier for you to navigate the growth phase.