To bridge the communication gap with leadership, reframe common product metrics into financial terms. Instead of reporting daily active users (DAU), calculate and present average revenue per daily active user (ARPA-DAU). Similarly, frame quality initiatives not as ticket reduction but as operating expense (OPEX) savings.
Related Insights
ROAS (Return on Ad Spend) is a vanity metric that can mask unprofitable customer acquisition. By focusing on POAS (Profit on Ad Spend), brands are forced to measure the actual profit generated from advertising, linking marketing directly to bottom-line health and avoiding the trap of 'growing broke'.
To get buy-in for developer experience initiatives, don't use generic metrics. First, identify leadership's primary concerns—be it market share, profit margin, or velocity. Then, frame your measurements and impact using that specific language to ensure your work resonates.
Everyone obsesses over Net Revenue Retention (NRR), but Gross Revenue Retention (GRR) is the real indicator of product health. GRR tells you if customers like your product enough to stay, period. A low GRR signals a core problem that expansion revenue in NRR might be masking.
Stakeholders will ask "so what?" if you only talk about developer efficiency. This is a weak argument that can get your funding cut. Instead, connect your platform's work directly to downstream business metrics like customer retention or product uptake that your developer-users are targeting.
Traditional product metrics like DAU are meaningless for autonomous AI agents that operate without user interaction. Product teams must redefine success by focusing on tangible business outcomes. Instead of tracking agent usage, measure "support tickets automatically closed" or "workflows completed."
To get buy-in from financial stakeholders, translate the 'soft' concept of brand love into hard metrics. Loved brands can command higher prices, maximize customer lifetime value, and reduce customer acquisition costs through organic advocacy, proving brand is a tangible asset.
Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.
Shift the mindset from a brand vs. performance dichotomy. All marketing should be measured for performance. For brand initiatives, use metrics like branded search volume per dollar spent to quantify impact and tie "fluffy" activities to tangible growth outcomes.
Creating products customers love is only half the battle. Product leaders must also demonstrate and clearly communicate the product's business impact. This ability to speak to financial outcomes is crucial for getting project approval and necessary budget.
To demonstrate value, platform teams must explicitly connect contributions to top-line business metrics. Use internal newsletters to show how a new service directly enabled an uplift in a key metric like Net Promoter Score, making the platform's ROI undeniable.