Don't jump directly to optimizing for high-level business outcomes like retention. Instead, sequence your North Star metric. First, focus the team on driving foundational user engagement. Only after establishing that behavior should you shift the primary metric to a direct business impact like revenue or retention.
Instead of focusing solely on conversion rates, measure 'engagement quality'—metrics that signal user confidence, like dwell time, scroll depth, and journey progression. The philosophy is that if you successfully help users understand the content and feel confident, conversions will naturally follow as a positive side effect.
Metrics like product utilization, ROI, or customer happiness (NPS) are often correlated with retention but don't cause it. Focusing on these proxies wastes energy. Instead, identify the one specific event (e.g., a team sending 2,000 Slack messages) that causally leads to non-churn.
A CRO program's primary metric must directly impact the business bottom line (revenue, MQLs, SQLs), not vanity metrics like bounce rate. The argument that bottom-line impact is "too hard to measure" is an unacceptable excuse that undermines the program's strategic value and executive buy-in.
The biggest initial hurdle for a new product isn't getting the first dollar of revenue; it's crossing the chasm from a user trying the product once to becoming a truly engaged, repeat user. This "penny gap of engagement" is the most critical early milestone to overcome for long-term success.
Go beyond simple ROI to measure pilot success. Focus on: 1) Time to Value: delivering measurable outcomes within weeks. 2) Expansion Velocity: enabling the customer to achieve new business growth. 3) Engagement Depth: the customer actively pulling your product into new functions and creating a wishlist of use cases.
While pipeline is important, the real signal of a successful AI-driven business is the depth of customer engagement. Are customers expanding beyond their initial use case? Are developers integrating your tool into core workflows? Are communities actively discussing you? These leading indicators show a stronger foundation than top-of-funnel metrics alone.
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.
The most durable growth comes from seeing your job as connecting users to the product's value. This reframes the work away from short-term, transactional metric hacking toward holistically improving the user journey, which builds a healthier business.
Product performance isn't one metric; it's the sum of all touchpoints, from support tickets to app reviews. These disparate inputs all roll up into the ultimate North Star metric: user engagement.
Pouring marketing resources into a "leaky bucket" is inefficient. If customer onboarding is flawed, prioritize fixing it before optimizing top-of-funnel campaigns. The highest leverage is in ensuring activated users convert, not in acquiring more users who will quickly churn.