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Defining Product Success: Metrics and Goals by Sequoia

Published by:
Sequoia
Author:

Introduction

To know if your product is doing well, you need one clear goal and a simple way to measure progress. Without a target, it's hard to know where you're going.

What's the Problem It Solves?

Many teams track too many things and lose focus. This article explains how to choose one important number to guide decisions, and how to set strong goals around it so everyone works toward the same success.

Quick Summary

A good product team needs a clear way to measure if they’re winning or not. That starts by picking one key number-the main thing you want to grow or improve. This could be daily users, total sales, or time spent in your app, depending on what your company cares about most. That number should match your company’s mission and be something you can track easily.

Once you know what to measure, set a goal that includes a number, a deadline, and a reason. For example, “Grow to 1 million monthly users by the end of the year.” Strong goals give your team focus, help them prioritize work, and connect their daily tasks to big company dreams. You can also set easy goals to stay on track and harder ones to push for bigger results. Just remember: great goals are clear, measurable, and not too complicated.

Key Takeaways from the Article

  • Pick one top number that shows if your product is on track. Don’t chase too many at once.
  • Make sure your main metric matches your mission and reflects real product use.
  • Your goal should include a number and a time limit, like “10M users by December.”
  • Start simple: use easy-to-measure numbers instead of fancy formulas.
  • Goals should guide focus, not explain every detail of the plan.
  • Use two types of goals: one you’re likely to hit (80% chance), and one that stretches your team (50% chance).
  • Update your metric or goal if needed-don’t stay stuck with the wrong one.
  • Once the goal is clear, use it to build strategy, projects, and tasks that move your product forward.

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