B2BVault's summary of:

Measuring Product Health by Sequoia Capital

Published by:
Sequoia
Author:
General; Product Marketing

Introduction

A good product grows, keeps users coming back, and makes people love using it. But how do you measure if your product is actually healthy?

What's the Problem It Solves?

Many companies build products without knowing if they truly work. This article helps teams figure out if their product is doing well by teaching them how to measure growth, stickiness, retention, and engagement.

Quick Summary

A healthy product isn’t just about lots of users-it’s about the right users coming back often and getting value. The article breaks down how to check if your product is growing at the right speed, if people are sticking around, and if your core users are truly enjoying what you built. Key things to track include daily and monthly active users, how often people return, and how long they stay.

It also explains how to avoid common mistakes, like focusing too much on fast growth or trying to build for everyone. Instead, the goal should be to build something your top users love, and then grow from there. If users aren’t sticking around or using the product often, even big numbers won’t matter long-term. That’s why measuring what really matters-retention, stickiness, and engagement-is the best way to know if your product is on the right path.

Key Takeaways from the Article

  • Retention is king: If people don’t come back, your product won’t survive.
  • Stickiness matters: Great products get users to come back on their own, not just from reminders.
  • Growth must be real: Don’t chase fast growth if users leave just as fast.
  • Build for core users: Focus on people who love your product. They’re the key to success.
  • Watch engagement: How often users visit, how long they stay, and what they do tells you if they really care.
  • Good numbers can hide problems: Always look deeper than just downloads or total users.
  • Don’t believe every myth: Growth tactics, viral tricks, or chasing everyone won’t fix a product with no real value.

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