How to Measure Product Launch Success (KPI & Helpful Tips)
June 24, 2022 Edwin Kooistra
Product launches KPIs are a critical part of any business, and it’s essential to measure their success to ensure that they’re profitable. According to Harvard Business School Professor Clayton Christensen, more than 30,000 new consumer items are launched every year, with 95 percent of them failing.
KPIs can help you determine whether a product launch is successful by measuring key factors such as sales, web traffic, conversion rates, and more. By identifying and tracking the proper KPIs, you can ensure that your product launch is on track and making money.
By tracking a few key performance indicators (KPIs), you can get a good idea of how well your launch went and what you can do to improve it.
In this blog post, we will discuss four key factors to consider when measuring the success of your product launch. We will also provide tips on how you can improve your product launch strategy based on these factors.
Let’s get started!
What Is Product Launch Success?
A product launch is successful when it achieves its objectives, which may include any or all of the following: generating awareness and interest in the product, increasing sales, improving customer satisfaction, and building brand equity.
Product launches are essential for several reasons. They help introduce new products or services to the market, creating awareness and generating interest among potential customers. They can also be used to build buzz and excitement around a company or brand, driving up sales and helping to establish market share.
A successful product launch can bring several benefits to a company, including increased sales, brand recognition, and improved customer loyalty. In addition, a successful product launch can also lead to new business opportunities and increased investment and media attention.
Finally, a successful product launch can also help build a company’s reputation as a reliable and innovative player. These benefits can help improve a company’s bottom line and position it for continued success. Many factors contribute to a successful product launch, including effective planning, execution, and monitoring. By carefully considering all of these factors, you can increase your chances of achieving a successful launch.
Product Launch Strategy
Your product launch strategy is the overall plan and approach that you will take to introduce a new product or service to the market. It should consider all product success metrics and life cycle aspects, from initial concept and development to post-launch support and ongoing sales and marketing efforts.
Your product launch strategy should be built around your unique products and services and tailored to your specific target markets. It should also align with your overall business strategy and regularly be reviewed and updated.
There are many reasons why product launches can fail, ranging from poor planning to execution to lousy timing. In many cases, a combination of factors can lead to a launch’s demise.
One of the most common reasons for failure is that the product isn’t good enough. It may be that it doesn’t solve a problem people have or that it’s not well made and doesn’t live up to expectations.
In other cases, the product may be good but is launching into a crowded marketplace where it isn’t easy to stand out. Poor planning can also doom a product launch.
For example, if the wrong target market is chosen, it can be tough to generate interest and sales. Additionally, a launch that is not well-timed can often fail to gain traction.
10 Important Product Launch Success Metrics & KPIs
There are many different KPIs that you can track, but some of the most important ones to focus on are:
- Web traffic
- Churn rate
- Trial subscribers signed up
- Lead Generation
- Active User Percentage (DAU, WAU, MAU)
- Customer Lifetime Value (CLTV)
- Customer Acquisition Cost (CAC)
- Customer Satisfaction Score (CSAT)
- Monthly Recurring Revenue (MRR)
- Client Retention Rate (CRR)
1. Web traffic
Web traffic is the number of visitors a website receives. A high web traffic score indicates that people visit the site frequently and spend time on it. You likely know how important it is to track your web traffic metrics if you manage a website. After all, this data can give you a wealth of insights into how your site is performing, what content resonates with your audience, and where you might need to make some improvements.
2. Churn rate
The churn rate is the percentage of customers who stop using a product or service within a given period. It’s a key metric for businesses because it can indicate whether a company is growing or losing customers.
3. Trial subscribers signed up
Trial subscribers signed up is the number of people who sign up for a free trial of a product or service. This metric is important because it shows how many people are interested in the product or service.
4. Lead generation
Lead generation is the process of generating leads, or potential customers, for a business. This can be done through various means, such as online ads, cold calling, or email marketing. The metric measures the number of leads generated by a business and is crucial for businesses that rely on lead generation to drive sales.
5. Active user percentage
The active user percentage (DAU, WAU, MAU) is the number of people who use a product or service daily, weekly, or monthly. This metric is important because it shows how many people are using the product or service.
6. Customer Lifetime Value
Customer Lifetime Value (CLTV) is the total amount of money a customer spends on a product or service. This metric is important because it shows how much money a customer is worth to a business.
7. Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the amount of money a business spends to acquire new customers. This metric is important because it shows how much it costs to get new customers.
8. Customer Satisfaction Score
A customer Satisfaction Score (CSAT) measures how satisfied customers are with a product or service. This metric is important because it shows how well a product or service performs.
9. Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the amount of money a customer spends on a product or service every month. This metric is important because it shows how much money a customer is spending on the product or service.
10. Client Retention Rate
Client Retention Rate (CRR) is the percentage of customers who continue to use a product or service after the initial purchase. This metric is important because it shows how likely customers are to continue using the product or service.
3 Ways to Measure Product Launch Success
If you wanna know how to measure product launch success, don’t worry, we have you covered.
Start by dividing the product launch into three phases:
1 – Pre-launch Planning
Successful product launches don’t happen by accident. Careful planning and preparation make sure everything goes off without a hitch. One of the most critical aspects of pre-launch planning is setting clear objectives and goals. What are you hoping to achieve with this launch? How will you know if it’s successful? Without well-defined goals, it won’t be easy to measure success.
2 – Launch Day
On launch day, all your hard work comes to fruition. All your planning and preparation come down to this one moment. Everything needs to go according to plan if you want a successful launch.
4 – Post-Launch Evaluation
Once the launch is over, it’s time to sit back and evaluate how things went. This is where those well-defined goals come in handy. Did you achieve what you set out to? Are there areas that could have been improved? What lessons can be learned for future launches?
Measuring product launch KPI success is essential for any business that wants to ensure its products are successful. You can set yourself up for a successful launch and avoid costly mistakes by following these tips.
Phase 1: Pre-launch
Before you launch your product, it is essential to set some KPIs (Key Performance Indicators). This will help you track the progress and success of your product. But what KPIs should you be monitoring? And how can you make sure they are realistic? Some examples of setting KPIs for the product launch phase include:
- Number of new users
- Usage statistics
- Net Promoter Score (NPS)
- Customer satisfaction rating
- Sales figures
As a business owner, you must take the time to learn about your customer’s requirements. This will ensure that you can provide them with the products or services they need and want. There are a few different ways that you can go about learning about your customer’s requirements.
One way is to ask them. This can be done through surveys, interviews, or even casual conversations. Another way to learn about your customer’s requirements is to research them yourself. This can be done by looking at demographic information and other available data.
The product experience is how a customer interacts with a product or service. It includes everything from the initial purchase to how easy it is to use the product or service.
A great product experience can differentiate between a loyal customer and a one-time buyer. That’s why it’s essential to focus on creating a positive product experience for your customers.
Setting KPIs for new product launches is always a hectic time for businesses. A million things need to be done, and it’s easy to forget something important. That’s why it’s essential to have a product launch checklist. This will ensure that you don’t forget anything and that your launch goes smoothly..
Here’s what should be on your product launch checklist:
- Create a timeline
- Set up a budget
- Plan your marketing campaign
- Create a website
- Gather customer feedback
- Test your product
It’s essential for product marketing, sales, and development teams to be aligned for success. One way to ensure this alignment is to devise timelines and ownership for each group. For example, the product marketing team can be responsible for creating the initial product roadmap.
The sales team can then be responsible for providing feedback to the product marketing team based on customer demand. The development team can be responsible for implementing the product roadmap. By having clear timelines and ownership, each team will know its role in the process and work together more effectively.
Phase 2: Launch Day
There are three main types of product launches: minimal, soft, and full-scale. Each has its advantages and disadvantages that should be considered when deciding which type of launch is right for your product.
- Minimal launches are typically used for products with a small target market or are not yet ready for a full launch.
- Soft launches are somewhere in between minimal and full-scale launches. They are typically used for products ready for a wider release but still need some refinement.
- Full-scale launches are used for products ready for a wide release and do not need further refinement.
One of the most important is creating a clear and concise message that will resonate with your target audience. This can be achieved through various marketing channels such as advertising, public relations, and content marketing.
Once you have your message nailed down, it’s time to start thinking about how you will reach your target market. This is where things like market research and competitive analysis come into play. You need to make sure you understand your target market and what they’re looking for before you can start devising a marketing strategy.
First, it is essential to have a system in place that can handle the volume of data that will be generated. Second, the system should be able to track and analyze both real-time and historical data. Third, the system should be able to provide insights into how users interact with the product.
Fortunately, many great analytical tools are available to help you track such metrics. For example, Google Analytics is a free tool to track website traffic data. It can also track app usage data if the proper integration is in place. Additionally, many paid tools offer more robust features and functionality.
When launching a new product, it’s essential to focus on the critical feature that sets your product apart from the competition. This will help you create a clear and concise message that resonates with your target audience.
If you try to communicate too many features at once, you risk overwhelming potential customers and causing them to tune out your message. Keep your launch focused on a single critical component, and you’ll be more likely to capture attention and drive sales.
As you develop your product, it’s crucial to think about how you will launch it. One key consideration is whether or not to use A/B testing. A/B testing can be a valuable tool for getting feedback on your product before you launch it. You can sense which one is more popular by showing two different versions of your product to potential customers. This can help you decide what features to include in your final product.
Phase 3: Post Launch
After you’ve launched your product, it’s crucial to track your progress and adjust as needed. This means monitoring customer usage and product adoption metrics. One is to set up Google Analytics goals and track conversion rates. This will give you valuable insights into how users interact with your product and whether or not they find it useful.
Another way to track progress is to monitor customer feedback. This can be done through surveys, social media, or customer support requests. Pay attention to what users are saying and look for any common themes or problems. This feedback can improve the product and make it more successful.
Product management is essential, but the product’s performance matters most at the end of the day. This is what customers judge an effect on, and it will determine its success or failure in the marketplace. Many factors contribute to a product’s performance, including design, engineering, and manufacturing.
It’s important to celebrate your successes after a product launch, but it’s also essential to learn from your failures. By analyzing what went wrong and what went right, you can improve your chances of success on future launches.
It’s essential to have a clear vision for your product or service. But once you’ve launched your product, it’s just as important to keep pushing forward and continue working towards your ultimate goal.
There will always be obstacles and challenges along the way, but don’t let them discourage you. Stay focused on your goal and keep moving forward. Every step you take will get you closer to your ultimate goal.
Success is within reach if you believe in your product or service and are passionate about it. So keep pushing forward until you reach your goals. Once you do, you’ll be glad you didn’t give up along the way.
Measure your product launch success by setting Key Performance Indicators (KPIs) and tracking them regularly.
Some valuable tips to help measure product launch success: make sure you have a goal, track progress against that goal, define what constitutes a successful outcome, use multiple data points to measure progress, establish benchmarks, assign responsibility, and create a timeline.
If you follow these steps, you will be able to set realistic expectations for your product launch and identify whether it was successful or not.
If you believe all this is too much for your business to handle on its own, Partner with Chasm to execute a successful product launch. Our team has the experience and expertise necessary to guide you through each step of this critical process, from market research and segmentation to positioning and messaging. Get in touch today to learn more about how we can help you achieve your marketing goals.