Assignment

Identifying Key Metrics

Abhishek Singh Solanki

 Problem Statement
DESCRIPTION
You have recently joined as the Product Manager (Analytics) at Zoom, which is one of the fastest-
growing SaaS startups. Zoom is the leader in modern enterprise video communications, which provides a
cloud platform for video and audio conferencing, collaboration, chat, and webinars. It helps businesses
and organisations bring their teams together in a frictionless environment. Your first project at Zoom is to
build a web-based analytics dashboard that will track all the relevant metrics across the lifecycle of the
product. For this, you need to first identify the relevant metrics that you will monitor for the different
stages and then build a wireframe for the dashboard, which will help track all these metrics.

ELEMENTS TO CONSIDER
In one of the previous sessions, you learnt the AARRR framework for prioritisation of metrics. It is a
common framework, which was proposed by Dave Mcclure. AARRR, which stands for acquisition,
activation, retention, referral and revenue are the different stages of a user’s journey through your
product. You can use this framework to find the relevant metrics for Zoom.
 Assignment Instructions

DELIVERABLES
1. First, you have to identify all the relevant metrics that Zoom should monitor across the lifecycle of
the product. You also need to provide a brief explanation for choosing each metric.
2. Second, you have to build the wireframe for the analytics dashboard, which will help monitor all
these relevant metrics. This dashboard will help you to visually track, analyse and display key
metrics and data points to monitor the health of the product.

SUBMISSION GUIDELINES
1. In your final submission, identify the relevant metrics (along with an explanation of why you will use
them) and then share the screenshots of your wireframes.
2. You can add your responses in the submission file attached below.
3. Convert this presentation into PDF format for the final submission.
Recap - AARRR Framework

Acquisition Retention

A A R R
Find the core
Concept R
Activation Revenue Referral
 Part 1
Identifying the relevant metrics
for Zoom based on the AARRR
Framework

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Acquisition Metrics

➢ Number of unique visits to the Website

➢ Number of App downloads
➢ Number Successful signups

These are the following things that need to be tracked for Acquisition metrics for Zoom.

• Customer Acquisition cost (CAC) - It can be calculated by dividing all the costs spent on
acquiring customers by the number of new customers acquired. Zoom can keep a track of this
metric to check profitability and compare it with LTV (Customer Lifetime Value) to make
appropriate decisions.

• Channels - Zoom can keep a track of various channels from where new users are getting
acquired which can be organic, social media, play store, email marketing, and so on. This will help
zoom to optimize cost towards marketing and efficiently use resources towards specific marketing
channels.

• New website visits - This will help zoom to track how many existing and new users are coming to
the website every day along with the bounce rate which can be measured weekly or monthly
Activation Metrics

➢ Number of Free User vs Premium User

➢ Number of Signups for Zoom Premium membership
➢ Number of users scheduled a first meeting with Zoom
➢ Number of users attended their first meeting with Zoom

• % of users who have joined their first meeting on Zoom in 7 days post sign up - This is an
important metric for activation which will show how many users have used the core feature of
zoom after signing up within 7 days.
• % of paid subscribers within 7 days of signing up - This metric will help to understand how
many users are adopting the freemium model and are becoming paid subscribers within 7 days of
signing up.
• Number of users scheduled their first meeting in 7 days post sign up - This will help us to
understand that users are using another core feature of zoom of scheduling a meeting for others
within 7 days of sign up.
Retention Metrics

➢ Number of meetings created from his account - Zoom is a platform that may or may not be
needed every day or every week. Though, Zoom can track users who are coming to the platform
monthly and measure the active users thus calculating the retention rate of users per month.

➢ Total number of meeting minutes per month - This will help zoom to understand engagement
and find for how long does the users spend time in a meeting.

➢ Churn Rate - Churn rate is the measure of how many customers stopped using the product. This
metric will help zoom to understand whether users are satisfied or dissatisfied and identify the
reasons behind it. This can be measured monthly.

➢ Customer retention rate - The percentage of customers you keep relative to the number you had
at the start of your period. This does not count new customers. It is the reverse of customer churn.
CRR also gives you an indication of how loyal your customers are and how good your customer
service is. By tracking and benchmarking CRR we can find ways to improve these areas of the
business.
Revenue Metrics

➢ Average revenue per user(ARPU) - It is the average revenue earned per user. It can be
calculated by dividing total revenue earned by total active users in a month. This will help Zoom to
analyze the company’s revenue generation capability and growth at the per-unit level.

➢ Average annual contract value(ACV) - Annual Contract Value (ACV) is the average annual
revenue generated from each customer contract, excluding fees

➢ Monthly recurring revenue(MRR) - It is the amount of average revenue earned per user
multiplied by the total number of users in a particular month. This will help Zoom in budgeting and
allocating money. This can also be an indicator of whether the business is doing well or not over a
period of time. This metric can be calculated monthly.

➢ Customer lifetime value(CLTV) - It is the amount of money that a customer will spend on zoom
during their lifetime. This will help zoom to do cohort analysis and manage financials.

Revenue can be measured by the above metrics. These calculations gives a well objective number to
monitor on dashboard to track on daily basis and that indicates zoom over all revenue projections.
Referral Metrics

➢ NPS(Net promoter score) - is used to measure the loyalty of a company’s customers. NPS gives
quick and reliable feedback from customers.

➢ Viral Coefficient - is the number of new users an existing user generates. This metric calculates
the exponential referral cycle.

➢ App Store ratings and reviews - This is also an indicator of a good product providing good
services. Higher ratings and good reviews will lead to more downloads and conversions and is an
indicator of a product that people like and trust.

➢ Number of users follow Zoom in social media channels

This metric will help us understand if our referral scheme is making an impact or not.
 Part 2
Building the Wireframes for the
Web-based Analytics
Dashboard

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Wireframe - Analytics Dashboard

Created an Analytical dashboard

using MockFlow.

Given Dashboard is divided into

five parts as per the AARRR
Metrics.
After that, each Metric is explained
the parameters
along the objective numbers to
resemble the day to business
health, future potential and over all
revenue projection.
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