Assignment

Identifying Key Metrics

By – Krishan Mohan
 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

1. New Signups- The new users who signed up on Zoom App/ Website on daily basis. For Zoom which offers a free
trial or a fermium plan, its marketing team’s goal to drive signups

2. Bounce rate- How many users downloads the app but not start using the app

3. Customer Acquisition Cost (CAC)- Cost spend per user to bring him/her on the platform. Understanding how
much it costs to acquire new customers—and identifying the most profitable marketing and sales channels—is the
key to profitably scaling a SaaS business, Hence for Zoom tracking CAC which derives from aggregating all of your
costs and number of new paid users you acquired is very important

4. % of App Downloads - How many app downloads are made on daily/weekly basis?
Activation

1. Core Action- An activation event takes place when acquired customer gets the promised value. For Zoom it will be
percentage of users/enterprise accounts who attended/hosted first meeting on Zoom after signing up
2. Click Through Rate (CTR) - Users who started using Vs those who installed but not start using
3. Paid subscription- Percentage of users who opt for a paid subscription plan within thirty days of signing up
4. % of users who uses free subscription of 40 min in 7 days post sign up - How many users are using app’s
free subscription within 7 days of signup ?
Retention

1. Number of active users- Active users means the number of people that are actively using your product. For Zoom it
will be-
a. MAU- users come back on app within a month
b. WAU- How many users come back on app within a week
c. DAU- How many users come back on app on a daily basis
2. Churn rate- For Zoom churn rate will be defined as the proportion of customers uninstalling the app/ not visiting the
website for a month. Greater the churn, the more capital is required for the business just to maintain its revenue
3. Engagement metrics- Retention and engagement go hand in hand, hence it is important to monitor the
engagement metric for Zoom’s user/enterprise account such as-
a. Number of meetings attended
b. Total meeting minutes
c. Total number of participants who have joined the meeting
Revenue

1. Average revenue per subscriber (ARPU)- What is average revenue per user over a period of time ? ARPU is the
measure of revenue generated per account. ARPU will allows to refine analysis of a Zoom’s revenue generation
capability and growth at the per-customer level.
2. Monthly Recurring Revenue (MRR)- What is the total revenue on monthly basis ? MRR is the total number of
paying customers multiplied by the average revenue per user (ARPU). this will give the revenue Zoom expects to earn
every month via their paid customers
3. Customer Lifetime Value (LTV)- How much money we make of a user over the life time of a user ? Usually lifetime
of a user is the time till when user will use the product, Usually it comes 5 yr. The total value an average customer brings
over their entire time as a customer. It will help Zoom in making business decisions about sales, marketing, product
development, and customer support. For a balanced model, CAC should be significantly less than LTV.
4. Conversion rate- Rate of the users who are converting into paid customer from free account
Referral

1. Viral Coefficient- Number of users a customer refers to you.For Zoom it will be the number of users who signed up
through their friend’s invitation link. Greater viral coefficient gives indication of how the fast the company will grow
2. Net Promoters Score (NPS) – How many users are promoting the app on the scale of 1 to 10, its % of promoters - %
detractors
3. Ratings & Reviews- Tracking the positive and negative reviews as well as ratings will give the overall satisfaction of
customers and also tell us about the issues and feedback of the product
 Part 2
Building the Wireframes for the
Web-based Analytics
Dashboard

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Wireframe - Analytics Dashboard
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