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<!DOCTYPE html><html><head><meta charSet="utf-8"/><meta name="viewport" content="width=device-width, initial-scale=1.0, viewport-fit=cover"/><style>:root{--nextra-primary-hue:212deg;--nextra-primary-saturation:100%;--nextra-navbar-height:64px;--nextra-menu-height:3.75rem;--nextra-banner-height:2.5rem;--nextra-bg:250,250,250;}.dark{--nextra-primary-hue:204deg;--nextra-primary-saturation:100%;--nextra-bg:17,17,17;}</style><title>Adopting an Analytics Framework - Mixpanel Docs</title><meta property="og:url" content="https://docs.mixpanel.com/guides/plan/framework"/><meta property="og:title" content="Adopting an Analytics Framework - Mixpanel Docs"/><meta property="og:description" content="Read more about Mixpanel documentation"/><link rel="apple-touch-icon" sizes="180x180" href="https://cdn.mxpnl.com/marketing-site/static/favicons/apple-touch-icon.png"/><link rel="icon" sizes="16x16" href="https://cdn.mxpnl.com/marketing-site/static/favicons/favicon-16x16.png" type="image/png"/><link rel="icon" sizes="32x32" href="https://cdn.mxpnl.com/marketing-site/static/favicons/favicon-32x32.png" type="image/png"/><link rel="mask-icon" href="https://cdn.mxpnl.com/marketing-site/static/favicons/safari-pinned-tab.svg" color="#7856ff"/><meta name="msapplication-TileColor" content="#ffffff"/><meta name="theme-color" content="#ffffff"/><meta name="next-head-count" content="13"/><link data-next-font="" rel="preconnect" href="/" crossorigin="anonymous"/><script type="text/javascript" id="load-rollbar-script" data-nscript="beforeInteractive"> var _rollbarConfig = { accessToken: 'ded7586aab784bd2917c499af1e0d51f', captureUncaught: true, captureUnhandledRejections: true, enabled: true, ignoredMessages: ['Security Policy Violation'], payload: { environment: 'production', repo: 'docs' } }; // Rollbar Snippet !function(r){var e={};function o(n){if(e[n])return e[n].exports;var t=e[n]={i:n,l:!1,exports:{}};return 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d="M0 1.75C0 .784.784 0 1.75 0h12.5C15.216 0 16 .784 16 1.75v12.5A1.75 1.75 0 0114.25 16H1.75A1.75 1.75 0 010 14.25V1.75zm1.75-.25a.25.25 0 00-.25.25v12.5c0 .138.112.25.25.25H9.5v-13H1.75zm12.5 13H11v-13h3.25a.25.25 0 01.25.25v12.5a.25.25 0 01-.25.25z"></path></svg></button></div></aside><nav class="nextra-toc _order-last max-xl:_hidden _w-64 _shrink-0 print:_hidden" aria-label="table of contents"><div class="nextra-scrollbar _sticky _top-16 _overflow-y-auto _px-4 _pt-6 _text-sm [hyphens:auto] _max-h-[calc(100vh-var(--nextra-navbar-height)-env(safe-area-inset-bottom))] ltr:_-mr-4 rtl:_-ml-4"><p class="_mb-4 _font-semibold _tracking-tight">On This Page</p><ul><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#importance-of-analytics-strategy" class="nextra-focus _font-semibold _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Importance of Analytics Strategy</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#the-rae-framework" class="nextra-focus _font-semibold _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">The RAE Framework</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#measure-your-products-value" class="nextra-focus ltr:_ml-4 rtl:_mr-4 _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Measure your Product’s Value</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#retain-your-products-reach" class="nextra-focus ltr:_ml-4 rtl:_mr-4 _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Retain your Product’s Reach</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#activate-your-users" class="nextra-focus ltr:_ml-4 rtl:_mr-4 _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Activate your Users</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#increase-user-engagement" class="nextra-focus ltr:_ml-4 rtl:_mr-4 _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Increase User Engagement</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#crafting-your-metrics-and-kpis" class="nextra-focus _font-semibold _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Crafting your Metrics and KPIs</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#summary" class="nextra-focus _font-semibold _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Summary</a></li><li class="_my-2 _scroll-my-6 _scroll-py-6"><a href="#additional-resources" class="nextra-focus _font-semibold _block _transition-colors _subpixel-antialiased _text-gray-500 hover:_text-gray-900 dark:_text-gray-400 dark:hover:_text-gray-300 contrast-more:_text-gray-900 contrast-more:_underline contrast-more:dark:_text-gray-50 _break-words">Additional Resources</a></li></ul><div class="nextra-toc-footer _mt-8 _pt-8 _sticky _bottom-0 _flex _flex-col _items-start _gap-2 _pb-8 _-mx-1 _px-1"><a class="nextra-focus _text-xs _font-medium _text-gray-600 dark:_text-gray-400 hover:_text-gray-800 dark:hover:_text-gray-200 contrast-more:_text-gray-700 contrast-more:dark:_text-gray-100" href="https://mixpanel.com/get-support" target="_blank" rel="noreferrer">Question? Contact our Support Team</a><a class="nextra-focus _text-xs _font-medium _text-gray-600 dark:_text-gray-400 hover:_text-gray-800 dark:hover:_text-gray-200 contrast-more:_text-gray-700 contrast-more:dark:_text-gray-100" href="https://github.com/mixpanel/docs/tree/main/pages/guides/plan/framework.mdx">Edit this page</a><button class="_transition _flex _items-center _gap-1.5 _opacity-0 _text-xs _font-medium _text-gray-600 dark:_text-gray-400 hover:_text-gray-800 dark:hover:_text-gray-200 contrast-more:_text-gray-700 contrast-more:dark:_text-gray-100" aria-hidden="true" type="button" disabled="" data-headlessui-state="disabled" data-disabled="">Scroll to top<svg viewBox="0 0 24 24" stroke="currentColor" fill="none" stroke-width="2" height="16" class="_-rotate-90 _border _rounded-full _border-current"><path d="M9 5l7 7-7 7" stroke-linecap="round" stroke-linejoin="round"></path></svg></button></div></div></nav><div id="reach-skip-nav"></div><article class="_w-full _break-words nextra-content _flex _min-h-[calc(100vh-var(--nextra-navbar-height))] _min-w-0 _justify-center _pb-8 _pr-[calc(env(safe-area-inset-right)-1.5rem)]"><main class="_w-full _min-w-0 _max-w-6xl _px-6 _pt-4 md:_px-12"><div class="nextra-breadcrumb _mt-1.5 _flex _items-center _gap-1 _overflow-hidden _text-sm _text-gray-500 dark:_text-gray-400 contrast-more:_text-current"><span class="_whitespace-nowrap _transition-colors _min-w-6 _overflow-hidden _text-ellipsis" title="Guides">Guides</span><svg viewBox="0 0 24 24" stroke="currentColor" fill="none" stroke-width="2" height="14" class="_shrink-0 rtl:_rotate-180"><path d="M9 5l7 7-7 7" stroke-linecap="round" stroke-linejoin="round"></path></svg><a class="_whitespace-nowrap _transition-colors _min-w-6 _overflow-hidden _text-ellipsis nextra-focus _ring-inset hover:_text-gray-900 dark:hover:_text-gray-100" title="Plan" href="/guides/plan/setup">Plan</a><svg viewBox="0 0 24 24" stroke="currentColor" fill="none" stroke-width="2" height="14" class="_shrink-0 rtl:_rotate-180"><path d="M9 5l7 7-7 7" stroke-linecap="round" stroke-linejoin="round"></path></svg><span class="_whitespace-nowrap _transition-colors _font-medium _text-gray-700 contrast-more:_font-bold contrast-more:_text-current dark:_text-gray-100 contrast-more:dark:_text-current" title="Framework">Framework</span></div><h1 class="_mt-2 _text-4xl _font-bold _tracking-tight _text-slate-900 dark:_text-slate-100">Adopting an Analytics Framework</h1> <p class="[&:not(:first-child)]:_mt-6 _leading-7">These days, businesses have mountains of data generated from people using their products on all kinds of devices. From apps to websites and smart devices, there is no shortage of data, and companies are sitting on a gold mine of product data.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Despite the abundance of data available to product teams, in a <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/blog/the-state-of-product-analytics-in-2020-and-how-to-move-forward" target="_blank" rel="noreferrer">survey</a> (conducted by Mixpanel in collaboration with Product School) of 450 product leaders across the globe, only 10% reported being able to validate all of their important product decisions with data. In addition, over 50% of product teams feel they are unable to quickly get answers to their product questions.</p> <h2 id="importance-of-analytics-strategy" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-10 _border-b _pb-1 _text-3xl _border-neutral-200/70 contrast-more:_border-neutral-400 dark:_border-primary-100/10 contrast-more:dark:_border-neutral-400">Importance of Analytics Strategy<a href="#importance-of-analytics-strategy" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h2> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Product managers are riddled with buzzwords, metrics, and frameworks that overwhelm attempts to understand their users and make better products for them. However, strip away the jargon, and the problem that every product manager is trying to solve today becomes very clear; that is: to build products that customers find valuable. Thus, the foundation of any product analytics strategy is essentially, to <em><strong>measure a product’s value against a user’s desire to exchange something for it</strong></em>.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="747" height="413" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 160'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAECAMAAACEE47CAAAAElBMVEXs5vbj2vXd1Orh2+vy7fzl3/AdTY2zAAAABnRSTlOCdYSNYGs4p6c1AAAACXBIWXMAAAsTAAALEwEAmpwYAAAAI0lEQVR4nB3GwQ0AMBDCsAS4/VeuVL9MNCoUICml/bnbdvMBA5UARGyz+iEAAAAASUVORK5CYII='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-value-exchange.33ef29ce.png&w=750&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-value-exchange.33ef29ce.png&w=1920&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-value-exchange.33ef29ce.png&w=1920&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Having a framework helps you structure your metrics and KPIs around the strategy, goals, and objectives of your business to drive value for your users. It also helps align various teams and stakeholders towards a shared vision for product development and execution around your product’s value.</p> <br/> <p style="position:relative;padding-bottom:56.25%;height:0;overflow:hidden"><iframe src="https://www.youtube.com/embed/A5RWMzh1mA0?rel=0" title="Importance of Analytics Strategy" frameborder="0" webkitallowfullscreen="true" mozallowfullscreen="true" allowfullscreen="" style="position:absolute;top:0;left:0;width:100%;height:100%"></iframe></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">How does your product analytics strategy stack up? 💡<a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/product-analytics-strategy/quiz/" target="_blank" rel="noreferrer">Take the Quiz</a> to understand where you stand and get tips to advance.</p> <h2 id="the-rae-framework" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-10 _border-b _pb-1 _text-3xl _border-neutral-200/70 contrast-more:_border-neutral-400 dark:_border-primary-100/10 contrast-more:dark:_border-neutral-400">The RAE Framework<a href="#the-rae-framework" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h2> <p class="[&:not(:first-child)]:_mt-6 _leading-7">For customers new to product analytics, we’d like to recommend a simple RAE framework to hone in on your 2-3 key metrics / KPIs. RAE stands for Reach, Activation, and Engagement. Using this framework, you can quickly identify the key events and properties you need to start measuring your KPIs. This framework also translates into a clearly defined funnel or sequence of events that monitors your product’s reach, to enabling user activation, and finally tracking the level of your users’ engagement.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="1337" height="646" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 160'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAECAMAAACEE47CAAAABlBMVEX9/P/29vloZAtEAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAHElEQVR4nGNgZGRkAAMQxcjAyAhmQLgggpGBAQABBgAMdSQNGwAAAABJRU5ErkJggg=='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Frae-framework.8cf5182b.png&w=1920&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Frae-framework.8cf5182b.png&w=3840&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Frae-framework.8cf5182b.png&w=3840&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">If you’re further along in your analytics journey, you can progress to using <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="/docs/best-practices/analytics-strategy/overview#adopting-a-measurement-framework">Mixpanel’s Focus Metric Framework</a> which provides a more granular approach to tracking success metrics.</p> <h3 id="measure-your-products-value" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-8 _text-2xl">Measure your Product’s Value<a href="#measure-your-products-value" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h3> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Your product’s metrics and KPIs should be defined around your product’s value to your target users. The more value your users derive from your product, the higher their adoption and engagement which leads to higher retention.</p> <br/> <p style="position:relative;padding-bottom:56.25%;height:0;overflow:hidden"><iframe src="https://www.youtube.com/embed/DnD_4gdgT_4?rel=0" title="Measuring Your Product's Value Moment" frameborder="0" webkitallowfullscreen="true" mozallowfullscreen="true" allowfullscreen="" style="position:absolute;top:0;left:0;width:100%;height:100%"></iframe></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">In order to measure your product’s value <em>(i.e. what is the problem that your solution is trying to solve)</em>, you need to:</p> <ol class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-decimal ltr:_ml-6 rtl:_mr-6"> <li class="_my-2">Identify the <strong>key actions</strong> that indicate a user is getting value out of your product</li> <li class="_my-2">Match these key actions to their expected <strong>natural frequency</strong> (daily / weekly / monthly) at solving your user’s problem</li> </ol> <p class="[&:not(:first-child)]:_mt-6 _leading-7">These key actions + natural frequency is what we call <strong>Value Moments</strong>. The more value moments means more opportunities for users to build a habit <em>(i.e. product stickiness)</em> around your product and remain long term customers. Using value moments as metrics helps you set tangible goals and measure what really matters.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="771" height="423" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 160'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAECAMAAACEE47CAAAAElBMVEXn4Pjr4/Xd1O7q5PTj3O3g2urRUOR6AAAABnRSTlOJdpSRhJ0+KUFsAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAIElEQVR4nAXBAQEAAAzCoE19/8oHAiGBa6/XEjYCTHX6BLsAQRc2LHcAAAAASUVORK5CYII='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fvalue-moment.c292a186.png&w=828&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fvalue-moment.c292a186.png&w=1920&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fvalue-moment.c292a186.png&w=1920&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">For more details on Measuring Value read <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/guide-to-product-analytics/chapter_1" target="_blank" rel="noreferrer">Chapter 1 of The Guide to Product Analytics</a> and how it impacts product <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/guide-to-product-analytics/chapter_5/" target="_blank" rel="noreferrer">Growth</a>.</p> <h3 id="retain-your-products-reach" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-8 _text-2xl">Retain your Product’s Reach<a href="#retain-your-products-reach" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h3> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><strong>Reach</strong> is defined as the total number of users who have used your product in a recent time period.</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2">For consumer companies, it could be the number of paid accounts, or users who have made purchases in the past three months.</li> <li class="_my-2">For B2B companies, this key metric is often product install base or number of paid licenses within the past quarter or year.</li> </ul> <br/> <p style="position:relative;padding-bottom:56.25%;height:0;overflow:hidden"><iframe src="https://www.youtube.com/embed/TrbIFgMILFE?rel=0" title="Measuring Your Product's Reach" frameborder="0" webkitallowfullscreen="true" mozallowfullscreen="true" allowfullscreen="" style="position:absolute;top:0;left:0;width:100%;height:100%"></iframe></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Reach is important because it represents the maximum amount of users who could reasonably become <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="/docs/tutorials/plan/framework#activate-your-users">active</a> and <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="/docs/tutorials/plan/framework#increase-level-of-user-engagement">engaged</a>, whether organically or through re-engagement campaigns. The goal is to focus on retaining your Reach, and in order to do that, you need to track:</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2">Rate of activating your New Users - getting them to value as quickly as possible</li> <li class="_my-2">Percentage of Non-Activated to Activated Users - eliminating the barriers causing non-activation</li> <li class="_my-2">Percentage of Dormant to Active Users - resurrecting users who have gone dormant</li> </ul> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="1242" height="904" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 240'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAGCAMAAADJ2y/JAAAALVBMVEWgY5qDU4F5U3KtX1ZLSFAoGx2EcPUkFhQvL0GEZf+YXWJvPjcPDwx7ZttCQkbm63GXAAAAD3RSTlMBCREjHFQMRTMZOUllVyjcQpWWAAAACXBIWXMAABYlAAAWJQFJUiTwAAAAL0lEQVR4nBXKxxEAIAwEsT0nMKH/dhn0FicARjAllU0jPeOuFG6ulgMxfgJsC6ofEsgApdaykdEAAAAASUVORK5CYII='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-reach.251b903a.png&w=1920&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-reach.251b903a.png&w=3840&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fproduct-reach.251b903a.png&w=3840&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">The goal is to ensure that a majority of your Reach are active users who are continuously finding value from your product.</p> <h3 id="activate-your-users" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-8 _text-2xl">Activate your Users<a href="#activate-your-users" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h3> <p class="[&:not(:first-child)]:_mt-6 _leading-7">User Activation is not simply about a user creating their account or signing-up to your product. It is the process of taking a user from sign-up to establishing a habit around your product’s core value proposition. The user’s first impression of your product will influence their every following step, including further engagement and upgrades, so it is essential to understand and optimize for this journey.</p> <br/> <p style="position:relative;padding-bottom:56.25%;height:0;overflow:hidden"><iframe src="https://www.youtube.com/embed/V0sT6he-ykQ?rel=0" title="Activating Your Users" frameborder="0" webkitallowfullscreen="true" mozallowfullscreen="true" allowfullscreen="" style="position:absolute;top:0;left:0;width:100%;height:100%"></iframe></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Activation can be viewed as a 3 step funnel where users go through setting up, to understanding the value of your product, and then experiencing more of that value to want to continue using it.</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2"> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><strong>Setup</strong> - defined as the number of times the user has done the setup action within the initial time period from sign-up. Think about the absolute must have “setup” action or information that you need from your user to be able for them to start discovering your product’s core value proposition.</p> </li> <li class="_my-2"> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><strong>Aha!</strong> - defined as the first number of times the user has done the core value action within the initial time period. This is the critical “aha!” moment where you show the user your product’s core value proposition for the first time; and they are deciding if your product solves their needs or problem.</p> </li> <li class="_my-2"> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><strong>Habit</strong> - defined as the number of times the user has done the core value action for every time period within the initial window. Once your user understands your product’s core value proposition, you would need to let them re-experience that same core value and reinforce their continuous usage of your product. Essentially forming a “habit” of being an active user.</p> </li> </ul> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="1109" height="354" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 120'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAADCAMAAACZFr56AAAAG1BMVEXW09dWSqjp3/rf1fPBvMVRRqbMyc9jV6rTyOioFO9IAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAH0lEQVR4nGNgZGVkZ2RlZGVgYQAjNgZmJiZmJmYOZgADpgBHINAqAAAAAABJRU5ErkJggg=='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Factivation-metric.bd0a65b2.png&w=1200&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Factivation-metric.bd0a65b2.png&w=3840&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Factivation-metric.bd0a65b2.png&w=3840&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">💡 Products with really long activation periods will need to be broken down further into even smaller pieces. For example, signing up for a home loan has an extremely long activation period and funnel.</p> <h3 id="increase-user-engagement" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-8 _text-2xl">Increase User Engagement<a href="#increase-user-engagement" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h3> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Engagement measures the depth of user activity in discovering or experiencing more value moments from your product. Highly engaged users are more likely to contribute to stronger product growth, as they not only contribute to more “value exchange”, but are also more likely to recommend your product.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="928" height="859" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 280'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAHCAMAAAACh/xsAAAAFVBMVEV0nOR8nOGNqOwlYcUcXMSPqesUVsHC1t7RAAAAB3RSTlMBDic4SjsfQ9BJHQAAAAlwSFlzAAALEwAACxMBAJqcGAAAACtJREFUeJwlysENADAIw0A7lO4/cgXN6yQHgXuUgdVZ7ASnfHTmWdlsVQI+CKEASLdhjU8AAAAASUVORK5CYII='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fengagement-cohorts.f86fa7a2.png&w=1080&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fengagement-cohorts.f86fa7a2.png&w=1920&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fengagement-cohorts.f86fa7a2.png&w=1920&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">To measure the level of engagement, an example is to segment your users into Casual, Core, and Power users against your engagement strategy.</p> <br/> <p style="position:relative;padding-bottom:56.25%;height:0;overflow:hidden"><iframe src="https://www.youtube.com/embed/dO3J6GzEbBs?rel=0" title="Increasing User Engagement" frameborder="0" webkitallowfullscreen="true" mozallowfullscreen="true" allowfullscreen="" style="position:absolute;top:0;left:0;width:100%;height:100%"></iframe></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">There are four general classifications of engagement strategies which can be combined depending on your product or business goals:</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2"><strong>Adding use cases</strong> - moving users to adopt additional product use cases <em>(Example: Uber rides to Uber Eats)</em></li> <li class="_my-2"><strong>Increasing feature usage</strong> - increasing the percentage of product feature usage <em>(Example: search filters, recommendations, match alerts)</em></li> <li class="_my-2"><strong>Increasing usage frequency</strong> - increasing the frequency of product usage <em>(Example: from 1 value action to 3 value actions in 7 days)</em></li> <li class="_my-2"><strong>Increasing intensity</strong> - increasing the intensity (spend, time, actions) of each product usage <em>(Example: spending more time playing a game or more money during cart checkouts)</em></li> </ul> <p class="[&:not(:first-child)]:_mt-6 _leading-7">The end goal of segmenting your users into different engagement cohorts is to move users from a less engaged to a more engaged state <em>(ie Casual -> Core)</em>.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">For more details on defining and viewing your user cohorts, read our <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/guide-to-product-analytics/chapter_3/" target="_blank" rel="noreferrer">Guide to Product Analytics</a>.</p> <h2 id="crafting-your-metrics-and-kpis" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-10 _border-b _pb-1 _text-3xl _border-neutral-200/70 contrast-more:_border-neutral-400 dark:_border-primary-100/10 contrast-more:dark:_border-neutral-400">Crafting your Metrics and KPIs<a href="#crafting-your-metrics-and-kpis" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h2> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Regardless of the Analytics Framework you adopt, it’s important to craft your metrics and KPIs based on your business’ goals, ensuring they are not only result-oriented, but also actionable. Leverage the following key pointers as you define your metrics and KPIs:</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2"><strong>Meaningful</strong>: aligns with your organization’s vision, mission and strategy, based on your product’s value moments, easy to understand</li> <li class="_my-2"><strong>Measurable</strong>: can be quantified, tracked, calculated, and assessed</li> <li class="_my-2"><strong>Manageable</strong>: within your product’s influence or control, realistic, pragmatic</li> <li class="_my-2"><strong>Movable</strong>: can be improved through targeted initiatives, action-oriented</li> <li class="_my-2"><strong>Time bound</strong>: trackable within a defined limited period of time, not open-ended</li> </ul> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><img alt="image" loading="lazy" width="840" height="340" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 120'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAADCAMAAACZFr56AAAAKlBMVEWFafcpHUaHa/giFkB/YvgNBxouI0szKE0mGkKCZvmOcP+Nbf+Pc/8QCBiZMRBXAAAADnRSTlPw8OLEwUPp37i0O0FAPql2S2gAAAAJcEhZcwAACxMAAAsTAQCanBgAAAAhSURBVHicY2BmY2TlZmBgYeBgZ+PlYmLiZACJ8DAwsAAABm8AdwLrFNYAAAAASUVORK5CYII='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fmetrics-to-avoid.d92484f8.png&w=1080&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fmetrics-to-avoid.d92484f8.png&w=1920&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fmetrics-to-avoid.d92484f8.png&w=1920&q=75"/></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">Having the right metrics enables you to develop the key insights necessary to make better decisions for your product. Here are some metrics that you might want to avoid and tips on how you can transform them into more impactful metrics instead.</p> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2"><strong>Vanity Metrics</strong>: doesn’t help you understand your product performance that informs future strategies; instead, focus on <strong>Value Metrics</strong> that measure how your target users perceive value to effect “value exchange” (see <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/blog/metrics-that-matter-to-viber-a-formula-to-meaningfully-measure-active-users/" target="_blank" rel="noreferrer">How Viber shifted from vanity to value metrics</a>)</li> <li class="_my-2"><strong>Lagging Metrics</strong>: after-the-fact measured outcomes that are no longer actionable (example: revenue, churn); instead, focus on <strong>Leading Metrics</strong> that help you anticipate and predict what will happen so you can be more tactical in course-correcting (more details on looking at <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://herbig.co/leading-lagging-indicators-okrs/" target="_blank" rel="noreferrer">Leading and Lagging Indicators to Measure Product Progress</a>)</li> </ul> <h2 id="summary" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-10 _border-b _pb-1 _text-3xl _border-neutral-200/70 contrast-more:_border-neutral-400 dark:_border-primary-100/10 contrast-more:dark:_border-neutral-400">Summary<a href="#summary" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h2> <p class="[&:not(:first-child)]:_mt-6 _leading-7">As your product evolves so should your metrics and KPIs. Depending on your key value moment’s natural frequency, business objectives, and product maturity, you should be reviewing your metrics periodically (eg: every 3, 6, or 12 months) to see if they are still relevant in driving product and business growth.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">To sum up everything you’ve learned, below is an example of the RAE Framework <em>(click to zoom)</em>. You can also access a copy of a <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://docs.google.com/spreadsheets/d/1sYBm9RA_pSoQLCLjsbcfyG-8Gd08CpWbEghd82ERtcc/edit?usp=sharing" target="_blank" rel="noreferrer">blank RAE Framework Template from here</a>. Save a copy to your device to get started on defining your metrics and KPIs.</p> <p class="[&:not(:first-child)]:_mt-6 _leading-7"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" title="Example RAE Framework (Click to expand)" href="/tutorials/example-rae-framework.png"> <img alt="image" loading="lazy" width="1330" height="765" decoding="async" data-nimg="1" style="color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url("data:image/svg+xml;charset=utf-8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 320 200'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'/%3E%3CfeComposite operator='out' in='s'/%3E%3CfeComposite in2='SourceGraphic'/%3E%3CfeGaussianBlur stdDeviation='20'/%3E%3C/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAgAAAAFCAMAAABPT11nAAAATlBMVEXo5+v08+9MaXHu7fL19PT08/Py8vJ3Wf7Y1NV2V/vn4d/PxuheNv/s5eHs7Nvj5ePX3t7e2cH6+vvg4ODQ2JLo5OP//797X/nFxsnj4uQEUVcyAAAAGXRSTlOPuQBsxdr3S3RBgVtGo3upJz74uSHLEFvIdiK8aAAAAAlwSFlzAAALEwAACxMBAJqcGAAAADNJREFUeJwFwQcCgCAMALFjtiiKMgT//1ESzpRFZCYOvd/+WcsV6vjbguKDiSZ6HkVxuA0nmAGCEfvU4QAAAABJRU5ErkJggg=='/%3E%3C/svg%3E")" srcSet="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fexample-rae-framework.3cfa9985.png&w=1920&q=75 1x, /_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fexample-rae-framework.3cfa9985.png&w=3840&q=75 2x" src="/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fexample-rae-framework.3cfa9985.png&w=3840&q=75"/> </a></p> <p class="[&:not(:first-child)]:_mt-6 _leading-7">💡 Start thinking about <a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/guide-to-product-analytics/chapter_4/" target="_blank" rel="noreferrer">Retention</a> once you have fine-tuned your RAE Framework.</p> <h2 id="additional-resources" class="_font-semibold _tracking-tight _text-slate-900 dark:_text-slate-100 _mt-10 _border-b _pb-1 _text-3xl _border-neutral-200/70 contrast-more:_border-neutral-400 dark:_border-primary-100/10 contrast-more:dark:_border-neutral-400">Additional Resources<a href="#additional-resources" class="nextra-focus subheading-anchor" aria-label="Permalink for this section"></a></h2> <ul class="[:is(ol,ul)_&]:_my-3 [&:not(:first-child)]:_mt-6 _list-disc ltr:_ml-6 rtl:_mr-6"> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/wp-content/uploads/2023/11/eBook_Guide-to-Product-Metrics.pdf" target="_blank" rel="noreferrer">A Guide to Product Metrics</a></li> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/guide-to-product-analytics" target="_blank" rel="noreferrer">The Guide to Product Analytics</a></li> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/content/product-analytics-strategy" target="_blank" rel="noreferrer">Advance Your Product Analytics Strategy</a></li> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://mixpanel.com/blog/product-analytics-data-vc-investment-startup/" target="_blank" rel="noreferrer">The product data VCs want to see before investing in your startup</a></li> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://productschool.com" target="_blank" rel="noreferrer">Product School</a></li> <li class="_my-2"><a class="nextra-focus _text-primary-600 _underline _decoration-from-font [text-underline-position:from-font]" href="https://www.reforge.com" target="_blank" rel="noreferrer">Reforge</a></li> </ul><div class="_mt-16"></div><div class="_mb-8 _flex _items-center _border-t _pt-8 dark:_border-neutral-800 contrast-more:_border-neutral-400 dark:contrast-more:_border-neutral-400 print:_hidden"><a title="Setup" class="nextra-focus _text-gray-600 dark:_text-gray-400 hover:_text-gray-800 dark:hover:_text-gray-200 contrast-more:_text-gray-700 contrast-more:dark:_text-gray-100 _flex _max-w-[50%] _items-center _gap-1 _py-4 _text-base _font-medium _transition-colors [word-break:break-word] md:_text-lg ltr:_pr-4 rtl:_pl-4" href="/guides/plan/setup"><svg viewBox="0 0 24 24" stroke="currentColor" fill="none" stroke-width="2" class="_inline _h-5 _shrink-0 ltr:_rotate-180"><path d="M9 5l7 7-7 7" 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