Product Analytics for Product Marketers: The Metrics That Actually Matter

Product Analytics for Product Marketers: The Metrics That Actually Matter

You open your analytics dashboard. 47 different metrics. 12 charts. Endless data.

Product asks: "How's the new feature doing?"

You panic-click through dashboards trying to find an answer.

This happens because most PMMs drown in analytics instead of focusing on the 5-7 metrics that actually inform product marketing decisions.

Good product analytics for PMM isn't about tracking everything. It's about tracking the right things to answer key questions: Is this feature being adopted? Is it driving value? Should we invest more in promoting it?

Here's the framework for product analytics that PMMs actually need.

The PMM Analytics Framework

Product managers track: Everything (feature usage, technical performance, user flows)

Product marketers track: Adoption, activation, value delivery, and marketing effectiveness

The difference: PM focuses on product health. PMM focuses on go-to-market effectiveness.

The 7 Core PMM Metrics

Metric 1: Feature Adoption Rate

What it measures: % of users who have tried a feature at least once

Why it matters: Tells you if your launch and messaging reached users

Calculation:

Adoption Rate = (Users who used feature) / (Total active users) × 100

Example:

  • Total active users: 1,000
  • Users who tried new feature: 300
  • Adoption rate: 30%

Benchmark:

  • Week 1: 20-30% adoption = good launch
  • Month 1: 40-60% adoption = successful
  • Month 3: 60%+ adoption = hit feature

What it tells PMM:

  • Low adoption (<20% week 1) = messaging didn't reach users, need more promotion
  • High adoption (>50% week 1) = strong launch, keep momentum

Where to track: Amplitude, Mixpanel, custom dashboard

Metric 2: Activation Rate (Feature)

What it measures: % of users who completed core action that delivers value

Why it matters: Adoption doesn't mean value. Activation means they got the outcome.

Example:

  • Feature: Email templates
  • Activation: User created email from template AND sent it
  • Not just: Clicked on templates

Calculation:

Activation Rate = (Users who completed activation action) / (Users who tried feature) × 100

Example:

  • Users who tried email templates: 300
  • Users who created AND sent email: 180
  • Activation rate: 60%

Benchmark: 50-70% activation = good product-market fit for feature

What it tells PMM:

  • Low activation (<30%) = users don't understand how to get value, need better onboarding
  • High activation (>70%) = clear value, feature is sticky

Metric 3: Time to Value

What it measures: How long from first use to activation (value delivered)

Why it matters: Faster time to value = better user experience = higher retention

Calculation:

Time to Value = Time from first feature use to activation event

Example:

  • User tries new feature: Day 1, 10am
  • User completes activation action: Day 1, 10:15am
  • Time to value: 15 minutes ✓ (good)

vs.

  • User tries feature: Day 1
  • User completes activation: Day 7
  • Time to value: 7 days ✗ (too slow)

Benchmark:

  • Same session: Excellent
  • Same day: Good
  • Same week: Okay
  • 1 week: Problem

What it tells PMM:

  • Long time to value = need better onboarding, in-app guidance, or documentation
  • Short time to value = feature is intuitive, good UX

Metric 4: Feature Retention (30/60/90 day)

What it measures: % of users still using feature after 30/60/90 days

Why it matters: Adoption is vanity, retention is value. Sticky features = happy customers.

Calculation:

30-Day Retention = (Users active in feature on Day 30) / (Users who adopted) × 100

Example:

  • Users who adopted feature in January: 500
  • Users still using it in February (Day 30): 300
  • 30-day retention: 60%

Benchmark:

  • 30-day retention: 40-60% (good)
  • 60-day retention: 30-50% (good)
  • 90-day retention: 25-40% (good)

What it tells PMM:

  • Low retention = feature isn't delivering ongoing value, users tried and abandoned
  • High retention = sticky feature, core to workflow

Metric 5: Feature Influence on Expansion/Retention

What it measures: Do users of this feature expand or renew at higher rates?

Why it matters: Proves feature drives business value, justifies continued investment

Calculation:

Compare:
- Expansion rate (users who use feature) vs. (users who don't)
- Retention rate (users who use feature) vs. (users who don't)

Example:

  • Users who use analytics feature: 70% renewal rate
  • Users who don't use it: 50% renewal rate
  • Feature influence: +20 percentage points

What it tells PMM:

  • High influence (+15-25 pts) = core value driver, emphasize in messaging
  • Low influence (<5 pts) = nice-to-have, not differentiator

Metric 6: Launch Effectiveness (MQL/Trial Impact)

What it measures: Did the launch drive new customer interest?

Why it matters: Measures whether your launch messaging reached market

Track:

  • Week-over-week MQLs (did launch spike lead gen?)
  • Trial signups mentioning new feature
  • Demo requests for new feature

Example:

  • Average weekly MQLs before launch: 50
  • Week of launch: 120 MQLs
  • Week after: 80 MQLs
  • Launch impact: +140% spike, sustained +60% lift

What it tells PMM:

  • Strong spike = successful launch, messaging resonated
  • No spike = launch didn't reach target market, need more promotion

Metric 7: Feature Attachment in Deals

What it measures: % of deals where feature was demo'd or discussed

Why it matters: Shows if feature helps close deals

Track:

  • Tag deals in CRM where feature was shown
  • Win rate comparison (deals with feature vs. without)

Example:

  • Deals where new feature demo'd: 45% win rate
  • Deals without feature demo: 30% win rate
  • Feature impact: +15 pts win rate

What it tells PMM:

  • High win rate impact = strong sales enablement asset, train all sales reps
  • Low impact = not a differentiator in sales process

The PMM Analytics Dashboard

Build one dashboard with these 7 metrics:

Feature Performance:

  • Adoption rate (30%)
  • Activation rate (60%)
  • Time to value (15 min avg)
  • 30/60/90 day retention (60%/45%/35%)

Business Impact:

  • Expansion rate influence (+18 pts)
  • MQL impact (+60% sustained lift)
  • Win rate impact (+15 pts in deals using feature)

Status: ✓ Healthy (all metrics on target)

Update: Weekly review, share with product and sales

How to Set Up PMM Analytics

Step 1: Define Activation Events

For each major feature, define:

  • Adoption event: User clicked/opened feature
  • Activation event: User completed value-driving action

Example: Email Templates Feature

  • Adoption: Clicked "Templates" tab
  • Activation: Created email from template AND sent it

Example: Analytics Dashboard

  • Adoption: Viewed dashboard
  • Activation: Created custom report OR exported data

Step 2: Instrument Tracking

Work with engineering to track:

  • Feature adoption events
  • Activation events
  • Timestamps (for time to value calculation)

Tools: Segment, Amplitude, Mixpanel, custom events

Step 3: Build Dashboard

Use: Amplitude, Mixpanel, Looker, Tableau, or custom

Views:

  • Overall product health (all features)
  • Individual feature deep-dive
  • Launch performance tracking

Step 4: Set Up Automated Reports

Weekly email with:

  • Feature adoption trends
  • New feature performance
  • Red flags (declining retention, low activation)

Monthly review with product and sales:

  • Feature ROI (which features drive retention/expansion)
  • Launch effectiveness
  • Roadmap prioritization based on data

How to Use Analytics for PMM Decisions

Decision 1: Should We Promote This Feature More?

Look at:

  • Adoption rate (<30% = yes, need more promotion)
  • Activation rate (>60% + high retention = yes, it's working)

Action: If low adoption but high activation/retention, create campaign to drive awareness

Decision 2: Do We Need Better Onboarding?

Look at:

  • Activation rate (<40% = yes)
  • Time to value (>1 day = yes)

Action: Create in-app guides, tooltips, tutorial videos

Decision 3: Is This Feature Worth Highlighting in Sales?

Look at:

  • Win rate impact (+10 pts or more = yes)
  • Customer retention impact (+15 pts = yes)

Action: Add to sales deck, create demo script, build ROI calculator

Decision 4: Should Product Invest More in This Feature?

Look at:

  • 90-day retention (>40% = yes)
  • Expansion influence (+15 pts = yes)
  • Adoption rate (>60% = strong demand)

Action: Make case to product for continued investment with data

Common Analytics Mistakes for PMM

Mistake 1: Tracking vanity metrics

You track page views and sessions instead of value delivery

Problem: Activity doesn't equal value

Fix: Track activation and retention, not just usage

Mistake 2: No baseline

You launch feature but don't know pre-launch metrics

Problem: Can't measure impact

Fix: Document baseline before launch

Mistake 3: Only looking at aggregates

You only see total adoption, not segmented

Problem: Miss insights (maybe SMB adopts but enterprise doesn't)

Fix: Segment by customer type, industry, plan tier

Mistake 4: Not connecting to business metrics

You track feature usage but not impact on retention or expansion

Problem: Can't prove business value

Fix: Correlate feature usage with retention, expansion, win rates

Mistake 5: Analysis paralysis

You track 50 metrics and can't make decisions

Problem: Overwhelmed by data

Fix: Focus on 7 core metrics that drive decisions

The Analytics Review Cadence

Weekly (15 min):

  • Quick dashboard check
  • Any red flags? (declining adoption, low activation)
  • What needs attention?

Monthly (60 min):

  • Deep dive on new features
  • Feature performance review
  • Identify promotion opportunities

Quarterly (2 hours):

  • Feature portfolio health
  • ROI analysis (which features drive retention/expansion)
  • Roadmap input (what to build/promote next)

Quick Start: Set Up PMM Analytics in 1 Week

Day 1-2: Define events

  • List all major features
  • Define adoption + activation events for each

Day 3-4: Implement tracking

  • Work with engineering to instrument events
  • Verify events firing correctly

Day 5: Build dashboard

  • Set up in analytics tool
  • Add 7 core metrics
  • Test and validate

Day 6-7: Establish rhythm

  • Weekly automated report
  • Monthly review meeting scheduled
  • Share access with stakeholders

Impact: Data-driven PMM decisions vs. gut-feel

The Uncomfortable Truth

Most PMMs ignore product analytics because they find it overwhelming or think it's "product's job."

They rely on:

  • Anecdotal customer feedback
  • Sales team opinions
  • Gut feel

They miss:

  • Which features actually drive retention
  • Whether launches are successful
  • What to prioritize promoting

What works:

  • Track 7 core metrics (not 50)
  • Review weekly (stay on top of trends)
  • Connect to business outcomes (retention, expansion, win rate)
  • Use data to prioritize (what to promote, what to kill)

The best PMMs:

  • Check analytics weekly (not quarterly)
  • Can answer "how's feature X doing?" with data
  • Use retention/expansion data to prioritize messaging
  • Prove launch ROI with metrics

If you can't tell me your top feature's adoption and retention rates, you're product marketing blind.

Measure what matters. Review regularly. Make data-driven decisions.