Metrics That Matter: A PM’s Guide to Data-Driven Decisions

The Metrics Hierarchy

Every product needs a metrics hierarchy — a clear structure that connects daily activities to business outcomes. Without it, teams optimize for local maxima while the product stagnates.

North Star Metrics

Your North Star metric should capture the core value your product delivers to customers. It should be leading (not lagging), actionable, and understood by everyone on the team.

Input vs Output Metrics

Output metrics tell you what happened. Input metrics tell you why. Great PMs focus on inputs because they’re actionable. You can’t directly change revenue, but you can change the activation rate that drives it.