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Pairing metrics

What you're measuring doesn't makes sense on its own. For a SaaS product, a high number of registrations doesn't mean success. A high number of registrations, low churn and turning a profit means success.

As Andrew Grove's says in High Output Management, it's pivotal to pair metrics to avoid over optimising your business in the wrong ways:

  • registrations (users in) → churn (users out)
  • conversion rate (%) → new customers (absolute numbers)
  • inventory count → # of times orders went unfulfilled

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