Putting a price on engagement/retention. This is how you communicate engagement improvements. And accidentally find product-market fit in the process.

No one wants to hear that you pressure short-term revenue but there's value in engagement and how to drive it. We have 2 methods:

* We improve engagement by providing features that drive it.

* We "kick" irrelevant users from our acquisition efforts. We focus product development only on the high-engagement ones. (Targeted qualitative interviews, no more spray and pray)

The first one is second nature for most product teams. The second needs to be driven sometimes by management. The complications are visualized in the graph.

You might pressure short term revenue abut also drive down CAC and slowly bring up your retention metrics. A commonly used PMF measurement is whether 40% of your users hate it when you take away their product.

We can measure this through surveys on our different user segments and figure out whether we have product-market fit with them. They are our Ideal Customer Profiles.

If you are aware of these limitations you will be ready when someone asks about money metrics. Why you still want to push in that particular direction is a question of experience. It *will* manifest in revenue later.

We get ready to scale, not push short-term revenue early. That's what we mean when we talk about "don't do stuff that doesn't scale".

Welcome to growth mode.

#productmanagement #scaling