Book Image

Growth Product Manager's Handbook

By : Eve Chen
Book Image

Growth Product Manager's Handbook

By: Eve Chen

Overview of this book

In the dynamic landscape of modern product management, professionals face a myriad of challenges, spanning customer acquisition, monetization, user retention, competition, and technical expertise. To overcome these hurdles, this book crystalizes growth strategies that revolve around harnessing the power of data, experimentation, and user insights to drive growth for a product. This handbook serves as your guide to exploring the essential growth product management models and their applications in various contexts, unveiling their role in enhancing revenue performance and customer retention. Along the way, actionable steps will steer you in implementing these models while helping you better understand your users, experiment with new features and marketing strategies, and measure the impact of your efforts, ultimately guiding you to achieve your customer retention and lifetime customer goals. By the end of this book, you’ll have gained advanced insights into growth product management, models, and growth strategies, and when and how to use them to achieve customer-for-life goals and optimized revenue performance.
Table of Contents (19 chapters)
1
Part 1: A User-Centric Management Strategy
5
Part 2: Demonstrating Your Product’s Value
9
Part 3: A Successful Product-Focused Strategy
13
Part 4: Winning the Battle and the War

Key ARPU metrics

With an array of customer monetization levers explored, from tactical pricing adjustments to loyalty program design, the need emerges to quantify the financial impact of these strategies. This requires a sharpened focus on ARPU, a pivotal metric that encapsulates the average recurring revenue contribution of each user.

Optimizing ARPU is imperative for PLG companies to drive sustainability through maximizing user lifetime value. By deeply analyzing ARPU performance, opportunities to boost wallet share come into focus.

ARPU quantifies the average recurring revenue generated per user across a defined cohort, typically measured monthly (ARPMAU) or annually (ARPAU). For SaaS businesses, ARPU closely correlates to subscription pricing levels on a per-user basis.

Several variants provide unique insights:

  • Average revenue per annual user (ARPAU)
  • Average revenue per monthly active user (ARPMAU)
  • Average contract value (ACV)
  • Average selling price...