Use of different Product Metrics and Framework in a Fintech App

Let’s explore how these frameworks can be applied to a fintech app.

Pirate Metrics (AARRR):

Pirate Metrics is a framework that focuses on different stages of the customer lifecycle. The acronym AARRR stands for Acquisition, Activation, Retention, Revenue, and Referral. Here’s how it can be applied to a fintech app:

Acquisition: Measure the number of new user sign-ups over a specific period.
Example: Acquiring 1,000 new users in a month.
Activation: Measure the percentage of users who complete the onboarding process and start using key features.
Example: Achieving a 60% activation rate for new users.
Retention: Measure the percentage of active users who continue using the app over time.
Example: Retaining 70% of active users after three months.
Revenue: Measure the total revenue generated through transactions or subscriptions.
Example: Generating ₹50,000 in monthly revenue.
Referral: Measure the number of referrals made by existing users.
Example: Obtaining 200 referrals in a month.

HEART Framework:

HEART stands for Happiness, Engagement, Adoption, Retention, and Task Success. It focuses on user experience metrics. Here’s how it can be applied to a fintech app:

Happiness: Measure user satisfaction using surveys or ratings.
Example: Achieving a user satisfaction score of 4 out of 5.
Engagement: Measure the level of user interaction with the app.
Example: Increasing the average session duration to 10 minutes.
Adoption: Measure the percentage of users who complete critical actions or adopt key features.
Example: Achieving a 50% adoption rate for a new investment feature.
Retention: Measure the percentage of active users who continue using the app over time.
Example: Retaining 80% of active users after six months.
Task Success: Measure the success rate of users when performing key tasks.
Example: Achieving a 90% success rate for completing transactions.

RICE Framework:

The RICE framework is used to prioritize product features based on their potential impact. It stands for Reach, Impact, Confidence, and Effort. Here’s an example of applying the RICE framework to a fintech app:

Reach: Measure the number of users who will be affected by the feature.
Example: The feature will impact 60% of active users.
Impact: Measure the potential impact of the feature on user behavior or business metrics.
Example: The feature is expected to increase revenue by 15%.
Confidence: Assess the level of confidence in the estimates for reach and impact.
Example: Confidence level is rated at 80% based on user research and historical data.
Effort: Estimate the development and implementation effort required for the feature.
Example: The feature is estimated to require 200 developer hours.

North Star Metric:

North Star Metric represents the core value delivered by a product or service. For a fintech app, it can be a critical metric like the total value of assets under management (AUM). It serves as a guiding metric to align the entire organization toward a common goal.

For a fintech app, the NSM could be the total value of assets under management (AUM). Example: Achieving ₹1 billion in AUM.

OKR (Objectives and Key Results):

OKR (Objectives and Key Results) framework sets high-level objectives and defines specific, measurable key results to track progress. It helps in focusing efforts, aligning teams, and driving meaningful outcomes.

Here’s an example of OKRs for a fintech app:

Objective 1: Increase user engagement with investment features.

Key Result 1: Increase the number of daily active users using investment features by 20%.
Key Result 2: Achieve a 15% increase in the number of monthly transactions.
Key Result 3: Improve the average time spent on the app by 10%.

Objective 2: Enhance customer satisfaction and retention.

Key Result 1: Achieve a customer satisfaction score of 4.5 out of 5 based on user surveys.
Key Result 2: Increase customer retention rate by 10% compared to the previous quarter.
Key Result 3: Reduce the churn rate by 5% through targeted retention strategies.

Objective 3: Drive revenue growth.

Key Result 1: Achieve a 20% increase in monthly recurring revenue (MRR).
Key Result 2: Increase the average transaction value by 15%.
Key Result 3: Acquire 1,000 new paying customers during the quarter.

Balanced Scorecard:

Balanced Scorecard provides a balanced view of business performance across financial, customer, internal processes, and learning/growth perspectives. It helps in evaluating and improving the overall performance of a fintech app.

Here’s an example of applying the Balanced Scorecard to a fintech app:

Financial Perspective:

Measure revenue growth, profitability, and return on investment (ROI).
Example: Achieve a 30% increase in annual revenue and maintain a 20% ROI.

Customer Perspective:

Measure customer satisfaction, retention, and acquisition.
Example: Achieve a customer satisfaction rating of 4.5 out of 5, retain 80% of active users after six months, and acquire 10,000 new customers in a year.

Internal Processes Perspective:

Measure operational efficiency, speed of transactions, and system reliability.
Example: Reduce transaction processing time by 20%, maintain 99.9% system uptime, and improve customer support response time to less than 1 hour.

Learning and Growth Perspective:

Measure employee satisfaction, skills development, and innovation.
Example: Achieve an employee satisfaction score of 4 out of 5, provide training programs for skill development, and implement at least two innovative features based on customer feedback.

By leveraging these frameworks, a fintech app can gain insights into user acquisition, activation, retention, revenue generation, user satisfaction, engagement, adoption of key features, prioritization of product features, and overall business performance. This enables informed decision-making, goal alignment, and continuous improvement to deliver exceptional user experiences and achieve strategic objectives.