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PART 5: THREE LIFE CYCLE STAGES AND CORE METRICS - Kenneth - Coggle Diagram
PART 5: THREE LIFE CYCLE STAGES AND CORE METRICS - Kenneth
5.1 PARADIGM SHIFT IN PLATFORM METRICS
Traditional vs Platform Metrics
Traditional business: sales, revenue and profit
Platform business: successful interactions and active users
User engagement, retention and network effects
Vanity Metrics
Total sign-ups or registered users
Total downloads
Impressive totals may hide low activity
Better Measures
Active participation
Successful interactions
Meaningful rates and comparisons
5.2 THREE-STAGE LIFE CYCLE METRIC SYSTEM
Stage 1: Startup
Liquidity: enough users and successful interactions
Matching quality: connect the right users
Trust: users feel safe participating
Stage 2: Growth
Producer-to-consumer ratio
Lifetime value (LTV)
Sales conversion rate
Churn and side-switching rates
User retention and monetization
Stage 3: Maturity
Ongoing user engagement
Innovation and new functionalities
Identify competitive threats
Value creation and resource allocation
5.3 SMART METRICS DESIGN AND THE 3A TEST
Smart Metrics Design
Prioritize important metrics
Avoid measuring everything
Reduce noise and support decisions
The 3A Test
Actionable: guides decisions and management action
Accessible: easy to understand and communicate
Auditable: accurate, reliable data and clear definitions
Overall Objective
Happy users
Repeated successful interactions
Sustainable platform growth