Building Something Unique: Metrics, Human Behavior, and Product Success

Building Something Unique: Metrics, Human Behavior, and Product Success

Building a successful product or service is no easy feat. It requires careful consideration of metrics, human behavior, and the ability to capture a space that existing incumbents cannot easily penetrate. In this article, we will explore the challenges of measuring and optimizing for metrics, the importance of understanding user behavior, and how to build something that captures a unique space in the market.

At scale, organizations often have to settle for metrics that can be measured, optimized, or monetized. However, these metrics rarely capture the true essence of underlying human emotions or behavior. In fact, they often create unintended secondary behaviors that skew the metrics in ways that were not anticipated or desired by the system designers. This makes it nearly impossible to accurately measure human behavior in its entirety.

To address this challenge, most large teams and products resort to using proxy metrics that serve as indicators of underlying behavior. These proxy metrics are chosen because they are easier to measure and provide some insight into user behavior. However, they are not a perfect representation of the desired outcome. Identifying this blind spot and finding a way to measure the underlying behavior accurately can give rise to building something that captures a space which existing incumbents cannot easily pursue.

In the article "The Only Metric That Matters," Josh Elman emphasizes the importance of focusing on users rather than abstract numbers or metrics. He argues that big numbers may indicate popularity, but they do not necessarily reflect whether a product is truly working. Instead, Elman suggests that the real indicator of success is whether users are using the product in the expected manner and with enough frequency to indicate future usage.

Understanding user behavior is crucial in building a successful product. It goes beyond just looking at page views or logged-in accounts. It requires a deep understanding of how users engage with the product, what motivates them to continue using it, and how to encourage them to come back for more. By focusing on user behavior and building a product that aligns with their needs and desires, organizations can create a product that stands out from the competition.

Here are three actionable pieces of advice to consider when building something unique: