Many of the product and growth teams I talk to are very focused on planning these days. But let's face it, planning can be a tedious process that many professionals don’t really enjoy, as it’s full of discussions (sometimes not fruitful) and also corporate politics.
However, planning is also a huge opportunity for the Analytics team to really impact the strategy of the company. 🚀
👉 One analysis or framework that I recommend focusing on involves understanding how each KPI affects each other. More precisely, it means mapping for a given metric the biggest levers to move the KPIs, such as with theKPI Tree.
By running this exercise, companies may find out that improving engagement doesn’t actually lead to better monetization, or that focusing on a specific product area/feature set will not lead to higher retention.
Analytics and Growth leaders usually have just two simple asks of their data.
Help me understand:
👉 Am I growing or not? And, what are the reasons for that?
👉 Where should I focus next, to grow my KPIs?
To answer these, most of them look to understand their input metrics because these affect the downstream output metrics on which they are being measured: Revenue; Paying users; Conversions; Weekly Active Users; and the like.
The concept of a KPI TREE is becoming increasingly popular today among the best analytics and growth teams, because it offers a way to visualize all of the levers that you have. It answers the questions above - where am I growing and where should I focus next.
The Loops KPI Tree perfectly integrates with type of causal insights that our platform already surfaces
✅ First, regarding why are my KPIs going up or down - we surface the potential reasons for that ranked by impact, after going through every lever, every causal possibility.
✅ Second, for where should I focus next - we then surface the biggest causal levers that you should focus on, such as certain features, user journeys, funnel steps, and so on.
Representing our causal insights in this unique, visual manner, is another important milestone in our mission at Loops to ensure that data is transformed into a growth driver at every company.
💡 Only when you map out all of your KPIs and levers in one place are you able to make sure that you focus on the bigger levers. 💪
Otherwise, you may be running blind!
