🚀 Are you valuable enough to retain? - Issue #163. I assume that you’d like to keep your current job and ride out this economic storm. It's a risky move to enter the job market if it isn’t necessary.
Great advice and very practical ways not only to reflect in crisis such as this but take stock of how you are adding value that aligns to your career goals as well. As a follow up
Keen on the tip generating more revenue, about PMs measuring the value of the monetary value they bring into the company. As a product design manager these are overlapping metrics we would also provide. Can you share more knowledge on what modellling was created?
Thanks, Maria. The PMs used an NPV model that predicted increased revenue based on the impact of improved key metrics.
For example, at eBay, we already had calculated and knew the value of a successful customer registration, a bid, a purchase, an auction listing, etc.
In the case of a newly-registered user, we looked at the average lifetime value (LTV) of a new member. If you were redesigning the registration flow to reduce user dropoff by a specific percent, then you knew exactly how many additional successful registrations you would now retain and should be able to predict every week, month, quarter.
Multiply that increased number of registrations by the LTV and you know how much revenue you should potentially add for the company in a given quarter and looking out at the lifetime of those users on the service.
So, as the Design organization creating that improved registration flow, you should claim that you were responsible for driving that additional revenue for the company. Without your successful design work, the registration flow would have continued to bleed new users and the company would not realize that bump in revenue.
Great advice and very practical ways not only to reflect in crisis such as this but take stock of how you are adding value that aligns to your career goals as well. As a follow up
Keen on the tip generating more revenue, about PMs measuring the value of the monetary value they bring into the company. As a product design manager these are overlapping metrics we would also provide. Can you share more knowledge on what modellling was created?
Thanks, Maria. The PMs used an NPV model that predicted increased revenue based on the impact of improved key metrics.
For example, at eBay, we already had calculated and knew the value of a successful customer registration, a bid, a purchase, an auction listing, etc.
In the case of a newly-registered user, we looked at the average lifetime value (LTV) of a new member. If you were redesigning the registration flow to reduce user dropoff by a specific percent, then you knew exactly how many additional successful registrations you would now retain and should be able to predict every week, month, quarter.
Multiply that increased number of registrations by the LTV and you know how much revenue you should potentially add for the company in a given quarter and looking out at the lifetime of those users on the service.
So, as the Design organization creating that improved registration flow, you should claim that you were responsible for driving that additional revenue for the company. Without your successful design work, the registration flow would have continued to bleed new users and the company would not realize that bump in revenue.
Does that help?
https://www.wrike.com/project-management-guide/faq/what-is-net-present-value-npv-in-project-management/
Great framework Larry I am aware of LTV modelling but will spend some time on NPV. Great insights thanks Larry for your feedback.
You're welcome!