STEP 5.2: A CASE STUDY
Tracks His Key Metrics
Leo's first batch sold out! But a month later, he's not sure what to focus on. He's taking photos for Instagram, but is it leading to sales? He's worried he's chasing vanity metrics.
The Challenge
How can Leo know where to focus his limited time and energy? He needs a simple way to measure the health of his product business and understand what actions actually lead to growth.
The Action
Leo uses the `Acquisition, Activation, Retention` framework to identify the few numbers that truly matter for his Etsy shop.
1. Acquisition KPI
"The best metric isn't Instagram followers; it's the number of visits to my Etsy shop from social media. This directly tells me if my content is driving real traffic."
2. Activation KPI
"The key action is a sale. So my activation metric is my Etsy shop conversion rate (visits divided by orders). This tells me if my product page is effective."
3. Retention KPI
"My automated follow-up asks for a review. So my retention metric is the number of 5-star reviews collected each month. This measures customer happiness and provides social proof."
The Outcome
Leo creates a simple spreadsheet to track his three chosen KPIs. Now, instead of wondering if his Instagram posts are "working," he can see a direct connection between his content, shop visits, and sales. He is no longer distracted by vanity metrics.
| Month | Acquisition (Shop Visits) | Activation (Conv. Rate) | Retention (5-Star Reviews) |
|---|---|---|---|
| August | 1,200 | 1.7% | 4 |
| September | 1,800 | 2.1% | 9 |