Measuring product success with revenue-weighted feature usage
Blog post from Fivetran
Fivetran utilizes a metric called revenue-weighted feature usage (RWFU) to assess the effectiveness of its product features, providing insights beyond raw adoption rates by considering the revenue generated by accounts actively using a feature. This metric helps the company identify which features resonate with their highest-value customers, guiding investment decisions. RWFU is operationalized as a standard part of Fivetran's product evaluation, integrated into dashboards and roadmap reviews, and is complemented by traditional metrics such as account-weighted usage and engagement. By combining these metrics, Fivetran gains a comprehensive understanding of product adoption, particularly useful in scenarios involving early-stage features, feature deprecation, and setting adoption goals tied to revenue impact. The company emphasizes the importance of having a robust data infrastructure to reliably apply RWFU, using its own platform to centralize telemetry and make the metric scalable.
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