API Metrics for Product Managers | API Product Management
Summary
TLDRThis script discusses the importance of tracking metrics for API success, distinguishing between business and internal APIs. For business APIs, which aim to generate revenue, metrics focus on business performance, growth, and actual API performance. Key metrics include daily usage, revenue per client, and error code breakdowns. Internal APIs, designed to solve internal problems and improve efficiency, prioritize performance metrics like response time and uptime, along with cost reduction metrics. The video invites viewers to contribute additional metrics and engage with the content.
Takeaways
- 📊 API metrics are crucial for tracking the success of APIs and can be categorized into business, growth, and performance metrics.
- 💼 Business APIs aim to generate revenue and grow adoption, focusing on metrics like daily usage, revenue per client (RPO), and top industries using the API.
- 🔍 Performance metrics for APIs include response time, uptime, request breakdowns, error code analysis, and requests per second (RPS) supported by the API.
- 📈 Growth metrics for APIs track adoption trends, new client acquisitions, and revenue changes over time.
- 🏢 Internal APIs are designed to solve internal problems, with a focus on improving efficiency and reducing costs, rather than revenue generation.
- 📉 For internal APIs, key metrics include response time, uptime, and the ability to handle high request volumes, reflecting the importance of reliability and efficiency.
- 🛠 Internal API metrics also consider the cost savings achieved by the API, such as human cost saved per API call and the cost per API call.
- 📝 The script suggests tracking the number of API calls made per day as part of the business metrics for internal APIs, indicating the volume of usage.
- 🔑 Understanding the specific goals of an API, whether business or internal, is essential for determining which metrics to track and prioritize.
- 💡 The script encourages feedback and suggestions for additional metrics to track, highlighting the importance of continuous improvement in API management.
Q & A
What are the key metrics to track for the success of APIs?
-The key metrics to track for API success include business performance metrics, growth performance metrics (adoption), and actual performance metrics of the API itself.
How do business APIs differ from internal APIs in terms of goals and metrics?
-Business APIs aim to make money by selling the APIs and growing adoption, focusing on metrics like revenue, RPO (Revenue Per Order), and customer industries. Internal APIs aim to solve internal problems, improve efficiency, and reduce costs, focusing on metrics like response time, uptime, and cost savings.
What are the business performance metrics to track for a business API?
-For a business API, track daily usage, revenue, RPO (Revenue Per Order), percentage of product revenue from the API, top customers, and top industries consuming the API.
Why is the response time important for the performance metrics of an API?
-Response time is crucial for API performance metrics as it directly impacts the user experience and the efficiency of processes that rely on the API.
What does RPO stand for and why is it significant in API metrics?
-RPO stands for Revenue Per Order and is significant in API metrics because it helps understand the revenue generated per client, which is essential for prioritizing growth efforts and requirements.
How can the adoption matrix help in tracking the success of an API?
-The adoption matrix helps by tracking API calls per day, week, and month to understand trends, new clients or users, and revenue changes, which are all critical for growth initiatives.
What are the performance metrics to consider for an internal API?
-For internal APIs, performance metrics include response time, uptime, request per second (RPS), and breakdown of failure scenarios by category.
How do business metrics differ for internal APIs compared to business APIs?
-For internal APIs, business metrics focus on reduced costs, such as human cost saved per API call and cost per API call, rather than revenue generation.
Why is uptime a critical metric for internal APIs?
-Uptime is critical for internal APIs, especially for systems like order management, as it ensures the API is available 24/7 to support real-time operations without interruptions.
What is the significance of tracking the breakdown of failure scenarios by category for an API?
-Tracking the breakdown of failure scenarios by category helps in debugging issues, understanding error patterns, and improving the overall reliability and stability of the API.
How can the metrics for an API help in prioritizing requirements and growth efforts?
-Metrics help in prioritizing requirements and growth efforts by providing insights into which customers and industries are using the API most, the revenue it generates, and areas where improvements can lead to higher adoption and efficiency.
Outlines
📊 API Metrics for Business Success
This paragraph discusses the importance of tracking API metrics for API product managers and business professionals. It differentiates API metrics from platform performance metrics and suggests a high-level list of metrics that are common between APIs and performance platforms. The speaker outlines the need to track business, growth, and actual performance metrics of APIs. Two types of APIs are introduced: business APIs, aimed at generating revenue and growing adoption, and internal APIs, focused on solving internal problems and improving efficiency. The paragraph sets the stage for a detailed exploration of metrics for each API type.
Mindmap
Keywords
💡API
💡Metrics
💡Business API
💡Internal API
💡Performance Metrics
💡Adoption Metrics
💡Revenue Per User (RPU)
💡Request Per Second (RPS)
💡Uptime
💡Error Codes
💡Cost Matrix
Highlights
API metrics are crucial for tracking the success of APIs, differing from general platform performance metrics.
High-level list of metrics includes business, growth, and actual performance metrics of the API.
Two types of APIs discussed: Business APIs aimed at revenue and customer adoption, and Internal APIs focused on solving internal problems and improving efficiency.
Business APIs are external, solving client problems, while Internal APIs address internal efficiency and processes.
For Business APIs, track business performance metrics such as daily usage, revenue, and average revenue per user (ARPU).
Identify top customers and industries using the API to prioritize growth efforts.
Performance metrics for Business APIs include response time, uptime, and request per second (RPS).
Adoption metrics for Business APIs track API call trends, new client acquisitions, and revenue changes.
Internal APIs focus on performance metrics like response time and uptime, critical for real-time systems.
For Internal APIs, monitor the API's ability to handle high request volumes and breakdown of failure scenarios.
Business metrics for Internal APIs track cost savings and efficiency improvements, not revenue.
Human cost savings per API call and cost per API call are key metrics for Internal APIs.
The number of API calls made per day is a measure of adoption for Internal APIs.
The importance of tracking specific metrics tailored to the type of API and its goals is emphasized.
Invitation for viewers to suggest additional metrics in the comments section for the given API examples.
Encouragement for viewers to like and share the video for further engagement.
Transcripts
if you are an API product manager or
someone who works in the business of
apis you know it's very important for
you to know which metrics to track in
order to track the success of your apis
Now API metrics are a little different
from the performance platform
performance meters but if you look at
the API like a feature you can derive a
high level list of sorts that is common
between both of these so the high level
list would consist of a business for
performance metrics then growth
performance metrics which is the
adoption and also the performance actual
performance metrics of the API itself
now I'm going to walk you through two
different types of apis because the goal
and the metrics for each of these might
be different so the first one is the
business API where the goal is to make
money by selling these apis and growing
the adoption and the second one is the
internal apis the goal here is to solve
an internet problem and improve
efficiency and and maybe the type of
metrics that you need to track here are
the performance and the cost Matrix
right so let's look at each of these in
a little more detail so like I mentioned
earlier there are two types of apis that
we are going to be looking at first is
the business API which is the external
API that is solving a client problem or
an actual problem and the second one is
internal API which is solving an
internal problem with respect to
efficiency and processes the broad
category of Matrix will be same if you
look at specifics metrics are different
for each of these so let's start by
business apis first so business apis are
type of apis that you build in order to
solve a problem now let's take a
hypothetical problem you've built an API
that enables you to schedule Facebook
posts there are three things that you
broadly track in this type of API right
so you track the business performance
and adoption which is the growth Matrix
assume that this is the API that you're
selling to customers so let's look at
business metrics first the goal here is
to understand how much money you're
making and from where you're getting all
of this money right so the daily usage
to see the revenue how much money you're
making per client which is RPO average
revenue per user and what percentage of
product revenue is coming from this API
primarily to understand and prioritize
requirements top three customers using
this API and top three Industries
consuming this API this is primarily to
kind of prioritize your growth efforts
as well so this was about business
Matrix let's look at performance metrics
now so in performance metrics you need
to look at the health of the API per se
so the response time the uptime of the
API breakdown of time taken to hit a
request to Facebook for making a post
versus the time taken by your API the
uptime of the Facebook so you have have
there been down times uh breakdown of
failure scenarios by category so if you
know apis you know there are error codes
so I basically want to understand what's
the breakdown of those error codes then
RPA is supported by the API which is the
request per second and important from a
performance perspective RP is supported
by the source which is Facebook in this
perspective so you need to know what's
the max RP is that Facebook's up and
then let's look at the adoption Matrix
for this API so for adoption you would
want to see how many API calls are
happening per day week and month to know
the trend if the API adoption is
increasing decreasing it Etc a
percentage change in the number of API
calls number of new acquired clients or
users after you launch the service and
percentage change in the revenue after
this API so all of this comes in
adoption Matrix any initiative with
respect to growth is where you track
what you track here so these are three
broad categories for an external or
client facing apis now let's move on to
an internal API where the goal is to
improve the to focus more on the
performance and reduce costs so for
internal performance API let's assume we
built an API to take data from Excel
sheet and post it in nanoms an order
management system now there are two
broad categories that you need to track
here so the adoption may may not be
necessary and might come as a part of
the business itself but the goal here is
the performance that's like the most
important thing when you're working with
an internal API so the response time is
very important because you're tracking
efficiency the uptime of the API is
really important because if it's an
order management system it has to be
real time and ongoing 24 7 then RP is
supported by the API so if there is a
huge bulk of customers that's coming is
the API able to handle that breakdown of
failure scenarios by categories this is
primarily to kind of debug when some
issue happens uh in the API per se and
then there are business metrics uh in
order to track the adoption business of
the API now business not in terms of
Revenue but in terms of reduced costs so
human cost saved per API call and for a
cost per API call and number of Epi
calls made per day so I think broadly
that's it for the Matrix itself if you
have some suggestions with respect to
what other B tricks to be tracked for
the examples we had taken uh please feel
free to add those in the comment section
um if you like the video please consider
dropping a like on this video please
also feel free to share this across with
a friend and I'll see you in the next
one thanks so much
Weitere ähnliche Videos ansehen
13 HR Metrics You Need to Know
Important SaaS Success Metrics (MRR/ARR/CAC/ARPU/CLV/etc.) - Hamid Shojaee - PHX Startup Week
The Sweet Spot (ALEX HORMOZI)
Win Big in Business in 2024 by doing this 😮💪🏾
How to Combine Internal & External Training Load Monitoring
Metrics That Matter - How to Build a Startup
5.0 / 5 (0 votes)