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Agile Measurement Open - Understand the potential market for your product

Last post 06:56 pm October 22, 2020 by Yoann Mével
7 replies
01:30 pm October 18, 2020

Hello everyone!

 

I am currently studying for the PSPO1 exam and while checking the EBM part, I ran into a question in the Agile Measurement Open which I am not clear with.

 

Which of the following measures would help you understand the potential market for your product?

A) Net Promoter Score (NPS)

B) Market Share trends

C) Quarterly revenue trends

D) Customer Usage Index

E) All of the above

 

The open assessment states that the answer is E. No further explanation given.

I had answered B.

B is a UV KVM so it explains why.

As for A, C or D, I do not get it.

 

Any insight on this?

 

Regards,

Yoann


07:21 pm October 20, 2020

I suppose all can be said to represent evidence of some kind, and may help to "understand the potential market", however obliquely.

Can you think of a reason to discard any of this evidence?


01:49 am October 22, 2020

I agree with Ian.

But I have another idea. Would you please explain the meaning of these measures  first.

This ensures that our perceptions are consistent.


03:55 pm October 22, 2020

Hello both of you and thank you for taking interest in my question. I have passed the PSPO 1 exam already but am still curious about the answer on this if you do not mind helping me.

 

@Ian: It is not that I can think of a reason to discard any of those. I suppose that I could find indirect ways to link most of them to the understanding of potential market (except for the Quarterly revenue trends which I am struggling with) but I am not quite convinced, reason why I came here looking for help.

 

@Ching-Pei: Great question, you are right.

A) Net promoter score: It is a score indicating the percentage of users that would likely recommend the product to other people => I suppose that, from a low NPS, you could infer that by increasing it, there would be a lot of potential market?

B) Market Share trends: it gives information about the part of the market controlled and not controlled by the product => Knowing which part of the market you do not control will help you understand potential market

C) Quartely revenue trends: revenue concerning the product on a quarter basis I suppose => No idea on this one

D) Customer Usage Index: Gives information on the usefulness of the different features for the customers (usage of the product by feature) => I suppose you could say that this will help you identify customer needs and current value and therefore potential market but I feel like it is a long stretch

 

Thanks in advance for your insight and interest in this.

 


05:25 pm October 22, 2020

These measures will not necessarily be equally informative. Quarterly revenue projections, for example, will be a trailing indicator that does not articulate to every Sprint cycle. We might expect that the ability to inspect and adapt using this data would be comparatively attenuated.

There are a range of measurements, of varying significance, and which potentially overlap in certain respects. Not all are necessarily identified in the question. There could be others...such is the nature of complex product development.

Perhaps the question highlights the need to establish situational awareness, taking into account the varied evidence we have at our disposal.


06:08 pm October 22, 2020

@Ian: Yes I undertand. But for instance, let's take the quarterly revenue projections. In my mind, having those do not help identifying potential market. But the process of trying to increase the revenue might help. This is the kind of thoughts that I was struggling with and that made me think this answer was not suitable.

Is my line of thought wrong on this?


06:45 pm October 22, 2020

Quarterly revenue trends are evidence which might help future projections to be made. If the trend is steadily upwards, for example, we could use that evidence to project ongoing growth potential in the market.

Where that new market growth lies, and what ought to be done to achieve it, is another matter. Other evidence would have to be used to gain insight into such things. This would round out your understanding of the potential market.


06:56 pm October 22, 2020

@Ian, thanks a lot.

Seems I had a wrong understanding of this measure. Makes a lot more sense now.