Altitude Metrics for Core Payments at Kumu 💳

An exploration of metrics that shape product impact and user engagement in core payment systems.

1. Understanding the Altitude Map Framework 🌐

The Altitude Map Framework serves as a vital tool for quantifying the impact of product offerings and enabling organizations to identify essential performance metrics. By adopting a strategic approach that begins with high-level organizational metrics, companies can ensure their efforts are aligned with overarching business goals. This foundational understanding streamlines the development of targeted strategies and operational initiatives aimed at enhancing user engagement and monetization.

The framework encourages the generation of multiple hypotheses, allowing product teams to explore various scenarios. This approach fosters innovative thinking and helps organizations consider conventional and unconventional solutions to existing challenges. By asking pivotal questions about user behavior and preferences, teams can glean actionable insights that inform product development and marketing strategies.

2. Company Metrics: Acquisition, Retention, and Monetization 📊

To effectively gauge the health of core payments and overall business performance, it is essential to monitor key metrics related to acquisition, retention, and monetization.

• Acquisition: Achieving X million monthly active users (MAU) in December 2021 illustrates the power of strategic marketing and user engagement initiatives. Establishing robust acquisition channels enables Kumu to broaden its user base and enhance brand visibility.

• Retention: A favorable daily active users to monthly active users (DAU/MAU) ratio that results in X.X million average DAU demonstrates the strength of Kumu's user engagement strategies. Retaining users is critical, as it signifies satisfaction and loyalty, both crucial for sustained revenue generation.

• Monetization: The platform's generated revenue of $XXX.X million with a penetration rate of 5% of paying users indicates potential for growth in the monetization sector, despite the current limitations on user conversion. This presents an opportunity to refine payment models and improve value propositions for users to encourage paid engagement.

Despite positive indicators, challenges persist. The analysis reveals a scarcity in both breadth and depth of paying users. Many users, while actively engaging with the platform, do not maximize their experience or perceive sufficient value in paid offerings. Understanding the barriers to paid conversions becomes pivotal for unlocking monetization potential.

3. User Insights: Overcoming Barriers to Monetization 📉

Insights draw attention to a range of factors impeding user willingness to engage with paid experiences.

• Value Misalignment: A significant percentage of users, categorized as Hannahs and Sams, display a reluctance to invest in digital goods, primarily due to perceived inadequacies in the value offered. While users appreciate the platform's free features, they often view the conversion from diamonds to coins as a more advantageous option.

• User Experience (UX): Poor UX represents a critical barrier to user engagement with paid features. Issues such as complex purchasing processes, difficult navigation, and unclear transaction details reduce user confidence, leading to abandoned purchases. Enhancing the UX can lead to improved transaction success rates.

• Social Dynamics: The platforms’ social features, designed to foster connections and engagement, require refinement. Most users find difficulty in achieving social credit via badges or leaderboards, which diminishes their competitive spirit. Creating a more relatable ecosystem, where users can compare achievements with similar peers, may elevate users' willingness to engage and invest.

Conclusion: Driving Strategic Action and Progress 🚀

The insights gathered through the Altitude Map Framework and subsequent user analysis underscore the importance of a thoughtful approach to core payments. With a clear understanding of the metrics that matter, Kumu is equipped to address barriers hindering user monetization effectively.

By enhancing value perceptions, streamlining purchasing processes, and nurturing community connections, Kumu can convert more users into paying customers. Subsequently, actionable strategies aim to transform hesitation into active participation, ultimately driving greater revenue and a sustainable growth trajectory.

Engaging with these elements will not only uplift Kumu’s core payment ecosystem but also ensure users experience coherent value, fostering loyalty and commitment as the platform evolves.