What is the feature usage rate & why do Product Managers should measure it?

Rohit Verma
5 min readFeb 9, 2023


Feature Usage Rate is a metric used to measure the adoption and usage of specific features within a product. It is expressed as a percentage and is calculated by dividing the number of unique users who have used a specific feature by the total number of unique users who have access to the feature. The result is a measure of how many users are actually using a particular feature and how often they are using it.

Feature Usage Rate is an important metric for product managers because it provides insight into how users are interacting with a product and helps identify which features are popular and which are not. This information is valuable in making informed decisions about product development and improvement, such as adding new features, making changes to existing features, or removing features that are not being used.

By tracking the Feature Usage Rate, product managers can ensure that they are creating a product that meets the needs of their customers and provides a positive user experience.

How PMs can measure feature usage rate ?

Product managers can measure feature usage rate by using various analytics tools, such as in-app analytics, server logs, or customer feedback. To implement it, they can:

  1. Define key metrics: Determine which features are most important to track and establish metrics to measure usage, such as number of clicks, time spent, or frequency of use.
  2. Implement tracking: Integrate analytics tools into the product to capture usage data.
  3. Analyze usage data: Regularly review the usage data to identify trends, understand which features are being used the most, and identify areas for improvement.
  4. Make informed decisions: Use the insights gained from the usage data to make informed decisions about product development, such as prioritizing new features, improving existing ones, or retiring unused ones.
  5. Communicate with users: Share usage data with users to give them a better understanding of how they are using the product and get their feedback on what they would like to see improved.
  6. Continuously iterate: Continuously monitor and measure feature usage rate and make changes as needed to improve the overall user experience.

Here’s a detailed example of how a product manager can measure and implement Feature Usage Rate:

Example: An e-commerce company has recently launched a new feature that allows customers to create wishlists. The product manager wants to measure the usage of this feature and improve it if necessary.

  1. Define key metrics: The product manager determines that the number of wishlists created and the items added to these wishlists are the key metrics to track.
  2. Implement tracking: The product manager integrates an in-app analytics tool into the e-commerce platform to capture usage data.
  3. Analyze usage data: The product manager regularly reviews the usage data and discovers that the number of wishlists created is low, and only a small percentage of customers are adding items to their wishlists.
  4. Make informed decisions: Based on this data, the product manager decides to make some changes to the feature to increase its usage. For example, they might add a prompt that reminds customers to create a wishlist when they add items to their cart, or they might offer incentives to customers who create wishlists and add items to them.
  5. Communicate with users: The product manager also communicates with customers to get their feedback on the wishlist feature. They ask customers what they would like to see improved and use this feedback to make further improvements.
  6. Continuously iterate: The product manager continuously monitors and measures the usage of the wishlist feature and makes changes as necessary to improve the overall user experience. They repeat this process to continuously improve the feature and ensure that it is meeting the needs of their customers.

By following this process, the product manager can effectively measure and implement the Feature Usage Rate for the wishlist feature and ensure that it is meeting the needs of their customers.

One real-life example of Feature Usage Rate can be seen with the social media platform, Instagram. Instagram regularly measures the Feature Usage Rate of various features within the app, such as filters, Stories, and Reels, to understand how users are engaging with the platform.

For example, Instagram might track the Feature Usage Rate of its filters to understand how often users are applying filters to their photos and which filters are most popular. Based on this data, they might make decisions about adding new filters, improving existing filters, or removing filters that are not being used.

By tracking the Feature Usage Rate of filters, Instagram can ensure that it is providing users with the features they want and need, which can lead to increased engagement and satisfaction with the app. The data collected can also inform decisions about product development, such as adding new features or improving existing features to make the app more user-friendly and enjoyable.

This is just one example of how Feature Usage Rate can be used to understand and improve the user experience. By regularly tracking Feature Usage Rate, companies can gain valuable insights into how customers are using their products and make informed decisions to improve the user experience.

What are the drawbacks of using feature usage rate ?

  1. Complexity: Measuring feature usage rate can be complex, especially for products with many features. It requires the integration of analytics tools and the interpretation of large amounts of data, which can be time-consuming and difficult for product managers.
  2. Resource allocation: Product managers need to allocate resources to continuously track and analyze feature usage rates, which can be a significant investment of time and money.
  3. User privacy: Measuring feature usage rate often involves collecting data on user behavior, which can raise privacy concerns. Product managers need to ensure that they are complying with privacy regulations and that they are transparent with their users about the data they collect and how it is used.
  4. Bias: The data collected on feature usage rate may not always be representative of all users, and it can be biased towards certain segments or demographics. Product managers need to ensure that they are collecting data from a representative sample of users and that they are not making decisions based on biased data.
  5. Limited insight: While feature usage rate can provide valuable insights into how customers are using a product, it only provides a limited view of the user experience. Product managers need to complement usage data with other forms of feedback, such as customer interviews and surveys, to gain a complete understanding of the user experience.

In conclusion, while measuring feature usage rate can be a valuable tool for product managers, it also comes with several disadvantages that need to be considered and addressed.

Thanks for reading! If you’ve got ideas to contribute to this conversation please comment. If you like what you read and want to see more, clap me some love! Follow me here, or connect with me on LinkedIn or Twitter.

Do check out exclusive Product Management resources 👇



Rohit Verma

Senior Product Manager @AngelOne, ex-@Flipkart, @Cleartrip @IIM Bangalore. https://topmate.io/rohit_verma_pm