Metrics question

Late deliveries lead to customer churn. What data we should look at to prove this hypothesis for a food delivery app?

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What this question tests

Tests hypothesis-driven analysis: identifying the specific data needed to establish, not assume, a causal link between late deliveries and churn.

How to approach it

  1. State the hypothesis precisely: late deliveries cause churn, versus both being driven by something else, like a bad restaurant partner.
  2. Identify the datasets: order-level delivery time (actual vs promised ETA) joined to each customer's retention status afterward.
  3. Compare churn rate for customers with a late delivery (e.g., 15+ minutes past ETA) versus those without, controlling for order frequency.
  4. Check a dose-response pattern: does churn rise with lateness severity, which strengthens the causal case if monotonic.
  5. Control for confounds: region, restaurant partner, and order value, since some regions may have other service issues too.
  6. If correlational data is inconclusive, look for a natural experiment, like a region where delivery times improved, and check if churn dropped after.

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