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
- State the hypothesis precisely: late deliveries cause churn, versus both being driven by something else, like a bad restaurant partner.
- Identify the datasets: order-level delivery time (actual vs promised ETA) joined to each customer's retention status afterward.
- Compare churn rate for customers with a late delivery (e.g., 15+ minutes past ETA) versus those without, controlling for order frequency.
- Check a dose-response pattern: does churn rise with lateness severity, which strengthens the causal case if monotonic.
- Control for confounds: region, restaurant partner, and order value, since some regions may have other service issues too.
- If correlational data is inconclusive, look for a natural experiment, like a region where delivery times improved, and check if churn dropped after.
What a strong answer includes
- Distinguishes correlation from causation explicitly and proposes a stronger causal check via a natural experiment.
- Proposes a dose-response check, a specific and effective way to strengthen or weaken the hypothesis.
- Names real confounds (region, restaurant partner, order value) instead of assuming a clean two-variable relationship.
- Grounds the analysis in concrete, joinable datasets rather than a vague 'look at delivery and churn data.'
Common mistakes
- Treating a raw correlation as proof of causation without controlling for confounds.
- Not defining 'late' with a threshold, making the analysis impossible to run.
- No proposal for getting closer to causal evidence beyond one correlation check.
Likely follow-up questions
- What if churn correlates with lateness but not in a dose-response pattern?
- How would you handle one-time customers who never experienced a late delivery?
- What operational fix would you propose while the analysis is running?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 14: Get the job: the AI PM interview loop