Metrics question
Shopify addressed user needs by opening its platform to 3rd party developers for app creation. Your team is developing the Shopify App Store, facilitating app discovery/installation for merchants to boost business growth. What are the goals and success metrics of this marketplace?
- Shopify
- Metrics
- Hard
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What this question tests
Marketplace metric design that balances both sides: merchants and developers.
How to approach it
- State the goal: help merchants find apps that grow their business, and help developers reach merchants profitably.
- Define merchant-side metrics: app install rate, 30-day app retention, and merchant GMV lift after installing.
- Define developer-side metrics: number of active listed apps, developer revenue via the store.
- Pick a north star that ties both sides, e.g. merchant GMV influenced by App Store installs.
- Add a quality guardrail, e.g. uninstall rate, to catch low-value apps gaming installs.
- Note how you'd weight the two sides if they trended in opposite directions.
What a strong answer includes
- Explicitly covers both sides of the marketplace rather than only one.
- Proposes a north star tying supply and demand together, e.g. GMV influenced by installs.
- Names a quality guardrail like 30-day uninstall rate to catch low-value apps gaming installs.
- Gives an illustrative number, e.g. assumes 15% of merchants install at least one app in year one.
Common mistakes
- Only measuring installs, a vanity metric, without a retention or value guardrail.
- Ignoring the developer side of the marketplace entirely.
Likely follow-up questions
- How would you detect a low-quality app gaming the install metric?
- What would you do if install rate is high but merchant GMV lift is flat?
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More questions from Shopify
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