Metrics question

Suppose you're the PM of an API that can analyse and categorize user's spends. What are the key metrics you would track to measure the success of this feature?

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What this question tests

Metrics for a feature, not a whole product, focused on model quality, coverage, and downstream usage.

How to approach it

  1. Clarify the goal: helping users or downstream apps understand spending patterns automatically, likely powering budgeting or insight features.
  2. Define the core quality metric: categorization accuracy, the percent of transactions correctly auto-categorized without user correction.
  3. Add a coverage metric: percent of eligible transactions assigned a category, plus how often users manually recategorize.
  4. Add a downstream business metric: usage of features built on top, budgeting alerts triggered, or partner API call volume if this is B2B.
  5. Add a guardrail: API latency, since a slow API breaks the consuming product's experience.
  6. Track manual correction rate over time as a proxy for model quality improving or degrading.

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