Product design question
What are the key Metrics to measure the performance of a company in food delivery business and how can we improve the ones related to churn rate?
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
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What this question tests
Whether the candidate can build a metric tree for a food delivery marketplace and connect it directly to a churn reduction plan.
How to approach it
- Clarify whether churn means customer churn or restaurant/driver churn, and define it precisely, for example no order in 60 days.
- Lay out a metric tree: acquisition (new customers), engagement (orders per week, average order value), retention (30 and 90 day repeat rate), and unit economics (contribution margin per order).
- Segment churn by cohort, since new users and power users churn for different reasons.
- Diagnose likely drivers: late or wrong deliveries, thin restaurant selection, price versus competitors, checkout friction.
- Pick two or three churn levers and map each to the driver it fixes.
What a strong answer includes
- Names one north star retention metric, such as 90 day repeat order rate, instead of listing every possible metric.
- Uses a concrete assumption, such as late deliveries roughly doubling churn odds, to justify prioritizing logistics over discounts.
- Proposes a subscription tier (Swiggy One or Amazon Prime style) with an assumed 15 to 20 percent retention lift, flagged as an assumption.
Common mistakes
- Jumping to discounts before diagnosing why users actually churn.
- Treating restaurant supply health as irrelevant to customer churn.
Likely follow-up questions
- Which single metric would you pick as the primary churn KPI, and why?
- How would you check a subscription tier isn't just cannibalizing existing frequent orderers?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop