Metrics question

What is the north star metric for Yelp?

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What this question tests

Whether you can pick a north star metric that actually reflects the two-sided value Yelp delivers, not a vanity number.

How to approach it

  1. Clarify Yelp's core value: helping users find trustworthy local businesses, and helping businesses get discovered by relevant customers.
  2. Consider candidate metrics: monthly active users, reviews written, or searches leading to a business action like a call or visit.
  3. Pick the metric that best reflects value delivered on both sides: searches or page views that result in a user action, like calling, visiting the website, or getting directions.
  4. Explain why raw review count or MAU alone is insufficient, since it does not confirm the recommendation was actually useful.
  5. Add supporting metrics: review quality and recency, since stale reviews reduce the platform's usefulness over time.
  6. State the guardrail: review authenticity and fake review rate, since trust is the core asset Yelp depends on.

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