Metrics question
What is the north star metric for Yelp?
- Yelp
- Metrics
- Easy
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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
- Clarify Yelp's core value: helping users find trustworthy local businesses, and helping businesses get discovered by relevant customers.
- Consider candidate metrics: monthly active users, reviews written, or searches leading to a business action like a call or visit.
- 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.
- Explain why raw review count or MAU alone is insufficient, since it does not confirm the recommendation was actually useful.
- Add supporting metrics: review quality and recency, since stale reviews reduce the platform's usefulness over time.
- State the guardrail: review authenticity and fake review rate, since trust is the core asset Yelp depends on.
What a strong answer includes
- Picks a metric tied to actual usefulness, an action taken after a search, rather than a vanity metric like total reviews.
- Explains explicitly why simpler metrics like MAU or review count fall short of capturing two-sided value.
- Adds a trust guardrail, fake review or spam rate, appropriate for a platform whose core value depends on trustworthy content.
Common mistakes
- Picking a purely one-sided metric like review count with no tie to actual user or business value.
- No guardrail around review authenticity, a core trust risk for Yelp.
- Choosing MAU as the north star, which does not reflect whether the platform actually helped anyone.
Likely follow-up questions
- How would you detect and handle fake reviews affecting this metric?
- How would you weigh business-side satisfaction against user-side satisfaction in this metric?
More metrics questions
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- What metrics do you think are important to Yelp?Yelp · Metrics · Easy
- How do you find the top 10 brunch places in the USA, assuming you have all the Yelp ratings and review data?Yelp · Metrics · Medium
- How would you measure improvements made to Facebook messenger?Meta · Metrics · Easy
- Consider there is a company say LinkedIn. Which are the top three metrics you would see first thing in the morning?PayPal · Metrics · Easy
More questions from Yelp
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