Metrics question

What types of metrics do you use for measuring the success of products?

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What this question tests

Basic metrics literacy: knowing the categories of metrics a PM uses and when each applies.

How to approach it

  1. Define the main categories: acquisition, engagement or activation, retention, monetization, and satisfaction, like NPS or CSAT.
  2. Explain that the right mix depends on product stage: early products lean on activation and retention, mature products lean more on monetization and efficiency.
  3. Give a concrete company-relevant example, like Indeed, where job seekers' metric might be applications submitted while employers' metric is qualified hires per posting.
  4. Note pairing a primary success metric with a guardrail metric to catch unintended trade-offs, like application volume growing without application quality dropping.
  5. Mention leading versus lagging indicators: engagement as leading signals, revenue and retention as lagging outcomes.

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