Metrics question

You're the product manager focused on retention at Instacart. How do you decide what to work on?

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What this question tests

Tests metric-tree thinking: translating a broad mandate like 'retention' into a specific, prioritized set of drivers.

How to approach it

  1. Clarify which retention: new-user activation into a second order, or long-term repeat habit, since levers differ.
  2. Build a metric tree: overall retention breaks into order frequency, basket completion, and delivery satisfaction.
  3. Segment users: heavy weekly shoppers versus occasional big-basket shoppers likely churn for different reasons.
  4. Diagnose using cohort retention curves by segment, correlating drop-off with bad substitutions or late deliveries.
  5. Prioritize the driver with the largest gap times feasibility, e.g. substitution quality if it tops churn surveys.
  6. Define the guardrail: don't sacrifice order margin or shopper pay while improving retention.

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