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Metrics and Analytics Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is cohort analysis primarily used for in product management?

    Answer: Tracking the behavior of groups of users who share a common characteristic over time

    Cohort analysis groups users by a shared characteristic (e.g., signup date) and tracks their behavior over time, enabling PMs to identify trends in retention, engagement, or revenue.

  2. What is the key difference between leading and lagging indicators in product metrics?

    Answer: Leading indicators predict future outcomes; lagging indicators measure past results

    Leading indicators (e.g., feature adoption, engagement) predict future performance, while lagging indicators (e.g., revenue, churn) confirm outcomes that have already occurred.

  3. What does the AARRR (Pirate Metrics) framework stand for?

    Answer: Acquisition, Activation, Retention, Revenue, Referral

    AARRR stands for Acquisition, Activation, Retention, Revenue, and Referral — a funnel framework developed by Dave McClure to track the full user lifecycle.

  4. What does Customer Lifetime Value (CLV or LTV) represent?

    Answer: The predicted total net revenue a business expects from a customer over the entire relationship

    CLV represents the total revenue a business can reasonably expect from a single customer account throughout their entire relationship, guiding acquisition spend and retention investment.

  5. What is the primary purpose of A/B testing in product management?

    Answer: To test two variants of a feature or design with real users to determine which performs better

    A/B testing (split testing) exposes different user groups to two variants simultaneously and uses statistical analysis to determine which version produces better outcomes.

  6. What does 'Time to Value' (TTV) measure in a SaaS product context?

    Answer: The time elapsed between a user signing up and experiencing the product's core value for the first time

    Time to Value measures how quickly a new user reaches the 'aha moment' — the point where they experience the core value of the product — which is critical for reducing early churn.

  7. What does funnel analysis help product managers understand?

    Answer: Where users drop off across a defined sequence of steps toward a goal

    Funnel analysis tracks how users progress through a multi-step process (e.g., onboarding, purchase) and identifies the steps with the highest drop-off rates that require optimization.