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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 the primary purpose of a North Star Metric in product management?

    Answer: To represent the single metric that best captures the core value delivered to customers

    A North Star Metric captures the core value the product delivers to customers and aligns the entire team around a shared measure of long-term success.

  2. Which metric measures the percentage of users who return to a product within a defined time period after their initial visit?

    Answer: Retention rate

    Retention rate measures the percentage of users who come back to the product after their first experience, indicating ongoing value delivery.

  3. What does a high DAU/MAU ratio indicate about a product?

    Answer: Users engage with the product frequently throughout the month

    A high DAU/MAU ratio (closer to 1.0 or 100%) indicates that a large proportion of monthly users engage with the product daily, signaling strong habitual usage.

  4. What is 'churn rate' in the context of subscription-based products?

    Answer: The rate at which existing customers cancel or stop using the product

    Churn rate measures the percentage of customers who cancel or stop using the product over a given period, directly impacting revenue and growth.

  5. What does Net Promoter Score (NPS) primarily measure?

    Answer: The likelihood that customers would recommend the product to others

    NPS measures customer loyalty by asking how likely they are to recommend the product on a 0–10 scale, then categorizing respondents as Promoters, Passives, or Detractors.

  6. In product analytics, what does 'conversion rate' most commonly refer to?

    Answer: The percentage of visitors who complete a desired action such as signing up or purchasing

    Conversion rate measures the proportion of users who complete a target action (e.g., sign-up, purchase) out of all those who had the opportunity to do so.

  7. Which of the following best describes a 'vanity metric'?

    Answer: A metric that looks impressive but does not meaningfully inform product decisions

    Vanity metrics (e.g., total page views, raw download counts) look good on paper but do not correlate with meaningful business outcomes or actionable insights.