CPM Metrics and Analytics

Question 1

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

Accepted Answer

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

Answer

To track daily revenue generated by the product

Answer

To measure the number of new features shipped per quarter

Answer

To monitor team velocity in an agile sprint

Question 2

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

Accepted Answer

Retention rate

Answer

Acquisition rate

Answer

Activation rate

Answer

Referral rate

Question 3

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

Accepted Answer

Users engage with the product frequently throughout the month

Answer

The product has a large total user base

Answer

The product generates high revenue per user

Answer

The product has low customer acquisition costs

Question 4

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

Accepted Answer

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

Answer

The rate at which new users sign up for the product

Answer

The rate at which users upgrade to premium plans

Answer

The rate at which users refer the product to others

Question 5

What does Net Promoter Score (NPS) primarily measure?

Accepted Answer

The likelihood that customers would recommend the product to others

Answer

The average revenue generated per user

Answer

The number of active users in a given month

Answer

The percentage of users who complete onboarding

Question 6

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

Accepted Answer

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

Answer

The percentage of users who move from one plan tier to another

Answer

The speed at which user data is processed by the system

Answer

The ratio of free users to paid users

Question 7

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

Accepted Answer

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

Answer

A metric that is tied directly to business outcomes and drives decisions

Answer

A metric used exclusively for investor reporting

Answer

A metric that measures user satisfaction scores