Product Metrics & Analytics Flashcards
6 cards from real Product Management Certification Program practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Product Metrics & Analytics flashcards as text
What is a 'North Star Metric' (NSM)?
Answer: A single metric that best captures the core value a product delivers to customers
The North Star Metric is the single most important metric that reflects the value the product delivers to customers, aligning the team around a common measure of success.
What does 'DAU/MAU ratio' indicate about a product?
Answer: User engagement or 'stickiness' — how often monthly users return on a daily basis
DAU/MAU (Daily Active Users divided by Monthly Active Users) measures product stickiness — a higher ratio means users find the product valuable enough to return frequently.
In a conversion funnel, what does 'drop-off rate' measure?
Answer: The percentage of users who leave at a specific stage without completing the next step
Drop-off rate measures what proportion of users exit the funnel at each stage, helping identify where the biggest friction or value gaps exist in the user journey.
What is 'cohort analysis' in product analytics?
Answer: Tracking the behavior of a specific group of users who share a common characteristic over time
Cohort analysis segments users into groups (cohorts) based on a shared trait or start date, then tracks how each cohort behaves over time to identify retention and engagement patterns.
What does 'LTV' (or CLV) stand for in product metrics?
Answer: Lifetime Value — the total revenue expected from a customer over their entire relationship with the product
Customer Lifetime Value (LTV or CLV) predicts the total net revenue a business can expect from a single customer account throughout their relationship with the product.
What is 'customer acquisition cost' (CAC)?
Answer: The average cost incurred to acquire one new paying customer
CAC is calculated by dividing total sales and marketing spend by the number of new customers acquired in that period, indicating efficiency of growth investment.