Product Management Product Metrics and Analytics 2

Question 1

What is 'Net Promoter Score' (NPS) designed to measure?

Accepted Answer

Customer loyalty and likelihood to recommend the product

Answer

NPS asks customers how likely they are to recommend the product on a 0–10 scale and segments them into Promoters, Passives, and Detractors.

Question 2

What does 'activation rate' measure in a product?

Accepted Answer

The percentage of new users who reach the product's 'aha moment'

Answer

Activation rate tracks how many new users complete key early actions that correlate with long-term retention, signaling they've experienced core product value.

Question 3

What is 'feature adoption rate'?

Accepted Answer

The percentage of users who use a specific feature out of those who could use it

Answer

Feature adoption rate measures penetration — how many eligible users are actually using a given feature — indicating its value and discoverability.

Question 4

What is 'time to value' (TTV) in product management?

Accepted Answer

The time it takes a new user to experience the core value of the product

Answer

TTV measures how quickly a new user reaches their first moment of meaningful value, with shorter TTV correlating to better retention.

Question 5

What does a 'cohort analysis' help product managers understand?

Accepted Answer

How groups of users with a shared characteristic behave over time

Answer

Cohort analysis groups users by a common attribute (e.g., signup month) and tracks their behavior over time to identify retention or monetization trends.

Product Management Practice Test

Product Management Practice Test

Product Management Product Metrics and Analytics 2