Product Management Product Metrics and Analytics

Question 1

What does 'DAU/MAU ratio' measure in product analytics?

Accepted Answer

User engagement and stickiness of a product

Answer

Daily revenue divided by monthly revenue

Answer

Active user acquisition cost

Answer

Daily API calls per month

Question 2

What is 'churn rate' in SaaS product management?

Accepted Answer

The percentage of customers who cancel or stop using the product in a given period

Answer

The speed at which new features are released

Answer

The rate of bug fixes per month

Answer

Customer satisfaction score decline

Question 3

What is 'North Star Metric' (NSM)?

Accepted Answer

A single metric that best captures the core value a product delivers to users

Answer

The highest revenue figure ever achieved

Answer

A metric set by the CEO each quarter

Answer

The number of users at product launch

Question 4

What does 'conversion rate' measure in a product funnel?

Accepted Answer

The percentage of users who complete a desired action out of those who started

Answer

The ratio of free to paid users

Answer

Revenue per user segment

Answer

Time to complete a purchase

Question 5

What is 'Customer Lifetime Value' (CLV or LTV)?

Accepted Answer

The total revenue a business can expect from a single customer over their entire relationship

Answer

The cost to acquire one customer

Answer

Annual recurring revenue from all customers

Answer

Average order value for a single purchase

Question 6

What is the significance of the 'LTV:CAC ratio' in product management?

Accepted Answer

It shows whether the business model is sustainable by comparing revenue per customer to acquisition cost

Answer

It measures developer productivity

Answer

It compares lifetime visits to cost of the app

Answer

It tracks support ticket volume per customer