Day 16 - Metrics and Analytics Questions
How to solve product metrics question in a PM interview...
Hello learners!
Welcome to the 16th lesson of the series 30 Days of PM Interview by Crework! Till now, we have covered product design, guesstimates, product strategy and behavioral questions. Today, we will start talking about Metrics and Analytics Questions, one of my favorites.
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Choose your metrics!
As a Product Manager, metrics play a pivotal role in assessing the performance, success, and impact of the products and features that you ship.
A team might ship a lot of features but it’s the responsibility of the PM to determine if they are shipping the right thing or not. Metrics help you do that.
If you are asking “how do they help in that?”, you should check out our resource on Product Metrics here.
In a PM interview, you will be asked questions related to metrics either as part of a case study or a random question out of nowhere. Here are some examples:
You might be asked a product design question - “Build a LinkedIn for blue collar workers.” and then you might be asked to come up with metrics that you would use to track the success of the feature/ product.
You might be asked - “What is the north star metric for Uber and why?”
You might be asked - “You have to perform an A/B Test for a feature. How would you do it?”
All of these questions are testing your understanding of metrics and how they tie up with the product success. As a PM, it’s a must have skill.
Metrics serve as the compass guiding product managers in their journey towards success. They provide valuable insights into user behavior, product usage, engagement, retention, conversion rates, and other key performance indicators (KPIs). By leveraging analytics tools and methodologies, product managers can gain a deeper understanding of user needs, identify opportunities for improvement, and optimize product strategies for maximum impact.
Now, you know the questions that are asked and why they are asked but don’t know how we approach these questions. So, let’s talk about that.
Let’s talk about the “How”
When faced with metrics and analytics questions in a product management interview, it's essential to demonstrate a structured approach and analytical mindset. Here are some steps to follow:
Understand the Feature/Product Objective: Begin by understanding the specific objective or goal of the feature or product. What problem does it aim to solve? What outcomes or improvements are expected? Understanding the purpose of the feature/product will guide your selection of relevant metrics.
Identify Key Stakeholders: Consider the stakeholders involved in the success of the feature/product. This may include users, product managers, marketing teams, sales teams, and executives. Understand their perspectives, priorities, and expectations regarding the feature/product's performance.
Define Success Criteria: Clearly define what success looks like for the feature/product. What are the primary outcomes or KPIs that indicate its effectiveness? Success criteria may vary depending on the nature of the feature/product and the goals set by stakeholders. Examples of success criteria could include increased user engagement, improved retention, higher conversion rates, or enhanced user satisfaction.
Brainstorm Potential Metrics: Based on the feature/product objective and success criteria, brainstorm a list of potential metrics that align with these goals. Consider both quantitative and qualitative metrics that provide insights into different aspects of user behavior, product usage, and business impact. Examples of potential metrics include:
User Engagement: Metrics such as daily active users (DAU), monthly active users (MAU), time spent in app, frequency of use, or feature adoption rate.
Retention: Metrics such as user retention rate, churn rate, repeat usage rate, or cohort analysis to track user retention over time.
Conversion: Metrics such as conversion rate, click-through rate (CTR), sign-up rate, or completion rate of specific actions or funnels.
Satisfaction: Metrics such as Net Promoter Score (NPS), customer satisfaction (CSAT) score, or user feedback ratings.
Prioritize Metrics: Evaluate the list of potential metrics and prioritize those that are most directly linked to the success criteria and key objectives of the feature/product. Consider factors such as relevance, measurability, and actionability of each metric. Focus on selecting a manageable set of high-impact metrics rather than trying to track everything.
Following all these steps, you will be able to answer any metrics question asked to you in the interview. For the next 3 days, we will practice some metrics questions and I will try to give you probable solutions to the questions.
Day 16 - Completed ✅
Congratulations on completing the 16th lesson of the series 30 Day of PM Interview. 🥳 Now, you know what to do. Share your learnings with the world and be accountable.
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