Business Metrics Definition and Strategy Questions

Emphasizes defining meaningful metrics and measurement frameworks that answer business questions and drive decisions. Candidates should be able to distinguish between count metrics, ratio metrics, and rate metrics; select appropriate observation windows and time alignment for retention, churn, and conversion analyses; account for multiple user touch points and events when attributing actions; and identify leading versus lagging indicators. This topic covers designing metric definitions that avoid double counting, selecting denominators and numerators that match the business question, segmenting users for insight, and documenting business logic to ensure consistency. At senior levels expect discussion of trade offs between simplicity and fidelity, governance of metric definitions, and how to prioritize which metrics matter for different stakeholders.

EasyTechnical

30 practiced

You're asked to include DAU/MAU (stickiness) on the executive dashboard. Explain how to calculate this correctly and list five common pitfalls (with concrete examples) that can inflate or deflate the stickiness metric.

HardTechnical

49 practiced

Discuss the trade-offs between a simple 'active user' definition (any session start) versus a high-fidelity definition (>=3 meaningful events or 10 minutes of engaged time). Consider measurement cost, interpretability, susceptibility to gaming, and alignment with business outcomes. Which would you recommend for a fast-growing mobile app and why?

MediumTechnical

27 practiced

Write a SQL query that computes monthly churn rate defined as: percent of active subscribers at the beginning of the month who are not active at the start of the next month. Use schema:

subscriptions(user_id STRING, period_start DATE, period_end DATE, status STRING)

Discuss handling reactivations and partial-period subscriptions.

MediumTechnical

27 practiced

Describe a robust process to document, version, and rollout changes when a metric's business logic needs to change (for example, redefining 'active user'). Include steps for stakeholder approval, regression testing, backfill policy, and communication.

HardTechnical

36 practiced

A strategic partnership promises increased user acquisition but costs are partially opaque and payback may take >12 months. Define a measurement plan to estimate ROI using available data: how to estimate incremental users, attribute revenue, estimate costs, model LTV, and run sensitivity analysis for unknown costs.

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