What metrics do you use to measure the success of a product?

Your Answer

How To Answer This Question?

When answering this question, it's important to demonstrate your knowledge of various metrics that can indicate a product's success. Start by mentioning that the specific metrics can vary depending on the product and its goals. Common metrics include:

1. Customer Satisfaction (CSAT) and Net Promoter Score (NPS): These metrics help gauge customer satisfaction and loyalty.
2. Monthly Active Users (MAU) and Daily Active Users (DAU): These metrics show how frequently users engage with the product.
3. Churn Rate: This measures the rate at which customers stop using the product.
4. Customer Lifetime Value (CLTV): This estimates the total revenue a business can expect from a single customer account.
5. Conversion Rate: This measures the percentage of users who take a desired action, such as making a purchase.
6. Revenue and Profit Margins: These financial metrics indicate the product's profitability.
7. Market Share: This shows the product's share of the market compared to competitors.

Explain that you choose the most relevant metrics based on the product's objectives and lifecycle stage. Provide examples from your past experience where you successfully used these metrics to drive product decisions and improvements.