Product Management Certification Program Product Metrics & Analytics

Question 1

What is a 'North Star Metric' (NSM)?

Accepted Answer

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

Answer

The highest revenue number ever recorded

Answer

The number of employees in the product team

Answer

The total number of features in the product

Question 2

What does 'DAU/MAU ratio' indicate about a product?

Accepted Answer

User engagement or 'stickiness' — how often monthly users return on a daily basis

Answer

The ratio of desktop to mobile users

Answer

The ratio of daily new users to monthly churned users

Answer

The ratio of active to inactive features

Question 3

In a conversion funnel, what does 'drop-off rate' measure?

Accepted Answer

The percentage of users who leave at a specific stage without completing the next step

Answer

The rate at which users upgrade to paid plans

Answer

The rate of content uploads per user

Answer

The rate of bug reports per release

Question 4

What is 'cohort analysis' in product analytics?

Accepted Answer

Tracking the behavior of a specific group of users who share a common characteristic over time

Answer

Analyzing feedback from a focus group

Answer

Comparing two different products' performance

Answer

Analyzing all users as a single aggregate group

Question 5

What does 'LTV' (or CLV) stand for in product metrics?

Accepted Answer

Lifetime Value — the total revenue expected from a customer over their entire relationship with the product

Answer

Latest Team Velocity

Answer

Live Traffic Volume

Answer

Long-Term Vision

Question 6

What is 'customer acquisition cost' (CAC)?

Accepted Answer

The average cost incurred to acquire one new paying customer

Answer

The cost to build a new feature

Answer

The cost of customer support per ticket

Answer

The cost of annual infrastructure per user