Practice Test GeeksPSPO - Professional Scrum Product Owner Practice Test
← All PSPO Flashcard Decks

Product Metrics and ROI Flashcards

6 cards from real PSPO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Product Metrics and ROI flashcards as text

  1. Why should a Product Owner focus on outcome metrics rather than output metrics?

    Answer: Because outcomes measure real value delivered to users, while outputs only measure activity and feature volume

    Outcome metrics like user adoption, retention, and revenue measure actual value created, while output metrics like story points or features shipped only measure activity.

  2. What is Return on Investment (ROI) in the context of product development?

    Answer: The measure of value gained relative to the investment made in building the product

    ROI measures whether the value created by product investment — financial, strategic, or user value — justifies the cost of building it.

  3. What is a Key Performance Indicator (KPI) and how should a Product Owner use it?

    Answer: A measurable signal that indicates whether the product is achieving its goals, used to guide prioritization

    KPIs are measurable indicators of product success that help the Product Owner evaluate progress toward goals and make evidence-based prioritization decisions.

  4. What is the Net Promoter Score (NPS) and why might a Product Owner track it?

    Answer: A metric that measures customer loyalty by asking how likely users are to recommend the product

    NPS measures customer loyalty and satisfaction, providing the Product Owner with a signal about overall product health and user advocacy.

  5. What is customer lifetime value (CLV) and why is it relevant to product prioritization?

    Answer: The total revenue a customer generates over their relationship with the product, informing which customer segments to prioritize

    CLV helps the Product Owner understand which user segments generate the most long-term value, guiding decisions about which needs to prioritize in the product.

  6. What is a vanity metric, and why should Product Owners avoid relying on them?

    Answer: A metric that looks impressive but doesn't correlate with real product value or business outcomes

    Vanity metrics like total page views or registered users look good but don't indicate real value creation; relying on them can lead to misguided prioritization decisions.