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Design Metric Examples by Product Type

After describing a design solution, candidates will get asked, “What are some metrics you would use to measure success?


Ask a PM interview candidate this question and you often get a “deer-in-the-headlight” response. Included in the typical gut-initiated responses are:

  • Vanity Metrics - DAU or MAUs without explaining how “Active” is defined

  • Too High-Level - Engagement, Activation, etc.

  • Retention - List this without a proxy metric and you sound clueless

When answering success metrics during a design case, it is important to point out what will measure your ultimate goal as stated earlier in the discussion. But it is also important, if the two are not the same, to point out activation metrics.


Why Activation Metrics:

  • Proxy for Retention

  • Aha Moment Identification

  • Success Requirements

Lucky for you, Lenny Rachitsky and Yuriy Timen did a study on activation metrics.


Highlights to Help you during Interviews

  • Qualities of Activation Metrics

    • Predictive

    • Actionable

  • Groupings by Company Focus

    • B2C Subscription (e.g. Duolingo, Calm)

    • B2C Free/Ads Supported (e.g. Instagram, Snap)

    • B2C Marketplace (e.g. Airbnb, eBay)

    • B2B SaaS (e.g. Salesforce, Figma, Slack)

    • B2B Marketplace (e.g. Faire)

    • eCommerce (e.g. Chewy, Wish)

    • DTC Subscription (e.g. Seeds, Lumen)

Common Problems

The following problems Lenny and team identified with activation metrics come up time and again for PM interview candidates.

  • Too early

    • Simply completing the sign-up flow is not enough.

    • Unlikely to show a user the value of your product.

    • Unlikely to be predictive of long-term retention.

  • Too late:

    • Marketplace or eCommerce: Multiple purchases

    • Leading indicator of habit, not prove the habit

    • Multiple purchases is too much to ask for activation

  • Not predictive:

    • Not highly predictive

    • You want (i.e. at least 2x) of long-term retention and/or monetization.

  • Not actionable:

    • Not easily actionable, measurable, or hard to experiment

      • e.g. using an offline event that digital growth teams can’t impact

      • e.g. takes three months to get any data

  • Too complicated:

    • Selecting a multi-stage activation event with:

      • multiple different user actions

      • along with a time bound

    • if you can do it with a simpler metric, do so.

A Few Examples

  1. First day of food and weight logged

  2. First 5 survey responses collected

  3. First design published and shared

  4. First video created that received a view

  5. First listen to more than 40% of a track

  6. First listen to 3+ sessions in the first week

  7. First time booked listing

  8. First moved meeting

  9. First job application sent

  10. 10 posts published in first 2 weeks

An Exercise

Try to guess a few of the metrics before peeking. Pull out an old-fashion pen and paper.

Resources:

What is a good activation rate