• 12 hours
  • Medium

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Last updated on 4/6/22

Identify the right metrics for your product context

Evaluated skills

  • Describe common product metrics and when to use them


Identify the right metrics for your product context

  • Question 1

    Why is it important to know the lifetime value of a customer (LTV)?

    • Because comparing LTV to CAC lets us know if this customer is profitable.

    • Because it allows us to calculate our CAC metric.

    • Because we need it to determine our ARPPU.

  • Question 2

    How might a company determine if their shipping costs are too high?

    Careful, there are several correct answers.
    • Examine the total number of orders.


    • Examine the checkout abandonment rate.

    • Examine the average number of page views per user.

    • Examine the shopping cart abandonment rate.

  • Question 3

    What is the k-factor (virality) of the following scenario?

    On average, each visitor to your site invites one friend and every fifth person referred by a visitor makes a purchase.


    • 10%

    • 20%

    • 30%

    • 40%

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