Business Cases & Product Sense

Product Analytics Questions

4 min read

Product analytics questions test your ability to think like a data-driven product manager. They require combining business intuition with analytical skills.

Question Type 1: Metric Investigation

Pattern: "X metric changed by Y%. Diagnose."

Example: "Daily active users dropped 10% last month. What would you investigate?"

Strong answer structure:

  1. Clarify the metric

    • How is DAU defined?
    • Is this vs last month or vs same month last year?
    • Is 10% outside normal variance?
  2. Check data quality

    • Logging changes?
    • Definition changes?
    • Data pipeline issues?
  3. Segment the drop

    By platform: iOS -5%, Android -8%, Web -25% ← Focus here
    By user type: New -20%, Returning -5% ← Also investigate
    By geo: Proportional across regions
    
  4. Form hypotheses

    • Web-specific: Site redesign? SEO drop? Performance issue?
    • New users: Acquisition channel change? Onboarding broken?
  5. Recommend data to pull

    • Funnel conversion by platform
    • Traffic sources over time
    • Session duration and bounce rates

Question Type 2: Feature Evaluation

Pattern: "How would you evaluate the success of [feature]?"

Example: "Netflix just launched a 'Random Play' button. How would you measure success?"

Framework:

Metric Type Example Why
Usage % users who click Random Play Adoption rate
Engagement Watch completion rate after Random Content satisfaction
Retention Return rate of Random users vs control Long-term value
Cannibalization Search/browse usage change Unintended effects
Segment New vs power users adoption Who benefits

Complete answer: "I'd measure Random Play success across multiple dimensions:

Primary: Watch time from Random Play sessions (shows value delivered)

Secondary:

  • Adoption rate: What % of users try it?
  • Completion rate: Do they finish what they start?
  • Repeat usage: Do they use it again?

Guardrails:

  • Overall watch time (doesn't decrease)
  • Content diversity viewed (algorithm isn't pigeonholing)
  • Search usage (not replacing intentional discovery)

Segmentation:

  • New users (helps discovery) vs veterans (already know what they want)
  • Content type (movies vs TV shows)
  • Time of day (decision fatigue in evening?)"

Question Type 3: Funnel Analysis

Pattern: "Users are dropping off at [stage]. Why?"

Example: "Only 30% of users who add to cart complete purchase. What's happening?"

Investigation approach:

Funnel:
View product: 100%
Add to cart: 40%
Begin checkout: 32% (-8% absolute, -20% of cart)
Enter payment: 20% (-12% absolute, -37.5% of checkout) ← Big drop
Complete: 12% (-8% absolute, -40% of payment) ← Another big drop

Hypotheses by stage:

Drop Point Possible Causes Data to Check
Cart → Checkout Shipping cost surprise, no guest checkout Exit survey, competitor pricing
Checkout → Payment Trust issues, limited payment options Payment methods attempted vs available
Payment → Complete Payment failures, timeout Error logs, processor data

Question Type 4: Cohort Analysis

Pattern: "Analyze retention over time."

Example: "Our 30-day retention dropped from 40% to 35%. What's the analysis approach?"

Cohort retention table:
         Day 1   Day 7   Day 30
Jan cohort  80%    50%     40%
Feb cohort  80%    48%     38%
Mar cohort  78%    45%     35% ← Recent drop

Pattern: Day 1 retention stable, but Day 7 and Day 30 falling
Insight: Users activate but don't form habits

Follow-up analysis:

  • What do retained users do that churned users don't?
  • When do users churn (day 3? day 10?)?
  • Is there a product change that correlates with the trend?

Interview Tip: Think Out Loud

For product analytics questions, verbalize your thinking:

"First I'd want to understand... Then I'd look at... My hypothesis is... I'd test this by... If that's true, I'd recommend..."

This shows:

  • Structured problem solving
  • Business intuition
  • Data-driven thinking
  • Actionable recommendations

The goal isn't to have the "right" answer - it's to demonstrate a rigorous analytical process. :::

Quiz

Module 5: Business Cases & Product Sense

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