I went straight to conversion rate and GMV which felt right but then I realized I was skipping the funnel entirely.
Start by framing metrics around the customer journey and business goals, then prioritize a few key metrics for a new site. Explain how you'd use them to make decisions and iterate quickly.
Pro tip: For a new site, focus on leading indicators of product-market fit and retention, not just vanity metrics. Mention that you'd set up a metrics hierarchy with a North Star metric and guardrail metrics to avoid unintended consequences.
Clarify the primary goals of the new e-commerce site, such as customer acquisition, activation, retention, or revenue. This ensures metrics align with strategic priorities.
Break down the user experience into stages: awareness, acquisition, activation, retention, referral, and revenue (AARRR). Identify key metrics for each stage.
Choose a single North Star metric that best captures core value delivery (e.g., number of purchases). Then select supporting metrics that drive it, such as conversion rate and average order value.
For a new site, emphasize metrics that indicate product-market fit and early traction, like activation rate, repeat purchase rate, and customer acquisition cost. Avoid over-indexing on vanity metrics.
Outline how you'll track these metrics (e.g., analytics tools, dashboards), set targets, and use them to inform iterative improvements.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.