Introduction
A key part of a product manager’s role is to launch and measure new features to ensure they meet the set objectives and deliver value to the business. In this blog, we discuss how one might answer an interview question concerning the launch metrics for a new feature like Target’s online suggested items.
Detailed Guide on Framework Application
To determine the launch metrics for a new feature, the AARRR framework (Acquisition, Activation, Retention, Revenue, Referral) is an effective model that encapsulates the full funnel of user interaction with a product.
Acquisition:
For Target’s suggested items feature, we could measure the increase in click-through rates on suggested items as an acquisition metric, reflecting initial user interest.
Activation:
Activation could be tracked by the number of users who add a suggested item to their cart, indicating successful engagement with the feature.
Retention:
Retention metrics might include the frequency of return visits where users interact with suggested items, suggesting long-term value.
Revenue:
Incremental revenue generated from purchases of suggested items would be a direct measure of the feature’s financial impact.
Referral:
If users share their purchases or the suggested items with friends, tracking referral links could provide insight into the feature’s ability to generate new customer leads.
We need to verify that these metrics align with Target’s strategic goals and existing data capabilities. Considering Target’s significant online presence, it’s reasonable to assume that they have mechanisms for tracking these metrics in place.
When discussing metrics in an interview, it’s important to tie them back to business objectives, articulating how each metric correlates with broader company goals such as increasing average order value or improving personalization.
Conclusion
Choosing the right metrics for a feature launch is crucial, and the AARRR framework provides a robust structure for identifying these metrics. Aspiring PMs should practice applying this framework and learn how to effectively communicate its application in the context of a feature launch like Target’s online suggested items. This approach will demonstrate a candidate’s strategic thinking and understanding of how features drive business value.