IntermediateSITUATIONAL
Imagine sign-ups for your product have grown 40% quarter over quarter, but active usage and retention have stayed flat. You can only focus your team on three concrete initiatives this quarter. Which types of initiatives would you prioritize, what trade-offs would you make, and what evidence would you seek to justify your choices?
Product Manager
General

Sample Answer

S: At a B2B SaaS company, sign-ups grew 35% QoQ while D30 retention was flat at 22%. T: I had to prioritize a small team on the 3 highest-leverage retention bets. A: First, I ran a cohort analysis and funnel in Amplitude + SQL, finding 60% of drop-off in the first 3 sessions. I prioritized: (1) onboarding redesign with use-case templates and guided tours (Pendo), (2) activation milestone experiment (redefining “Aha” as 3 projects created in 7 days) with lifecycle emails (Customer.io), and (3) in-product nudges to core features. I explicitly deprioritized new acquisition features and low-usage “nice-to-haves.” R: Within one quarter, activation rose from 28% to 44%, D30 retention from 22% to 32%, and support tickets on onboarding dropped 18%.

Keywords

Start with cohort and funnel analysis to locate drop-off pointsPrioritize onboarding, activation, and in-product education over new acquisition featuresUse tools like Amplitude, Pendo, and lifecycle email to drive behaviorMeasure success via activation %, D30/D90 retention, and support ticket volume
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