Business Context

LearnLoop is a B2B SaaS learning platform sold to mid-market companies on annual contracts. Leadership is preparing the annual operating plan and wants one product KPI to anchor weekly executive reviews because the company has too many competing metrics.

Metric Scenario

The CEO currently looks at monthly active users (82,000), the CRO focuses on net revenue retention (108%), and the Head of Product highlights course starts per week (146,000). However, the company’s biggest business issue is that logo renewal rate fell from 91% to 84% over the last two quarters, especially among customers with fewer than 35% of licensed employees active each month. Historical analysis shows accounts with 3-month employee learner retention above 55% renew at 93%, while accounts below 30% retention renew at 68%. New bookings are still growing 18% YoY, so leadership needs a KPI that best reflects durable product value rather than top-of-funnel growth.

Requirements

1. Identify the single KPI you would recommend leadership prioritize and define it precisely.
2. Explain why this KPI is more decision-useful than MAU, course starts, or revenue-only metrics.
3. Show how you would decompose the KPI to diagnose movement across customer segments.
4. Propose 2 leading indicators and 2 guardrail metrics leadership should review alongside it.
5. Describe how you would align Product, Sales, and Customer Success around this KPI.

Data Available

• account_contracts: account_id, contract_start_date, contract_end_date, seats_purchased, ARR, renewal_status
• employee_activity: user_id, account_id, activity_date, session_minutes, course_started, course_completed
• user_retention_monthly: user_id, account_id, cohort_month, active_month_1, active_month_2, active_month_3
• account_health_scores: account_id, CSM_owner, NPS, support_tickets, executive_sponsor_flag
• feature_usage_events: user_id, account_id, event_time, feature_name, event_count