Business Context

NotionFlow is a B2B SaaS collaboration product for small teams. The CEO asks you to define the most important metrics for evaluating overall product performance after a quarter in which signups grew 18%, but paid revenue grew only 6% and 8-week retention fell from 41% to 36%.

Metric Scenario

In Q2, NotionFlow had 240,000 monthly active users, 52,000 new workspace signups, a visitor-to-signup conversion rate of 4.8%, a signup-to-activated-workspace rate of 61%, and a free-to-paid conversion rate of 7.2%. Weekly active users per monthly active user declined from 0.71 to 0.66, average sessions per active user fell from 9.4 to 8.7 per month, and logo churn for paid workspaces increased from 2.9% to 3.6% monthly. Product, growth, and finance leaders disagree on what should be prioritized: acquisition, activation, engagement, retention, or monetization.

Requirements

1. Define the core metrics you would prioritize to evaluate product performance, including one primary north star metric and supporting KPIs.
2. Explain why each metric matters and whether it is a leading or lagging indicator.
3. Show how you would decompose product performance across the user lifecycle: acquisition, activation, engagement, retention, and monetization.
4. Identify which metric movement is most concerning in this scenario and how you would investigate it.
5. Propose 3-5 metrics you would use as guardrails to avoid optimizing one area at the expense of another.

Data Available

• web_traffic: visitor_id, source_channel, landing_page, visit_timestamp
• workspace_signups: workspace_id, owner_user_id, signup_date, company_size, acquisition_channel
• product_events: user_id, workspace_id, event_name, event_timestamp, feature_name, session_id
• subscriptions: workspace_id, plan_type, trial_start_date, paid_start_date, mrr, cancellation_date
• workspace_health_daily: workspace_id, active_users, projects_created, invites_sent, integrations_connected