Practise vocabulary for DAU/MAU, activation rate, retention cohorts, k-factor, and north star metrics.
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A DAU/MAU ratio of 0.45 indicates:
DAU/MAU ratio (stickiness): Facebook targets ~60%, WhatsApp ~80%. A productivity tool might accept 20-30%. The 'right' ratio depends on whether the product is designed for daily use. Slack, GitHub, and Figma aim for high DAU/MAU; a tax software might accept low (it's seasonal).
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Activation rate in SaaS metrics is defined as:
Activation definition varies by product. Slack: a team sending 2,000 messages. Dropbox: uploading first file. The activation event predicts whether a user will retain. Example: 'Activation is defined as a new user creating their first dashboard within 7 days of signup — we track this as our leading retention metric.'
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A retention cohort analysis for the Q1 cohort with '6-month retention of 62%' means:
Cohort analysis tracks groups of users who joined in the same period: Q1 2024 cohort, Q2 2024 cohort. Comparing cohorts reveals whether product improvements are changing retention: 'The Q3 cohort has 5pp better 3-month retention than Q2 — the onboarding redesign is working.'
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The k-factor (viral coefficient) measures:
k-factor = invites sent per user × conversion rate of invites. k=1.0: each user brings one new user — the product maintains its size through virality. k>1.0: viral growth loop (exponential). k<1.0: need additional paid/organic acquisition to grow. Many B2B SaaS products achieve k=0.3-0.5 from referrals.
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A North Star Metric (NSM) in a SaaS product is defined as:
NSM examples: Airbnb = Nights Booked; Slack = Messages Sent; Spotify = Time Spent Listening; HubSpot = Seats Managing Active Contacts. The NSM should capture customer value (not vanity). 'Accounts created' is not a good NSM — it doesn't indicate whether customers got value.
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How many questions are in this exercise?
This set contains 5 multiple-choice questions, each with a detailed explanation shown after you answer.
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Who is this SaaS Metrics exercise for?
This exercise is built for IT professionals and non-native English speakers who need to read, write, and discuss saas metrics topics confidently at work.
What happens if I answer a question incorrectly?
You will see the correct answer highlighted along with a detailed explanation of why it is correct -- so every wrong answer becomes a learning moment, not just a lost point.
Can I retry this exercise?
Yes -- click "Try again" on the results screen at any time to reset your score and go through all the questions again.
How long does this exercise take to complete?
Most learners finish all 5 questions in under 10 minutes, since each question is answered by clicking a single option.
Where can I find more SaaS Metrics exercises?
See the full SaaS Metrics exercises hub for more vocabulary drills on this topic.
Is this exercise mobile-friendly?
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