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Weekly active users are up, but revenue is down. How do you explain this to leadership?

How to approach it

Find the link between users and revenue: maybe new users are lower value, or existing paying users are leaving.

How a strong answer opens

“I'd look for the link between users and revenue. Either the new users are worth less, or existing paying users are leaving or paying less.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

Confirm both numbers and timeframes
Break revenue into users x conversion x revenue per user
Segment new versus existing, free versus paid
Find what changed: pricing, promotions, mix of users
Share a clear story with evidence
Recommend actions and what to watch

Where this question usually goes wrong

Telling leadership the trends conflict without breaking revenue into users, conversion and revenue per user to show which part moved.

Learn the method

Metric trees: breaking a goal into parts in Module 2, Metrics and execution.

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