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MUTIPLE CHOICE (SINGLE CORRECT)Which of the following is an example of a North Star metric for an e-commerce marketplace? check_box_outline_blankRevenue per user check_box_outline_blankConversion rate check_boxCustomer lifetime value check_box_outline_blankGross merchandise value

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MUTIPLE CHOICE (SINGLE CORRECT)Which of the following is an example of a North Star metric for an e-commerce marketplace? check_box_outline_blankRevenue per user check_box_outline_blankConversion rate check_boxCustomer lifetime value check_box_outline_blankGross merchandise value

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Solution

The North Star metric for a business is the key measure of its success and growth. For an e-commerce marketplace, all the options given can be important metrics. However, the North Star metric is usually one that reflects the core value that your product delivers to customers.

  1. Revenue per user: This is a key metric for many businesses, but it doesn't necessarily reflect the core value delivered to customers. It's more a measure of how much money the business is making from each user.

  2. Conversion rate: This is a measure of how many users are taking a desired action, such as making a purchase. It's an important metric, but again, it doesn't necessarily reflect the core value delivered to customers.

  3. Customer lifetime value: This is a measure of the total value a customer brings to the business over the course of their relationship. This could be considered a North Star metric, as it reflects the long-term value delivered to customers.

  4. Gross merchandise value: This is the total value of merchandise sold through the marketplace. It's a measure of the scale of the business, but not necessarily the value delivered to customers.

So, the best answer would be "Customer lifetime value" as it is the most representative of the core value that the e-commerce marketplace delivers to its customers.

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