How to use Metric Hierarchy for selecting KPIs?

Consider a fintech startup focusing on digital payments, which is experiencing fluctuations in user retention rates. The analytics team is using a metric hierarchy to methodically investigate this issue through detailed data analysis.

They have pinpointed several key metrics to examine. Align the following metrics with the appropriate level in the metric hierarchy they most likely belong to as the team analyzes the root cause:


  • Metric I: Total Number of Active Users

  • Metric II: Average Transaction Value per User

  • Metric III: User Satisfaction Score from Surveys

  • Metric IV: Percentage of Users Engaging with Promotional Offers

Select the combination that correctly identifies the hierarchical level of each metric as the team investigates potential reasons for the retention rate changes.

Choose the closest answer: