How would you measure success for Instagram shops? Don't consider the Ads revenue

This question is asking you to think strategically about key performance indicators (KPIs) for a specific feature of Instagram, namely, Instagram shops. The interviewer is asking you to disregard ad revenue in your response, indicating that they are interested in your ability to measure success in terms of engagement, user experience, and overall effectiveness of the Instagram shop feature.

To answer this question effectively, it will be important to focus on several main elements:

1. User Engagement: Metrics related to user behavior such as clicks, likes, shares, comments, saved posts, and the number of purchases made.
2. Reach and Visibility: How many users are actually seeing the shops on their feeds and the frequency of views?
3. User Satisfaction and Experience: Are users satisfied with Instagram Shops? How easy is it for users to navigate through the shops, complete purchases, or handle returns?

One important measure of success for Instagram Shops could be the actual transaction numbers. This means the number of purchases made through the feature. A higher transaction number would indicate a higher adoption rate for Instagram Shops.

Another KPI could be the engagement ratio which includes not only likes and comments but also saves and shares. These show how many people are interacting with shop posts, even if they are not making a purchase right away. It's also an indication of potential future sales, as users who save or share a post may be considering a future purchase.

Additionally, Shop discovery metrics such as direct searches, discover tab interactions, and profile visits could provide additional insight into the reach and visibility of the Instagram Shops feature.

Return and complain rates could also be an indicator. A lower return rate indicates that the products sold meet user expectations while a higher complaint rate could indicate potential areas of improvement.

Success for Instagram Shops can be measured by looking at detailed user engagement metrics. Having a high volume of users engaging with the Shop content could be a strong indicator of success. This could be determined by looking at factors like the number of users engaging with the shop posts, such as the likes, comments, shares, and saves.

Another key indicator to consider is user retention. This would be the number of users returning to the Instagram Shops and consistently making purchases. A high retention rate would demonstrate that users are having positive experiences with the Shop and are likely to make repeat purchases.

Customer reviews and ratings can provide qualitative data on the user experience. High average ratings would be indicative of overall user satisfaction.

Lastly, examining how many users are following the Instagram shops or subscribing to their updates could also be a good indicator of success, as it shows the level of interest and potential for future sales.