What goals and metrics would you define for Facebook’s Fundraiser feature?
Summary
The article outlines a structured approach to defining metrics for Facebook’s Fundraiser feature, distinguishing between goal and health metrics. The North Star metric, number of donations, measures success, while the total amount raised serves as a counter-metric. Growth, engagement, and retention metrics ensure sustainability. The framework emphasizes logical thinking, clear communication, and alignment with business objectives.
Interviewer Evaluation
The interviewer wants to understand your process for identifying the most critical metrics, including how you derive them and why they are important. They will assess the following:
- Analytical Thinking: Is your approach structured and logical?
- Product Goal: Do you clearly define the product’s goal?
- Metrics Selection: Do you identify the most important metrics and justify your choices?
- Communication: Do you explain your thoughts clearly and concisely?
Framework
The following is a proven framework to tackle this question type.
The interviewer expects candidates to define two types of metrics: those that measure goals (business and product) and those that assess product health (growth, engagement, and retention). Counter metrics help ensure goal metrics are not misleading.
Approach
Differentiate between goal metrics and health metrics when defining product metrics.
Motivation
Identify the business reason behind the product’s creation.
Product Goal
Define the user problem the product solves and align it with the company’s mission.
Business Goal
Assess the product’s market position and strategy to determine next-cycle business goals like revenue, growth, or expansion.
Goal Metrics
Define the North Star Metric as the key measure of the product goal. Explain what it tracks and why it is important. Identify counter metrics to measure activities that may hinder the achievement of the product goal.
Health Metrics
Define health metrics by identifying key user activities that indicate growth, engagement, and retention for each user type.
Interview Answer
The following is a fictitious interview between an interviewer and a candidate that demonstrates the framework’s application.
INTERVIEWER: What goals and metrics would you define for Facebook’s Fundraiser feature?
Approach
CANDIDATE: Great question! When defining metrics for a product, I always look at two key categories:
- Goal metrics—which measure key objectives and define success.
- Health metrics—which ensure the product remains sustainable and effective over time.
To keep things structured, I’ll start by outlining the key goals, then move on to goal metrics, and finally wrap up with health metrics.
Key goals provide a North Star direction for both product and business decisions. They typically include the product goal, the next-cycle business goal, and any new product goals that emerge.
Now, let’s analyze the product and business side of Facebook’s Fundraiser feature.
Product Goal
INTERVIEWER: That makes sense. Let’s start with the product. How would you describe the Facebook Fundraiser feature?
CANDIDATE: Facebook’s Fundraiser feature is a powerful tool that allows users to raise money for nonprofits directly within the platform. Anyone can create a fundraiser, anyone can donate, and—most importantly—100% of the donations go directly to the nonprofit without additional processing fees.
INTERVIEWER: And what user problem does it solve?
CANDIDATE: The Fundraiser feature solves key problems for both users and nonprofits.
For users, it offers an easy way to rally friends, family, and their network around a cause. They can set up a fundraising campaign and even create challenges—like running a marathon or completing a daily task—to incentivize donations.
For nonprofits, it simplifies fundraising by allowing them to raise awareness and collect donations on a platform with over 3 billion monthly active users. Other key benefits include:
- Increased trust and legitimacy for nonprofits, which boosts donation likelihood.
- No fundraising costs—Facebook takes zero fees from donations.
- Higher engagement and visibility since fundraisers are easily shareable across Facebook, Instagram, and Messenger.
Ultimately, it makes supporting causes seamless and accessible for both users and organizations.
INTERVIEWER: That’s a great breakdown of the benefits. So, what is the product goal?
CANDIDATE: The core product goal of Facebook Fundraiser is to provide users with an easy, fun, and effective way to raise money for causes they care about.
At its heart, this product is all about connection and impact. It aligns perfectly with Meta’s mission of empowering people to build communities and bring the world closer together.
Business Motivation
INTERVIEWER: And from a business perspective, why did Facebook build this feature?
CANDIDATE: Great question! From a business standpoint, Facebook Fundraiser serves as a trust-building tool for Meta.
It strengthens the company’s public image, reinforces user goodwill, and encourages deeper engagement with Meta’s platforms. More engagement means more time spent on Facebook, which directly impacts ad revenue.
In short, it’s a win-win:
- Users support causes they care about.
- Nonprofits raise money more effectively.
- Meta fosters goodwill while driving increased platform engagement.
Business Goal
INTERVIEWER: That’s an interesting point. What would you define as the business goal for the next cycle?
CANDIDATE: Meta has recently made two major changes to Fundraiser:
- Ending fundraising tools in Europe.
- Transferring donation processing to a third party.
The first change was likely due to legal pressures related to data privacy, while the second was a cost-efficiency move, possibly triggered by U.S. regulations.
However, Fundraiser is still fully operational in the U.S. and other non-European markets, and it has already facilitated over $8 billion in donations.
Given its success, I believe Meta’s next business goal should be:
👉 Continue growing donations to solidify its leadership position in the charitable fundraising space.
Nonprofit-related activities boost engagement and user interactions, which in turn drive ad revenue. Maintaining momentum in this space is both a social good and a smart business move.
Goal Metrics
INTERVIEWER: That makes sense. Let’s talk about metrics.
CANDIDATE: Absolutely! Let’s break it down step by step.
First, I’ll start with goal metrics, focusing on the North Star metric—the one that best captures the success of the product.
Since the product’s goal is to help people easily raise money for their causes through social connections, I’ve identified two possible North Star metrics:
- Total amount raised
- Number of donations
Between these two, I believe the number of donations is the best indicator of success. Here’s why:
- It reflects the impact of social connections—which is a core fundraising strategy.
- It shows how many people actively participate in fundraising.
That said, I’d still track the total amount raised as a counter-metric to ensure overall fundraising levels remain healthy. If donations increase in number but decrease in total amount, it could indicate a shift toward smaller contributions, which may require a strategic adjustment.
Health Metrics
INTERVIEWER: That’s a solid approach. What about health metrics?
CANDIDATE: Now that we have a North Star metric, we need health metrics to track the product’s growth, engagement, and retention.
Let’s look at user behavior—both for donors and nonprofits—to identify key signals.
Growth Metrics 📈
To track overall product growth, I’d measure:
✅ Number of fundraising campaigns created
✅ Total number of unique users donating
✅ Total amount donated
These tell us if more people are using the feature and if donations are trending up or down.
Engagement Metrics 🔥
Engagement is crucial because fundraisers rely on visibility and interaction. I’d track:
✅ How many people are engaging with fundraising posts (likes, comments, shares, reactions)
Since social interaction fuels donations, this is a key leading indicator of success.
Retention Metrics 🔄
Retention is a sign of long-term product value. To measure it, I’d track:
✅ How often nonprofits create fundraising events (quarterly basis)
✅ Number of repeat donors (quarterly basis)
If people and nonprofits keep coming back, it’s a strong signal that the product is delivering sustained value.
INTERVIEWER: That’s a very structured and comprehensive answer. You’ve covered product and business goals as well as a solid metric framework. Well done!
