Prism — Cohort-based Classes
Course completion rate is up +18 points since launch, but revenue is down -12%.
The scenario
Prism is an online learning platform. Six weeks ago you launched cohort-based classes — structured courses with fixed start dates and peer groups. Learners who join cohorts complete courses at much higher rates. But overall platform revenue has fallen since launch.
Constraint
Board presentation in 5 days — you need a clear story and a recommendation.
Your task
Explain the metric conflict and recommend what to optimize going forward.
1. Clarify: What do you need to understand before explaining this to the board?
Pick the 3 questions you'd ask first.
Model approach (strong picks)
- Strong pickWhat is the revenue model — are cohort classes priced differently from self-paced courses?
- Strong pickDid revenue per user go down, or did total users decline — what is driving the revenue drop?
- Strong pickAre cohort users cannibalizing self-paced purchases — did existing users switch rather than new users join?
2. Hypothesize: What is causing revenue to fall while completion rises?
Pick the 3 hypotheses you'd investigate first.
Model approach (strong picks)
- Strong pickCohort classes are cannibalizing self-paced course purchases — same users, less spend per user.
- Strong pickCohort classes are priced lower than self-paced equivalents, so higher volume doesn't offset the price gap.
- Strong pickThe cohort model has a limited intake cadence — fewer users can purchase at any given time, suppressing revenue.
3. Investigate: What do you analyze before the board meeting?
Pick the 3 highest-leverage analyses.
Model approach (strong picks)
- Strong pickRevenue per user: compare cohort users vs. self-paced users — is ARPU lower for cohort participants?
- Strong pickNew vs. existing user split for cohort purchasers — are cohorts bringing in new revenue or shifting existing spend?
- Strong pickCourse purchase count per user before vs. after cohort launch — did cross-sell and upsell drop?
4. Propose: What do you recommend the board optimize for?
Pick the one strategic recommendation.
Model approach (strong picks)
- Strong pickReframe cohort classes as a premium upsell on top of self-paced — bundle or price them higher to protect ARPU while leveraging the completion lift.
- Strong pickOptimize for LTV, not short-term revenue — completion drives certification, referrals, and renewals; recommend a 90-day window to measure downstream revenue.