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Defining The Business Question

Learn Defining The Business Question for free with explanations, exercises, and a quick test (for Business Analyst).

Published: December 20, 2025 | Updated: December 20, 2025

Why this matters

As a Business Analyst, you turn vague asks into clear, testable business questions that guide analysis and decisions. Getting this right prevents weeks of wasted work and misaligned expectations.

  • Real tasks: clarify stakeholder asks, pick the right metrics, decide feasibility, set decision rules, and align on timelines and constraints.
  • Outcomes: you deliver analysis that answers the question stakeholders actually care about—so actions follow.

Who this is for

  • Business Analysts and aspiring BAs
  • Product/Operations analysts who translate stakeholder asks into measurable questions
  • Team leads who need to align decisions with data

Prerequisites

  • Basic understanding of KPIs (e.g., revenue, conversion, retention)
  • Comfort talking to stakeholders and capturing requirements
  • Beginner familiarity with data sources in your org (CRM, product analytics, finance)

Concept explained simply

A business question is a precise, decision-focused question that is measurable, time-bound, and tied to a specific audience or segment. It converts a vague problem into something you can answer with data and act on.

Use this fill-in template:

How can we [improve/maintain/reduce] [metric] for [audience/segment] within [timeframe], measured by [primary metric + baseline], given [constraints], so we can decide whether to [decision/action]?

Mental model: DART-M

  • Decision: What will we do differently based on the answer?
  • Audience: Which customers/markets/regions/segments?
  • Result metric: What metric shows success?
  • Timeframe: By when do we measure?
  • Mechanics/Constraints: Budget, data limits, legal, channel, capacity

Also remember the Five Ws + Decision: Who (audience), What (metric), When (time), Where (scope), Why (business objective), and the Decision you’ll make.

Checklist: Is your business question sharp?
  • Decision is explicit
  • Audience/segment is defined
  • Metric is specific with baseline
  • Timeframe is clear
  • Constraints are listed
  • Feasible with available data

Worked examples

Example 1: Reduce churn

Vague: "How can we reduce churn?"

Sharpened: "How can we reduce 90-day churn from 22% to 18% for self-serve SMB customers in North America within the next 2 quarters, measured by customer status in billing records, given no pricing changes, so we can decide whether to invest in onboarding emails or in-app guides?"

Why it works: Decision options are clear; audience, metric, baseline, and timeframe are specified; constraint (no pricing) is explicit.

Example 2: Grow revenue

Vague: "Increase revenue from upsells."

Sharpened: "Can we increase monthly expansion MRR by 10% for existing enterprise accounts (>100 seats) over the next quarter, measured in finance MRR, given the current sales headcount, to decide whether to launch a customer success-led upsell playbook?"

Example 3: Improve conversion

Vague: "Why is signup conversion low?"

Sharpened: "Can we raise free-to-paid conversion from 7% to 9% for first-time free trials started via the web funnel in EMEA within 60 days, measured by payment events, given we cannot change pricing pages this quarter, to decide whether to prioritize trial-length experiments vs onboarding tours?"

Step-by-step framing

  1. Start with the decision. Ask: "If we knew the answer, what would we do?" List the real options.
  2. Define the audience. Segment by who you’ll act on (customer type, region, channel).
  3. Pick the success metric and baseline. Choose 1 primary metric and note current level.
  4. Set the timeframe. When will you measure impact?
  5. List constraints and assumptions. Budget, legal, capacity, data gaps.
  6. Feasibility check. Do you have data and control over the levers?
  7. Write the question using the template.
Rapid feasibility triage
  • Data: Do we track the metric? At what granularity?
  • Attribution: Can we isolate the effect from other changes?
  • Volume: Enough data to detect movement?
  • Ownership: Who can act on the result?
Stakeholder mini-script
  • What decision will this answer unlock?
  • Which customers/segments does this affect most?
  • What metric will convince you to act? What is the baseline?
  • By when do we need an answer to act?
  • Any constraints we must respect?

Templates you can copy

Question template:

How can we [verb] [metric] for [audience] within [timeframe], measured by [metric + baseline], given [constraints], so we can decide whether to [decision options]?

Decision rule template:

If [metric change] ≥ [threshold] by [date], we will [action]. Otherwise, we will [fallback].

Exercises

Practice here, then take the quick test. Everyone can take the test; only logged-in users get saved progress.

Exercise 1: Sharpen a vague ask (ID: ex1)

Scenario: A sales leader says, "We need more qualified leads." Rewrite this into a sharp business question using the template.

  • Include decision options
  • Specify audience/segment
  • Add metric with baseline
  • Include timeframe and constraints
Hints
  • Define "qualified" using an existing stage or score.
  • Pick a segment (e.g., inbound from content, NA region).
  • Decision might be content investment vs SDR outreach.
Show one possible solution

How can we increase the weekly number of Sales Qualified Leads from 120 to 150 for inbound prospects in North America within 8 weeks, measured by CRM stage = SQL, given no changes to budget for paid ads, so we can decide whether to invest in a content syndication program or expand SDR email outreach?

Exercise 2: Pick metric and decision rule (ID: ex2)

Scenario: Product wants to "improve onboarding." Choose a primary metric, set a baseline, and write a decision rule. Then write the business question.

Hints
  • Candidate metrics: Day-7 activation, feature adoption, time-to-first-value.
  • Decision rule needs a threshold and deadline.
  • Add one realistic constraint.
Show one possible solution

Primary metric: Day-7 activation rate (used key feature in 7 days). Baseline: 42%.

Decision rule: If Day-7 activation increases to ≥ 50% within 6 weeks, roll out the new interactive walkthrough; otherwise, prioritize help-center revamp.

Business question: Can we increase Day-7 activation from 42% to 50% for new web sign-ups in English markets within 6 weeks, measured by product analytics events, given no engineering bandwidth for pricing changes, so we can decide whether to roll out an interactive walkthrough or focus on help-center content?

Self-check checklist
  • Decision explicitly named with clear options
  • Audience/segment is specific
  • Metric and baseline included
  • Timeframe realistic
  • Constraint(s) present
  • Feasible with available data

Common mistakes and how to self-check

  • Missing decision. Fix: Ask "What will we do based on yes/no or better/worse?"
  • Too many metrics. Fix: Choose one primary metric; list others as secondary.
  • Vague audience. Fix: Add a concrete segment definition (e.g., region, plan tier).
  • No baseline. Fix: State the current value.
  • Unrealistic timeframe. Fix: Ensure enough data volume and control over levers.
  • Ignoring constraints. Fix: List legal, budget, capacity, or technical limits.
Quick smell test
  • If your question works for "everyone" and "any time", it is not sharp enough.
  • If two people interpret the metric differently, define it better.

Practical projects

  • Project 1: Pick a real team OKR and write 3 candidate business questions. Run a 10-minute stakeholder feedback loop and refine to 1 final version.
  • Project 2: Create a one-pager with Decision, Audience, Metric+Baseline, Timeframe, Constraints, and Decision Rule. Get sign-off from two functions.
  • Project 3: Build a feasibility map of your data sources for two metrics. Note gaps and propose workarounds.

Learning path

  • This subskill: Define the business question
  • Next: Choose metrics and success criteria, then Form hypotheses and design tests
  • Then: Plan analysis and communicate results with decision rules

Next steps

  • Use the template with your next stakeholder request
  • Run the self-check checklist before starting analysis
  • Complete the quick test below to confirm understanding

Mini challenge (5 minutes)

Rewrite this: "We should improve mobile app retention."

Reveal one strong version

Can we increase Day-30 retention from 31% to 36% for new Android users in LATAM within the next quarter, measured by returning active users, given we cannot change push notification limits, so we can decide whether to prioritize in-app tips or referral incentives?

Practice Exercises

2 exercises to complete

Instructions

Scenario: A sales leader says, "We need more qualified leads." Rewrite this into a sharp business question using the DART-M template.

  • Include explicit decision options
  • Specify audience/segment
  • Add a primary metric and current baseline
  • Include timeframe and at least one constraint
Expected Output
A single-sentence business question with decision, audience, metric+baseline, timeframe, and constraints.

Defining The Business Question — Quick Test

Test your knowledge with 5 questions. Pass with 70% or higher.

5 questions70% to pass

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