Diagnose a drop in DAU
Last updated: November 27, 2025
Quick Overview
The engagement dropped by 15% this week. Walk through your investigation process.
Morgan Stanley
November 27, 202525
6
2,989 solved
The engagement dropped by 15% this week. Walk through your investigation process.
This product question from Morgan Stanley's Phone Screen goes beyond feature brainstorming. The interviewer expects a framework-driven approach that considers market dynamics, user segmentation, and data-informed decision making.
What the Interviewer Expects
- Apply a structured framework for product thinking (user, problem, solution, metrics)
- Segment users and identify differentiated needs
- Prioritize features using a clear framework (RICE, ICE, impact vs effort)
- Define comprehensive success metrics across the user funnel
- Consider competitive dynamics and market positioning
Key Topics to Cover
How to Approach This
- Start with the user. Who are they, what problem do they have, and what is their current workaround?
- Use a prioritization framework: impact vs effort, RICE scoring, or ICE scoring.
- Define success metrics using the AARRR framework: Acquisition, Activation, Retention, Revenue, Referral.
- Consider second-order effects. A feature might boost short-term engagement but hurt long-term retention.
Possible Follow-up Questions
- How would you decide to kill this feature if it's not working?
- What would you do if usage data contradicts user feedback?
- How would you handle pushback from engineering on feasibility?
- What competitive response would you expect and how would you prepare?
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Problem Framing
To diagnose the 15% drop in Daily Active Users (DAU) at Morgan Stanley, I would start by scoping the problem into three key areas:
- User Segmentation: Identify which user segments are affected....
User & Market Context
Morgan Stanley serves a diverse range of users including individual investors, wealth management clients, and institutional investors. To effectively address the drop in DAU, I would prioritize the ne...
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