Diagnose a drop in retention
Last updated: February 22, 2026
Quick Overview
The activation rate dropped by 15% this week. Walk through your investigation process.
Expedia
February 22, 20262
0
2,260 solved
The activation rate dropped by 15% this week. Walk through your investigation process.
This product question from Expedia'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 validate this idea before committing engineering resources?
- What competitive response would you expect and how would you prepare?
- How would you decide to kill this feature if it's not working?
- How would you sequence the rollout across different user segments?
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Framework for Product Thinking
Structure your answer using this framework: 1. **Clarify the goal**: What is the business objective? Increase revenue, improve retention, expand to a...
Detailed Analysis
**User Segmentation**: Different user segments have different needs. Power users want advanced features. New users need simple onboarding. Enterprise ...
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