Diagnose a drop in revenue
Last updated: December 11, 2025
Quick Overview
The activation rate dropped by 15% this week. Walk through your investigation process.
Expedia
December 11, 202539
6
2,325 solved
The activation rate dropped by 15% this week. Walk through your investigation process.
Expedia asks this during the Technical Screen to assess your product sense and structured thinking. They want to see how you define the problem, identify the target user, prioritize features, and measure success.
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
- What would you do if usage data contradicts user feedback?
- How would you handle pushback from engineering on feasibility?
- How would you validate this idea before committing engineering resources?
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Browse Product QuestionsSample Answer
Problem Framing
The first step is to define the problem clearly. The drop in activation rate by 15% suggests that fewer users are completing their booking process on Expedia. To scope this problem, I would analyze th...
User & Market Context
The primary users of Expedia are travelers looking for convenience and competitive pricing in their bookings for flights, hotels, and car rentals. The target demographic includes budget-conscious trav...
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