Product design question
Design a referral system for a grocery app.
- Lyft
- Capital One
- Uber
- Product design
- Medium
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
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What this question tests
Structured product design thinking: identifying the user and the incentive that drives referral behavior for a specific grocery context.
How to approach it
- Clarify the app, a delivery app like Instacart versus a loyalty app for an existing grocer, and state the assumption.
- Identify the target user and pain point, for example new shoppers unsure whether delivery is trustworthy or worth the fee.
- Define the referral loop: who refers, what reward each side gets, and when it is paid out.
- Design the mechanic, for example $10 off the invitee's first order and $10 credit to the referrer after that order completes.
- Define the success metric, referred user activation rate and CAC via referral versus paid channels.
What a strong answer includes
- Ties the reward to a real friction point, first order trust, rather than a generic discount.
- Specifies fraud guardrails, capping rewards per referrer per month and requiring a minimum order value before payout.
- Picks a clear north star, referral driven CAC compared to paid acquisition CAC, with a target improvement stated as an assumption.
Common mistakes
- Designing a reward with no fraud or abuse controls.
- Skipping the specific trigger moment, such as post checkout satisfaction.
- No metric to know whether the program is actually working.
Likely follow-up questions
- How would you prevent fake accounts from redeeming rewards?
- What would you change if referral CAC came in higher than paid CAC?
More product design questions
- Design a TV for a car.Google · Product design · Hard
- Design a refrigerator for the blind.Google · Product design · Hard
- How do you design a camera for the elderly?Google · Product design · Medium
- Redesign Twitter for eCommerce.Shopify · Product design · Hard
- How would you go about designing a new location sharing app for Google?Google · Product design · Medium
- How would you improve Google Home?Google · Product design · Easy
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop