Strategy question

How do you optimize an email marketing campaign for 40 million subscribers and 10 million unique searches when you have access to a pool of 100,000 discounts shared across other OTAs?

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What this question tests

Execution and analytical thinking: designing a targeted, data-driven marketing campaign using segmentation and discount allocation.

Clarify the goal: convert unique searchers into subscribers or bookers using the available discount pool efficiently.
Segment the audience: distinguish the 40 million subscriber base from the 10 million unique searchers, since intent likely differs.
Prioritize allocation: target the 100,000 discounts toward users showing high purchase intent, like recent searchers with no completed booking.
Personalize the offer: match discount type (percentage off, specific destination) to segment behavior and past booking patterns.
Define success as conversion rate from discount recipients and incremental revenue versus the cost of discounts given.

Segments a large, undifferentiated audience into intent-based groups rather than blasting discounts broadly.
Prioritizes the scarce discount pool toward high-intent users (recent searchers, no booking) to maximize conversion efficiency.
Proposes measuring incremental revenue against discount cost, not just raw redemption count.
Uses an assumed metric, e.g. targeting a 12 percent conversion rate among the targeted high-intent segment.

Distributing discounts evenly across all 40 million subscribers with no targeting.
Ignoring the cost of the campaign relative to incremental revenue generated.
Not distinguishing between subscribers and searchers, who likely have different intent levels.

How would you decide which segment gets priority access to the limited discounts?
How would you measure incremental revenue versus discounts that would have converted anyway?
What would you do if the campaign underperforms halfway through?