Product design question
How would you design a test to measure the success of using a gift card promotion to get Prime members to download the Prime mobile app?
- Amazon
- Product design
- Medium
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What this question tests
Experiment design skill: defining a valid test for a specific marketing-driven adoption goal.
How to approach it
- Clarify the goal: measure whether a gift card promotion causes Prime members to download and use the mobile app, not just claim the gift card.
- Design the test: randomly assign eligible Prime members to a treatment group (offered the gift card for downloading) and a control group (no offer).
- Define the primary metric: app download and first-session completion rate, comparing treatment versus control.
- Define a downstream metric: app retention and usage 30 days later, since a one-time download driven by incentive may not translate to habitual use.
- Control for confounds: ensure both groups are similar in demographics and prior engagement, and run the test long enough to capture meaningful behavior.
- Define success criteria: a statistically significant lift in download rate and sustained 30-day retention above a set threshold.
What a strong answer includes
- Designs a proper randomized control test rather than just measuring downloads after a broad promotion.
- Explicitly separates short-term download lift from sustained 30-day retention, avoiding a metric that rewards one-time incentive-chasing.
- Gives an illustrative threshold, e.g. requiring 25% 30-day retention among incentivized downloaders to call the test successful, marked as an assumption.
- Addresses cost: comparing gift card cost per incremental retained user against typical acquisition cost benchmarks.
Common mistakes
- Measuring only download count without checking if the incentive attracted low-intent, one-time users.
- Not proposing a control group, making it impossible to isolate the promotion's real causal effect.
Likely follow-up questions
- How would you calculate the cost-effectiveness of this promotion?
- How long would you run the test before declaring a result?
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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