Strategy question
How would you Improve customer acquisition for Amazon?
- Amazon
- Strategy
- Medium
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What this question tests
Tests growth strategy focused specifically on acquisition, distinguishing new customer capture from activation or retention.
How to approach it
- Define acquisition precisely: bringing entirely new customers to Amazon who have not purchased or signed up before.
- Identify current acquisition channels: paid search, affiliate links, and Prime free trial offers.
- Segment by opportunity, such as underpenetrated geographies or demographics where Amazon's brand awareness is lower.
- Propose a targeted initiative, like a localized free trial campaign in an underpenetrated region with tailored payment options.
- Define success: cost per new customer acquired and their early purchase behavior versus existing acquisition channels.
- Confirm with the interviewer whether the focus is US market share growth or international expansion.
What a strong answer includes
- Targets a specific underpenetrated segment, for example a region with lower Prime penetration, rather than a generic broad market push.
- Proposes a concrete channel, localized payment options and free trial offers tailored to that region's habits, addressing a real adoption barrier.
- Distinguishes acquisition cost efficiency by channel, comparing paid search cost per acquisition against affiliate or referral driven acquisition.
- Sets a measurable goal, for example a stated target cost per new customer acquired within a defined region and timeframe.
Common mistakes
- Conflating acquisition with activation, proposing onboarding tactics instead of true new customer capture strategies.
- Ignoring cost efficiency across channels and proposing broad spend without a cost per acquisition target.
Likely follow-up questions
- Which region or segment would you prioritize for new acquisition investment first?
- How would you measure whether newly acquired customers are high quality versus low intent?
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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 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop