Strategy question
How would you Improve customer activation for Amazon?
- Amazon
- Strategy
- Medium
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What this question tests
Tests growth strategy focused specifically on activation, distinguishing the first value moment from broader acquisition or retention.
How to approach it
- Define activation precisely: a new customer completing their first meaningful purchase or Prime benefit usage within a set window after sign up.
- Identify where new customers likely drop off, such as browsing without purchasing, or signing up for Prime without using key benefits.
- Propose an activation focused intervention, like a personalized first purchase incentive or guided onboarding highlighting Prime's key benefits.
- Address the specific new customer friction, such as unfamiliarity with Prime's full benefit set beyond shipping.
- Define success: percentage of new customers completing a first purchase or key benefit usage within a defined activation window.
- Confirm with the interviewer whether activation means first purchase, first Prime benefit use, or both.
What a strong answer includes
- Defines activation narrowly and measurably, for example first purchase within 14 days of sign up, rather than a vague sense of early engagement.
- Proposes a specific intervention, a personalized onboarding flow highlighting underused Prime benefits like video or same day delivery in the new customer's area.
- Targets the friction of Prime's breadth, since many new members are unaware of the full benefit set, reducing perceived value early on.
- Sets a measurable goal, for example a stated percentage lift in customers completing a first purchase within their activation window.
Common mistakes
- Conflating activation with simple sign up completion instead of measuring the first real value moment.
- Proposing generic onboarding tips instead of addressing the specific benefit awareness gap new Prime members face.
Likely follow-up questions
- What would you consider the true activation moment for a new Prime member?
- How would you personalize onboarding without overwhelming a brand new customer?
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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