Strategy question

How would you Improve customer referral for Amazon?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Tests growth strategy focused specifically on referral, distinguishing it from broader retention or acquisition levers.

Define referral precisely: existing customers actively bringing in new customers, distinct from organic or paid acquisition.
Identify Amazon's current referral touchpoints, such as Prime referral programs or informal word of mouth around fast shipping.
Propose a stronger referral mechanism, like a mutual benefit incentive, for example both referrer and referee get a credit toward a purchase.
Address fraud risk explicitly, since referral incentives are commonly gamed, requiring verification like a minimum purchase before reward payout.
Define success: referral driven sign ups as a percentage of total new customers, and referred customer retention versus other acquisition channels.
Confirm with the interviewer whether the focus is Prime membership referral or general marketplace customer referral.

Proposes a concrete mutual incentive, both referrer and new customer receive a credit redeemable on a purchase, which drives sharing without pure discount abuse.
Addresses fraud risk directly, requiring a minimum verified purchase before the referral reward pays out, a common gap in weak referral programs.
Targets Prime membership referral specifically, since Prime members have the highest lifetime value and are natural advocates given fast shipping.
Sets a measurable goal, for example a stated percentage of new customers attributable to referral within a year, with a retention benchmark comparison.

Confusing referral with general brand advocacy instead of a trackable, incentivized customer acquisition mechanism.
Ignoring fraud and abuse risk that referral incentive programs commonly face.

How would you prevent the referral program from being gamed by fraudulent accounts?
Would you focus referral incentives on Prime membership or general purchases?