Strategy question
You found that only 10% of the allotted slots for databases are being used by your customers. What would you do?
- Strategy
- Medium
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What this question tests
Diagnosing underutilization in a B2B or infrastructure context and deciding on a course of action, not just observing the fact.
How to approach it
- Clarify what slots means here, likely provisioned database capacity customers have purchased but are not using, and confirm this interpretation.
- Hypothesize causes, customers over provisioning for expected future growth, unclear self serve tools making it hard to use full capacity, or pricing that encourages buying more than needed.
- Investigate via customer interviews or usage data segmented by customer size and plan tier to see if underutilization is universal or concentrated.
- Consider the business implication, low utilization could mean wasted infrastructure cost for the company or a pricing model misaligned with actual usage.
- Propose next steps depending on cause, usage based pricing if over provisioning is common, or better onboarding if customers simply do not know how to use full capacity.
What a strong answer includes
- Interprets the ambiguous term carefully and states the assumption clearly before diagnosing, showing good judgment on an underspecified question.
- Names a specific, testable hypothesis, customers over provisioning due to flat rate pricing removing any incentive to right size usage, checked against usage data by plan tier.
- Connects the finding to a concrete business decision, moving toward usage based pricing if over provisioning is confirmed, improving margins and customer cost fairness.
Common mistakes
- Not clarifying the ambiguous term slots before diving into analysis.
- Assuming the cause without checking real usage data segmented by customer type.
- No connection made to a concrete business action or decision from the finding.
Likely follow-up questions
- How would you distinguish over provisioning from customers who churned but kept their subscription active?
- Would you recommend changing pricing immediately, or testing with a subset of customers first?
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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