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Data Interview Question

Impact of Discounted Email Campaigns

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Requirements Clarification & Assessment

  1. Clarification Questions:

    • Discount Reversion: Post the first month, do users revert to regular pricing?
    • Network Effects: How does the file-sharing network impact user behavior when one user is on a discounted plan and another is not?
    • Revenue Increase Definition: What constitutes an effective revenue increase? Is there a specific percentage or dollar amount?
    • Time Horizon: Are we looking at immediate revenue gains or long-term increases?
    • Threshold for Success: Is there a minimum revenue increase needed for the campaign to be considered successful?
  2. Revenue Consideration:

    • Assess the definition of revenue increase. Is it short-term (first month) or long-term (over several months)?
    • Understand the baseline metrics for conversion and retention rates prior to the campaign.
  3. User Behavior:

    • Determine how users typically transition from the free tier to paid plans.
    • Analyze historical data on user churn and retention rates.
  4. Campaign Costs:

    • Identify the costs associated with running the campaign, including the discount offered and operational expenses.
    • Consider the breakeven point for the campaign to be profitable.