Diagnosing a 30% Drop in App Store Usage: A Structured Approach
For product managers, particularly those aiming for FAANG companies, mastering the art of problem-solving is crucial. Interviews often present hypothetical scenarios to assess this skill. This guide delves into a typical product interview question: “Diagnose a 30% drop in usage on the Apple App Store.” We’ll explore the AARM framework and its application in crafting a comprehensive response.
The AARM Framework
The AARM (Always Be Analyzing Root Metrics) framework, an adaptation of the MECE (Mutually Exclusive, Collectively Exhaustive) approach, is ideal for diagnosing usage drops. It prompts a structured investigation into four key areas:
- Audience: Analyze changes in the app store’s target audience demographics. Consider shifts due to new market entrants or changing consumer preferences.
- Acquisition: Examine how users discover the App Store. Investigate changes in marketing strategies, campaign effectiveness, and outreach efforts.
- Retention: Assess engagement and activity levels of existing users. Evaluate app store updates or policies that might have impacted user satisfaction and caused churn.
- Monetization: Analyze revenue trends. Identify if changes in pricing, in-app purchases, or subscription models have affected usage.
Hypothetical Examples
Imagine a new competitor offering exclusive apps, impacting your Audience. Or, a change in the app review process could lengthen the time it takes for new apps to appear in the store, affecting Acquisition. A bug in the latest update might affect the user interface, leading to a drop in Retention. Alternatively, a new subscription model perceived as less valuable may dissuade users, affecting Monetization.
Factual Checks
While specific insider metrics may not be accessible, candidates can refer to industry reports, news articles, and market trends to support their analysis with realistic assumptions and estimations.
Effective Communication
When presenting your analysis:
- Speak clearly and concisely to convey a structured thought process.
- Articulate assumptions and be upfront about areas where data is limited.
- Maintain a problem-solving attitude, demonstrating analytical and creative thinking.
Conclusion
By systematically applying the AARM framework, we can effectively diagnose the decline in App Store usage. Addressing Audience, Acquisition, Retention, and Monetization offers a comprehensive view of potential problem areas. Through practice, product manager hopefuls can leverage this framework to navigate FAANG interviews with confidence and articulate insightful solutions.