Introduction

Welcome to our series of deep dives into the art of effectively answering product management interview questions used by leading tech companies. This section zeroes in on a common scenario that all product managers face: a decline in sales. We will explore how to unravel the complexities of dwindling sales figures and decide whether developing a new product feature is the appropriate course of action. This task is a perfect opportunity to demonstrate your methodical approach to problem-solving in a FAANG product management interview.

Detailed Guide on Framework Application

Choosing the Right Framework

The framework chosen for our question today is the 5 Whys combined with the ICE score (Impact, Confidence, Ease) model for decision making about new features.

Step-by-Step Framework Application

1. Define the Problem with the “5 Whys”: Start by examining what ‘decline in sales’ means for the product. Apply the first ‘Why’ to understand the initial cause, and continue asking ‘Why’ for each answer given until you can identify a root cause.

2. Collect Data: Acquire quantitative data on sales, customer churn, market trends, and competitor analysis. Qualitative data can also be gathered through user feedback, surveys, and interviews.

3. Analyze Findings: With the data collected, look for patterns and insights. Is the decline in one particular region, demographic, or user segment? This could point towards the deeper issue.

4. Generate Hypotheses: Based on the analysis, develop hypotheses about why sales are declining. These could range from product issues, changes in market conditions, to competitor actions.

5. Test Hypotheses: Validate your hypotheses with experiments where feasible, or by comparing them with the available data.

6. Use ICE for Decision Making: Once you have an understanding of potential issues driving the sales decline, use the ICE model to prioritize whether building a new feature is the right move.

• Impact: Estimate the potential uplift in sales each hypothesized new feature could provide.
• Confidence: Determine how confident you are in the impact estimations and your team’s ability to deliver the feature.
• Ease: Assess how easy it would be to implement the new feature based on current resources and technological capabilities.

Hypothetical Example: Let’s assume sales are down for an online learning platform. After applying the ‘5 Whys’, you might discover the root cause is an increase in competitor platforms offering a similar service at a lower price. The ICE model might reveal that while introducing a cutting-edge, personalized learning feature could have a high impact, the confidence in a rapid execution might be low, and the ease of creating complex algorithms could be challenging. Thus, you may decide to iterate on improving existing features first.

Facts Check and Approximations

Always be candid about what you do not know and use logical reasoning to build approximations. For example, if you need to estimate the potential revenue increase from a new feature but don’t have exact numbers, use industry benchmarks and existing growth rates.

Effective Communication Tips

Articulate your process clearly and avoid jargon. Explain your thinking, be transparent about assumptions, and ensure that your analysis is aligned with the company’s strategic goals.

Conclusion

Tackling a decline in sales is a multi-layered challenge that necessitates a methodical and analytical approach. By employing tried-and-tested frameworks such as the 5 Whys and ICE, you can provide a structured and well-reasoned path to identify the problem and evaluate solutions, including the possibility of adding a new feature. Remember, the value of these frameworks is not just in finding the right answer, but in demonstrating your structured thinking and problem-solving capabilities to potential employers. Use these techniques to prepare for your FAANG product management interviews and you will stand out amongst the competition.