Amazon Growth Case: Turning Existing Customers Into a Referral Channel

Quick Overview

Amazon product manager question on improving customer referrals. It tests how a candidate defines a successful referral, studies both the person who shares and the person invited, prioritizes referral ideas, and chooses a success metric with guardrails that fit the chosen referral mechanics.

Amazon Growth Case: Turning Existing Customers Into a Referral Channel

Company: Amazon

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

You are a product manager at Amazon, asked to improve customer referrals: getting existing customers to bring new people to Amazon's products and services. Explain how you would define a successful referral, choose whose referrals to focus on, find out what holds referrals back today, propose and prioritize ideas, and measure success. ```hint Follow one referral end to end Picture a single referral from both sides: what would make the customer want to share, and what the invited person sees and has to do before they become a customer. ``` ### Clarifying Questions - Should a referral bring in brand-new shoppers, new Prime members, or users for one of Amazon's newer services? - Which market is in scope, and how widely is Amazon already used there? - Can the plan use incentives such as credits, and do paid affiliates and creators count as referrers or stay out of scope? ### What a Strong Answer Covers - A defined referral outcome and the bar a referred customer must clear to count - Referrer segments compared, with one chosen and justified, plus a view of the invited person's side - Barriers on both sides of a referral, drawn from a specific sharing journey - Referral ideas prioritized against stated criteria, with a first bet chosen and the reasons the others wait or are dropped - A success metric tied to the defined referral outcome, with guardrails suited to the chosen referral mechanics ### Follow-up Questions - How would you know whether referred customers would have joined anyway? - If your plan rewards referrers, how would you stop people from collecting those rewards through fake or self-referred accounts? - How would your plan change in a country where Amazon is still a newcomer?

Overview: Amazon product manager question on improving customer referrals. It tests how a candidate defines a successful referral, studies both the person who shares and the person invited, prioritizes referral ideas, and chooses a success metric with guardrails that fit the chosen referral mechanics.

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Amazon
Jan 27, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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You are a product manager at Amazon, asked to improve customer referrals: getting existing customers to bring new people to Amazon's products and services. Explain how you would define a successful referral, choose whose referrals to focus on, find out what holds referrals back today, propose and prioritize ideas, and measure success.

Clarifying Questions Guidance

  • Should a referral bring in brand-new shoppers, new Prime members, or users for one of Amazon's newer services?
  • Which market is in scope, and how widely is Amazon already used there?
  • Can the plan use incentives such as credits, and do paid affiliates and creators count as referrers or stay out of scope?

What a Strong Answer Covers Guidance

  • A defined referral outcome and the bar a referred customer must clear to count
  • Referrer segments compared, with one chosen and justified, plus a view of the invited person's side
  • Barriers on both sides of a referral, drawn from a specific sharing journey
  • Referral ideas prioritized against stated criteria, with a first bet chosen and the reasons the others wait or are dropped
  • A success metric tied to the defined referral outcome, with guardrails suited to the chosen referral mechanics

Follow-up Questions Guidance

  • How would you know whether referred customers would have joined anyway?
  • If your plan rewards referrers, how would you stop people from collecting those rewards through fake or self-referred accounts?
  • How would your plan change in a country where Amazon is still a newcomer?