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Assess User Behavior Changes Post-Pricing Change

SoFiMediumMetrics00:00
SoFi
Your interviewer · Data Scientist
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Interviewer

Welcome to your interview for the Data Scientist role at SoFi.

The question is on your right: Assess User Behavior Changes Post-Pricing Change. Take a moment with it first.

Talk your thinking through with me if you like - when you're confident, submit your answer and I'll grade it like a real screen. You have three graded attempts to score 7/10 or better.

Only Submit answer is graded - discussion is free practice.

Problem

Business Context

Streamify, a subscription-based streaming service, recently increased its monthly subscription price from $9.99 to $12.99. Following this pricing change, the product team has noted a significant drop in user engagement metrics, particularly in daily active users (DAU) and subscription renewals. The Chief Product Officer is concerned about the potential long-term effects on revenue and user loyalty.

Available Data

Data SourceDescriptionGranularity
user_engagementLogs of daily active users with timestamps, user_id, and session_timeDaily
subscription_dataUser subscription status, renewal dates, and payment historyMonthly
user_feedbackSurvey responses regarding pricing perception and service satisfactionPer-user
churn_dataHistorical data on user churn rates before and after the pricing changeMonthly
demographic_dataUser demographic details including age, location, and subscription tierPer-user

Task

  1. Define the primary metrics to assess the impact of the price change on user behavior.
  2. Decompose the engagement metrics to identify specific user segments most affected by the price increase.
  3. Analyze trends in DAU and churn rates before and after the price change.
  4. Propose actionable recommendations to mitigate negative impacts based on your findings.
  5. Identify any additional metrics to monitor moving forward to gauge recovery or further decline.