Flipkart Interview Question | Case Study
Question
The case study was to increase the number of conversions of freemium
customers to premium customers for a telecom company in India.
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Answers ( 3 )
To solve or approach a case study, you need to have an initial state in mind
and convey this to the interviewer.
Assumptions – I assumed that the company sells iphone and is also
providing free calling plans to the customers for the first 6 months. But the
customers are not continuing the plan once the free period is over and this
thing is alarming for the company
So, I gave a shape to the complete case study problem, from here I have one
and only one specific problem to solve.
Jot down all the reasons which you think could be contributing in the
low conversion rate
We discussed the following points:-
1. High price of the premium service which is driving customers away from
the offered premium service
2. Bad or ineffective marketi ng strategy
3. Privacy breach in the past quarter (As sumption, be a bit creative while
framing the assumptions)
4. Lack of premium featu res which are provided by other vendors at the
same price
Freemium model isn’t about giving the product away to the customer, rather it’s about revealing enough of it to entice people to pay for a full-priced version.
1. How frequently freemium customers are using your product use data analytics to identify Daily active users(DAU) & Monthly active users(MAU).
2. Once you’ve found most active users try to find out which part of the product or what features users are finding useful such that they will be very much inclined to move to a paid tier.
3. Measure the conversion rate (freemium to premium), provide a service that becomes indispensable, clear pricing details that reflect the value that the firm delivers and offer timely engaging customer service.
4. Now, focus on Churn Rate which will show how good a firm is at retaining their customers and also on Monthly Recurring Revenue(MRR), MRR will tell you about the loss happening due to the churned customers and downgraded subscription.
5. The sales team should always keep an eye over the room for expansion for their products, stay in touch with those customers whose subscription is about to expire and they need an update.
Very well explained Lipika, We would like to share the answer to wider audience 🙂