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Zendesk·Product Manager·Onsite - Product Sense / Strategy·Senior

Senior
Apr 2026

Summary

Zendesk PM interview with a classic Amazon strategy question. Nothing too wild but it does require you to actually know the Prime business model pretty well.

Questions Asked (1)

Q1

How would you grow Amazon Prime's revenue by 20%?

Product StrategyPricing & MonetizationProduct Sense & Ideation
Author's notes

I went straight to subscriber growth and kind of ignored pricing levers for too long.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the scope: are we growing total Prime revenue or just subscription revenue? Then structure your answer around the key revenue drivers: subscriber growth, retention, and ARPU (average revenue per user). Prioritize initiatives by impact and feasibility, and propose a few concrete ideas with metrics to measure success.

Pro tip: Show that you understand Amazon's flywheel: Prime growth fuels retail and AWS, so consider cross-synergies. Also, quantify your ideas with rough numbers to demonstrate business acumen.

1. Clarify the goal and scope

Ask whether the 20% growth is in total Prime revenue (including subscription and associated retail spend) or just subscription fees, and over what time period. This ensures you solve the right problem.

2. Break down revenue drivers

Decompose Prime revenue into: number of subscribers × average revenue per subscriber (subscription fee + additional services like Prime Video, Music, etc.). Then identify levers for each component.

3. Generate and prioritize ideas

Brainstorm initiatives across acquisition, retention, and monetization. Prioritize using impact vs. effort, considering Amazon's strengths and potential risks.

4. Detail top initiatives

Pick 2-3 high-potential ideas and explain how they would work, why they'd drive growth, and how you'd measure success (e.g., conversion rate, churn reduction, ARPU increase).

5. Summarize and measure

Recap your recommended strategy, expected impact, and key metrics to track. Mention potential trade-offs or risks.

Key Points to Mention

  • Subscriber growth: expanding to new geographies, student/young adult discounts, bundling with other services (e.g., Prime + Audible).
  • Retention: reducing churn through exclusive content, faster delivery, and personalized recommendations.
  • ARPU increase: raising prices strategically, introducing tiered plans (e.g., ad-supported), or upselling additional services like Prime Music Unlimited.
  • Leveraging Amazon's ecosystem: cross-selling with Whole Foods, Alexa, and AWS to add value and lock-in.
  • Data-driven experimentation: A/B testing pricing, features, and marketing campaigns to optimize conversion and retention.
  • Partnerships and bundles: collaborating with telecom providers or credit cards to offer Prime as a perk, driving new subscriber acquisition.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.