I started with the ML angle immediately and probably should've scoped the problem more before jumping in.
Start by clarifying the business objective and constraints, then propose a high-level system design that integrates ML models for discount optimization with a scalable serving infrastructure. Emphasize trade-offs between personalization, business rules, and real-time performance, and discuss how you would measure success and iterate.
Pro tip: Frame the problem as a constrained optimization: maximize long-term customer value (e.g., retention, order frequency) while respecting budget and fairness constraints. This shows you think beyond model accuracy and consider business impact.
Ask questions to understand the goal: Is the discount to acquire new customers, increase order frequency, or clear inventory? Identify constraints like budget, fairness, and latency.
Propose metrics such as incremental profit, conversion rate, and customer lifetime value. Discuss data sources: user behavior, order history, and contextual signals.
Outline a model (e.g., uplift modeling or reinforcement learning) to predict discount response. Describe a scalable architecture with offline training and online serving, including feature store and A/B testing.
Discuss trade-offs: personalization vs. simplicity, real-time vs. batch, and exploration vs. exploitation. Explain how to handle budget pacing and fairness.
Describe offline evaluation (e.g., counterfactual estimation) and online A/B tests. Outline monitoring, feedback loops, and continuous improvement.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.