There is a 15% drop in the open rate of Instagram App. You are the PM. Tell us what could have happened.
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- Open rate defination - No of people opening the app ?
- Answer - Yes
- This drop of 15 % , what is time period
- answer -Since Last 2 weeks gradually dropped
- The drop we are seeing it is on specfic platform ?
- answer -android/ios/ - across
- The analytics dashboard it it firing right data and there no issues there?
- answer - no
- do we know this drop is happening for new installs or repeat ?
- answer - its happening over all
- User journey - User installs the app> opens the app> the app opens>user lands on homepage
- Do we know that homepage DAU have dropped?
- yes becuase app is not opened than obviosu dau have dropped
- ok but DAU has dropped due to app not launching
- or app not opended
- Are we tracking this event
- app open ?- ya so we are seeing that the app open event has also dropped in same ration is.i.e 15 %
- Are there Complaints on customer support
- answer - no
- Did we did few round QA to test the app
- yes and app seems to working fine
- Do we know that homepage DAU have dropped?
- External factors
- Was there a negative pr against insta in last few days
- no
- Was there any political event in country which was forcing users to spend time somewhere else? - no
- Is there competion app that has launched recently
- yes there is app which allows users launch the app and use Gen AI to create funny images
- also on social media is that a trending topic
- yes - seems like
- Was there a negative pr against insta in last few days
A few clarifying questions before
Q. How long has this been happening, is it gradual or sudden? (No)
Q. Is this happening across geography, OS type (Android, iOS), and device (Tab/Mobile)? (No)
Q. Is this due to some trend or seasonality? (No)
Q. Is this some instrumentation issue? (No)
Q. Is this due to some way that we capture data? (No)
Q. Do we see a change in no. of users opening the app? (Yes)
So basically some users are not opening the Instagram app. That's fair to assume? (Yes)
Alright moving ahead would like to take a look at the funnel
The open rate of Instagram has gone down (funnel below)
User launches app > X% > User sees the login screen > Y% > User successfully logs in and sees the homepage
Is there a change in any of the metrics shown above? (No)
Alright moving ahead and looking at internal factors
- Server-side issue causing app crash
- A new feature release that is causing app crash
- A new experiment that could be causing app crash
- Was there some bad PR?
- Was this due to a connectivity issue?
- Was this due to some regulation changes?
- Is there a new competitor around?
Product Introduction: Instagram is a social media platform where viewers can share photo, video with their followers.
Clarifying Question:
Q: Does this open rate is related to Average Open Rate in a day or Average open rate per user in a day? Average Open Rate in a day
Q: Does any of the related metrics gets affected like # of DAU has affected? Yes ,it went down
Q: Does this effect is device specific? No
Q: Does this effect is realted to any segmentation? No
Q: Does BI tool is giving accurate result? Yes
Q: Did we have any change in the metric calculation?No
Q: Does this drop is sudden, gradual or seasonal drip?gradual . its happening since 6 months
External Factors
Q: Did we had any major strategy changes which has affected the changes? Yes , we have introduced some subscription model for monetization.
Analysis: Here, is the problem. Due to the strategy changes , users have moved to other platform.
Solution: Get the feedback from the users who are inactive. Create subscription tiers cater to the needs of the user.
That's seems to be a interesting problem and certainly a bigger issue to be sorted as soon as possible.
The way I would like to approach the above problem is by first of all by understanding the question properly. Then would like to bucket the probable reasons on a high-level as Internal and External. Depending on my unnderstanding, I would like to start with a bucket an dive-deep into the sub-buckets one by one.
So, to start with, My very first question to understand the PS infront of me is:
- How do we define open rate? Do we consider only the situation where users open the app without any stimulation by the firm through notification, ads or links?Open rate is basically number of app opening in a day. We include all the touchpoints like notification, organic opening, links, and ads.
- How long are we facing the above issue? We are facing the above issue for quite some-time. The change has been gradual.
- Do we see any relationship/connection among different demographics of users like their age, location, device type. No, the drop is pretty consistent across device, location and age factor.
How is the open rate measured? In what period of time? I'm trying to know here what's the specific metric that dropped. It can be unique users open in a day / total users with activity within 30 days, it could be total open rate per user per month, etc.
I will assume the answer is amount of users who open Instagram more than 1 time on a given day. So the number of users opening the app more than one time a day has dropped by 15%.
Once I know about the metric, I would go deeper about the group that is displaying this change in behavior:
- Is it the mobile or web app? If mobile, is it android or iOS, or both? is it specific to a certain version?
I will assume they say it's across all patforms and not specific to a version.
- Is this drop seen across all segments or is only seen in specific groups?
I will assume here that they say it's only in the segment of users who have been in the app for at least 6 months.
The hypothesis of why this group might see a drop in open rate, in order of importance:
1) They don't find it amusing anymore. They open the app early in the morning to see the news, but when they access again they see they have caught up with news and therefore don't see it as often as they would.
2) They want to spend less time using the app. They find themselved spending too much time in Instagram, and they want to limit its usage.
3) They have few interactions and feel demotivated to post stories or pictures in their profile. This people is found to have less than 50 friends.
And proposing some ideas to help engage this group of users:
1) Offer them suggestions on things to post (already applying filters and tags which create more engagement).
2) Increase the likelihood of this group's posts/stories to be seen and specifically for this group.
3) Push it more often/ more enticingly to connect to new people and widen their network (same as presenting this contact to other contacts who would add them as friends).
4) Re-evaluate the "caught up" feature. Make an effort to always have content available for the user, like reviving a post from a friend of "a year before" the date in a 'Remembering' section, or even including information about other less relevant friends in the news feed.
5) Make them feel good about using the app. Create a series of videos targetted towards this population about how instagram bolsters interactions and friendship, and always being up to date when it comes to friends. Create a "year" video about all the things that happened in the app - much like Facebook memories.
Here's one way you can manage to successfully answer this problem solving question.
Drop in open rate
- users not even opening once in a day - increase in inactive users
- users not opening multiple times in a day - reduction in repeat opens
Assumption - This is happening across platform, geography, gender. Also, this is happening gradually over a period of time (decrease on monthly/weekly basis).
Factors impacting this behavior (metrics to check to see the impact)
- Internal
- crashes - any app update which lead to crashes
- Metrics to track - Crash Rate, ANR, average load time
- change in behaviour of users
- impact of sub metrics (open rate has impact on sub metrics - activities users do post opening the app)
- complaints - from customer support, play store reviews
- Play store rating, reviews (1,2,3), sentiment analysis
- # of complaint tickets
- crashes - any app update which lead to crashes
- External
- promotions - ran ads which lead to an inorganic boost in open rate (and then sudden drop)
- last open date, # of times opened in a day where install source was promotion
- competitor shift
- promotions - ran ads which lead to an inorganic boost in open rate (and then sudden drop)
Assumption - Let's assume this drop is due to change in behaviour of user. Let's deep dive here.
To understand the change let's understand how users use the app and what changed.
Core activities
- Feed interaction
- checking feed
- DM - chat w/ friends
- check friends - profile / photos
- checking friends of friends - profile & follow them
- posting a photo / video
- upload / take a photo
- apply filters
- adding meta (text, hashtag, location)
- search & my profile
Assumption - Majority of the users are consumers (99%) while only 1% are posters. majority of the time spent by user is on feed interaction activity. rest of the activities are smaller; so there is a change in behaviour on 'feed interaction'.
Metrics to check
- # post scrolled
- Time spent on feed
- like a post
- comments on post
- stories
- DM - chat
- # of user's page opened in a session
- # of follows / user in a day
Possible cases for less open rate
- Case 1 - takes time to load new post (could be due to bad network)
- Case 2- post's that are appearing in feed are no more interesting / exciting less leading to lesser open - daily or repeat opens in a day.
Moving forward w/ case 2 - which seems to be a possible reason
Dig dive on feed composition
- My friend's post
- Influencer's post (celebrities i follow) / stories
Assumption - Influencers are the one who drive the open rate a lot as they post more often to have a pull effect. Assuming there is a problem there.
- Influencer has started posting less engaging content / spam
- Metrics to check
- Trend - # of likes, comments on influencer | Time spent on post
- # of Report spam
- Sentiment analysis - # of abusive comments (as dislikes)
- Metrics to check
- Influencer hasn't been active (posting less content)
- Metrics to check
- # of post per day for top influencers (top 1000)
- Metrics to check
Improvements
- Changes in sorting algo
- boost post which get more engagement (check growth rate of likes which is increasing as a trend; user you follow and promote it up)
- demote inactive, less engaging content
- suggest other influencers to follow
- Help user generate other interests so that user can follow something else
Seek clarity
15% drop over what time frame - is it gradual or drastic? if drastic then figure out the dates when (we'll come back to this later), assuming it's drastic
15% is a drastic drop for a short period for a mature product like IG so there was deifnitely an issue
When you say open rate it mean the number of users opening the app or the % of app connect users who end up opening the app? assuming it's the former
Rule out errors/ data issues
have the metric definition changed recently
Is the data updated?
is the drop due to the an artificial spike? example: on new years the number of app open shot up drastically and then normally thus simulating a drastic drop, assume this is not the case
Did we make any changes to metric logging frameworks internally?
Assuming all of the still suggest there's been a drop
Check internal factors
Refer to when the drop started - did we do any feature rollout/app release/product releases that day(including front and backend)/experiemnt rollout
What other metrics are affected? since this is top of the funnel and data isn't an issue then all metrics down the funnel will be impacted, see which ones are more impacted than other - this should provide a clue
What are the customers saying check CS mail/app store/play store review - what are the customers saying
Try isolating - is the drop across App/web/mobile web, within app split by OS/OS version/App version/country/ISP/major popular phone models
Errors: Any spike in error counts
External
Check for
Major OS release
Did playstore or app store make any changes
Downtime/outages
trends - did the competition launch a new feature/new app
We should be able isolate the issue out using the process above
1) Clarification Questions
- When you say open rate, are people not able to open the app after clicking on it or are they not clicking at all?
- I am the PM of what team exactly? What is my responsability?
- Is it specific to iOS or Android or both?
- Has this drop been gradual or has it been a peak? If it's gradual, for how long has it been droping?
- Has it happened to a particular geographic region?
- Has it happened to a particular segment or user group?
- Cannibalization
- Have we launched new products/features that might affect Instagram?
- Yes, we have launched Shops on Whatsapp.
- Have we launched new products/features that might affect Instagram?
- Business Strategies
- Have we put in place new strategies that justify the drop? For instance, we stopped some notifications.
- No, we not put in place any relevant business strategy over the last 4 weeks.
- Have we put in place new strategies that justify the drop? For instance, we stopped some notifications.
- Marketing Strategies
- Have we stopped important actions that have helped us get more open rate?
- No, marketing is still the same.
- Have we stopped important actions that have helped us get more open rate?
- Other Products
- Have we found similar drops in other products, such as Facebook App, Whatsapp or Messenger?
- Not really. On the contrary, Whatsapp downloads and open rate have increased.
- Have we found similar drops in other products, such as Facebook App, Whatsapp or Messenger?
- Bugs
- Have we noticed weird behaviors of out systems?
- Do we have any internal report about any problem that might affect the app?
- Have we experienced loading problems?
- Partners
- Are all APIs working properly?
- Have people found problem in updating the app on google and apple stores? Are these stores working normally?
- Updates
- Have we launched new updates recently?
- Without updating the app, can people still use it?
- Are we testing new features or products that might have affected it?
- Competitors
- Have competitors launched new products?
- Seasonality
- Over time, is this drop expected to happen?
- Public Relations
- Have we been exposed to bad news on the media?
- User Behavior
- Are users shifiting behavior towards the app? (journey/engagement)
- Avg session and #downloads on Whatsapp of customers who have opened less Instagram
- Time spent on Shops on Instagram and Whatsapp of those customers
- Avg number of messages per customer per store on Whatsapp and Instagram of those customers
- Is this for a specific open rate channel? Push Notifications or organic app opens
- Is there a specific user group that we’ve seen impacted here: drop in usage overall or drop in return usage over the course of a day
- What time period have we seen this drop in open rate? Is this a sudden drop or been happening gradually?
- Is there a decline in engagement within the app as well or is this limited to users dropping? Has there been a decline with sign ups overall?
- I’d like to rule out seasonality. Did we see a similar drop this time last year?
- Do we have any data on the customers that are dropping? I’d like to understand patterns like first time sign up, age groups, and/or typical engagement level.
- I think the place I’d want to focus is the types of customers dropping but I’d also want to rule out any feature upgrades that dilute the entry experience into the app. Are you aware of any design changes?
- Interesting that we see larger declines in the above mentioned groups because they are usually more interested in experimentation and have less loyalty. I’d like to understand if we’ve seen growth of competitors like TikTok or Clubhouse in the market or other new entrants.
- Review our integration with tiktok and ensure that cross-posting hasn’t declined. Investigate further if it has. Otherwise, find new ways to engage users on tiktok to cross post to increase push to instagram. An example might be a special page for user tiktoks or tiktok ratings.
- Offer an integration with Clubhouse so that users can post which group they’re currently attending or attended in the last week. You could also gamify by scoring channel convos and sharing on instagram
- Offer a competitive service of “rooms” like clubhouse on instagram directly
- Invest in additional video features for Instagram so users can share more videos on Instagram
Problem Discovery:
Candidate ("C"): The first thing I would try to do is to dig further to understand the problem and its root cause. Has the open rate drop been a gradual drop or has it been sudden?
Interviewer ("I"): The drop has happened suddenly over the last 2 days.
C: Do we know if the drop is limited to a either mobile or desktop users of the site?
I: The drop has been across all platforms.
C: Do we know if the drop in open rate is global or restricted to a region or area?
I: The drop is global.
C: How do you define 'open' when speaking about the open rate of Instagram? Are you referring to people opening the app, those logging into it, or those interacting with it?
I: The open rate refers to those users logged into the site and interacting with it once a day at least.
C: Interesting, we are seeing a 15% sudden drop in people logged into and interacting with Instagram at least once a day across the globe and on all platforms. I will assume that any competitor behavior would have a more gradual vs. sudden impact on our users so I will first focus on any internal factors that may have caused the drop. Do you know if we have had any server issues?
I: Nope - our servers have been running fine.
C: I would like to focus a little bit on the user journey to help me explore possible points in the journey that might be causing the issue. A mobile user, for example, would typically open the app to which they are logged into, interact with the app, then close the app without logging out. Do we know if there were any recent updates made to the opening/logging in/running of the app?
I: We have recently experienced fraud issues. Everyone was logged out and they need to re-set their passwords.
Solution:
C: Okay that is very interesting, now that we know what has caused the problem, I would recommend further diagnosing the impact before embarking on solutions. I would explore the 15% of users that are no longer interacting with Instagram to determine if the issue is with the password re-set flow and if we can improve that process or make it easier for those individuals to change their passwords to ensure they return to interacting with the platform. I would also recommend exploring if some of those 15% may have security concerns post a fraud incident and if we need to do anything to restore confidence.
Initial Questions Explored:
- What is open rate? Is it (# of app opens) / (total # of app installs) in a given time frame?
- What was the initial open rate? (60%??)
- Any major changes made in the application?
- What is the timeframe we're looking at?
- Is it across all persona's?
- Is this happening across the globe or particular geography?
- Any external factors?
- Direct Competitors gaining traction
- Indirect Competitors gaining traction
- Opposing apps - (Time Saving Apps)
Assumptions:
Let's assume that the drop of 15% is in the span of 6 months. Let's write the equation:
( # of app opens 6 months ago / # of app installs 6 months ago) - (# of app opens now / # of app installs now) = 0.15
Let's assume that the drop is across all identified persona's. (Explore, otherwise)
Let's also assume that the drop is global and not confined geographically (Explore otherwise)
Explore various competitors and the introduction of new entrants. Are there any time-saving apps, digital well-being apps that are gaining traction?
Evaluation:
Hypothesis 1:
Check for the # of app downloads and its monthly trend in the last 6 months? Any changes? - Let's assume NO. There has been a relatively steady growth in customers.
Hypothesis 2:
Check the (Avg # of opens / user) and plot a monthly trend over the last 6 months? Any changes? - Yes.
This means that the problem is not the number of people uninstalling apps, there is a genuine reduction of app openings.
Mind share: The portion of a user's brain dedicated to thinking about Instagram - Let's call this the trigger.
Since there is a drop => That means that % of trigger for users to click Instagram is lowered.
Why has there been a lowered mind share amongst customers?
Because, lately, because of awareness of digital well being created by various health associations and articles across the globe, people have started to use digital well-being apps to curb social media usage.
Solutions:
- Provide valuable content on Instagram to drive user's engagement and provide a sense of well being.
- Show a health timer notification adhering to prescribed standards. (This shows Instagram cared about our digital well being.)
- Create a campaign to communicate that Instagram cares about customers and show the positive aspects of being on Insta and promote the above-mentioned features.
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