Summarize with this three-step approach: Tell the interviewer which product or feature you’d recommend. Recap on what it is and why it’s beneficial to the user and/or company. Explain why you preferred this solution vs. others.

Average revenue per user (ARPU) Average revenue per paying user (ARPPU) Average revenue per daily active user (ARPDAU) Lifetime value (LTV) Conversion rate

Reversal method. Reversing the situation helps uncover new possibilities.

If there are instances where you’ve racked your brain and can’t come up with a reasonable (estimated) number, a qualitative statement could work too. It could be a quote from a senior executive who thought you executed the smoothest product launch that he’s seen in last five years. It could be a testimonial from a customer who said it was the most

As part of understanding customer needs, you may have to delve into a customer’s work flow with their existing solutions. To find areas of improvement, you’ll have to understand obstacles they are facing and gaps that existing solutions have left open.

For instance, a particular feature could increase revenue 5 percent, but 30-day logins decrease by 3 percent. What should a product manager do? When faced with this dilemma, make the decision that’s in-line with the corporate strategic goal. Ask the interviewer. What’s the current objective? If the owner is desperate to meet a quarterly profit goal

When it comes to pricing, the most important number to know is the customer’s willingness to pay.

Users will only switch if a product is better. And that type of improvement comes only when the product leaders think big.

Tip #2: Have at least three ideas