Expert case by

Cristian

Poliglot Language App Needs Users

Case information

Difficulty: Intermediate

Interviewer-led

< 100 Ratings

Times solved: 3.6k

Capacity change Market analysis Market sizing Operations strategy Organizational behavior Growth strategy

Case Prompt:

Let’s assume our client is Poliglot, a popular language app. Poliglot is five years old, originally from the US, but available worldwide. The app currently offers the possibility of learning over twenty languages for free, with extra benefits (e.g., no ads, additional exercises) available to premium members.

Historically, the app has been very successful and has seen significant growth over the past few years. However, over the past year, the app noticed a stagnating usage and app adoption. Considering that the market is very competitive, the client expects a decline in the customer base unless the root causes are identified and addressed.

As a consequence, the CEO of the company that owns the app asked us to support them in figuring out the reasons for the decline and laying out a plan for growth.

Overview of All Exhibits

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Question 1

What are some of the reasons for why the app has seen a stagnating trend within its customer base?

Show solution Hide solution

Question 2

To help us get a better understanding of the small fluctuations in the customer base, the client has shared with us an exhibit containing the number of active users in the customer base over the course of a year. What are some of the insights that you can generate based on this chart?

Show additional information Hide additional information

Show solution Hide solution

Question 3

The client is inspired by the insights you shared earlier and is letting us know that the peaks in the active customer base indeed coincide with promotional campaigns they are running over social media. They agree that these campaigns have had limited effect in terms of converting the additional customers into premium customers or even retaining them as long-term active users on the platform.

What are the three-four levers they could pull to maximize the revenue out of their active base of customers?

Show solution Hide solution

Question 4

The client decided they would like to focus within the coming year on increasing their overall app adoption and number of premium users, in an effort to fun other qualitative upgrades there are developing for the app.

Currently, they have 5 million downloads of the app. 4 million of these lead to actual users opening the app, out of which 3 million make an account. 0.5M sign up for a premium plan. The leadership team in charge of the app claims they developed a set of measures to increase the total downloads to 7 million, as well as increase the conversation rate between those who open the account and who end up creating an account by 15 p.p. They would like to understand by how many percentage points does the conversion rate have to increase between those who create an account and who purchase the premium plan in order to reach a total base of 1.2 million users with a premium plan.

Show solution Hide solution

Question 5

The CEO drops by for a short update from the team. Considering the work done until know, what is your recommendation at this stage?

Show solution Hide solution

Practice This Case With Peers Who Are Currently Looking for Interview Partners.

All Meeting Slots

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

Question on This Case

Consulting

Question about

Base for conversion rates

on Aug 03, 2022

Global

1.8k

Related Case Interview Basics Articles

The Stacey Matrix

Useful Business Analysis Tools

The Stacey Matrix is an important tool for navigating complexity in project management, developed by Ralph Douglas Stacey in the 1990s.In this article, we’ll break down how the matrix works, explore different project types, and discuss its relevance in consulting and case interviews. Plus, we’ll dive into its strengths and limitations in project management. Let’s get started!

To the article

7S-Framework of McKinsey

Frameworks

If you're aiming for a career in consulting, learning about key frameworks is essential. One of the most popular and effective tools is the McKinsey 7S Framework. Created by McKinsey & Company, this framework helps you understand and evaluate how different parts of an organization work together to improve overall performance.In this post, we’ll explain the seven elements of the McKinsey 7S Framework and how you can use it in case interviews. Whether you're preparing for consulting roles or just want to boost your business knowledge, this framework is a valuable tool to have in your skillset!

To the article

Design Thinking

Common Terms of Business

Design Thinking is more than just an approach or a method – it's a non-linear, iterative process that places creativity and problem-solving at its core. To understand this mindset, let's look at the three essential elements of Design Thinking: People, Process, and Place. These elements form the foundation for applying Design Thinking in business consulting.

To the article

Unique Value Proposition (UVP)

Common Terms of Business

As an aspiring consultant, you will quickly realize that a company's success is closely linked to its ability to differentiate itself from the competition. Here, just like the business model, the Unique Value Proposition (UVP) plays a crucial role. Understanding and applying the UVP in various contexts, especially in case interviews, can give you a significant advantage in grasping problem situations.

To the article

Public Value Strategic Triangle

Useful Business Analysis Tools

The Strategic Public Value Triangle is a conceptual framework developed by Prof. Mark H. Moore to guide public managers in creating public value. It emphasizes the interplay between three key elements: public value proposition, the operational capacity to deliver, and the legitimacy and support of the authorizing environment.Prof. Mark H. Moore is a distinguished academic known for his work in public management and leadership. He is the Hauser Professor of Nonprofit Organizations at the Harvard Kennedy School. Moore's research and teachings have significantly influenced the field of public administration, particularly with the introduction of the Strategic Public Triangle in his seminal book "Creating Public Value: Strategic Management in Government" published in 1995.

To the article

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

Poliglot Language App Needs Users i

Case Prompt:

Question 1

Question 2

Question 3

Question 4

Question 5

Poliglot Language App Needs Users