Design a gift-card for e-commerce
Google Product Design Interview Question: An e-commerce platform wants to enable its users to buy and send gift cards to their loved ones. How would you go about building that feature?
The primary responsibility of a product manager is to lead the vision, design, and development of a product. When a business decides to create a product, it is based on the recognition of a genuine customer need, one for which the customer is willing to pay. The product manager plays a crucial role in recognizing customer needs and steering the design and development of products that effectively address those needs.
This product design interview question assesses your comprehension of the process involved in transitioning from customer needs to product development. This process entails clearly defining the customer's identity and understanding what they aim to achieve. It also involves outlining various use case scenarios where the customer engages in activities related to the product, and subsequently, prioritizing the features to be developed.
What is the interviewer looking for?
The interviewer is gauging your performance based on the following:
Can you offer insightful observations about the customer and their requirements?
Are you capable of presenting a variety of use case scenarios that cover different aspects?
Is your response well-organized and coherent, or does it deviate from the main topic?
Do your solutions delve beyond superficial suggestions, offering in-depth descriptions?
Can you introduce unique ideas that set you apart from other candidates?
Does your demeanor convey confidence and credibility? Would your guidance be compelling to engineers and product professionals?
How to answer Product Design Questions?
Here is a step-by-step guide/framework, you should follow while answering product design interview questions:
Ask clarifying Questions to narrow the scope. (Q)
Define the Goal you want to achieve. (G)
List the User Segments and choose one segment to focus on. (U)
List and prioritize the Pain Points. (P)
List out your Solutions. (S)
Evaluate the solutions and prioritize them. (E)
Walk through the MVP & Define the Success Metrics (M)
Summarize your answer (S)
State which solution you would recommend.
Recap what the solution does and why it is beneficial.
Explain why you prefer this solution.
(PQ-GUP-SEMS) -> Mnemonic to help you remember the steps & their order.
Answer
1. Ask Clarifying questions
Here are some clarifying questions,
Q) Should we focus on any specific user segments or demographics for the gift-card feature?
A) It’s up to you to decide.
Q) Will the gift cards be physical, digital, or both?
A) For the scope of this question, let's focus on digital gift cards.
Q) Will the gift cards be for specific products/categories or applicable across the platform?
A) It’s up to you to decide.
Q) Should the app be available on multiple platforms (iOS, Android, web)?
A) For the scope of this question, consider launching for Android, followed by iOS, and Web.
2. Define the Goal
The primary goal of designing a gift card feature for an e-commerce platform is to increase revenue by providing users with a versatile and convenient gifting option. This feature aims to attract new customers, retain existing ones, and encourage more frequent purchases.
Metrics: Revenue
Revenue from Gift Cards:
Monitor the revenue generated from gift card sales.
3. User Segments:
At this step, list down the different user groups that are part of the ecosystem of the problem you’re solving for.
User groups should be distinct from each other and have unique characteristics.
Here are some of the major user segments:
Gift Givers:
Occasional Givers:
Individuals who purchase gift cards for special occasions like birthdays, holidays, anniversaries, or graduations.
Behaviour: Purchase gift cards infrequently, often during major shopping seasons or close to significant dates.
Frequent Givers:
Individuals who regularly buy gift cards for various reasons such as appreciation, rewards, or frequent gifting.
Behaviour: Purchase gift cards multiple times throughout the year.
Gift Recipients:
New Customers:
Individuals who receive gift cards and have not previously shopped on the platform.
Behaviour: May redeem the gift card to make their first purchase, potentially leading to repeat business.
Existing Customers:
Current users of the platform who receive gift cards.
Behaviour: Use gift cards to make additional purchases, often spending more than the gift card value.
Here are some more user cohorts:
Corporate Clients:
Employee Rewards:
Businesses that purchase gift cards in bulk for employee incentives, rewards, or holiday gifts.
Behaviour: Buy large quantities of gift cards periodically, typically during end-of-year or quarterly reward programs.
Client Gifts:
Companies that use gift cards as a gesture of appreciation or goodwill for their clients.
Behaviour: Purchase gift cards as needed for client appreciation, loyalty programs, or special promotions.
Procrastinators:
Individuals who wait until the last minute to purchase gifts and rely on gift cards for their convenience and instant delivery.
Behaviour: Often opt for digital gift cards to ensure immediate delivery.
Discount Hunters:
Shoppers looking for the best value, who may purchase gift cards during promotional periods to maximize savings.
Behavior: Monitor for special deals on gift cards and buy them at a discount to use for future purchases.
Self-Gifters:
Individuals who buy gift cards for themselves to take advantage of discounts, rewards, or budgeting purposes.
Behavior: Purchase gift cards to use later for personal shopping or to manage spending on the platform.
Influencers and Trendsetters:
Users who influence others and are active on social media, sharing their gift card purchases and redemptions.
Behavior: Purchase gift cards and promote them within their networks, potentially driving more traffic to the platform.
Focus Segment: Gift Givers - Occasional Givers
Rationale for Choosing ‘Gift Givers - Occasional Givers’ segment,
Occasional givers, especially during holidays, birthdays, and anniversaries, represent a significant portion of gift card sales. Targeting this segment can lead to a substantial increase in transactions during peak shopping seasons.
Focusing on this segment allows the platform to design seasonal marketing campaigns, promotions, and special offers, which can attract a large number of new and returning customers.
Gift cards given during special occasions often bring new customers to the platform, as recipients may not have shopped on the platform before. This presents an opportunity to convert gift card recipients into regular customers.
By creating a seamless and enjoyable gift-giving experience, the platform can build loyalty among occasional givers, encouraging them to return for future gifting needs.
Occasional givers often purchase additional items along with gift cards. Targeting this segment allows the platform to suggest complementary products and increase the average order value.
4. Pain Points
Following are some of the Pain Points for the ‘Occasional Gifters’ user segment,
Customers find it challenging to add a personal touch to the gift card, such as personalized messages, custom designs, or selecting specific themes for different occasions.
A complicated or lengthy purchase process deters users and they might abandon the purchase.
Givers often struggle to decide the appropriate amount for a gift card. They may worry about choosing a value that seems too little or too excessive for the occasion.
Customers are concerned about whether the gift card will arrive on time, especially for physical cards. Delays can ruin the gifting experience and cause dissatisfaction.
Givers might want to track the delivery status of physical gift cards or confirm that digital cards have been received and opened, but lack of tracking options can be a pain point.
Customers may worry about the recipient facing technical issues when redeeming the gift card, such as codes not working or difficulties in applying the card balance.
Unclear steps to redeem and use the gift card can lead to confusion and frustration for both the giver and the recipient.
Lack of responsive customer support for troubleshooting issues related to gift card purchases, delivery, or redemption can negatively impact the user experience.
Customers might be unsure if the gift card will be accepted for all products or services on the platform, especially if there are any restrictions or exclusions.
Unclear information about the expiration dates and any potential fees associated with the gift card can create uncertainty and dissatisfaction.
Lack of Promotions or Incentives or offers (such as discounts or bonus cards) can be a deterrent.