How to Approach and Answer This Question in a PM Interview

This question evaluates your ability to diagnose problems, think critically about data, and propose a plan to identify the root causes of a decline in user engagement. Here's how you can structure your response:

1. Start with Context

Tip: Set the stage by acknowledging the importance of user engagement and the challenges Instagram might face.

Say something like:

“User engagement is critical for Instagram’s growth, as it directly impacts ad revenue, platform loyalty, and content creation. A decline in engagement could affect Instagram’s market position and overall business performance. To address this issue, we need to investigate multiple factors that could contribute to a drop in user interaction with the platform.”

This shows you understand the broader context and the significance of the problem.

2. Identify Potential Causes of Declining Engagement

Tip: Break down the potential causes into categories.

1. Product/Feature Issues:

• Changes in Algorithm: Recent changes to Instagram’s feed or recommendation algorithm could result in users seeing less relevant or engaging content.

• Content Fatigue: Users may feel overwhelmed or bored with the content they are seeing, especially if there is a lack of variety or novelty in the feed.

• User Interface (UI) or Usability Issues: New features or UI changes might have negatively impacted how users interact with the app, making it harder to find engaging content.

2. External Factors:

• Competition from Other Platforms: The rise of platforms like TikTok or BeReal may be siphoning engagement from Instagram, especially among younger users.

• Shifts in User Behavior: Changes in how users interact with social media in general (e.g., more private messaging, less public sharing) could also impact Instagram’s engagement metrics.

• Seasonality: Certain periods (e.g., holidays or summer vacations) may see a temporary dip in engagement as users shift attention to other activities.

3. Content Creator Behavior:

• Decline in High-Quality Content: If creators are posting less engaging or lower-quality content, users may find the platform less interesting or valuable.

• Influencer Fatigue: Users may feel overwhelmed by too many promotional posts or repetitive content from influencers, leading to disengagement.

4. User Sentiment and Trust Issues:

• Privacy Concerns or Security Issues: A backlash or concerns about data privacy (e.g., data leaks, misuse of personal information) could lower user trust, leading to reduced interaction with the app.

• Toxicity or Negative Content: If the platform becomes a breeding ground for toxic or harmful content (e.g., bullying, hate speech), users may disengage to avoid negative experiences.

3. How to Investigate the Causes

Tip: Outline a systematic approach to identify which factors are contributing to the decline.

1. Data Analysis:

• Engagement Metrics Analysis: Look at key metrics such as daily active users (DAUs), time spent on the app, likes, shares, comments, and story views. Compare these with historical trends to pinpoint when the decline started.

• User Segmentation: Analyze engagement by user segments (e.g., age, location, behavior patterns). This can help identify if the decline is specific to a certain group, which could point to issues with a particular feature or content type.

• Feature Usage: Examine which features (Stories, Reels, Explore tab, etc.) are seeing a decline in usage. Are users shifting away from certain content types?

• A/B Testing: Run tests to evaluate the impact of recent algorithm or feature changes on engagement. Compare pre- and post-change engagement metrics.

2. User Research:

• Surveys and Feedback: Conduct surveys or user interviews to directly ask users about their experience. Understand their frustrations or reasons for disengaging. Are they dissatisfied with the content? Are they facing usability issues?

• Sentiment Analysis: Analyze social media, online forums, and app store reviews for any recurring complaints about the platform. This could reveal trends like privacy concerns or dissatisfaction with recent changes.

• Heatmaps/Session Recordings: Conduct usability testing to identify UI issues. Are there places where users get stuck or frustrated? Are they able to easily find content that interests them?

3. Competitive Benchmarking:

• Analyze Competitors: Evaluate engagement trends on other platforms like TikTok, BeReal, and Snapchat. What are these platforms doing differently? Is there a feature or approach that Instagram could adopt to regain users' attention?

• Track Industry Trends: Monitor broader social media trends to identify shifts in user behavior (e.g., a movement towards more private communication or video-first content).