StrategyHard35 minEdtech, health & hardware

Loved feature, zero revenue

A product strategy question from a product manager interview, set at Lingolo, a fictional language learning company.

The question

You're a PM at Lingolo, a freemium language-learning app (English, Hindi and 6 other languages) with 9M monthly active users. Six months ago we launched AI conversation practice: learners talk to an AI tutor by voice or text. It has the best ratings of anything we've ever shipped, but Pro subscriptions haven't moved, and the inference bill keeps growing. Do we keep it free, put it behind the paywall, or kill it?

Skills this case tests

AI unit economicsPackaging and paywallsExperiment design

A starting structure

AI chat contribution = extra subscription revenue + retention value − sessions × cost per session

How to approach this case

Start with the company goal for the year and how success is measured: subscription revenue, break-even, learning habit or all three. Then lay out the economics: how many people use the feature, how often, what each session costs and how fast the bill is growing. Ask how usage is spread across users. Next, test the value claim. Ask whether retention gains are caused by the feature or by who chooses to use it, and look for a holdout. Ask why a loved feature has not moved upgrades. Then frame the options: keep it free, kill it, put it fully behind the paywall, or something in between. Score each on revenue, cost, retention and brand. A strong close picks one, sizes it, and plans an experiment with retention and ratings as guardrails.

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