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3. Per seat and per customer: software sold by subscription

The prompt

A fictional software company in Bengaluru sells project tools to small firms in the US. It charges USD 30 per seat (one user) per month, with a gross margin of 80 percent. A typical customer buys 20 seats. Winning a customer costs USD 7,200 in sales and marketing. Each month, 2 percent of customers leave. Is a customer worth winning?

Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.

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