Interviewer view · keep this screen to yourself

Is a loyalty data project worth the data risk?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional German retailer with worldwide turnover of EUR 3 billion wants to use loyalty card data to send personal offers. It expects EUR 6 million a year of extra profit. Building proper consent, security and data deletion would cost EUR 2 million once and EUR 0.5 million a year (illustrative). Should it go ahead, and what does the GDPR cap mean for the decision?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Project value against compliance cost, then the size of the downside
- Net yearly profit after compliance running cost
- Payback on the one-off compliance build
- Key: Maximum GDPR fine against yearly project profit

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Net yearly profit
What a strong candidate does: EUR 6 million minus EUR 0.5 million.
Net yearly profit (EUR million): 6 - 0.5 = 5.5
Step 2: Payback in months
What a strong candidate does: EUR 2 million one-off divided by EUR 5.5 million a year, times 12.
Payback (months): 2 ÷ 5.5 × 12 = 4.36
Step 3: Maximum GDPR fine
What a strong candidate does: For the most serious breaches: 4 percent of EUR 3,000 million is above EUR 20 million, so 4 percent applies.
Maximum fine (EUR million): 3,000 × 0.04 = 120
Step 4: Fine in years of project profit
What a strong candidate does: EUR 120 million divided by EUR 5.5 million.
Years of project profit: 120 ÷ 5.5 = 21.82

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Go ahead, but only with compliance built in from the start. The project pays back the EUR 2 million build in under five months and then earns about EUR 5.5 million a year. Cutting corners to save that EUR 2 million would be a bad trade: the maximum fine of EUR 120 million equals more than 21 years of the project's profit, before counting lost customer trust.

Risks a strong answer names: Fewer customers may give consent than planned, which lowers the EUR 6 million; A data breach brings costs beyond fines: notifying customers, fixing systems, lost sales.

Next steps: Test what share of customers opt in with a clear, honest offer; Agree with the data protection officer what data is kept and for how long.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.