The implied spend per customer check is way easier than guessing the whole market.
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I understand that I should sanity-check the final market size, but sometimes I have no idea what the real market should be. How do I test whether the answer is reasonable without an external benchmark?
The implied spend per customer check is way easier than guessing the whole market.
I understand basic market sizing, but seasonality throws me off. If demand is much higher in some months than others, how should I incorporate that without making the calculation unnecessarily complicated?
Mayank G.CoachUse seasonality only when it materially changes demand. The simplest method is usually to calculate a normal period and then adjust for high and low seasons.
When doing a market sizing case, how do I know whether I should segment by age, income, customer type, or not segment at all? I sometimes add segments just because I think the structure needs them.
Mayank G.CoachSegment only when different groups behave differently enough to change the estimate. Segmentation should improve the model, not decorate the structure.
Sometimes I happen to know an actual market statistic from school or work. Should I use that number, or is it better to build an estimate from assumptions so the interviewer can see my reasoning?
Mayank G.CoachYou can use a real-world number if you are confident it is accurate and relevant, but do not let outside knowledge replace the reasoning the interviewer wants to see.