Introduction
Meli+ is MercadoLibre's loyalty subscription: shipping benefits on Mercado Livre plus a bundle of partner services such as Disney+ and Deezer, and in 2026 an eSIM partnership. In Brazil it faces a specific problem. Mercado Livre lowered its free-shipping threshold in 2025, so the shipping perk that used to justify Meli+ now feels weaker to many members. At the same time, monthly billing on Brazilian cards fails often, and many members pay with Pix rather than credit cards. I'll look at why subscribers don't renew, split voluntary from involuntary churn, and propose improvements that raise monthly renewal without turning Meli+ into a discount giveaway.
For subscription questions, separate "people who decided to leave" from "people whose payment failed" early. Interviewers like seeing that split because the fixes are completely different.
Step 1
Clarifying Questions (5 mins)
Why it matters: Monthly plans carry most of the churn risk. Expected answer: Focus on monthly subscribers in Brazil, the majority of the base. Impact on approach: Every month is a renewal decision, so ongoing value matters more than sign-up offers.
Why it matters: It decides whether we fix value or billing. Expected answer: Assume monthly churn of about 9%, with roughly a third from failed payments (expired cards, limits reached, no Pix option for recurring billing). Impact on approach: Two tracks: billing reliability and perceived value.
Why it matters: Some members cost more in shipping subsidy than they bring in. Expected answer: Members who buy at least monthly or use the streaming bundle. Impact on approach: I'll avoid retention offers aimed at members with negative margins.
Expected answer: Higher month-2 and month-6 retention, which increases purchase frequency and Mercado Pago engagement. Impact on approach: Retention is the primary metric; revenue per member is a guardrail.
Practice similar questions
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