Number of users on an Amazon website drops by 10%. What are the possible reasons, and how can we solve it?

Introduction

A 10% drop in users on an Amazon website is a significant issue that requires immediate attention and a systematic approach to identify and address the root cause. As we delve into this problem, we'll follow a structured framework to analyze the situation, generate hypotheses, and develop both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

To better understand the context and scope of the issue, I'd like to ask the following questions:

• What specific time frame are we looking at for this 10% drop?

• Are we seeing a decline in new user acquisition, existing user retention, or both?

• Has this drop been consistent across all user segments or concentrated in specific demographics?

• Have there been any recent changes to the website's features, UI/UX, or backend systems?

• Are we observing similar trends on mobile apps or other platforms?

• Has there been any change in the way we measure or define "users" on the website?

Why these questions matter:

1. Time frame: Helps distinguish between a sudden drop and a gradual decline, informing our approach.
2. User type: Allows us to focus on acquisition or retention strategies accordingly.
3. User segments: Identifies potential issues affecting specific groups, enabling targeted solutions.
4. Recent changes: Pinpoints potential internal causes for the drop.
5. Cross-platform trends: Determines if the issue is website-specific or more widespread.
6. Metric definition: Ensures we're working with consistent and accurate data.

Hypothetical answers and their impact:

• If the drop occurred suddenly, we'd focus on recent changes or external events.
• If it's affecting new user acquisition, we'd examine our marketing funnel and onboarding process.
• If specific segments are impacted, we'd investigate factors unique to those groups.
• Recent changes could directly link to the drop, simplifying our root cause analysis.
• Cross-platform consistency would suggest a broader issue beyond the website itself.
• Changes in metric definition could explain the apparent drop, requiring a recalibration of our analysis.