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Pricing
Product Management Root Cause Analysis Question: Investigating sudden drop in Getir's fresh produce average order value

Asked at Getir

15 mins

Why has the average order value for Getir's fresh produce dropped by 15% in the past week?

Data Analysis Problem-Solving Strategic Thinking E-commerce Grocery Delivery Quick Commerce
E-Commerce Data Analysis Root Cause Analysis Pricing Strategy Algorithmic Pricing

Introduction

The recent 15% drop in average order value for Getir's fresh produce is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the business.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • What specific time frame are we looking at for this 15% drop?

  • Why it matters: Helps identify if this is a sudden change or a gradual decline.
  • Hypothetical answer: The drop occurred over the past 7 days.
  • Impact: A sudden drop might indicate a specific event or change, while a gradual decline could suggest a broader trend.
  • Has there been any recent change in how we measure or calculate average order value?

  • Why it matters: Ensures we're comparing apples to apples.
  • Hypothetical answer: No changes in measurement or calculation methods.
  • Impact: Confirms the issue is with actual performance, not data discrepancies.
  • Are all user segments equally affected, or is this concentrated in specific groups?

  • Why it matters: Helps narrow down potential causes and target solutions.
  • Hypothetical answer: The drop is more pronounced among urban users aged 25-34.
  • Impact: Focuses our investigation on factors affecting this specific demographic.
  • Have there been any recent changes to our product selection, pricing, or promotions?

  • Why it matters: Identifies potential internal factors causing the drop.
  • Hypothetical answer: A new competitor-matching pricing algorithm was implemented last week.
  • Impact: Suggests a possible link between pricing changes and the drop in average order value.

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