How can we explain the 20% decline in new user sign-ups for Remitly's mobile app in the US market during Q2?

Introduction

The 20% decline in new user sign-ups for Remitly's mobile app in the US market during Q2 is a significant issue that requires immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Has this decline been observed in previous Q2 periods?

Why it matters: Helps distinguish between cyclical patterns and unique issues. Expected answer: No, this decline is unusual for Q2. Impact on approach: If seasonal, we'd focus on year-over-year comparisons; if not, we'd investigate recent changes.

• Considering user segments, I'm curious about the impact across different demographics. Is the decline uniform across all user groups, or are certain segments more affected?

Why it matters: Identifies whether the issue is universal or specific to certain user types. Expected answer: The decline is more pronounced among younger users. Impact on approach: If segmented, we'd tailor solutions to specific user groups; if uniform, we'd look at broader product or market factors.

• Thinking about recent changes, have there been any significant updates to the app or marketing strategies in the lead-up to Q2?

Why it matters: Helps pinpoint potential internal causes for the decline. Expected answer: A new UI was rolled out at the beginning of Q2. Impact on approach: If changes occurred, we'd scrutinize their impact; if not, we'd focus more on external factors.

• Considering competitive landscape, has there been any notable shift in competitor offerings or marketing during this period?

Why it matters: Assesses whether external market forces are driving the decline. Expected answer: A major competitor launched an aggressive marketing campaign. Impact on approach: If competitive changes are significant, we'd analyze our market positioning; if not, we'd focus more on internal factors.