How can we explain the 15% decline in new account openings for Wells Fargo's Everyday Checking product compared to last year?

Introduction

The 15% decline in new account openings for Wells Fargo's Everyday Checking product compared to last year is a significant issue that requires thorough analysis. To address this problem, I'll employ a systematic approach to identify, validate, and address the root cause while considering both immediate and long-term implications.

My approach will involve clarifying the context, ruling out external factors, understanding the product and user journey, breaking down the metric, gathering relevant data, forming hypotheses, conducting root cause analysis, and proposing validation methods and next steps. This structured process will ensure we comprehensively examine all aspects of the decline in new account openings.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Can you provide information on the typical seasonality of new account openings for this product?

Why it matters: Understanding seasonality helps differentiate between expected fluctuations and genuine problems. Expected answer: There's usually a slight dip in Q1, but not as significant as 15%. Impact on approach: If seasonality is confirmed, we'll need to adjust our baseline for comparison.

• Considering recent events, I'm wondering about any changes in marketing efforts. Have there been any significant shifts in marketing spend or strategy for the Everyday Checking product in the past year?

Why it matters: Marketing changes could directly impact new account openings. Expected answer: Marketing spend has remained relatively consistent, but there was a shift towards digital channels. Impact on approach: If confirmed, we'll need to evaluate the effectiveness of the new marketing mix.

• Thinking about the competitive landscape, has there been any notable change in competitor offerings or promotional activities?

Why it matters: Competitive pressures could be drawing potential customers away. Expected answer: One major competitor launched a high-yield savings account tied to their checking product. Impact on approach: If confirmed, we'll need to assess our product's competitiveness and value proposition.

• Considering internal changes, have there been any modifications to the account opening process or requirements in the past year?

Why it matters: Process changes could create friction in the account opening journey. Expected answer: The online application form was updated to include additional verification steps. Impact on approach: If confirmed, we'll need to analyze the impact of these changes on conversion rates.