Why has the average order value on Akulaku's e-commerce platform declined by 20% in the past month?

Introduction

The recent 20% decline in average order value (AOV) on Akulaku's e-commerce platform is a critical issue that demands immediate attention. As we analyze this product challenge, I'll employ a systematic framework to identify, validate, and address the root cause while considering both short-term and long-term implications for the business.

To tackle this problem, I'll start by asking clarifying questions, rule out external factors, break down the metric, generate data-driven hypotheses, conduct root cause analysis, and propose validation methods and solutions. This structured approach will ensure we thoroughly investigate the issue and develop a comprehensive plan to address it.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent product change. Have there been any significant updates to the platform in the past 1-2 months?

Why it matters: Recent changes could directly impact user behavior and AOV. Expected answer: Yes, there was a UI redesign or new feature launch. Impact on approach: If yes, we'd focus on analyzing the impact of these changes.

• Considering user segments, I'm curious about the distribution of the decline. Is the 20% drop consistent across all user segments, or are certain groups more affected?

Why it matters: Helps identify if the issue is universal or segment-specific. Expected answer: The decline varies across segments. Impact on approach: If varied, we'd prioritize investigating the most affected segments.

• Given the magnitude of the change, I'm wondering about any shifts in product mix. Has there been a noticeable change in the types of products being purchased?

Why it matters: Changes in product mix could explain AOV fluctuations. Expected answer: Yes, there's been a shift towards lower-priced items. Impact on approach: If confirmed, we'd investigate factors driving this shift.

• Considering potential technical issues, have there been any reported problems with the checkout process or payment systems?

Why it matters: Technical issues could directly impact purchase completion and AOV. Expected answer: No major technical issues reported. Impact on approach: If issues exist, we'd prioritize technical root cause analysis.