How did Apply Digital's digital strategy consulting service experience a 40% decline in repeat business from enterprise clients in Q2?

Introduction

Apply Digital's 40% decline in repeat business from enterprise clients in Q2 signals a critical issue in their digital strategy consulting service. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Is Q2 typically a slower period for enterprise client engagements?

Why it matters: Seasonality could explain the decline and inform our solution approach. Expected answer: Q2 is usually consistent with other quarters. Impact on approach: If seasonal, we'd focus on Q2-specific strategies; if not, we'd look at broader issues.

• Considering the magnitude of the decline, I'm wondering about recent changes. Have there been any significant alterations to the service offering or pricing structure in the past 3-6 months?

Why it matters: Recent changes could directly impact client retention. Expected answer: No major changes to core offerings or pricing. Impact on approach: If changes occurred, we'd analyze their impact; if not, we'd explore other factors.

• Given the focus on repeat business, I'm curious about client satisfaction. Do we have Net Promoter Score (NPS) or similar feedback metrics for Q1 and Q2?

Why it matters: Client satisfaction is a key driver of repeat business. Expected answer: NPS has remained stable. Impact on approach: A drop in NPS would suggest service quality issues; stability would point us elsewhere.

• Thinking about enterprise clients specifically, I'm wondering about our competitive landscape. Have any major competitors launched new services or aggressive pricing strategies recently?

Why it matters: Competitive pressures could be drawing clients away. Expected answer: No significant changes in competitor offerings. Impact on approach: If competition has intensified, we'd focus on differentiation; if not, we'd look internally.