What factors are causing the decline in new credit card applications for Axis Bank's Flipkart co-branded card this quarter?

Introduction

The decline in new credit card applications for Axis Bank's Flipkart co-branded card this quarter presents a complex challenge requiring thorough analysis. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for the product and business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been observed in previous years during the same quarter?

Why it matters: Helps distinguish between cyclical trends and unique issues. Expected answer: No, this decline is unusual for this quarter. Impact on approach: If seasonal, we'd focus on optimizing for the cycle; if not, we'd dig deeper into recent changes.

• Considering user segments, I'm curious about the application funnel. Are we seeing a drop in initial interest or an increase in abandonment during the application process?

Why it matters: Pinpoints where in the user journey the problem is occurring. Expected answer: There's a significant increase in abandonment rates midway through the application. Impact on approach: We'd focus on streamlining the application process if abandonment is the issue.

• Thinking about recent changes, have there been any updates to the card's benefits or the application process in the last quarter?

Why it matters: Identifies potential internal causes for the decline. Expected answer: Yes, we recently updated the rewards structure and tweaked the online application form. Impact on approach: We'd analyze these changes and their potential impact on user perception and behavior.

• Considering market dynamics, has there been any significant change in competitor offerings or marketing strategies recently?

Why it matters: Helps assess external factors influencing consumer choice. Expected answer: A major competitor launched a new card with aggressive cashback offers. Impact on approach: We'd need to evaluate our value proposition against new market offerings.