What caused the sudden spike in application abandonment rates for Better Mortgage's refinance product last week?

Introduction

The sudden spike in application abandonment rates for Better Mortgage's refinance product last week is a critical issue that demands immediate attention. This unexpected change could significantly impact our business metrics and customer satisfaction. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent product change. Have there been any updates to the refinance application process in the past two weeks?

Why it matters: Recent changes often correlate with metric shifts. Expected answer: Yes, a new credit check step was added. Impact on approach: If confirmed, I'd focus on analyzing this new step's impact.

• Considering user segments, I'm wondering if this affects all users equally. Can we break down the abandonment rates by user demographics or loan types?

Why it matters: Helps identify if the issue is universal or specific to certain groups. Expected answer: The spike is more pronounced for first-time refinancers. Impact on approach: I'd investigate factors specific to new refinancers' experience.

• Given the sudden nature of the spike, I'm curious about any external events. Were there any significant market changes or competitor actions last week?

Why it matters: External factors can dramatically influence user behavior. Expected answer: Interest rates increased slightly, but no major market shifts. Impact on approach: I'd consider how rate changes might affect user decisions.

• Thinking about data integrity, I want to confirm our metrics are accurate. Has there been any change in how we track or calculate abandonment rates?

Why it matters: Ensures we're solving a real problem, not a data anomaly. Expected answer: No changes to tracking or calculation methods. Impact on approach: If confirmed, I'd focus on user behavior rather than data issues.