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Product Management Root Cause Analysis Question: Investigating sudden drop in virtual gift purchases on live streaming platform
Image of author vinay

Vinay

Updated Dec 4, 2024

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What caused the sudden 30% decrease in virtual gift purchases during prime-time hours yesterday on BIGO Live?

Data Analysis Problem Solving Technical Understanding Social Media Live Streaming Digital Entertainment
Monetization Root Cause Analysis Technical Troubleshooting User Behavior Live Streaming

Introduction

A sudden 30% decrease in virtual gift purchases during prime-time hours on BIGO Live represents a significant disruption to user engagement and revenue. This analysis will systematically investigate potential root causes, prioritize hypotheses, and propose actionable solutions to address this critical issue.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking this could be a technical issue. Was there any scheduled maintenance or unplanned downtime during prime-time hours yesterday?

Why it matters: Technical issues often cause sudden drops in user activity. Expected answer: No scheduled maintenance, but possibility of an unplanned outage. Impact on approach: If confirmed, would prioritize technical investigation.

  • Considering user behavior, I'm curious about content trends. Were there any significant changes in the type or quality of live streams during prime-time yesterday?

Why it matters: Content quality directly impacts user engagement and gift-giving. Expected answer: No major changes noticed, but possible shift in popular streamers' schedules. Impact on approach: Would investigate correlation between top streamers' activity and gift purchases.

  • Thinking about recent updates, has there been any change to the virtual gift purchasing process or UI in the last few days?

Why it matters: UI changes can significantly impact user behavior, especially for frequent actions like gift-giving. Expected answer: Minor UI update rolled out two days ago. Impact on approach: Would focus on analyzing user interaction data pre and post-update.

  • Regarding external factors, were there any major events or competitor promotions that could have drawn users away during prime-time?

Why it matters: External events can temporarily shift user attention and spending habits. Expected answer: No significant known events, but possible localized factors. Impact on approach: Would segment data by region to identify any localized impacts.

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