Why has the average time to sell a car on Cazoo's platform increased by 20% over the past month?

Introduction

The recent 20% increase in average time to sell a car on Cazoo's platform is a concerning trend that requires immediate attention. This analysis will systematically investigate potential root causes, validate hypotheses, and propose targeted solutions to address this issue. We'll examine both internal and external factors, considering technical, user behavior, and market-related aspects to develop a comprehensive understanding of the problem.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this increase coincided with any particular time of year or event?

Why it matters: Seasonal trends can significantly impact car sales and help us differentiate between cyclical patterns and genuine issues. Expected answer: Information about the time of year and any relevant events. Impact on approach: If seasonal, we'd focus on year-over-year comparisons and adjust our strategies accordingly.

• Considering potential changes in the market, have there been any significant shifts in inventory composition or pricing strategies recently?

Why it matters: Changes in inventory or pricing could directly affect time-to-sell metrics. Expected answer: Details about recent inventory or pricing changes. Impact on approach: If confirmed, we'd investigate the impact of these changes on customer behavior and purchasing decisions.

• Thinking about user experience, have there been any recent updates to the platform that might affect how users interact with listings?

Why it matters: UX changes can significantly impact user behavior and, consequently, sales velocity. Expected answer: Information about recent platform updates or changes. Impact on approach: If updates have occurred, we'd focus on analyzing user behavior pre and post-changes.

• Considering data integrity, has there been any change in how we measure or calculate the average time to sell?

Why it matters: Ensures we're comparing apples to apples and not dealing with a measurement issue. Expected answer: Confirmation of consistent measurement methods or details of any changes. Impact on approach: If measurement changes are identified, we'd need to recalibrate our analysis based on the new methodology.