Why are we seeing a 20% decrease in the adoption rate of Checkout.com's Fraud Detection tool among new merchants this month?

Introduction

The recent 20% decrease in the adoption rate of Checkout.com's Fraud Detection tool among new merchants is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the onboarding process. Has there been any modification to the merchant sign-up flow in the past month?

Why it matters: Changes in the onboarding process could directly impact adoption rates. Expected answer: Yes, we updated the UI for merchant registration. Impact on approach: If confirmed, we'd focus on analyzing the new UI's impact on adoption.

• Considering the specificity of the 20% decrease, I'm curious about the baseline. What was the average adoption rate for new merchants before this decline?

Why it matters: Understanding the baseline helps quantify the impact and set realistic recovery goals. Expected answer: The previous adoption rate was around 80%. Impact on approach: This would help us set benchmarks for improvement and assess the severity of the decline.

• Given the focus on new merchants, I'm wondering about existing merchant behavior. Have we seen any changes in the usage patterns of the Fraud Detection tool among existing merchants?

Why it matters: This helps isolate whether the issue is specific to new merchants or part of a broader trend. Expected answer: Existing merchant usage has remained stable. Impact on approach: If confirmed, we'd focus our investigation on factors specifically affecting new merchant onboarding and adoption.

• Considering potential external factors, has there been any significant change in the competitive landscape or pricing structure for fraud detection tools in the past month?

Why it matters: External market forces could be influencing merchant decisions. Expected answer: No major changes in the competitive landscape or pricing. Impact on approach: If confirmed, we'd prioritize internal factors in our investigation.