What caused the sudden 30% drop in new user sign-ups for the Dunzo Daily subscription service this month?

Introduction

The sudden 30% drop in new user sign-ups for Dunzo Daily's subscription service this month is a critical issue that demands immediate attention. As we dive into this analysis, we'll systematically explore potential causes, validate hypotheses, and develop a comprehensive plan to address 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 seasonal trend. Has this drop coincided with any particular season or event?

Why it matters: Seasonal patterns could explain the fluctuation and inform our solution approach. Expected answer: No significant seasonal correlation. Impact on approach: If seasonal, we'd focus on anticipating and mitigating annual dips.

• Considering user segments, I'm curious about the demographics affected. Are we seeing this drop across all user groups or is it concentrated in specific segments?

Why it matters: Identifying affected segments helps pinpoint targeted solutions. Expected answer: The drop is more pronounced in younger users aged 18-25. Impact on approach: We'd tailor our investigation and solutions to this demographic's needs and behaviors.

• Thinking about recent changes, have there been any significant updates to the app or subscription model in the past month?

Why it matters: Recent changes could directly impact user behavior and sign-ups. Expected answer: A minor UI update was implemented two weeks ago. Impact on approach: We'd scrutinize the update's impact on the user journey and sign-up process.

• Regarding competitive landscape, has there been any notable activity from competitors recently?

Why it matters: Competitive moves could influence user choices and our market position. Expected answer: A competitor launched a promotional campaign last week. Impact on approach: We'd analyze our value proposition and consider competitive response strategies.