What caused the sudden 30% decrease in new account openings for E*TRADE's Core Portfolios robo-advisor service last quarter?

Introduction

E*TRADE's Core Portfolios robo-advisor service has experienced a significant 30% decrease in new account openings last quarter. This sudden drop requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could contribute to this decline.

Step 1

Clarifying Questions (3 minutes)

• Considering the timing, I'm wondering if there were any recent changes to the onboarding process. Have there been any updates to the account opening flow in the last 3-6 months?

Why it matters: Changes in user experience can significantly impact conversion rates. Expected answer: Yes, there was a redesign of the account opening process two months ago. Impact on approach: If confirmed, we'd need to closely examine the new flow for potential friction points.

• Looking at the market conditions, I'm curious about the overall trend in robo-advisor adoption. Has there been a general slowdown in the robo-advisor market during this period?

Why it matters: Industry-wide trends could explain the decrease if it's not specific to E*TRADE. Expected answer: The market has seen a slight decline, but not as significant as 30%. Impact on approach: This would suggest that while external factors play a role, internal issues are likely more significant.

• Considering user segments, I'm wondering if the decrease is uniform across all demographics. Do we see any particular user segments more affected than others?

Why it matters: This could point to specific issues affecting certain user groups. Expected answer: The decrease is more pronounced among younger, first-time investors. Impact on approach: We'd need to focus on the value proposition and messaging for this specific demographic.

• Given the sudden nature of the decrease, I'm thinking about potential technical issues. Have there been any reported system outages or performance issues during the account opening process?

Why it matters: Technical problems can have an immediate and significant impact on conversion rates. Expected answer: There were a few minor outages reported, but nothing major. Impact on approach: We'd need to investigate the frequency and impact of these outages on the account opening process.