Why has Eventbrite's average order value for business conferences declined by 20% compared to the same quarter last year?

Introduction

Eventbrite's 20% decline in average order value for business conferences compared to last year's quarter is a significant issue that requires thorough investigation. This analysis will systematically identify, validate, and address the root cause while considering both immediate and long-term implications for the platform's business conference segment.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has there been any shift in the conference season compared to last year?

Why it matters: Seasonal changes could explain the decline without indicating a deeper problem. Expected answer: No significant shift in conference timing. Impact on approach: If confirmed, we'd focus on non-seasonal factors.

• Considering user segments, I'm curious about the mix of small vs. large conferences. Has there been a change in the proportion of smaller, lower-priced conferences?

Why it matters: A shift in conference size distribution could explain the average order value decline. Expected answer: No significant change in conference size mix. Impact on approach: If confirmed, we'd investigate pricing and value perception issues.

• Thinking about recent product changes, have there been any updates to the pricing structure or fee model for business conferences in the past quarter?

Why it matters: Changes in pricing or fees could directly impact average order value. Expected answer: No major changes to pricing or fee structure. Impact on approach: If changes were made, we'd analyze their specific impact on order values.

• Considering market dynamics, has there been any significant increase in competition or new entrants in the business conference ticketing space?

Why it matters: Increased competition could lead to price pressure and lower order values. Expected answer: Some increase in competition, but not drastically different from previous quarters. Impact on approach: If competition has intensified, we'd focus on competitive positioning and value proposition.

• Regarding data integrity, can we confirm that the definition of "average order value" and the systems measuring it have remained consistent?

Why it matters: Ensures we're comparing apples to apples and not chasing a data anomaly. Expected answer: No changes in metric definition or measurement systems. Impact on approach: If changes occurred, we'd need to recalibrate our analysis based on the new definition.