Why are daily active users of the GoodRx mobile app down 20% compared to the previous quarter?

Introduction

The 20% decline in daily active users (DAU) of the GoodRx mobile app compared to the previous quarter is a significant issue that requires immediate attention. As we analyze this product problem, we'll follow a systematic framework to identify, validate, and address the root cause while considering both immediate and long-term implications.

Our approach will involve clarifying the context, ruling out external factors, understanding the product and user journey, breaking down the metric, gathering and prioritizing data, forming hypotheses, conducting root cause analysis, and developing a comprehensive resolution plan.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 20% decline been compared to the same quarter last year?

Why it matters: Seasonal variations could explain the drop and impact our solution approach. Expected answer: Yes, it has been compared, and the decline is still significant. Impact on approach: If seasonal, we'd focus on year-over-year comparisons and cyclical strategies.

• Considering user segments, I'm curious about the distribution of the decline. Is the 20% drop uniform across all user groups, or are certain segments more affected?

Why it matters: Identifying specific affected segments could point to targeted issues or changes. Expected answer: The decline is more pronounced in the 35-50 age group and among users who primarily use the app for prescription discounts. Impact on approach: We'd focus on investigating recent changes or issues specific to these user segments and their primary use cases.

• Thinking about recent changes, have there been any significant updates to the app or changes in the prescription discount landscape in the past quarter?

Why it matters: Recent changes could directly correlate with the decline in DAU. Expected answer: Yes, we implemented a new UI for the prescription search feature and a major competitor launched a similar service. Impact on approach: We'd prioritize analyzing the impact of these changes on user behavior and retention.

• Considering data integrity, I'm wondering if there have been any changes to how we measure or define DAU in the last quarter?

Why it matters: Ensures we're comparing apples to apples and not facing a measurement issue. Expected answer: No changes to DAU definition or measurement systems. Impact on approach: If there were changes, we'd need to recalibrate our analysis based on the new measurement criteria.