What caused the sudden 30% decrease in new user signups for Grubhub's mobile app in the last week?

Introduction

The sudden 30% decrease in new user signups for Grubhub's mobile app in the last week is a critical issue that demands immediate attention. This significant drop in a key performance indicator could have far-reaching implications for user acquisition, revenue, and overall business growth. To address this problem, 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 app update. Has there been any significant changes or updates to the Grubhub app in the past two weeks?

Why it matters: Recent changes could directly impact user experience and signup flow. Expected answer: Yes, there was an update released 10 days ago. Impact on approach: If confirmed, we'd focus on analyzing the changes in that update.

• Considering user segments, I'm curious about the distribution of the decrease. Is the 30% drop uniform across all user segments and geographical areas?

Why it matters: Helps identify if the issue is global or specific to certain user groups or regions. Expected answer: The decrease is more pronounced in urban areas and among younger users. Impact on approach: We'd prioritize investigating factors specific to these segments.

• Given the competitive landscape, I'm wondering about external factors. Have there been any significant changes or promotions from major competitors in the past week?

Why it matters: Competitor actions could be drawing potential users away from Grubhub. Expected answer: DoorDash launched a major promotional campaign last week. Impact on approach: We'd need to consider both internal issues and competitive pressures.

• Thinking about the signup process, I'm interested in the funnel metrics. Can we see a breakdown of where in the signup process users are dropping off compared to previous weeks?

Why it matters: Pinpoints exactly where in the user journey the problem is occurring. Expected answer: There's a significant increase in dropoffs at the payment information step. Impact on approach: We'd focus on investigating issues related to that specific step in the signup process.