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Product Management Root Cause Analysis Question: Investigating sudden decrease in Hay Day's in-app purchases

What caused the sudden 30% decrease in in-app purchases for Hay Day following the latest update?

Data Analysis Problem Solving Strategic Thinking Mobile Gaming Free-to-Play Social Gaming
Data Analysis Mobile Gaming Monetization Root Cause Analysis User Behavior

Introduction

The sudden 30% decrease in in-app purchases for Hay Day following the latest update is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for the product.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into the product, user journey, and metrics. From there, I'll form data-driven hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking this might be related to the update. Can you confirm when exactly the update was released and when the decrease was first noticed?

Why it matters: Establishes a clear timeline for the issue. Expected answer: Update released on [date], decrease noticed within 48 hours. Impact on approach: Helps narrow down potential causes related to the update.

  • Considering user segments, I'm curious if this decrease is uniform across all user types. Have you noticed any differences in the impact on new vs. long-term users?

Why it matters: Identifies if the issue is user-segment specific. Expected answer: Long-term users more affected than new users. Impact on approach: Focuses investigation on features or changes that might impact experienced users more.

  • Thinking about the nature of in-app purchases, I'm wondering if this is a decrease in the number of transactions or the average transaction value. Can you provide more detail on this?

Why it matters: Pinpoints whether it's a frequency or value problem. Expected answer: Primarily a decrease in the number of transactions. Impact on approach: Directs focus to factors affecting purchase decisions rather than pricing issues.

  • Considering potential technical issues, have there been any reports of payment processing problems or app crashes during purchase attempts?

Why it matters: Rules out or confirms technical barriers to purchases. Expected answer: No significant increase in reported technical issues. Impact on approach: If confirmed, would shift focus from technical to UX or value proposition issues.

  • Reflecting on the update itself, were there any significant changes to the in-app purchase process or the items available for purchase?

Why it matters: Identifies direct changes that could affect purchasing behavior. Expected answer: Minor UI changes to the store, no major changes to available items. Impact on approach: If significant changes, would focus on those specific alterations and their impact on user behavior.

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