Why has customer retention for IHS Markit's Maritime & Trade analytics platform declined by 8% year-over-year?

Introduction

The 8% year-over-year decline in customer retention for IHS Markit's Maritime & Trade analytics platform 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 and business.

To tackle this challenge, I'll follow a structured approach that covers issue identification, hypothesis generation, validation, and solution development. My goal is to provide a comprehensive analysis that not only pinpoints the cause of the retention drop but also outlines actionable steps to reverse the trend and strengthen the platform's position in the market.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a specific event or change that triggered this decline. When exactly did you first notice the retention rate starting to drop?

Why it matters: Pinpointing the onset helps narrow down potential causes. Expected answer: The decline began about 6 months ago. Impact on approach: A sudden drop would suggest a specific trigger, while a gradual decline might indicate a broader issue.

• Considering the nature of the platform, I'm wondering if this decline is uniform across all user segments. Have you noticed any particular user groups or industries more affected than others?

Why it matters: Segmentation could reveal targeted issues or changing market dynamics. Expected answer: The decline is more pronounced among smaller shipping companies. Impact on approach: This would focus our investigation on features or pricing structures that might disproportionately affect smaller clients.

• Given the competitive landscape, I'm curious about any recent changes in the market. Have there been any significant moves by competitors or new entrants in the past year?

Why it matters: External factors could be drawing customers away. Expected answer: A new player entered with a lower-priced offering about 9 months ago. Impact on approach: This would prompt an analysis of our value proposition and pricing strategy.

• Considering the critical nature of analytics platforms, I'm thinking about potential technical issues. Have there been any major platform updates, downtime, or performance issues reported in the last year?

Why it matters: Technical problems can significantly impact user satisfaction and retention. Expected answer: There was a major update 8 months ago, with some initial stability issues. Impact on approach: This would direct our focus to technical root causes and the need for improved release management.