Why has Notarize's business notary service experienced a 15% decline in average transaction value since the beginning of the quarter?

Introduction

Notarize's business notary service has experienced a 15% decline in average transaction value since the beginning of the quarter, raising concerns about the product's performance and potential underlying issues. To address this challenge, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been observed in previous quarters or is it unique to this one?

Why it matters: Helps distinguish between cyclical patterns and new issues. Expected answer: No similar decline in previous quarters. Impact on approach: If seasonal, we'd focus on adapting to cyclical changes; if new, we'd investigate recent changes or market shifts.

• Considering user segments, I'm wondering if this decline is uniform across all customer types. Have you noticed any particular customer segments more affected than others?

Why it matters: Identifies whether the issue is widespread or localized to specific user groups. Expected answer: The decline is more pronounced in small business customers. Impact on approach: If segment-specific, we'd tailor solutions to those users; if universal, we'd look at broader product or market issues.

• Thinking about recent changes, has there been any significant product updates or pricing changes implemented at the start of the quarter?

Why it matters: Helps isolate potential internal causes for the decline. Expected answer: A new pricing structure was introduced for high-volume users. Impact on approach: If recent changes correlate with the decline, we'd focus on those specific alterations; if not, we'd explore external factors more deeply.

• Considering competitive landscape, have you observed any notable changes in competitor offerings or marketing strategies recently?

Why it matters: Assesses external market pressures that could be impacting our performance. Expected answer: A major competitor launched a lower-priced service last month. Impact on approach: If competitive pressures are significant, we'd prioritize market positioning and differentiation strategies; if not, we'd focus more on internal factors.