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Product Management Root Cause Analysis Question: Investigating sudden drop in PharmEasy app signups
Image of author vinay

Vinay

Updated Jan 5, 2025

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What caused the sudden 50% decrease in new user signups for PharmEasy's mobile app last week?

Data Analysis Problem Solving Strategic Thinking Healthcare E-commerce Mobile Apps
Data Analysis User Acquisition Root Cause Analysis Mobile Apps Healthcare Tech

Introduction

The sudden 50% decrease in new user signups for PharmEasy's mobile app last week is a critical issue that demands immediate attention. This significant drop in a key performance indicator could have far-reaching implications for the company's growth and market position. 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.

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 there might have been a recent app update. Has there been any significant changes or updates to the app in the past two weeks?

Why it matters: Recent changes could directly impact user experience and signup rates. 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 50% drop consistent across all user demographics and regions?

Why it matters: Uneven distribution could point to specific user groups or localized issues. Expected answer: The decrease is more pronounced in urban areas and among younger users. Impact on approach: We'd investigate factors specific to these segments and their app usage patterns.

  • Given the competitive landscape, I'm wondering if there have been any major moves by competitors recently. Have any rival apps launched new features or aggressive marketing campaigns?

Why it matters: External market forces could be drawing potential users away. Expected answer: A competitor launched a new feature and ad campaign two weeks ago. Impact on approach: We'd analyze our competitive positioning and marketing strategy.

  • Thinking about the signup process itself, has there been any change in the onboarding flow or signup requirements recently?

Why it matters: Changes in the signup process could create friction for new users. Expected answer: No recent changes to the signup process. Impact on approach: We'd look more closely at other aspects of the user journey and app performance.

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