Why has the average order value for Rappi Prime users decreased by 15% in the last month?

Introduction

The recent 15% decrease in average order value (AOV) for Rappi Prime users is a concerning trend that requires immediate attention. As we analyze this product issue, we'll follow a systematic framework to identify, validate, and address the root cause while considering both immediate and long-term implications.

Our approach will involve clarifying the context, ruling out external factors, understanding the product and user journey, breaking down the metric, gathering relevant data, forming hypotheses, conducting root cause analysis, and proposing validation methods and solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decrease coincided with any particular season or event?

Why it matters: Seasonal trends can significantly impact user behavior and spending patterns. Expected answer: No significant seasonal events correlate with the decrease. Impact on approach: If seasonal, we'd focus on cyclical patterns; if not, we'd look more closely at recent changes or issues.

• Considering user segments, I'm curious about the distribution of this decrease. Is the 15% drop consistent across all Prime user segments, or are certain groups more affected?

Why it matters: Identifying specific affected segments can help pinpoint the root cause more accurately. Expected answer: The decrease is more pronounced in newer Prime users. Impact on approach: We'd focus on onboarding processes and early user experience if newer users are more affected.

• Thinking about recent changes, have there been any significant updates to the Prime program or the app in general in the past 1-2 months?

Why it matters: Recent changes often correlate with shifts in user behavior and metrics. Expected answer: A new UI for order recommendations was implemented last month. Impact on approach: We'd investigate the impact of this UI change on user ordering patterns.

• Regarding competitive landscape, has there been any notable change in competitor offerings or marketing strategies recently?

Why it matters: Competitive pressures can influence user behavior and loyalty. Expected answer: No significant changes in competitor strategies have been observed. Impact on approach: If competitive factors are ruled out, we'd focus more on internal factors and user experience issues.