Why has Rentomojo's furniture rental conversion rate dropped by 15% in the last month?

Introduction

The recent 15% drop in Rentomojo's furniture rental conversion rate is a critical issue that demands immediate attention. As we delve into this problem, we'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

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

Why it matters: Seasonal trends can significantly impact rental behaviors. Expected answer: No specific seasonal event correlates with the drop. Impact on approach: If seasonal, we'd focus on cyclical patterns; if not, we'd investigate recent changes.

• Considering user segments, I'm curious if this drop is uniform across all customer types. Have you noticed any particular segment being more affected?

Why it matters: Identifying affected segments can pinpoint specific issues. Expected answer: The drop is more pronounced in first-time renters. Impact on approach: We'd focus on onboarding and first-time user experience if this is the case.

• Thinking about recent changes, have there been any updates to the product, pricing, or marketing strategies in the last 1-2 months?

Why it matters: Recent changes often correlate with performance shifts. Expected answer: A new UI for the product selection page was implemented. Impact on approach: We'd scrutinize the impact of this UI change on user behavior.

• Regarding the conversion rate calculation, has there been any change in how it's measured or in the systems tracking it?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes in measurement or tracking systems. Impact on approach: If changed, we'd need to recalibrate our analysis based on the new methodology.