Why has Skillz's Cash Games feature seen a 15% drop in daily active users over the past month?

Introduction

The recent 15% drop in daily active users for Skillz's Cash Games feature is a concerning trend that requires immediate attention and a thorough analysis. To address this issue, 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.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this 15% drop been consistent across all user segments, or are certain groups more affected?

Why it matters: Understanding user segmentation helps pinpoint if this is a global issue or specific to certain user types. Expected answer: The drop is more pronounced in casual players rather than high-stakes users. Impact on approach: If true, we'd focus on retention strategies for casual players.

• Considering recent updates, I'm curious if any significant changes were made to the Cash Games feature in the past 1-2 months. Have there been any updates to game mechanics, user interface, or payout structures?

Why it matters: Recent changes could directly correlate with the user drop. Expected answer: A new matchmaking algorithm was implemented 6 weeks ago. Impact on approach: This would shift our focus to analyzing the impact of the new algorithm on user experience.

• I'm wondering about external factors. Has there been any notable shift in marketing spend or user acquisition strategies during this period?

Why it matters: Changes in user acquisition could affect the quality and retention of new users. Expected answer: Marketing spend has remained consistent, but there's been a shift towards influencer marketing. Impact on approach: We'd need to evaluate the effectiveness of the new marketing strategy on user retention.

• Thinking about competitive landscape, have any major competitors launched new features or promotions that might be drawing users away?

Why it matters: External competitive forces could be causing users to explore alternatives. Expected answer: A competitor launched a similar feature with higher initial bonuses two months ago. Impact on approach: We'd need to assess our value proposition and potentially adjust our offering to remain competitive.