Why has TELUS's Optik TV service seen a 15% drop in new subscriptions over the past quarter?

Introduction

TELUS's Optik TV service has experienced a 15% drop in new subscriptions over the past quarter, signaling a significant challenge for the product team. To address this issue, we'll conduct a thorough root cause analysis, examining both internal and external factors that could be contributing to this decline. Our approach will involve systematically identifying potential causes, generating data-driven hypotheses, and developing a comprehensive plan to reverse this trend.

Step 1

Clarifying Questions (3 minutes)

• Considering the timing, I'm wondering if there have been any recent changes to the Optik TV offering. Have there been any significant updates to the product, pricing, or content lineup in the last 3-6 months?

Why it matters: Product changes can directly impact subscription rates. Expected answer: Yes, there were changes to the channel lineup and pricing structure. Impact on approach: If confirmed, we'd focus on analyzing the impact of these specific changes.

• Looking at the market landscape, I'm curious about competitor activities. Have any major competitors launched new services or aggressive promotions during this period?

Why it matters: Competitive pressure can significantly influence subscription rates. Expected answer: A new streaming service entered the market with a competitive offering. Impact on approach: We'd need to assess our value proposition against this new competitor.

• Considering user segments, I'm wondering if the 15% drop is uniform across all customer types. Do we have data on how this decline breaks down across different user segments (e.g., age groups, geographical areas)?

Why it matters: Identifying affected segments can help pinpoint specific issues. Expected answer: The decline is more pronounced in urban areas and among younger demographics. Impact on approach: We'd focus on understanding the needs of these specific segments.

• Thinking about the subscription process, have there been any changes to the sign-up flow or technical issues reported in the past quarter?

Why it matters: Technical problems can directly impact new subscriptions. Expected answer: There were some reported issues with the online sign-up process. Impact on approach: We'd prioritize investigating and resolving these technical challenges.