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Product Management Root Cause Analysis Question: Investigating sudden e-commerce transaction decline on Tokopedia platform
Image of author vinay

Vinay

Updated Nov 29, 2024

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What caused the sudden 30% decrease in completed transactions on Tokopedia's marketplace yesterday?

Problem-Solving Data Interpretation Strategic Thinking E-commerce Fintech Retail
User Experience E-Commerce Data Analysis Root Cause Analysis Crisis Management

Introduction

The sudden 30% decrease in completed transactions on Tokopedia's marketplace yesterday is a critical issue that demands immediate attention. As we dive into this analysis, we'll systematically explore potential causes, gather relevant data, and develop a strategic plan to address the root cause while considering both short-term fixes and long-term implications for the platform.

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 this could be a technical issue. Has there been any recent deployment or system update in the last 48 hours?

Why it matters: Recent changes often correlate with sudden performance drops. Expected answer: Yes, a new payment gateway was integrated yesterday morning. Impact on approach: If confirmed, we'd focus on the payment system and its integration.

  • Considering user segments, I'm curious about the distribution of the decrease. Is the 30% drop uniform across all user types and product categories?

Why it matters: Uneven distribution could point to specific user or product-related issues. Expected answer: The decrease is more pronounced in high-value transactions and certain product categories. Impact on approach: We'd investigate category-specific factors and high-value transaction processes.

  • Thinking about external factors, have there been any significant economic news or events that could impact consumer behavior?

Why it matters: External events can cause sudden changes in purchasing patterns. Expected answer: No major economic news, but a competitor launched a big promotion yesterday. Impact on approach: We'd consider competitive analysis and our market positioning.

  • Regarding system health, are all monitoring systems functioning correctly, and has the definition of "completed transaction" remained consistent?

Why it matters: Ensures we're working with accurate data and consistent metrics. Expected answer: All systems are operational, and metrics definitions haven't changed. Impact on approach: Confirms the issue is real and not a data anomaly, focusing our efforts on actual causes.

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