Why has the number of new merchant signups for Yoco Go dropped by 30% in the past month?

Introduction

The recent 30% drop in new merchant signups for Yoco Go is a critical issue that demands immediate attention. As we analyze this product challenge, I'll employ a systematic framework to identify, validate, and address the root cause while considering both short-term and long-term implications for our business.

To tackle this problem effectively, I'll start by clarifying key details, rule out external factors, and then dive deep into our product ecosystem and user journey. We'll break down the metric, gather relevant data, form hypotheses, and conduct a thorough root cause analysis. Finally, we'll develop a comprehensive plan to validate our findings and implement solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this 30% drop been compared to the same period last year?

Why it matters: Seasonal trends could explain the fluctuation and impact our solution approach. Expected answer: Yes, it's been compared and the drop is unusual for this time of year. Impact on approach: If seasonal, we'd focus on year-over-year comparisons; if not, we'd investigate recent changes.

• I'm curious about our acquisition channels. Have we seen any significant changes in the performance of our marketing campaigns or referral programs recently?

Why it matters: Changes in acquisition strategies could directly impact new signups. Expected answer: No major changes in marketing efforts or spend. Impact on approach: If unchanged, we'd look more closely at product or market factors; if changed, we'd analyze campaign effectiveness.

• Considering potential technical issues, have there been any recent updates to the Yoco Go onboarding process or infrastructure?

Why it matters: Technical glitches or UX changes could be deterring new merchants. Expected answer: A minor update was pushed two weeks ago. Impact on approach: If there were changes, we'd prioritize technical investigation; if not, we'd focus more on external factors or user behavior.

• I'm wondering about our competitive landscape. Have any major competitors launched new products or promotions in the past month?

Why it matters: Competitive pressures could be drawing potential merchants away from Yoco Go. Expected answer: One competitor introduced a fee waiver for new signups. Impact on approach: If competition has intensified, we'd need to reassess our value proposition and pricing strategy.