Why has the average order value for Zalando's beauty products decreased by 20% since the new website redesign?

Introduction

The recent 20% decrease in average order value (AOV) for Zalando's beauty products following a website redesign is a critical issue that demands immediate attention. This analysis will systematically investigate potential root causes, generate data-driven hypotheses, and propose actionable solutions to address the AOV decline.

Step 1

Clarifying Questions (3 minutes)

• Considering the timing, I'm wondering if the redesign altered the product discovery process. Has there been a change in how users navigate to beauty products or in the product recommendation algorithm?

Why it matters: Changes in navigation or recommendations could significantly impact purchasing behavior. Expected answer: Yes, the redesign included changes to the navigation structure and recommendation system. Impact on approach: If confirmed, we'd focus on analyzing user flows and recommendation accuracy.

• Looking at the metric definition, I'm curious about the components of AOV. Has there been any change in how AOV is calculated or in the product mix included in the beauty category?

Why it matters: Ensures we're comparing apples to apples and not missing any definitional changes. Expected answer: No changes in AOV calculation or beauty category definition. Impact on approach: If unchanged, we'd focus on actual user behavior and product performance.

• Considering user segments, I'm wondering if the AOV decrease is uniform across all customer types. Have you noticed any differences in the impact on new vs. returning customers or across different demographic groups?

Why it matters: Helps identify if the issue is widespread or concentrated in specific user segments. Expected answer: The decrease is more pronounced among new customers. Impact on approach: We'd investigate onboarding experiences and first-time user journeys more closely.

• Thinking about concurrent changes, were there any other significant updates to the platform, such as pricing strategies, promotions, or inventory changes, that coincided with the redesign?

Why it matters: Isolates the redesign as the primary factor or identifies other potential contributors. Expected answer: A new promotional strategy was implemented alongside the redesign. Impact on approach: We'd analyze the interplay between the redesign and promotional changes.