What caused the sudden 35% decrease in ZestMoney's EMI conversion rate for electronics purchases last week?

Introduction

The sudden 35% decrease in ZestMoney's EMI conversion rate for electronics purchases last week is a critical issue that demands immediate attention. This significant drop in a key performance metric could have far-reaching implications for the company's revenue and customer satisfaction. To address this problem, 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 have been a recent product change. Has there been any update to the EMI offering or checkout process in the last two weeks?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, a minor UI update was implemented. Impact on approach: If confirmed, I'd focus on the UI change as a primary hypothesis.

• Considering the specificity to electronics, I'm wondering about category-specific factors. Have we seen similar drops in other product categories, or is this isolated to electronics?

Why it matters: Helps determine if this is a systemic issue or category-specific. Expected answer: The drop is primarily in electronics. Impact on approach: If isolated, I'd investigate electronics-specific factors like pricing or competition.

• Given the magnitude of the drop, I'm curious about any technical issues. Have there been any reported errors or outages in our EMI processing system?

Why it matters: Technical glitches can cause sudden, significant drops in conversion. Expected answer: No major outages reported, but some intermittent errors. Impact on approach: If errors are confirmed, I'd prioritize technical investigation.

• Thinking about external factors, I'm considering market changes. Has there been any significant shift in the electronics market, like a major sale event from competitors?

Why it matters: External events can dramatically impact consumer behavior. Expected answer: A competitor launched a large promotional campaign. Impact on approach: If confirmed, I'd analyze our competitive positioning and marketing strategy.