What caused the sudden spike in failed payments for Zego's pay-as-you-go van insurance product last week?

Introduction

The sudden spike in failed payments for Zego's pay-as-you-go van insurance product last week is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term implications for the product and business.

I'll approach this problem by first clarifying the context, then ruling out external factors before diving deep into the product mechanics, metric breakdown, and data analysis. From there, I'll form hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent product update. Has there been any significant change to the payment system or user interface in the past month?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, a new payment gateway was implemented two weeks ago. Impact on approach: If confirmed, I'd focus on technical integration issues.

• Considering user segments, I'm curious about the distribution of failed payments. Are we seeing this issue across all user types or is it concentrated in a particular segment?

Why it matters: Helps narrow down potential causes and affected users. Expected answer: The issue is primarily affecting new users. Impact on approach: If true, I'd investigate onboarding flows and first-time payment processes.

• Given the nature of pay-as-you-go insurance, I'm wondering about usage patterns. Has there been any unusual spike in policy activations or changes in usage behavior recently?

Why it matters: Unusual activity could strain the system or reveal user experience issues. Expected answer: No significant changes in overall usage patterns. Impact on approach: If confirmed, I'd shift focus from usage-related hypotheses to technical or process-related issues.

• Thinking about potential data discrepancies, has there been any change in how failed payments are defined or measured in our systems?

Why it matters: Ensures we're dealing with a real issue, not a reporting anomaly. Expected answer: No changes to the definition or measurement of failed payments. Impact on approach: If confirmed, I'd proceed with confidence that the data reflects a genuine problem.