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Product Management Root Cause Analysis Question: Investigating sudden drop in Zepto app user signups

Asked at Zepto

15 mins

What caused the sudden 30% decrease in new user sign-ups on the Zepto app yesterday?

Data Analysis Problem Solving Hypothesis Testing E-commerce Quick Commerce Food Delivery
Data Analysis User Acquisition Root Cause Analysis Quick Commerce App Performance

Introduction

A sudden 30% decrease in new user sign-ups on the Zepto app is a critical issue that demands immediate attention. This significant drop could have far-reaching implications for user acquisition, growth metrics, and overall business performance. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term fixes and long-term strategies to address the issue.

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 recent change. When exactly did you first notice this 30% decrease?

Why it matters: Pinpointing the exact timeframe helps narrow down potential causes. Expected answer: "We noticed it yesterday morning when reviewing our daily metrics." Impact on approach: A sudden drop suggests an acute issue rather than a gradual decline.

  • Considering user segments, I'm wondering if this affects all user types. Is the 30% decrease consistent across different user demographics or acquisition channels?

Why it matters: Identifying affected segments can reveal targeted issues. Expected answer: "The decrease seems to be across the board, but we haven't done a detailed segmentation analysis yet." Impact on approach: A uniform decrease might indicate a system-wide issue, while segmented impacts could point to specific user journey problems.

  • Given the severity, I'm curious about any recent changes. Have there been any significant updates to the app, marketing campaigns, or backend systems in the past week?

Why it matters: Recent changes are often the culprit in sudden metric shifts. Expected answer: "We pushed a minor UI update two days ago, but nothing major that we can think of." Impact on approach: This information would guide us to investigate recent changes more closely or look for external factors if no significant internal changes occurred.

  • Thinking about data integrity, I'm concerned about potential measurement issues. Can you confirm that the definition of 'new user sign-ups' hasn't changed and that our tracking systems are functioning correctly?

Why it matters: Ensures we're not chasing a phantom problem due to data discrepancies. Expected answer: "As far as we know, nothing has changed in our measurement systems, but we haven't double-checked yet." Impact on approach: If confirmed, we can focus on real-world factors; if uncertain, we'd need to validate our data collection and processing first.

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