What caused the sudden 30% decrease in in-app purchases for Zynga's Words With Friends yesterday?

Introduction

A sudden 30% decrease in in-app purchases for Zynga's Words With Friends is a critical issue that demands immediate attention and thorough analysis. This significant drop in revenue could have far-reaching implications for the game's sustainability and Zynga's overall business performance. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent update. Has there been any significant app update or feature release in the past week?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, a major update was released two days ago. Impact on approach: If confirmed, I'd focus on analyzing the changes in that update.

• Considering user segments, I'm wondering if this decrease is uniform across all user groups. Can you provide a breakdown of the in-app purchase decrease by user segments (e.g., new vs. returning users, high-value vs. low-value spenders)?

Why it matters: Identifying affected segments helps narrow down potential causes. Expected answer: The decrease is more pronounced among returning, high-value users. Impact on approach: I'd investigate factors specifically affecting loyal, high-spending users.

• Given the abruptness of the change, I'm curious about technical issues. Have there been any reported server outages, payment processing problems, or app crashes in the last 48 hours?

Why it matters: Technical issues can directly impact users' ability to make purchases. Expected answer: No major technical issues reported. Impact on approach: If confirmed, I'd shift focus to non-technical factors.

• Considering external factors, I'm thinking about competitive moves. Has any major competitor launched a significant promotion or new feature recently?

Why it matters: Competitive actions can quickly shift user behavior. Expected answer: No notable competitor actions in the past week. Impact on approach: If confirmed, I'd focus more on internal factors and user behavior changes.