How can we explain the 25% decline in new sign-ups for Airtel India's broadband services across Tier 2 cities since the latest price revision?

Introduction

The 25% decline in new sign-ups for Airtel India's broadband services across Tier 2 cities since the latest price revision is a critical issue that demands immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking the price revision might be a key factor. Can you provide details on the magnitude and structure of the price changes?

Why it matters: Understanding the pricing changes helps assess their potential impact on customer behavior. Expected answer: A breakdown of old vs. new pricing tiers and any changes in plan structures. Impact on approach: Significant price increases might lead us to focus more on pricing strategy and value proposition.

• Considering the specificity to Tier 2 cities, I'm wondering about regional factors. Have there been any notable changes in internet infrastructure or competing services in these areas recently?

Why it matters: Regional factors could explain the localized nature of the decline. Expected answer: Information on recent infrastructure developments or competitor activities in Tier 2 cities. Impact on approach: Strong regional factors might necessitate a more localized strategy.

• Given the focus on new sign-ups, I'm curious about retention rates. Has there been any change in churn rates for existing customers during the same period?

Why it matters: This helps distinguish between acquisition and retention issues. Expected answer: Data on churn rates before and after the price revision. Impact on approach: If churn rates are stable, we'd focus more on acquisition strategies rather than overall service quality.

• Thinking about the sales funnel, I'm interested in conversion rates. Has there been any change in the number of inquiries or the conversion rate from inquiry to sign-up?

Why it matters: This helps pinpoint where in the funnel the issue is occurring. Expected answer: Data on inquiry volumes and conversion rates over time. Impact on approach: Changes in inquiry volumes vs. conversion rates would lead to different areas of focus in our solution.