How can we explain the unexpected 25% decline in Portico preservation service renewals among small colleges in the last 6 months?

Introduction

The unexpected 25% decline in Portico preservation service renewals among small colleges in the last 6 months is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term and long-term implications for our product and business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this decline been observed in previous years during the same period?

Why it matters: Helps distinguish between cyclical patterns and genuine problems. Expected answer: No, this decline is unusual for this time of year. Impact on approach: If seasonal, we'd focus on improving off-season retention strategies.

• Considering the specific segment affected, I'm curious about any changes in our pricing or packaging for small colleges. Have we made any adjustments to our offering for this segment recently?

Why it matters: Pricing changes could directly impact renewal decisions. Expected answer: No significant changes in pricing or packaging in the last year. Impact on approach: If pricing isn't the issue, we'd need to look deeper into product value or market conditions.

• Given the magnitude of the decline, I'm wondering about our communication and engagement with these institutions. Have we noticed any changes in our interaction patterns or response rates from small colleges?

Why it matters: Decreased engagement could signal dissatisfaction or changing needs. Expected answer: Some decrease in engagement metrics, but not proportional to the renewal decline. Impact on approach: If engagement has dropped, we'd prioritize investigating our customer success and support processes.

• Considering potential external factors, has there been any significant change in the regulatory environment or funding landscape for small colleges in the past year?

Why it matters: External pressures could be forcing budget cuts or changing preservation priorities. Expected answer: Some budget pressures, but no major regulatory changes. Impact on approach: If external factors are significant, we might need to adjust our value proposition or explore new partnership models.