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Product Management Root Cause Analysis Question: Investigating package delivery service retention rate decline

Why has the customer retention rate for Gokada's package delivery service decreased from 70% to 55% over the past quarter?

Data Analysis Problem Solving Strategic Thinking Logistics Last-mile Delivery E-commerce
User Experience Customer Retention Root Cause Analysis Logistics App Performance

Introduction

The decline in Gokada's package delivery service customer retention rate from 70% to 55% over the past quarter is a critical issue that demands immediate attention. This significant drop could have far-reaching implications for the company's growth and market position. To address this challenge, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

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 there might be seasonal factors at play. Has this decline coincided with any particular season or holiday period?

Why it matters: Seasonal patterns could explain temporary fluctuations in retention. Expected answer: No significant seasonal correlation. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd look deeper into internal factors.

  • Considering the metric itself, has there been any change in how customer retention is calculated or measured?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes in measurement methodology. Impact on approach: If changed, we'd need to recalibrate our baseline; if not, we can proceed with current data.

  • Thinking about user segments, has this decline been uniform across all customer types, or are certain segments more affected?

Why it matters: Helps pinpoint if the issue is global or segment-specific. Expected answer: Decline more pronounced in certain segments. Impact on approach: Segment-specific issues would require targeted solutions.

  • Reflecting on recent changes, have there been any significant updates to the service, pricing, or user interface in the past quarter?

Why it matters: Recent changes could directly impact user experience and retention. Expected answer: Some minor updates, but nothing major. Impact on approach: If major changes occurred, we'd focus on their impact; if not, we'd explore other factors.

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