What factors are causing the increased abandonment rate for Citi's online credit card applications in the past quarter?

Introduction

The increased abandonment rate for Citi's online credit card applications in the past quarter is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into the product journey, metric breakdown, and data analysis. From there, I'll form hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this increase in abandonment rate coincided with any particular time of year or event?

Why it matters: Seasonal trends could explain fluctuations and inform our solution approach. Expected answer: No significant seasonal correlation observed. Impact on approach: If seasonal, we'd need to compare year-over-year data; if not, we'll focus on recent changes.

• Considering user segments, I'm curious if this is affecting all applicants equally. Have you noticed any differences in abandonment rates across user demographics or credit score ranges?

Why it matters: Identifying affected segments could point to specific issues or user needs. Expected answer: Higher abandonment rates among younger applicants and those with lower credit scores. Impact on approach: We'd tailor our investigation and solutions to these specific user groups.

• Thinking about recent changes, have there been any updates to the application process, UI, or backend systems in the past quarter?

Why it matters: Recent changes often correlate with shifts in user behavior. Expected answer: A new credit check API was implemented, and the UI was slightly modified. Impact on approach: We'd focus on these changes as potential root causes.

• Regarding performance metrics, has there been any change in how abandonment rate is calculated or tracked?

Why it matters: Ensures we're comparing apples to apples in our data analysis. Expected answer: No changes in calculation method or tracking systems. Impact on approach: If changed, we'd need to recalibrate our analysis; if not, we can proceed with historical comparisons.