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Product Management Root Cause Analysis Question: Solving high rice returns for grocery delivery startup

You are a PM at a hyperlocal grocery delivery startup. You see high returns for orders on rice. What could be the root cause? What are your hypothesis? How would you go about solving this?

Problem Solving Data Analysis Hypothesis Testing E-commerce Food Delivery Retail
Root Cause Analysis Customer Satisfaction Product Quality Supply Chain Grocery Delivery

Introduction

As a seasoned product leader, I recognize the critical nature of high return rates for rice orders in our hyperlocal grocery delivery startup. This issue not only impacts customer satisfaction but also affects our operational efficiency and bottom line. I'll approach this problem systematically, focusing on identifying the root cause, generating hypotheses, and developing a comprehensive solution strategy.

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 order patterns, I'm wondering if this is a recent phenomenon. Has there been a significant increase in rice returns over the past few weeks or months?

Why it matters: Timing could indicate a specific trigger event. Expected answer: Yes, a noticeable increase in the last month. Impact on approach: Focus on recent changes in product, packaging, or supply chain.

  • Considering product quality, are the returns primarily for a specific type or brand of rice, or is it across all rice products?

Why it matters: Helps narrow down if it's a supplier-specific issue or a broader problem. Expected answer: Returns are higher for basmati rice across brands. Impact on approach: Investigate basmati rice supply chain and handling processes.

  • Thinking about customer feedback, what reasons are customers giving for these returns?

Why it matters: Direct customer input can provide valuable insights into the problem. Expected answer: Complaints about rice quality, broken grains, or incorrect quantities. Impact on approach: Focus on quality control and packaging processes.

  • Considering our delivery process, has there been any change in how we package or transport rice recently?

Why it matters: Changes in handling could lead to product damage. Expected answer: No significant changes in packaging or transportation. Impact on approach: Look into other factors beyond logistics.

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