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Product Management Analytics Question: Instagram Stories engagement fluctuation analysis chart

Asked at Meta

15 mins

If the Instagram stories engagement rate goes up 10% during the first 7 days, and then decreases 10% in the next 30 days in the US and Spain, what would you do? In the US, the decline has reached a plateau, but in Spain it continues to fall further.

Data Analysis Problem Solving Strategic Thinking Social Media Technology Digital Marketing
Social Media Product Analytics User Retention Engagement Metrics Root Cause Analysis

Introduction

The recent fluctuation in Instagram stories engagement rates in the US and Spain presents a complex product challenge that requires careful analysis and strategic action. To address this issue, I'll employ a systematic approach to identify the root cause, validate hypotheses, and develop both short-term and long-term solutions.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

To gain a comprehensive understanding of the situation, I'd like to ask the following questions:

  • Has there been any recent change in the algorithm for story distribution or visibility?

  • Are we seeing similar trends across different user demographics or content types?

  • Have there been any significant changes in competitor offerings during this period?

  • Are there any known technical issues or outages that coincide with the engagement rate changes?

Why this matters: Understanding recent changes helps pinpoint potential causes. Hypothetical answer: A recent algorithm update was implemented to improve content relevance. Impact: This would focus our investigation on the algorithm's effects on user behavior and content distribution.

Why this matters: Demographic trends could reveal targeted issues or shifts in user preferences. Hypothetical answer: The decline is more pronounced among users aged 18-24. Impact: This would guide us to analyze content preferences and usage patterns of this specific age group.

Why this matters: Competitor actions can significantly influence user engagement on our platform. Hypothetical answer: TikTok launched a new feature similar to Instagram stories during this period. Impact: We'd need to evaluate our competitive positioning and potentially fast-track new features.

Why this matters: Technical issues can directly impact user experience and engagement. Hypothetical answer: No major outages, but there were intermittent loading issues for some users. Impact: This would prompt a deeper technical investigation and potential infrastructure improvements.

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