Introduction
The share of new Edge+ CSB Bank RuPay cardholders who make their first transaction within 30 days of approval fell from 70% to 55% over two months. Card approvals actually grew in the same period. Activation is the first and most important step for a credit card: a card that is not used in the first month is rarely used at all, and RBI rules require issuers to close cards that stay unactivated beyond a set period unless the customer confirms. This question asks me to find out why activation dropped. I'll work through a structured root cause framework and pay attention to mix shifts, since approvals grew at the same time.
I'll clarify the metric, rule out external factors, map the journey, decompose the metric with cohort and mix cuts, prioritise data, form hypotheses, test them, and then decide and plan a fix.
Step 1
Clarifying Questions (3 minutes)
- Definition: Activation = first successful transaction (UPI, online or physical card) within 30 days of card approval. Correct?
- Is the drop across all cohorts? Assume it is visible in each weekly cohort for the last eight weeks, and getting worse.
- What changed in acquisition? Assume Jupiter recently opened Edge+ applications to people who do not hold a Jupiter savings account, through the app and partner channels.
- Any issuer-side changes? Unknown; CSB Bank may have changed onboarding steps.
- Any app changes? A new card onboarding flow shipped about ten weeks ago.
- Is approval volume up? Yes, approvals grew about 40% in the period.
Problem statement: 30-day activation fell 15 points while approvals grew 40%, after the card was opened to non-Jupiter customers and a new onboarding flow shipped.
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